Lenovo eyes India as sales plunge in China
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“India for most of our product categories is a key strategic market” said Aymar de Lencquesaing, senior vice president, Lenovo Group, who also leads the Chinese company’s mobile business including R&D, product and supply chain management.
“We believe this market will continue to grow not only in volume but also in the line-up of premium products,” he said.
As part of its plans, Lenovo aims to increase its market share from less than 10% during the January-March quarter by expanding its reach of smartphones in retail outlets.
The company had been predominantly focussing on selling through online channels to increase sales, since it gives better margins by saving on inventory and supply chain costs.
Lenovo also plans to increase manufacturing of its handsets within India as and when the demand increases, he said.
Questions & Answers
Q.What is Lenovo's primary motivation for increasing its presence in India?
What is Lenovo's primary motivation for increasing its presence in India?
Lenovo is planning to ramp up its presence in India because sales are sliding in its home country, China. India is considered a key strategic market that is expected to continue growing.
Q.What was Lenovo's previous primary sales strategy for smartphones?
What was Lenovo's previous primary sales strategy for smartphones?
Lenovo had predominantly focused on selling through online channels. This strategy allowed them to achieve better margins by saving on inventory and supply chain costs.
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