Retail in Asia

In Trends

Hon Hai to add China sales centre

Hon Hai Precision Industry Co, which assembles Apple Inc’s iPhone and iPad, will set up a sales centre in Shanghai as the Taiwan-based contract manufacturer tries to strengthen its distribution services in China’s burgeoning consumer market.

The move comes as China fuels rising demand for smartphones and other gadgets, bolstering the country’s importance for leading consumer-electronics brands such as Apple of the US and Samsung Electronics Co of South Korea. The plan also reflects Hon Hai’s search for a new source of profit amid concerns over rising wages at the company’s Chinese factories.

Hon Hai, commonly known by the trade name Foxconn, said the new Shanghai centre indicates the company’s determination to expand its sales and distribution business in China through online efforts and physical stores across the country.