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Lenovo smartphone strategy: Ready to Boost offline presence

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With the aggressive campaigns by the Chinese rivals, Lenovo has dropped their presence in Indian market. Lenovo has seen their market share drop to 7% from 9.6%, according to a research done by IDC India. Their position dropped to No 5 in April-June 2017, from the No 2 last year. Xiaomi, on the other hand, is almost close to Samsung to grab the top spot in the Indian market. Lenovo announced that they will focus on boosting their offline presence in India to regain their market share.

“That is a battle we need to win. Online is just 27% of the total market. We have a robust position there but have growth left in offline which is why you will see us attack it more,” Aymar de Lencquesaing, executive vice president at Lenovo and chairman & president at Motorola, told Times of India.

Although online shopping is becoming popular nowadays, it still constitutes a small part. Almost 73% of the phone users still prefer to buy from the offline retail shops. Sudhin Mathur, MD of Motorola Mobility India and country head of Lenovo Mobile, said: “The next growth will come from there so we are increasing our distribution and setting up Moto Hub exclusive retail stores.”

In India, Motorola sells under both the Moto and Lenovo brands. So the market of Motorola is particularly vast in India. In the US and Europe, only the Lenovo brand is sold. With 12 million smartphones sold annually by Motorola, India is in the second in terms of volume just behind Brazil.

According to de Lencquesaing, the demand for performance requirements are increasing and the demand for phone price between Rs 9,750-22,750 is increasing.Motorola has doubled their production to 12 million in their manufacturing unit in Chennai. They are even ready to increase their production if needed. India contributes more than 10% of the company’s global revenue. So a boost in the market will definitely be a boon to the company.

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