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Lenovo Plans to Penetrate Tier III & IV Cities
By
Sandhya Malhotra
Delhi, Jun 28, 2007
After extensively tapping tier I and II cities through its indirect transaction-based business model, Lenovo India plans to penetrate tier III and IV cities. The new business model was launched in March 2006.
According to Anil Philip, executive director for transactional business at Lenovo India, the early success of Lenovo's business model was possible because of its channel partners and its strategy to tap regional markets and create a strong retail. "This year we would increase our depth into smaller cities and appoint more channel partners. Currently, Lenovo has 2,076 partners in 366-plus cities."
While continuing to focus on the retail industry, the company has set up 98 Lenovo Exclusive Stores and is also setting up multi-branded stores across the country.
Incidentally, more than 50 India-based transactional and relational channel partners were awarded for their performance at Lenovo Connections 2007 held in Beijing last month. At the event, the company also announced the Lenovo Business Partner Advisory Council for APAC countries. The Council will consist of more than 20 representatives from APAC countries like India, Japan, Singapore, Korea and some ASEAN counties. At present, four partners from India figure in this forum.
Apart from rolling out the transaction model last year, the company took a series of key initiatives like improving its supply chain and enhancing the brand, "With these initiatives we were able to contain costs and improve on efficiencies," Philip said.
"With a focused partnership approach, Lenovo is bullish about tasting the same kind of success it has seen in China over the years for its PC products," he further added.
Related Links:
Market Expansion, Retail Focus Top Lenovo Plans
Lenovo Plans to Set Up 500 Retail Outlets By 2007
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