Refund lays new channel to boost sales | Shanghai Daily

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December 16, 2009

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Refund lays new channel to boost sales


HOME appliance retailers in Shanghai plan to offer a 10-percent refund to customers who upgrade their cell phone models in a move analysts said could be a new channel to boost sales.

At present, sales of mobile phones account for around 10 percent of their revenue, and analysts said the sector could be a new growth engine for them as the city's cell phone sales are set to hit 7.5 million units this year, of which more than 80 percent would be users upgrading their phones.

"As the cell phone market is recovering from slow demand, handset makers need to tie up with leading retailers" in a bid to generate demand and stimulate growth in the market, said Chen Jing, Shanghai manager for Lenovo's handset department.

Suning, Gome and Yongle will begin offering the refund this weekend in cooperation with industry associations, including Shanghai Household Electric Appliance Profession Association and Shanghai Commercial Trade Association of Household Electric and Electronic Appliances.

Suning will offer the 10-percent refund from Friday without a cap while Gome and Yongle will offer a maximum refund of 200 yuan (US$29).

There will be demand for mobile phones and the 10 percent refund offer by the retailers could become a new way for the home appliance makers to boost sales, said Li Fuchun, secretary general of Shanghai Household Electric Appliance Profession Association.

According to Suning, a previous subsidy for replacing 2G handsets for 3G models has generated sales of 20,000 units in a month.

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