Henleys Distribution Channels for Domestic Appliances in Chinas Transitioning Economy Harvard Case Solution & Analysis

Henleys, one of the largest electronics companies in the world, started importing of home appliances and personal care (DAP) products to the Chinese market in 1990. Shortly thereafter, Henleys is a center DAP production to China, and from among three candidates selected by the state distributor, Dongxi Co, as the sole distributor in Shanghai. For several years, Dongxi developed an extensive network of retailers for a new DAP market in Shanghai, and the average annual growth rate of 200% between 1990 and 1997. Cooperation between the Henleys and Dongxi was productive until 1999, when the effectiveness of Dongxi slid into decline, and many vendors have moved away from the company, including the Deputy Director-General, which was led by DAP distribution. Henleys are faced with a number of decisions on the possible changes in the structure of distribution channels in the business environment is very different from 1990, when Henleys chose distributor decisions. "Hide
by Don Lee Source: University of Hong Kong, 16 pages. Publication Date: January 15, 2003. Prod. #: HKU245-PDF-ENG

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