Lenovo wants to replicate China's success in India
By siliconindia   |   Thursday, 16 July 2009, 19:54 IST   |    1 Comments
Printer Print Email Email
Lenovo wants to replicate China's success in India
Bangalore: Lenovo is the best selling PC brand in China. Now, it looks towards India to expand its market. India's small and medium enterprises sector is thriving and there are many SME companies, especially in non-metros which are adopting computing technology for the first time. "We restructured our global business into emerging markets and mature markets. We will attack the growth opportunities in emerging markets, particularly India, and want to attack global transactional opportunities in mature markets in small and medium businesses (SMB) and consumer business," said Yang Yuanqing, CEO, Lenovo Group to Buisnessline. According to technology research firm IDC, Lenovo's share slipped from 6.6 percent of the Indian PC market in the last quarter of 2008 to 4.7 percent in the first quarter this year when the Indian PC market contracted 19 percent year-on-year. Lenovo now plans to strengthen its position in Indian market. In the past few months, Lenovo has been implementing a new marketing strategy in India. The company recently launched seven new products across multiple segments. The company has divided the sales and marketing into two geographies, emerging market which consist of India, China, Eastern Europe, Africa and Russia and developed markets like North America, Australia, Western America and Japan. The company will adapt to the local context of these countries and have a marketing strategy accordingly and then it will focus on the supply chain. Yuanqing believes that company has three important features. "First, we have a unique dual business model that allows us to work with both enterprise and government and small and medium enterprises (SMEs) and consumers. Two, the linear cost structure and, finally innovation has been key to us," he said to Business Standard. The company sells ThinkPad notebooks and business desktops. It gets 60 percent of its revenue from notebook sales with the balance from desktops. Yuanqing believes that right product is very important. That is why Lenovo will be focusing more on personal computers in India even though it has a good phones business in China. According to Amar Babu, Managing Director, Lenovo India, the company was present in 350 Indian cities and aimed to cover all the 580 districts this year.

Digital Supply Chain Transformation – Winning the AI/ML Way