Media Markt Responds to Rumor of Retreating from China
Netease Tech, 1/10/13
Following recent rumors that Media Markt - the consumer electronics retail joint venture between Taiwanese electronics manufacturer Foxconn (2038.HK; 2354.TW) and German wholesale retailer Metro Group - would pull out of the China market, the company issued a statement on January 9 saying that its shareholders are "currently analyzing the data gathered during the market trial stage of operations and evaluating strategies for the company's next move. As assessment and planning are still underway, Media Markt China cannot make any comment at this time."
Media Markt announced the launch of its online store in China on October 18, 2012, accompanied by the launch of what it called a "multichannel strategy." "Given the overall decline in the retail market," Media Markt China CEO Frank Bussalb said at the time, "Media Markt China's development strategy will focus mainly on the online store this year - but we have no plans to discontinue our retail store expansion." In its January 9 statement, Media Markt said that the efforts of Media Markt China's online store are currently focused on improving business operations in the Shanghai market.
Editor's Note: For more background on this topic, please see "Media Markt Launches Online Store" MD 10/19/12 issue.
Keywords: Frank Bussalb consumer electronics retail Foxconn 2038.HK 2354.TW Media Markt Metro Group
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