Hu Guohui, chairman of the channel business group of Foxconn Technology Group, a subsidiary of Hon Hai, reported yesterday (April 22) that the first 3C outlet under the joint venture will open by the end of this year, to be joined by another 10 in 201; and the number will hit 200 in five years, challenging the status of the two leading 3C sales-channel operators, Suning and Gome.

Hu pointed out that in the future, the Chinese sales-channel network will cover first-tier through six-tier cities and the company may even replicate the network in Vietnam, India, and Taiwan. The venture is part of the effort of Terry Guo, Hon Hai chairman, to add product design and sales to the group's manufacturing operation, thereby forming a complete vertical service for its clients, according to Hu.

Hon Hai inked a contract with METRO Group last year to jointly establish 3C outlets in China, dubbed Media Market. Hu disclosed that Foxconn will encourage its employees, numbering 780,000 now, to return to their hometown and open small 3C outlets. It plans to provide 350,000-400,000 yuan of low- or no-interest loans to employees with over five years of service at the company to open such outlets.

Foxconn has also extended its reach to the e-commerce market by opening an e-commerce website (www.efeihu.com) based in Shenzhen, which boasted 20 million yuan of revenue in the first month of operation. The operation is headed by Du Jiabin, former president of Cisco China.