Dell retail push targets emerging markets

Chinese electronics vendor Gome has agreed to a deal in which 50 of its stores will offer Dell PCs from early October.

The two companies plan to "significantly expand" the programme in the new year.

Dell hopes that the deal will give it a stronger presence in the booming Chinese PC market, which is expected to pump more than US$28bn into IT purchases this year. That market, say experts, is highly reliant on retail outlets.

The Gome deal comes just five days after Dell announced a retail offensive in another emerging market.

Dell founder and chief executive Michael Dell was in Moscow last week to outline plans for a retail outlet to offer Dell PCs and peripherals, as well as a repair service for devices under warranty.

Dell said that the store will be aimed at Russia's growing crowd of small-business and home users, which the company estimates to number more than 28 million.

The two deals mark a continuing effort by Dell to transform itself into a major force in the retail market.

For years, the company thrived under a direct marketing strategy, eschewing retailers and connecting to consumers via the web.

As the company lost much of the consumer market to rival HP, however, it became apparent that Dell would need to supplement its direct model with retail offerings that let consumers see products firsthand before purchasing them.

To build its retail presence, the company has entered into deals with several major retailers, including Walmart in the US and Carphone Warehouse in the UK.