Foxconn reportedly to return to China retail channel

Foxconn Electronics (Hon Hai Precision Industry) reportedly is planning to return to China’s retail channel, but instead of creating a specific department, Foxconn is separating the country into 8-10 areas for each of its sub-business groups to handle one segment, according to industry sources.

The establishment of physical channel has been an important part of its long-term development, and related investment projects have been implemented accordingly, Foxconn said, but declined to elaborate on details.

Foxconn’s latest development echoed company chairman Terry Gou’s recent remarks made after signing an investment pact with Sharp, saying that Foxconn will integrate and optimize its manufacturing strength to enable consumers globally to buy Sharp’s household appliances at affordable prices.

Previously, Foxconn had tried several times to establish its own retail channels in China, but most of them had failed to achieve significant results, said the sources.

Even so, Foxconn has continued its efforts to build its retail channel through the establishment of an online shopping platform, flnet.com, in 2015. The online shopping platform has built a number of experimental shops in China and Taiwan.

One of the group’s subsidiaries has obtained the license from Apple to establish shops to sell Apple’s products in China, the sources noted.

Meanwhile, under the new strategy, each sub-business group will be responsible for implementing its own plans to build up retail channel in the assigned region, as well as for profits and losses, said the sources.