Emerging Markets, Future PC Market Patterns

Hewlett-Packard, the world’s number one computer maker, considered “slimming” to divest its PC business and create a variable in the competitive landscape of the PC industry. Lenovo, the world’s third-largest PC maker, has quietly turned its attention to Dell, which ranks second. Chen Xudong, global vice president of Lenovo Group and general manager of China, said a few days ago: “Lenovo will surpass Dell before the end of this year, and the world’s number one is just a matter of time.” And one of its sources of confidence is still the domestic domestic market that Lenovo started. This time the protagonist became a 4-6 market.

Data from market research firm IDC shows that in the second quarter of this year, PC sales in China increased by 14% to 18.5 million units, surpassing the United States for the first time to become the world's largest PC market. But all along, there have been remarks about the "PC industry has become a sunset industry." Currently, except for Hewlett-Packard, active European and American PC makers in the field are only left with Dell. The news that HP considers selling the PC business is even more pessimistic about people's concerns about the future of the PC industry.

However, statistics show that although PC coverage in the primary market has reached 96.5% in China, this figure has fallen to 45.4% in the 5-6 market, and only 7.5% in the market below the 6th. Chen Xudong said: "The demographic dividend is released year after year. It will not be released at once. It will be good if it is released within 10 years." This means that the PC industry is still facing "a very large business opportunity."

In fact, the situation in developing countries, which account for the majority of the world’s population, is largely the case. Therefore, the PC industry not only has a large enough market, but also "does not worry about the problem of declining growth rates."

In the face of the domestic 4-6 market, Lenovo launched its dream plan as early as 2004 and began to enter the 4-6 market. Afterwards, Lenovo achieved a leading position in the 4-6 level market through a series of measures such as “Olympic Lenovo Qian County Bank”, “New Rural Strategy”, “Home Appliances Going to the Countryside,” and “Running to the Countryside”. It is reported that at present, Lenovo's computer market share reached 45%, ranking first; town-level market coverage reached 86%.

The emerging market in China is big enough, and Lenovo has already laid it out in advance. But how can you "step on the accelerator and surpass Dell?"

“In the 4-6 market, computers have become a necessary gift for marriage.” Wang Zhong said that for this reason, Lenovo came up with a model called “marriage promotion”, that is, on the wedding day, Lenovo gave a newcomer a gift. Computers. “Our products have been promoted by their relatives and friends, and at least dozens of people know it,” Wang Zhong introduced.

This is just one example of the many measures Lenovo has adopted for differentiated markets. So, how can the growth of the Chinese market contribute to Lenovo’s increase in global share? Chen Xudong calculated an account: At present, the PC sales in the United States are comparable to those in China, but the United States has only 300 million population, which is only 1/4 of China's, which means that China's PC market should be four times that of the United States. Now these slumbering consumer potentials in China are being released a little bit.