Lenovo’s CEO Assumes: India and China Are Congruent In Terms Of PC and Mobile Market

Must Read

Social Media Influencers On Hackers’ Target: 100,000 Accounts Leaked On Dark Web!

With influencer marketing and sponsored content being on the rise, more and more content creators, some even...

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the...

The Sudden Rise In The Demand Of Refurbished Smartphones In India!

The new normal is changing the dynamics of the Indian smartphone industry. In the last two to...

The economic outlook for PC sales does not look good; According to a study after selling 76.3 million units worldwide PC sales have dropped by 13.9%.The market has shifted to high mobility devices i.e. Tablets and Smartphones causing agonizing pain to PC vendors. PC sales are down across the board and PC makers are panicking .

Companies have to face lot of complications in making transitions to the current trends but some do take the risks, one of them is Lenovo. Lenovo is an amalgamation of IBM’s old PC Company and it is the first major Chinese PC maker.  According to American information technology research firm Gartner, Lenovo was the world’s largest PC maker by shipment in Q3 2012. But later HP (HPQ) dethroned Lenovo’s Position. Lenovo already has a strong foot hold in China and is now trying to enter Indian market to establish substantial distribution networks and to achieve its goal i.e. to fight back for its position in the market.

Milko Van Dujil, the head of Lenovo for Asian regions said that “Indian PC and Smartphone market is not much different from China market in terms of its vastness”. Although he agrees that “PC is anything but a dying breed” and Smartphones and tablets are the trend setters. But still he believes that PC market is huge and there is still a ray of hope. This move of Lenovo is not that big of a surprise as India is one of the fastest growing markets, every company wants to taste the flavor of Indian market and so does Lenovo.

Advertisements

Are India And China Collateral?

India and China may be similar in terms of size but there is hell lot of differences in tastes, preferences, economy and life style. As mentioned earlier Lenovo has a strong foot hold in China that acts as an advantage to them only in China. But the strategies used in China may not be suitable for Indian market, when it comes to economy China’s economy is much more developed than India. Indian customers are price sensitive and they do not like to spend a fortune on their gadgets. According to IMF China stood in 86th position with $6076 in 2012, whereas India in 140th position with $1492 in terms of GDP (nominal) Per capita. Hence their disposable income also varies. Lenovo had come up with a regional distributor (RD) strategy and Lenovo Exclusive Store (LES). In India Smaller towns cannot do justice to a larger store though Lenovo India did come up with a strategy of Leslite, a smaller store for the towns but it dint match up to the expectations.

This does not mean that Lenovo will be a failure in India; if it tweaks its strategies according to Indian market conditions then it may stand a chance. Though there is a decline in PC sales Lenovo can innovate and push up the sales as PC is not completely vanished in countries like India and when it comes to Smartphones Lenovo has to face competition with both local vendors and Global counterparts so to win the Indian market Lenovo has to come up with an ingenious Smartphone and PC.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

The Launch Of JioMeet Will Make Zoom To Be The 60th Chinese App To Get Banned In India?

Today as soon as the launch of JioMeet was formally announced by Mukesh Ambani, the frontman of...

Intel Invest in Jio Platforms: A Chance For Redemption In The Smartphone Market?

If you thought Mukesh Ambani was finally going to stop the stake selling spree in Jio Platforms after RIL was recently announced...

With The Launch of JioMeet Reliance Sets Its Eyes On Video Conferencing Market!

The race to dominate the video conferencing market has just become more interesting. As we are going through the...

Facebook To Shutdown Lasso, The TikTok Competitor: A Well Calculated Move?

By now almost everyone is aware of how Facebook Inc. (NASDAQ:FB) always attempts to copy every other popular app that tries to...

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the latest jump in the net...

Update Your Windows OS Immediately: Microsoft

The mandate is clear from Microsoft; you must update Windows OS immediately! Microsoft Corp (NASDAQ: MSFT), as of late,...

In-Depth: Dprime

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

More Articles Like This