Digital China Looks to Serve the Little Guy

Posted on April 2, 2008
Filed Under China Business, China Distribution, China SMB |

Hisap, one of the largest IT products retailers in China, has signed a strategic agreement with Digital China, the largest IT distributor and IT services provider in China, to provide a range of services to China’s small and medium enterprises.

According to the agreement, Hisap will purchase RMB1 billion of IT products, including hardware and software and application solutions, from Digital China within the year and increase its purchase from the latter by 50% annually in the coming years.

The two sides plan to open special sections for small and medium enterprises in Hisap’s stores across China to provide professional consulting and interactive solutions for them as well as to explore new marketing means for both parties.

Established in October 2000, Hisap is a Chinese retailer focusing on IT products and related consumer electronics. The company’s sales reached RMB15 billion in 2007 and it plans to increase its chain store number to 250 this year with sales revenue reaching RMB20 billion.

Digital China is an IT product distributor in China that has been actively shifting its business from product to client and from product to service. Guo Wei, chairman and CEO of Digital China, says that the cooperation with Hisap is an important part of the company’s implementation of its business shifting strategy.

Hisap is a leading (it cites IDC for its claim as number one) PC retailer in China. As with big box office equipment retailers in the US, they have specifically targeted SME buyers in their stores:

In every Hisap store, a Business Users Purchasing Station has been set up to serve small business customers. In this section, our professionals design integrated products and network solutions for small business users to suit their unique requirements.

This complete and simple solution includes a free service guaranty satisfying all kinds of small businesses. At the same time, users who became members of the SMB program of HISAP can find networking opportunities at regularly scheduled product training seminars and through the organization mailing list, and they also receive a financial benefit through shopping points accumulated in the SMBâ€™s incentive program.

Hisap already provides basic services such as PC configuration and support, but with Digital China’s broader range of services and expertise there’s an opportunity for both firms to upsell more complex solutions to SME customers.