China 3C Group, a leading wholesale distributor and retailer operating over 900 retail outlets in Eastern China, entered into a supply agreement with Wal-Mart stores in Zhejiang Province to sell audio electronic equipment, including radios, stereo equipment and CD players, at all six Wal-Mart stores starting April 2008. This allows China 3C Group the possibility of expanding its distribution into other Wal-Mart stores that are located in Eastern China as well as other near provinces in the future. Wal-Mart currently has eighty-one stores in China with thirteen of those stores located in Eastern China.
Mr. Wang Zheng-gang, Chairman and Chief executive Office of China 3C said, “We are thrilled that Wal-Mart is working with China 3C to sell our audio products in their stores. While this agreement is initially expected to have a limited material impact to our business, we believe there is an opportunity to expand our relationship with this retailer in the future to include a broader range of products and increase the total number of stores we have with this partner. Our business is well-suited to work with leading retailers such as Wal-Mart due to our broad product selection, competitive pricing and our ability to operate in a large number of store outlets. Wal-Mart has a strong brand presence and operating capability in China, which we believe can provide China 3C with a very good platform for growth in the Zhejiang province and in other surrounding provinces in the future. We believe this supply agreement further validates the strength of our operating model.”
Mr. Michael Chen, Wal-Mart’s District Manager for the Zhejiang province commented, “Wal-Mart is pleased to reach an agreement with China 3C Group to sell its products in our six stores in the Zhejiang province. China 3C Group is a major provider of electronic consumer goods in Eastern China with many leading consumer brands in its portfolio. We believe the presence of their products in our stores has the opportunity to enhance the overall product offering and enrich the shopping experience for our customers. We look forward to strengthening our relationship with China 3C in the months ahead.”
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