Major Chinese consumer electronics retailer, China 3C Group, reported sales of $78.5m in the second quarter, up 21.7 per cent from the same quarter one year earlier. Net profits increased 37.3 per cent, to $7.6m, over the same period.
The positive news follows a lacklustre first quarter, in which severe winter weather dampened consumer enthusiasm and hit distribution networks.
"We are pleased to have rebounded from a difficult first quarter with strong sales and net income results for the second quarter," said Zhenggang Wang, chairman and chief executive.
The company attributes the positive results to its intensified promotion efforts around major public holidays during the period. China 3C also stepped up targeted advertising and direct mail campaigns.
The company added 31 new retail locations to bring its total to 1,001. Most operate inside the stores of other retailers such as Wal-mart. The company closed down five non-competitive locations. China 3C aims to have 1,020 outlets by the end of the year.
“We believe we have a strong opportunity to enhance our competitive position in the market by continuing to improve profitability and efficiency per store, develop a broad product selection, selectively open new store-within-stores in established, well-known retail locations, develop customer service programs such as our after sales warranty support programs, and leverage our wholesale business to create new opportunities at the retail level," said Wang
China 3C's online retail partner, 3c800.com, has also seen strong traffic growth during the past few months.
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