Chinese laptop computer maker- Lenovo is planning to expand its branded retail outlets in India from around 750 now to 1000 by March, said the Indian arm’s managing director. The company may even double that number in the next year or two, because “it is a booming market, with regions that are still un-penetrated,” said Amar Babu.
Yet, the company will not compete on pricing with its operators and use existing distribution agreements to reach its retail stores rather than setting something on its own, he said. “The Indian region is so large, that the objective of the retail store is purely for brand presence in Tier III and Tier IV cities and service; not as much for first point of retail.”
Lenovo acquired its computer manufacturing business from US-major IBM in 2005. Thereafter the brand took a beating, although the IBM Thinkpad brand, that Lenovo has retained, was fairly entrenched. The company has recovered since then.
Lenovo earlier this year launched two tablet devices in the Indian market. Babu said one is designed to address the enterprise need, and although it is a little heavier it can better handle e-mail, documents, and presentations. For such users the company is also planning to launch a computer with a swivel touch screen. The other tablet is a consumer device, that despite the hype is less in demand for the moment, he said.
“Tablet sales are largely happening in the metro cities, and the models being sold are at the Rs 40,000 price point, rather than the cheaper ones; because the buyer profile is such.”
The global uptake of Apple’s iPad and similar tablet devices like the Samsung Galaxy Tab has also spread virally into the Indian media. If advertising is anything to go by, tablet devices have inundated the market at prices starting at Rs 12,999 for a Reliance Communications’ branded one.
Babu said India is still some time away from becoming a nation of ingrained tablet users. “This is only an additional screen for people using computing on the move. At home most still prefer desktop computers.” Besides, the chief mode of sharing media remains CD drives and USB storage devices in India until wireless networks and Internet service providers can offer seamless high speed data services across the country. “The preferred first computer device remains the desktop or at best has moved to the laptop,” Babu said.
Babu said, over the medium term, read two-to-five years, the company hopes to ramp up India revenue to 10% of its global revenue. At present, Lenovo India contributes around 3% to the global revenue. “The management will continue investing in India and we are very upbeat about the future growth potential of India’s PC market” said Babu.
Yet, nearly 60% of the India revenue even at that stage is likely to be from laptops sold to enterprises, he said. Of the remaining 30% would be from desktops and the only 10% from tablets and other devices.
Source:http://economictimes.indiatimes.com/tech/hardware/tablet-market-to-remain-small-till-better-internet-services-lenovo/articleshow/11255888.cms
