retail outlets
In addition to distributing products via third-party retailers, Guangzhou Global Telecom is able to deliver products directly to consumers via its retail outlets. Guangzhou Global Telecom currently owns and operates ten retail locations in Guangzhou, which allow consumers to buy handsets and phone cards and sign up for additional services.
Guangzhou Global Telecom is in the process of greatly increasing its retail presence. A new subsidiary company is opening in Macau and six new chain stores will soon be set up in Haizhu, Yuexiu and Baiyun, the three main districts in Guangzhou. At the same time, Guangzhou Global Telecom is embarking on a strategy to open retail outlets in underserved markets in rural China. Telecom analysts agree the rural market represents the biggest opportunity for growth in this sector.
The retail sales channel allows Guangzhou Global Telecom to sell direct to the consumer and to cross-sell additional value-added services and add-on products. Guangzhou Global Telecom anticipates building strong customer relationships in the local communities that are served in order to take advantage of future sales from existing loyal customers and through word of mouth advertisement. Selling products and value-added services via a retail presence allows Guangzhou Global Telecom to become part of the community and to enter into exclusive contracts directly with individual consumers.
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