Chinese electronics manufacturer LeEco closed its only mono-brand store in Russia, which opened in October 2016. The reason for this was the high cost of renting a room in the shopping center “Atrium“, the TASS news agency reported.
“The company store-show LeEco in the shopping and entertainment complex” Atrium “in Moscow stopped working on August 1. … For today there is already no big need for an expensive showroom in the center of Moscow. We analyzed the flow of visitors and sales at this point and came to the conclusion that the cost of renting a store does not justify itself. In this regard, its own brand store was decided to close and focus on sales through partner retail networks and the Internet, “- said the president LeRee (” daughter “LeEco) Victor Xu.
Since then, the company’s products will be sold in the networks of stores MTS, DNS, Eldorado and Know-How. According to TASS, the launch of the first and in fact the only store in Russia cost LeEco $ 1 million. The event passed with a large-scale advertising campaign, product presentations and sales. The management of LeEco planned to open another 150-500 stores before the end of 2018.
Experts believe that the LeEco store was needed only to enter the trade mark on the Russian market. It is normal practice when mono-branded outlets are used for advertising. Recently, the financial situation of LeEco has deteriorated significantly, and Russia remained one of the priority markets for the Chinese company.