Microsoft The company has closed its official physical stores in mainland China following the suspension of operations in the United States, according to three local retailers. technology Giant companies reorganize retail Business in the world’s second largest economy.
The company told local media on Monday: [all distribution] While the “channel” in mainland China will be closed, consumers will still be able to purchase products and services through the company’s website and certain retail partners. Taobao and JD.com.
Operators of authorized Microsoft stores in mainland China had earlier been notified by the company that their contracts had been terminated and that they must close their stores by June 30, according to three local retailers who declined to be identified.
meanwhile apple While Microsoft operates its own physical stores in China and maintains relationships with local resellers across the country, it has relied solely on independent third-party retailers to build a network of branded franchise stores in mainland China. It is unclear how many local partners will be affected.
Microsoft did not immediately respond to a request for comment Monday.
Microsoft’s consumer sales in mainland China will now only be through its website and other online retail platforms. Photo: Shutterstock
a BeijingChen Feng, a China-based distributor of Microsoft products, said the retail landscape in mainland China is changing and authorised dealers are becoming less important.
“The Chinese market is too small for Microsoft,” Qian said. “If we kept all our stores, we would incur losses.”
The closure of Microsoft’s physical stores in mainland China reflects a strategic shift in its retail business that the Redmond, Washington-based company announced on June 26, 2020.
At the time, the software giant said it would only maintain its Microsoft Experience Centers in London, New York, Sydney and its Redmond campus. The closure of its physical Microsoft Stores resulted in a pre-tax charge of approximately $450 million in the quarter ended June 30, 2020, including asset write-offs and impairments.
Microsoft Stores in mainland China operated under a franchise business model, so the China-based retail network was not affected at the time.
Microsoft Vice Chairman and President Brad Smith speaks during a hearing in Washington, DC, on June 13, 2024. Photo: Bloomberg
At a U.S. Congressional hearing last month, Microsoft’s vice chairman and president Brad Smith The company said China accounted for just about 1.5% of its global revenue.
Smith also confirmed that Microsoft was proposing to move 700 to 800 employees in China overseas. The Post reported in May that some of Microsoft’s mainland employees, particularly those in the country, would be relocating overseas. Azure Cloud Computing Unit I was offered the option of moving abroad. America, Australia and Ireland.
Some Chinese distributors expect to remain as third-party independent retailers of Microsoft, based on the domestic business they have built up over the years.
Authorization Lenovo Group Distributor Stephen Lee said: ShenzhenHe said the company would continue to sell Microsoft laptops and tablets with after-sales service. The only difference, he said, would be that it would no longer be able to advertise its business as an “authorized Microsoft dealer,” which could alienate some customers.
