China 3C Group, a major retailer and distributor of consumer and business products, has signed an agreement with Hangzhou Lianhua Huashang Group, a leading retail chain in Zhejiang Province, to open 20 independent retail stores in Hangzhou Lianhua’s supermarkets to sell home electronics.
China 3C, which operates over 600 independent stores in Eastern China, expects the new stores to generate annual revenues of approximately $5 million.
Commenting on the expansion, Zhenggang Wang, CEO of China 3C, said: Our agreement with Hangzhou Lianhua will further strengthen our sales network in Zhejiang Province. We chose the largest among 360 supermarkets and stores of Hangzhou Lianhua to open the new stores. Through further cooperation with the other 340 Hangzhou Lianhua stores, our sales network will be able to reach every county in Zhejiang Province. We believe our expansion into all of China will set up 4,000 retail stores and bring a revenue of $1 billion in 2010.
China 3C specializes in selling communication, information technology and digital 3C products in China through its subsidiary, Zhejiang Yong Xin Digital Technology Company.
Hangzhou Lianhua is one of the largest retail chains in Zhejiang Province with more than 360 supermarkets and stores and more than 10,000 employees. The chain experienced rapid growth since its startup in 1997 with revenues of $600 million in 2005.