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RadioShack (RSH +0.1%) plans to open stores in China beginning in July under a joint venture...

RadioShack (RSH +0.1%) plans to open stores in China beginning in July under a joint venture with a subsidiary of Cybermart, according to a SEC filing. The stores will offer consumer electronic products, accessories, and related services.
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Comments (3)
  • buyitcheap
    , contributor
    Comments (1901) | Send Message
     
    RSH bonds might be worth a look....
    8 Jun 2012, 10:47 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (10009) | Send Message
     
    RSH should concentrate on their tragic American stores before opening stores in China.
    8 Jun 2012, 02:54 PM Reply Like
  • Seeking Beta To Your Alpha
    , contributor
    Comments (460) | Send Message
     
    Foxconn seems to control Cybermart, who is the RSH partner. RSH will have the minority (49 percent) share of the joint venture. Foxconn is otherwise known as Apple's manufacturer of I-Phone and also secured rights to distribute Apple products in China. If Foxconn (who has some leverage of APPL by controlling the manufacturing of some of the products) is able to secure exclusive rights to distribute, then the Cybermart retail stores will have a good chance at securing a strong foothold in China.

     

    More importantly, it appears that RSH has learned from the mistake of its peers. BBY's initial foray into China was bungled when it tried to impose US Style stores in that country. BBY completely flopped. (As an aside, BBY still failed to learn since it has recently announced plants to open 15 Carphone Warehouse UK stores in China this year). By learning from the mistakes made by other companies (i.e. BBY), and by partnering with an entity (i.e. Foxconn/Cybermart) that has some leverage with arguably one of the most important electronics manufacturers of our time (i.e. APPL), RSH is setting itself up to succeed in a very competitive consumer electronics market in China.

     

    Contrast this with BBY's strategy which has them linked with an overseas company that is considered "stodgy" by Chinese consumers. Links for supporting information are below.

     

    http://bit.ly/L7palI

     

    http://bit.ly/Nd81Za

     

    I'd be interested to see if the story that ran overseas was headlined as: "Foxconn/Cybermart to partner with American company to expand its retail presence in China." Especially since its Foxconn/Cybermart that has the 51 % controlling stake.
    21 Jun 2012, 10:45 AM Reply Like
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