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Dell to Expand in China's Inland Areas


Dell Inc which is the second largest personal computer vendor in China is all set to expand into small cities as the nation pushes itself into urbanization drive.

According to Wang Lijun, head of Dell’s consumer electronics unit in China, some Dell brands are doing well in big cities such as Guangzhou, Beijing and Shanghai, but they need to mark their presence in the vast inland area where 63 percent of people are still living in small cities. Wang admitted that the company is yet to create a strong presence in China’s inland areas. According to Wang, in 2014, tier four to tier six cities will be the major battle field for the company.

The Texas-based Dell Company stated that it plans to double the number of retail stores in China over the next two to three years to build a stronger presence in less-developed domestic areas. This move is seen as a challenge to Lenovo Group Ltd which is the largest computer vendor in China.

Michael Dell, CEO and Company founder is eyeing China as the center of his business and also as the most important market globally. According to a research firm IDC, in 2013, commercial purchases of PCs in China were better than expected in the third quarter, even though the global PC market had declined. Growing demand for tablets and low-end PCs in rural areas and small cities has fueled Chinese purchases.

According to government estimation, about half of China’s population lives in rural areas. By 2020, this figure is estimated to rise by 60 percent. In 1983, Dell was founded by Michael Dell. In 1995, Dell entered Chinese market through exports and in 1998 Dell installed its manufacturing plants in China due to favorable production environment at lower costs.

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