China’s largest PC maker by market share will open more than 1,200 new stores in tier 1 and 2 cities across China to strengthen its position in the world’s biggest market.

Of the 1,200 stores, 200 stores based in 4th-6th tier cities will focus on mobile internet products. The reasoning is that lower tier cities will “lead Lenovo’s future growth China, since first to third tier cities are facing saturation,” said Chen Xudong, VP of Lenovo and GM of its emerging markets unit.

This strategy is definitely long term as less than 10% of rural residents has access to computers, compared with 96.5% in tier 1 and 2 cities.

It is rumoured that Lenovo may purchase HP’s PC unit, which would certainly boost its sales.

Currently HP dominates the global market share with 18.1% last quarter, Dell has 12.9% and Lenovo has 12.2% according to IDC, a research firm. Chen said, “Our aim is to surpass Dell to become number two within two quarters,”

Lenovo China accounted for nearly 48% of the company’s total global sales in the second quarter, recording US$2.8 billion.

Jason is an Australian born Chinese living in Beijing, specializing in entrepreneurship, start-ups and the investment eco-system in China, especially in the tech and social area.

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