Microsoft, Avnet renew efforts to grab Chinese markets

Posted by Andrea Petrou

US companies are looking further into China in a bid to boost business.

This week giant distributor Avnet and Microsoft have separately made railroads into the country. The gossip grapevine suggests that Microsoft has decided to extend its selling channels for its Surface RT tablets, which it previously sold through two distributors- its online store and chain store for electronics, Suning.

The giant had not been able to go through further channels as a result of an exclusive distie deal with Suning, but now sources have said that this deal expired in February, paving the way for Microsoft to pick up new channels. It is also claimed that Microsoft was unhappy about the way Suning had dealt with sales, failing to push Surface and get an advertising network around it.

In a bid to boost sales now, according to the WPDang, turning to four new distribution partners aboard. These include PC Mall, Sundan, One Zero and 360buy.

And its not just Microsoft moving into Chinese circles. Today distie Avnet announced that it was buying Hong Kong's RTI Holdings, RTI Technology China, Eastele Technology China, and DSP Solutions, value-added distributors of telecom equipment and related components in Hong Kong and China.

The company said that it wanted a piece of RTI as a result of its "focused technical expertise," as well as its "strong presence" in the Chinese market.

It is hoped that the purchase will help the company break into the Chinese market, which it has so far struggled to do.