Henley, one of the largest electronics companies in the world, begun (DAP) imported household appliances and personal care products in the Chinese market in 1990. Henleys founded soon after, a DAP manufacturing facility in China and chose a state-run distributor, Dongxi Co., from a pool of three candidates, only distributor in Shanghai. For several years Dongxi developed an extensive dealer network for the new DAP market in Shanghai, and the average annual growth rate was 20 … Read more »

Henley, one of the largest electronics companies in the world, begun (DAP) imported household appliances and personal care products in the Chinese market in 1990. Henleys founded soon after, a DAP manufacturing facility in China and chose a state-run distributor, Dongxi Co., from a pool of three candidates, only distributor in Shanghai. For several years Dongxi developed an extensive dealer network for the new DAP market in Shanghai, and the average annual growth rate of 200% between 1990 and 1997. The cooperation between Henley and Dongxi was productive until 1999, when the efficiency Dongxi slipped into decline and many sellers went out of business, including the deputy general manager, who had been for the distribution DAP. Henleys faced a number of decisions on the possible restructuring of distribution channels in a business environment quite different from that of 1990, when Henley had its distributor selection decisions are made.
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from
Don Y. Lee
Source: University of Hong Kong
16 pages.
Publication Date: Sep 25, 2002. Prod #: HKU225-PDF-ENG
Henleys’ distribution channels for home appliances in China’s economy transitioning HBR case solution

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