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Hon Hai eyeing e-commerce business

2012/06/18 20:21

Taipei, June 18 (CNA) Taiwan's Hon Hai Precision Industry Co., the main manufacturer of Apple Inc. products, said Monday that it plans to sell most consumer electronics products through the Internet instead of traditional shops when it goes into the retail business.

"We will not build a large number of stores. We prefer the model of e-commerce," Hon Hai Chairman Terry Gou said at a shareholders' general meeting. "We are building a special supply chain."

He said that traditional retail channels usually increase company expenses because of store rental fees and fail to provide enough space to demonstrate a variety of products, especially large TVs.

To save rental and advertising costs, Hon Hai plans to take orders through the Internet and ship the latest devices from around 200 plants worldwide, giving its customers the "freshest and most fashionable" products, Gou stated.

"What matters in the e-commerce industry is not how fast you can sell products, but the quality of your products and services, as well as whether your suppliers can deliver on time," the chairman said.

When Hon Hai officially launches its e-commerce business in the future, it will offer a three-day trial for its products and installation services to improve customer satisfaction, gaining a bigger foothold in the virtual economy, Gou said.

Gou's remarks came after CyberMart, a retail business arm of Hon Hai, opened its first shop Friday in Taoyuan in northern Taiwan, which sells a wide range of mobile and digital products, including telephone accounts and broadband installation.

In addition, the Taipei IT Park, which has been under development by CyberMart since July 2011, is expected to open in September or October next year, ahead of the original schedule of 2014, according to the retailer.

Currently CyberMart has 34 outlets in China, mostly in major cities such as Shanghai and Beijing, as well as in second-tier cities. It is also looking for locations in Hong Kong and negotiating with governments in Southeast Asian countries for possible presences there.

(By Jeffrey Wu) ENDITEM/npw