Article at a glance:

Winning the battle for the Chinese consumer electronics market

• A new wave of consolidation among consumer electronics retailers is turning up the heat on Chinese and foreign manufacturers. Unless these manufacturers rethink their strategy, they risk losing the battle for the wallets of millions of mainland consumers.
• A lot is at stake: China's consumer electronics market has been growing at a compound rate of 12 percent a year and is expected to reach about 1 trillion yuan by 2010, up from 590 billion yuan this year. This market will account for 25 percent of the global market by 2010.
• Manufacturers need to form win-win partnerships with the large retail chains, helping them build capabilities in marketing strategy, in-store promotions, and supply chain and inventory management. Others might fight fire with fire by opening their own branded stores.