Lenovo eyes small towns for retail drive

Lenovo eyes small towns for retail drive

Author | Source: The Economic Times | Friday, Dec 29,2006 9:24 AM

Lenovo eyes small towns for retail drive

Chinese PC major Lenovo is looking at targeting consumers in non-metro and small town areas in India. The company is expanding its retail network of exclusive outlets in the next three months. Lenovo has around 61 exclusive outlets in India, which it is expanding to 100 by March 2007.

Lenovo acquired IBM's PC division for $1.75 billion and will sell the ThinkPad and Lenovo brand of desktops in these outlets. Deepak Advani, chief marketing officer, Lenovo told ET, “Besides, increasing the exclusive stores to 100 we will also increase the non-exclusive stores to 500 from 361, by March 2007. We are looking at expanding our presence in the non-metro cities.”

Lenovo has divided the country into seven geographical regions. “We have developed a network of 1,700 distributors spread across the country, the objective is to target small towns across the country. We are planning to further increase our partner network to reach smaller towns.” Lenovo looks at cities like Lucknow - as a B-class town - and the smaller cities around it.

Lenovo competes against consumer electronic companies like LG, which has one of the biggest distribution network in the country. MNC PC vendors like HP and Dell are focused only on the top tier cities.

“Unlike these PC vendors, Lenovo's key focus in India is the small business and retail consumer, and primarily the non-metro regional markets,” said Mr Advani. The company plans to reach 300 cities across India from 279 by March-end.

Even after the acquisition of IBM's PC division Lenovo seems to be lagging behind in market share in India. The company seems to rank third in the Indian PC market behind HCL and HP, according to IDC data.

Keeping in line with its brand building in India, Lenovo opened its third innovation centre in the world on Thursday in Mumbai. The innovation centre will be a unique way of providing after sales service to its customers.

The Chinese PC major along with other partners Intel, Microsoft, LANDesk, IBM and Cisco will address various hardware and software-related problems faced by customers.

This will benefit the users as they won't have to go to different vendors for various problems as Lenovo will provide the solutions under one roof. The Mumbai centre is third in line after Lenovo opened similar centres in the US and China in September last year.

Tags: e4m

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