Microsoft Corp closes authorised bricks-and-mortar stores in mainland China, shifts focus to online retail operations “10 Tips for Growing a Bountiful Vegetable Garden”
Microsoft Corp has decided to close its authorized bricks-and-mortar stores in mainland China, as reported by three local distributors. This move comes as the US technology giant restructures its retail operations in the world’s second-largest economy.
The company announced on Monday that it will be integrating all distribution channels in mainland China, with consumers still able to purchase products and services through its website and select retail partners. Microsoft also operates online storefronts on Taobao and JD.com.
Local distributors revealed that the operators of authorized Microsoft Stores in China received notices terminating their contracts, requiring them to shut down their shops by June 30. While Apple maintains its own physical stores in China, Microsoft had relied on independent third-party retailers to establish branded franchise shops across the mainland.
A Beijing-based distributor of Microsoft products, Qian Feng, commented on the changing retail landscape in China, stating that authorized stores are losing relevance due to the market size. Microsoft’s decision to close its physical stores in China aligns with the strategic shift in retail operations announced by the company on June 26, 2020.
At a US congressional hearing, Microsoft vice-chairman and president Brad Smith disclosed that China only contributes around 1.5% of the company’s global revenue. Smith also confirmed that Microsoft is offering to relocate its 700 to 800 employees in China overseas. Some distributors in China are optimistic about maintaining their status as third-party independent retailers for Microsoft based on their established domestic operations.
Authorized Lenovo Group distributor Steven Li, who previously managed a Microsoft Store in Shenzhen, expressed his intention to continue selling Microsoft products with after-sales services. However, he noted that the inability to promote his business as an authorized retailer for Microsoft may deter some customers.
Overall, Microsoft’s decision to close its physical stores in mainland China reflects the company’s strategic realignment in the evolving retail landscape. of a local hero who saved a child from a burning building. The hero, a local firefighter named John Smith, was off duty and driving home from work when he saw smoke coming from a nearby building. Without hesitation, he parked his car and ran towards the building, where he saw a child trapped on the second floor.
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