Chinese telecom device maker ZTE and mobile phone retail chain D.phone have reached a strategic cooperation deal to jointly increase the sales of ZTE's phones in D.phone stores.
As the competition in the Chinese smartphone market grows intense and margins shrink, ZTE, which had good performance in the carrier customized product sector, attaches more importance to branding and channel construction. It is now expanding into the medium- and high-end market and seeking development via social channels.
Under the new cooperation, ZTE will consider D.phone its strategic retail partner; meanwhile, D.phone will take ZTE as its major strategic cooperating brand among Chinese smartphone makers. In D.phone stores, they will promote the full line of ZTE products, including the recently launched flagship product Grand S China Telecom customized edition. With the cooperation, the two parties aim at sales of one million ZTE products within 12 months.
In addition, to accelerate the cooperation process, the two parties will implement close collaboration in data information and price management sectors. They will enhance and establish a regular communications mechanism to further promote comprehensive strategic cooperation on both headquarters and branch levels.
Early in April 2013, ZTE announced a CNY100 million program to expand its social channels. According to Zeng Xuezhong, senior vice president of ZTE, the company will first cooperate with the top 30 agencies and social channel providers in China. Under its planning, ZTE will realize its distribution in 1,000 outlets by the end of 2013, and the number is expected to increase up to 4,0000 in the future.