Sam's Club Blamed For Losses At Chinese Businesses

According to Chinese media, Wal-Mart Shenzhen Sam's Club has been refusing to sell Chinese brand color TV by exclusively selling foreign brand color TV sets since it was relocated to Qiaoxiang Road at the end of 2005.

Chinese media are reporting that the television sales area at the store covers 1000 square meters and is fully stocked with non-Chinese brands like Sony, Samsung, Philips, Toshiba, LG and Sharp. But there is not a trace of Chinese color TV brands.

This particular Sam's Club is reportedly one of the most successful Sam's outlets in China. Prior to the store's relocation in 2005, it reportedly sold many Chinese local brands and included them as its important clients. However, with the relocation done at the end of the year, it changed its strategy and re-positioned itself as a high-end goods seller, and it began to sell foreign brand flat panel TV sets.

In the United States, many consumers blame Wal-Mart for using too many products sourced in China. But according to an executive from a Chinese color TV company who spoke with local media, the change of Wal-Mart's policy has caused serious losses to Chinese television manufacturers.

Besides Wal-Mart, other Chinese local electronics retailers like Gome and Suning have also focused on foreign brand TVs and it is reported that they often place foreign brand TV products at prominent places within their stores and leave the less-conspicuous areas to Chinese brands.

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