LeEco closed the only store in Russia

LeEco closed the only store in Russia

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LeEco was left without any physical stores in Russia

Chinese Internet holding company, specializing in the manufacture and sale of electronics has closed its only store in Russia. The reason was the high cost of rent in the capital’s shopping center “atrium”, which the company was unable to recapture due to the low interest of buyers.

“During the launch phase LeEco in Russia flagship store of the brand image played an important task, but today there is a great need for 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 costs of the rental store are not justified. In this regard, own store brand, it was decided to close and focus on sales through partner retail networks and the Internet” — leads TASS words of Victor Xu, President of LeRee is a subsidiary of the company LeEco created for managing sales in Russia, Eastern Europe and the CIS.

The company plans to focus on sales through channel partners-retailers (MTS, DNS, “Eldorado” and “Know-How”) and the Internet.

Shop in the “Atrium” was opened in October last year. At this point LeEco has invested about $1 million and planned to open 150-500 stores across the country by the end of 2018, Only the Russian economy, the company planned to invest up to $1 billion over three years.

Problems LeEco

The company was founded in 2004, Its Creator, billionaire Latina Jia (Jia Yueting) — in the press, it was called the “new Steve jobs“. In addition to its own line of smartphones, the Corporation owns China’s largest online video platform (more than 800 million unique monthly users), a library of audio and video content, produces television sets and develops mobile applications. Jia also invested approximately $300 million of personal funds in the construction of a plant for the production of electric vehicles in Nevada: division Faraday Future Jia called rival Tesla Motors had planned to invest another $1bn within 10 years. The construction was halted in October 2016.

Billionaire Jia Latina called Chinese Steve jobs