Angry Birds wants to lay eggs in China before hatching its first physical store in China.

The popular app game’s creator Rovio Entertainment is currently in talks with Chinese web companies including Sohu.com and Baidu for a possible tie-up for online distribution of genuine Angry Birds merchandise. 

Rovio Entertainment Asia senior VP Henri Holm said that the company is also considering possible partnerships with social networking sites Renren, Sina Corporation, Tencent Holdings, search solution provider Qihoo 360 Technology and video hosting website Youku for advertising. 

While Rovio is enjoying millions of downloads from iPhone, iPad and Google’s Android operating system users, it believes that Chinese web companies like Tencent and Baidu will help the company in offering diversified wireless services.

According to Holm, the exponential growth of smartphone users in China will dramatically increase Angry Birds game downloads this year.

The first physical store is expected to open in China this year after a mock-up pilot store was successfully tested in Shanghai last year.

Rovio’s revenue in China primarily comes from Angry Birds-themed products like stuffed toys and coffee mugs that it sells online and through retail partners.

GB