HANGZHOU, China, Feb. 25 /PRNewswire-Asia-FirstCall/ -- China 3C Group (“China 3C” or the “Company”) (OTC Bulletin Board: CHCG), a retailer and wholesale distributor of consumer and business products in China, today announced that it has signed a one year marketing agreement with Shenzhen Vogue Industries Co., Ltd ("Shenzhen Vogue"), a well-known producer of auto electronics and communication electronics in Southern China.
Under the terms of the agreement, one salesperson in each of China 3C’s store-in-store locations will wear Shenzhen Vogue’s promotional shirt for a period of one year to advertise Shenzhen Vogue’s products. China 3C currently has over 1,000 store-in-store locations.
Shenzhen Vogue Industries Co., Ltd, founded in August 1997, is a
high-tech company that integrates R&D, manufacturing, marketing and
after-sale services. It is one of the largest and most well-known GPS manufacturers in Southern China. Shenzhen Vogue recorded approximately USD$150 million in annual sales in 2008.
Mr. Zhenggang Wang, CEO of China 3C, said, "We are pleased to announce this marketing partnership with Shenzhen Vogue, one of our recently announced suppliers. The marketing partnership is expected to provide China 3C with additional revenue and the net margin associated with this advertising agreement significantly exceeds the net margin in our core wholesale and retail businesses.
“China 3C has a large number of suppliers who are in need of marketing services and we plan to continue to develop unique advertising opportunities with our branded suppliers to optimize our profitability. We are one of the largest store-in-store consumer electronics retailers in Eastern China with an extensive customer base. Marketing through China 3C’s retail locations are an efficient and cost-effective way for our suppliers to advertise directly to our large base of customers. Our cost to manage this service is minimal and we expect it to contribute to our profit performance this year.”
Guandong Chen, CEO of Shenzhen Vogue said, "We are very glad to enter into this marketing agreement with China 3C. China 3C has over one thousand retail locations in Eastern China with a high customer flow at each retail location. We strongly believe that our marketing partnership with China 3C can lead to increased product sales and brand visibility."
About China 3C Group
China 3C is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. The company specializes in wholesale distribution and retail sales of 3C products in Eastern China, focusing on products that make life more comfortable, convenient and connected. The company’s goal is to become the number one retailer of 3C products in China. For more information, visit http://www.china3cgroup.com .
Forward-looking Statements
Certain statements set forth in this press release constitute "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have included and from time to time may make in our public filings, press releases or other public statements, certain forward-looking statements, including, without limitation, those under "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K. In some cases these statements are identifiable through the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or words or expressions of similar meaning. You are cautioned not to place undue reliance on these forward- looking statements. In addition, our management may make forward-looking statements to analysts, investors, representatives of the media and others. These forward-looking statements are not historical facts and represent only our beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond our control. There can be no assurance that such forward-looking statements will prove to be accurate and China 3C Group undertakes no obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements.
