Newegg.com Expands in Asia; Opens New Global Product Management Center in Taipei, Adds Customer Support, More Business Operations in Shanghai
July 7, 2005 Press Release
New Global Product Management Center at the Heart of Technology Operations In Asia
Gives e-Marketing Company Early Access to New Products, Efficient Procurement Process
CITY OF INDUSTRY, Calif. – Newegg, the online e-marketer, has expanded the company’s operations in Asia, opening a new Global Product Management Center and Asia Headquarters offices in Taipei and adding several floors of commercial office space for its mainland China operations in Shanghai and in Chengdu.
The company’s primary objective for the new Global Product Management Center in Taiwan, business expansion in Shanghai, and China’s fast developing Global Support Center was to set up direct buying relationships with the leading global manufacturers.
“We were seeing that a larger percentage of our name brand computer, consumer electronics and communications products offered at our online store were manufactured in Asia,” explains Simon Hsieh, CEO of Newegg. “We felt it was mission critical to be at the heart of today’s technology epicenter, closer to our manufacturing partners, so that we could increase the efficiency of our purchasing and product management operations.”
“An Asia based product management operation will also give Newegg early access to the latest tech products for the do-it-yourselfer, PC enthusiast, gamer and small business IT buyer and will provide the company with cost reductions it can pass on to our customers,” Hsieh said. “By being close to our partners, we can have early knowledge of manufacturer product roadmaps, give them feedback on their products from our three million plus registered consumers and work together on co-marketing programs that launch as soon as we receive product in our U.S. warehouses.”
Located in the Neihu District, the major technology center in Taipei, Newegg’s New Asia Headquarters and Global Product Management Center occupies more than 6,000 sq. meters and holds Executive Offices for Newegg as well as Corporate Planning, Product Strategy and Product Management departments.
Newegg’s new Shanghai offices, occupying another 6,000 sq. meters -- an entire floor in the 5A Huaming Empire Plaza, 726 West Yan’an Rd. and another three floors of the Longfeng building at 1566 West Yan’an Rd., both in the Changning Business District, houses Newegg’s Global Support Center which includes Corporate Planning, Product Marketing, Benchmarking facilities, Marketing Research, Customer Support, Human Resources, IT and MIS departments.
“We now have major operations in two of Asia’s important business hubs, giving us the base to expand into other geographic markets,” Hsieh said.
A Chengdu branch houses a large Customer Support operation, allowing Newegg to handle customer service 24/7 and keep its informative website at www.newegg.com up to date with the latest products.
All of Newegg’s Asia-based operations were set up using the latest and most efficient IT technology infrastructure.
“Communications between our U.S. offices and China was another priority,” Hsieh said. “We specialize in delivering the latest technology to our customers, offering them the top brands, the broadest range of products among our competitors, great prices and terrific customer service. That means we have to buy right and get the latest products to our customers before our competitors.”
The company has installed the latest WAN and communications software and custom-built VoIP phone system at the Global Product Management Center in Taipei and offices in mainland China.
Newegg started holding vendor meetings at the new Taiwan facility even before the facility held its official opening.
“Requests for meetings started pouring in from the start,” Hseih said. “We have met with dozens of new vendors at our new facility and our current manufacturing customers are happy to be dealing with us closer to home. Moving to Asia definitely has made us more efficient as a company and built the product base we can offer our customers.”
Established just four years ago in 2001, Newegg had revenues of approximately $1 billion in 2004. Sales are up for the first half of the year and revenues are projected to exceed last year in 2005 by a substantial amount.
“We’ve grown almost 100 percent every year, as more customers learn that we are the place to get the latest digital products at the best value,” said Hsieh. “Now the job is to keep innovating and provide the best value to both our suppliers and customers. We pursue ’eggcellence’ in everything we do.”
Newegg, a new breed of e-marketer, supports its manufacturing partners with marketing activities that help build their brands and promote the sale of their products. This includes posting detailed product information, videos, how-to’s and peer reviews of the products at the site, as well as providing opportunities for consumers to find community interaction.
Newegg also has an extensive marketing program supporting its partners, which includes purchasing search engine terms, online banners at sites reaching the digital customer, print advertising, PR activities and support at trade shows and events, all designed to drive traffic to the site.
“We deliver a power marketplace for their products and a power channel through which they can build their brand. We’re also a powerful medium. We serve up pictures and information on their offerings to more than 400,000 site visitors on average per day,” Hsieh said.
Newegg is an e-marketer - an online computer, consumer electronics and communications product superstore - offering the widest product selection of IT brands and CE brands in the industry. At Newegg, consumers can find product information, how-to’s, customer reviews and opportunities for community interaction.
Founded in 2001, Newegg has more than 3 million registered customers and 900 employees globally. Newegg is headquartered in City of Industry, Calif. For more information, visit www.newegg.com.
Once You Know, You Newegg.
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