Foxconn Invests RMB 300 Mln in Employee-Owned Store Initiative
Sohu IT, 12/07/10
Louis Woo, head of Taiwanese electronics manufacturer Foxconn's (2038.HK; 2354.TW) channel business group, recently disclosed that Foxconn plans to invest RMB 300 mln to assist former mainland China employees to open approximately 1,000 consumer electronics retail stores in their hometowns.
The RMB 300 mln "Galloping Horses" initiative opened its first store in Foxconn's Longhua production facility in Shenzhen on May 8, 2010. The store has over 200 square meters of floor space and mainly offers home appliances, communications products, and consumer electronics, but is temporarily open only to Foxconn employees. Foxconn has subsequently opened "Galloping Horses" stores in Zhejiang, Shandong, Hunan, and Hubei provinces.
Woo said that each store will receive RMB 300,000 in funds, and individual employees must have approximately RMB 90,000 in starting capital, with the goal of establishing approximately 200 stores by Chinese New Year in February 2011.
Foxconn's initiative aims at opening small entrepreneurial shops in fourth-tier, fifth-tier, and sixth-tier cities via Foxconn employees returning home. Employees who have worked at Foxconn for five years or more can apply to the program. Currently Foxconn has approximately 780,000 employees in mainland China, with at least several thousand participating in the Galloping Horses program.
Keywords: Louis Woo consumer electronics hardware retail Foxconn 2038.HK 2354.TW home appliances production facility contract manufacturer HR investment 4th tier 5th tier 6th tier cross-straits investment
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