LCD TVs are on a hike these days as the technology has been well acknowledged around the world. There has been several moves from the manufacturers around the world in the field of LCD TVs in order to cater more and more attention from different parts of the world. Many of the top notch manufacturers around the world are moving ahead in this arena with the LCD TV technology advancing every minute.
Gome Electrical Appliances Holding Ltd., a China based company, has signed a contract with Sharp Corp. in order to join hands in the distribution of LCD Televisions in the stores around the country. The contract is said to be the largest one in the history of Gome Electrical Appliances Holding and Sharp Corp. The contract value is further extended by almost 70% higher worth this year compared to an year back.
Gome Electrical Appliances Holding Ltd.:
Gome Electrical Appliances Holding Ltd. is the largest of the electronics retailers around China by the market value. The company has the largest network in China in terms of size that deals with electronic goods and consumer goods. It has around more than 1000 stores in China on the whole that are readily providing people from all walks with electronic goods that they want.
Sharp Corp. on the other hand is the Japanese electronics making company that designs and manufactures top notch products. The company has been working for almost a century now producing the best quality consumer electronics. LCD TVs are a specific domain that Sharp Corp. excels in. The Sharp Aquos is a complete range of the company that is dealing with LCD TV and HD LCD TVs.
6 Billion Yuan Contract ($885 million):
Both the companies have signed a contract worth of 6 Billion Yuan on LCD TV sales. Gome Electronics is going to distribute the Sharp Corp. LCD Televisions all across the China. This will expand the product distribution around China and make sure that Sharp LCD TV is in approach of everyone from China as well. The overall deal was $885 million in worth.
The contract is going to run between 1st July 2010 to the end of this year. Gome had 1141 stores precisely in 2009 and the company has plans to expand the number of stores to 2000 by year 2014. The company intends to start up with 120 more stores this year to achieve the target set for year 2014.
The deal was quite profitable to Gome and just after the announcement of the contract, a 1.6 percent rises in the share value was noticed and hovered around HK$2.62. Gome will offer the top five exclusive products of Sharp Corp. in the said range of LCD Televisions. These include the Large-size LCD TVs, LED TVs, and 3D TVs that are certainly the most acknowledged by people around the world.
After this contract, the working of Gome Electronics is going to become a joint venture of both the companies where Sharp is going to assist Gome in setting marketing strategies and store management. Sharp will further assist Gome with product selection as well as logistics making the chain of stores develop and pace up.