Wu Fengheng / Yicai2016-12-13
(Yicai Global) Dec. 13 -- VSTECS [HK:00856], the largest IT products and solutions provider and supply chain service platform in the Asia Pacific region, is to enter the retail market in mainland China, sources from the company told Yicai Global.
"We want to explore the model and let others join,” said Li Jialin, chairman of the board of VSTECS.
In the next three to five years, VSTECS will establish thousands of direct retail stores in the mainland, said Yao Jie, executive director and senior vice president of the company.
Product categories will include consumer-level drones, virtual reality products, robots and other emerging electronic products, Yao said.
The company has already begun trials in the mainland retail market, including the establishment of two offline retail stores in Beijing. The pilot stores have achieved profitability, proving that the model can be sustained.
After the model is validated, the company will consider the introduction of retailers to cooperate "so that every link will show a profit,” said Li.
Asked whether its entry into the mainland market would affect its relationship with its mainland channel partners, Li replied "We're not going to do anything to spoil or offend our business partners, or downstream retailers."
VSTECS forecasts an annual sales revenue exceeding CNY100 billion (USD14.45 billion) in the next three to five years and looks to maintain an average annual growth of 15 percent to 16 percent.
E-commerce platforms and new IT services will form the core of its growth strategy, Yao added.
VSTECS is headquartered in Hong Kong and is currently the retail and supply chain partner in the Asia-Pacific region of more than 140 of the world's top 500 technology companies. Its products fall into 12 categories, including cloud computing, mobile internet, software, traditional PCs, peripherals and accessories.