Lenovo to take home model overseas
By Liu Baijia (China Daily)
Updated: 2006-09-19 11:21

Chinese computer giant Lenovo will use its Chinese transaction model in other markets after successful pilot schemes in Germany and India.

So said Deepak Advani, senior vice-president and chief marketing officer of Lenovo.

"To go after the market growth we do not only need the right products, but we should also have the transaction model in place," said Advani in an interview in Beijing.

Germany and India have become testing grounds for the strategy in both mature and emerging markets.

Last week Lenovo's top executives, including its chairman, CEO and Advani, met in Paris to review the use of the transaction model in Germany. It proved to be "very successful," with significantly higher growth over the past few months.

The German market is a pilot for Lenovo's strategy in mature markets, so success there will mean faster adoption of the transaction model.

"We are quite confident in what we need to do," said Advani.

Lenovo's pilot programme for emerging markets is India.

In the second quarter Lenovo grew its number of resellers in India by one-third, strengthening its ability to reach so-called transaction customers. It also introduced Lenovo-brand products to meet the demands of such customers.

Advani said shipments of Lenovo-brand computers had already overtaken those of Think products among transaction customers in India.

Lenovo divides its sales system into two models relationship and transaction. The relationship model mainly targets large commercial customers wanting tailored solutions, fast delivery and quick responses to service demands. Meanwhile the transaction model is suitable for small and medium businesses as well as consumers, where large distribution, service and aggressive pricing is paramount.
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