Ingenuity, ZTE plan 3,000 flagship stores in Malaysia

Ingenuity, ZTE plan 3,000 flagship stores in Malaysia
Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 21 March 2014 13:55

KUALA LUMPUR (Mar 21): Ingenuity Consolidated Bhd and China-listed telecommnication firm ZTE Corp will assess the feasibility of setting up 3,000 flagship stores in Malaysia.

The flagship stores which will sell smartphones, tablets and modems, will require an investment of up to RM70 million, according Ingenuity's statement to Bursa Malaysia today.

Ingenuity and ZTE have signed a memorandum of understanding (MOU) as a prelude to a potential definitive agreement between both companies.

"The parties are to develop 3,000 touch points (kiosks or flagship store) gradually at the cost of RM1,000.00 to RM100,000.00 per touch point depending on the size of each touch point.

"In the event that the MOU leads to a definitive agreement, both parties will jointly invest up to RM70,000,000.00 for setting up the 3,000 touch points for which the actual agreed proportion of the RM70,000,000.00 shall be mutually agreed upon later," Ingenuity said.

The MOU will also open doors for similar business models in other Southeast Asian countries.

According to Ingenuity, ZTE has agreed to grant the former first rights of refusal should business opportunities come along across the region.

"The MOU shall remain in force for twelve (12) months from 20th March 2014 and (both companies) may mutually agree to extend the MOU at the expiry of the duration.

"In the event the MOU results in a definite agreement, we will then make an appropriate announcement accordingly," Ingenuity said.