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Beijing Zhongguancun E world was one of the largest shopping centers in Zhongguancun with one billion in sales revenue and 10 million customers annually. It has decided to cease its electronic products retailing operation, and turn into office building for IT companies. It was the second shopping center selling electronic products to abandon retailing business completely and turn into office building in Zhongguancun.
Zhongguancun, the vanguard of Chinese high-ech boom, was the largest electronic products distribution center in China, from high performance servers to toners to copy machines, Zhongguancun was the place to go. It was dubbed "The China's Silicon Valley".
The intense competition and lack of regulation reportedly turned many shop owners in Zhongguancun to less honest ways to make profit. They allegedly started selling second hand or repaired computers as new. It seems they used all their ingenuity and innovation on how to trick customers.
The clients have caught on, Zhongguancun electronic market became synonymous with counterfeit goods, pirated products and dishonest business practices. Coupled with the impact of online shopping website, especially jd.com, that promises overnight delivery and authenticity of the products, the shop owners entered a vicious cycle, they had to sell more fake goods to make profit and the more fake goods they sold the fewer customers they got.
