Digital China, a Chinese IT service provider, has launched its B2C website xgou.com, providing IT, communications and consumer electronics products.

Operated by Digital China's Internet Business Department, the opening of this online shopping platform is an attempt at the company's entry into the Internet business sector. As one of China's largest IT product distributors, Digital China has had more than ten years' experience in distribution. However, facing a severe price war in the distribution industry in recent years, Digital China has started tapping the Internet to find a new revenue pattern.

Targeting at establishing the largest online one-stop shopping platform for IT products, xgou.com will be orienting its competitive strength to cost, efficiency and experience while developing its own differentiated e-commerce marketing model.

Another Chinese leading IT company Lenovo Group also tapped the Internet business in its diversification strategy years ago. In 2001, Lenovo jointly invested USD100 million with AOL in setting up a Chinese-language portal named FM365.com. However, the website was closed in 2004 because of poor performance.