CH. 5.Developing a Global Vision.

Why Fuhu is poised to develop a sound global position?

Founder John Hui has a strong history in the computing landscape that rivals many of his peers. This history gives a indication of the future of the the relationship with Foxconn and marketing to the Chinese market.

                Mr. Hui was a principal founder of E-machines, Inc. during the mid 1990s. Mr. Hui recognized the strong potential for the sub-$1000 PC market in the US, and personally lent his credit and retail relationships on behalf of the start up company. The company went public on the NASDAQ exchange during March 2000. Mr. Hui participated as a founder and director of this company until December 2001, when he took the company private in a transaction valued at $152 million. Following this, Mr. Hui was key in further developing the company’s strategic and supply relationships. E-machines was successfully sold to Gateway, Inc. during February 2004 for cash and stock consideration in excess of $230 million. At that time, E-machines was tracking at more than $1.0 billion in revenues and run one of the most profitable, efficient PC organizations in the industry. Following this venture, during 2006, Mr. Hui acquired Packard Bell BV, a European computer distributor.

           Fuhu presently has just north of 100 employees. A small to medium sized firm by any standard. Their aspirations far outweigh their size. The scope of their marketing is strategically sound. The plan to attack the lucrative Chinese market shows how a new company goes after new markets right away rather than waiting for the product to mature in say past instances.The relationships built from the days Mr. Hui ran E-machines he already has a inner working on relationships in Chinese manufacturing circles. As noted in the chapter relationships are key in developing business deals.

          The article below from THE DIPLOMAT details this trend,   

  

Half a Billion: China’s Middle-Class Consumers

By  Dominic BARTON

May 30, 2013    

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China’s society is changing beyond all recognition. At the heart of the most sweeping social and economic transformation the world has seen is the rise of a powerful new – largely urban – middle class. China’s urban middle-class population alone, if considered as a country, is larger than the entire U.S. total population today. The pace of change has been extraordinary. As recently as 2000, only 4 percent of urban households in China were middle class; by 2012, that share had soared to over two-thirds. And by 2022, China’s middle class should number 630 million – that is, three-quarters of urban Chinese households and 45 percent of the entire population. The rise of the middle class is essentially an urban phenomenon. Average per capita urban income in China is roughly triple that in the countryside – and there are set to be 170 million new urbanites between now and 2022.
By 2022, we expect China’s middle class to be consuming goods and services valued at $3.4 trillion – 24 percent of GDP. This has enormous significance for U.S. businesses. It is imperative that companies get to know the new Chinese middle-class consumer in intimate detail.