Chinese home appliance retailer Gome has purchased a 51% stake of Idall Technology, which specializes in manufacturing audio and video products.

Gome says it will help Idall to create an international home appliance brand and it will set up its first major production base in southern China's Shantou area.

A representative from Gome quoted in local media says that the company's main strategy is to keep their prices low and competitive. But to maintain low prices the company needs a steady channel of goods, and the purchase of Idall allows Gome to design its own products.

Last week, Intel (INTC) signed a cooperation agreement with Gome to push digital home equipment to consumers.

Under their agreement, Gome will choose its best positioned stores to display Intel's digital home products, and Intel will launch a special product package for Gome in cooperation with related digital home terminal product manufacturers.

Intel says it hopes its digital home products can be better promoted and sold through this cooperation with Gome.