Chinese Online Class - Dell might have to log into a new sales model

BIZCHINA / Weekly Roundup

Dell might have to log into a new sales model

By Wang Xing (China Daily)
Updated: 2007-05-23 10:16

Dell's competitors, including Lenovo and HP, have all been building a
nationwide retail network and have a fast-expanding retail team.

"I think Dell may have some internal debates about its direct sales model
but they will not make it public, since any wavering on that established
model will affect the company's current customers," Ye said.

But changes may already have been set in motion.

In March, Dell kicked off its first Chinese-language company blog to get
closer to its consumers. CEO Michael Dell announced the same month the
debut of a low-cost PC priced at 2,599 yuan, aimed at rural consumers.

The most remarkable change, however, has been Dell's rapid opening of
user experience centers, where customers can touch and feel Dell's
products before making a purchase decision (though users still can't buy
products directly from these centers).

The company plans to open two to three centers in different cities in the
following quarter, and they will not be located "only in China's big
cities".

"The direct sales model has been a revolution, but is not a religion,"
said Michael Dell in a memo to employees last month. "We'll continue to
improve our business model, and go beyond it, to give our customers what
they really need."

(China Daily 05/23/2007 page15)

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