Analyst Roundtable – Protect Strengths, Attack Opportunities · Sell Out Sell Through-In Sell In...

© 2009 Lenovo

Analyst Roundtable –Protect Strengths, Attack Opportunities

Chen ShaopengPresident, Emerging Markets GroupSenior Vice President, Lenovo Group

Hong Kong | November 26, 2009

Page 2 of 19Analyst Roundtable | © 2009 Lenovo

Mature Market GroupUS, Canada, Japan, Western Europe, ANZ, Israel

Emerging Market GroupChina, Hong Kong, Taiwan, South Korea, ASEAN, India, Turkey, Eastern Europe, Middle East, Pakistan, Egypt, Africa, Russia, CIS, Mexico, Latin America

全球总部营销中心研发中心全球分支机构制造中心

Global HeadquartersSales & Marketing CentersR&D CentersGlobal OperationsManufacturing Centers

Lenovo Global Presence


Lenovo Corporate Strategy


4.0%5.8%

7.2%

8.7%

18.4%

26.6%

29.4% LenovoHPDellFounderASUSAcerOthers

Winning in the Future No. 1 PC Market

Source: IDC PC WW Tracker CY09Q1

20082007 201320102009 2011 2012

ChinaUSA

NO.1FY09/10 Q2 China PC Market ShareWW PC Market Size Forecast (Units Mil)

• China is forecasted to exceed US as the No. 1 PC market • Lenovo has secured the No. 1 position in China for 12 years consecutively


China PC Market Overview

• The second largest PC market today– Expected to surpass the US by 2012

• Recovered from the economic slowdown– Shipment increased 28% YTY in calendar Q3 2009

• Consumer and SMB segments account for >80% of the market– Consumer notebook segment is the largest growth driver

China PC Market by Segment (Q1-Q3 CY2009)

Large Enterprise

5%

Public Sector 13%

SMB35% Consumer

47%

Source: IDC, Nov 2009

China PC Market Shipment Growth

22%

10%

-7%

0%

14%15%

24%25%26%28% 28%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3-10%

0%

10%

20%

30%

Unit (’000) YTY%

Calendar Quarter


China PC Market: Customer Segments

Consumer

21%

29%32% 30%

26%

12% 11%

-7%

4%

27%

46%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3-10%

0%

10%

20%

30%

40%

50%

Large Enterprise

16%

23%

14%18%

-7%-3%

-1%

5%5%4%

9%

0100200

300

400

500600700

800

07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3-10%

0%

10%

20%

30%Public Sector

10%

16%

0%

4% 3%

-1%2%

0%

16%16%

4%

0

400

800

1,200

1,600

2,000

07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3-10%

0%

10%

20%

Small and Medium-sized Business

29%

36%31%

26%

39%

25%

14%

-9%-5%

8%

19%

0

1,000

2,000

3,000

4,000

5,000

07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3-20%

-10%

0%

10%

20%

30%

40%

50%

Unit (’000) YTY% YTY%Unit (’000)

Unit (’000) YTY% Unit (’000) YTY%

Source: IDC, Nov 2009

• Lenovo Transactional business targets at the 2 main growth segments: Consumer and SMB

Calendar Quarter

Calendar Quarter

Calendar Quarter

Calendar Quarter


Pillars of Success in Lenovo China

Dual Model: Transactional & RelationshipE2E business modelSpeed & efficiency

Extensive coverageIndustry leading channel management

Best in class service − E-care. Call centers. Service stations

12 years CCID award

Great products & coverageMost well-known PC brand

Employer of choice

Unique Business Model

Effective Channel Strategy

Best Customer Service

Great Product & Successful Branding

People & Team


Dual Business Model: Go to Market Approach

Retailers

Lenovo

Transactional Customers(Consumer, SMB)

Distributors

Promoters

Grid Sales

Product SalesTele

/ W

eb S

ales

Sales RepProduct, Grid, STF

ISRInside Sales Reps

Sell Out

Sell Through-In

Sell In

RKA

FA

Relationship Customers(LE, Government, Education)

AEAccount Executives

ISRInside Sales Reps

Lenovo

Direct Relationship

Dire

ct S

ales

Business Partners

Notes: FA - Fulfillment agentLE - Large enterprises RKA - Retail key accountSTF - Store fronts


Effective Channel Strategy

Most Extensive Coverage• More than 13,000 sales points

• Over 6,500 Lenovo Exclusive Stores (LES)

• Covering 100% of all Tier 1 - 6 cities

Industry Leading Channel Management• Daily monitoring of Sell-In / Sell-Out / Channel Inventory

– Average channel inventory turnover of 16 days

• Exclusivity of channels– 80% sell Lenovo products only

• Strong credit and risk management– Driving bad debt rate to a minimum


Lenovo Everywhere

Lenovo StorefrontsLenovo Storefronts

Commercial Experience Centers Demand Generation Event in Rural Market


Best Customer Service

Most Extensive Service Network• 1,500+ service stations• 100% coverage in Tier 1 – 5 cities• 24x7 E-care service (350 million visits per month)• 8,000 certified service professionals

– Including 3,000+ Lenovo engineers• 800 phone lines handling average of 20,000 calls per day

Industry Recognition• “Best Customer Service” award by CCID for 12 years• Certified “COPC” call center 6 years running• “HDI Level 4” certification (only 2 worldwide)


100

70

6256

89

79

6057

98

7073

5965

78

61

40

0

10

20

30

40

50

60

70

80

90

100

Lenovo Dell Sony Toshiba Founder HP Asus TCL

DT NB

%

Great Products and Most Well-known PC Brand

Brand Total Awareness in China

Source: Millward Brown ACSR, Brand Tracker FY2008/09Q4

Lenovo

ThinkPad T400s

IdeaCentre AIO B500

IdeaPad U350


Employer of Choice

• China University Graduates Best Employer Award• 2003 - 2009

• Quality Employer Partner Award 2008

• China Top 100 Employer Award 2006 & 2007• Global Top 100 Employer Award 2006

Note: CIMA – Chartered Institute of Management Accountants


EMG Half Moon Strategy: Leverage China Best Practices

RUCIS

EMAT

INDIA

ASEAN HTK

CHINA

Notes: HTK: Hong Kong, Taiwan, KoreaEMAT: Eastern Europe, Middle East, Africa, TurkeyRUCIS: Russia, Commonwealth of Independent States (CIS)

• Unique Business Model• Effective Channel Strategy• Best Customer Service• Great Product & Successful

Branding• People & Team


13.6%14.3%

12.9%

15.7%

4.2% 4.1%3.6%

4.4%

16.2%

5.3%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

Q2 FY 08/09

Q3 FY08/09

Q4 FY08/09

Q1 FY09/10

Q2 FY09/10

EMG

Rest of EM (ex. China)

Market Share

Progress in Emerging Markets Group (EMG)


Lenovo in India

• High brand awareness of 93% • Customer satisfaction score of over 90%• Introduce new products focusing on Consumer & SMB segments• Getting closer to consumers in India

– Increasing city coverage from 300 to 350 by end of 2009– Grow current service center network from 140 to 250+ by end of 2009– Penetrate deep into Tier 2 – 4 cities

Market Size = 2,190KMarket YTY Growth = -3.1%Lenovo YTY Growth = -7.5%

7.8% 7.6%4.7% 5.0%

6.6%

7.3%

Q1 Q2 Q3 Q4 Q1 Q2

Lenovo’s Market Share in India

Opening of Lenovo Flagship Store in New DelhiFY08/09 FY09/10

FY2009/10 Q2


Lenovo in Russia

• Seized new market growth areas like WiMAX mobile broadband– First PC vendor to launch WiMAX enabled notebook

• Continue to grow channel network • Introduced full range of Idea products for consumer

0.9% 1.4% 1.7%2.7%

4.8%

1.9%

Q1 Q2 Q3 Q4 Q1 Q2

Market Size = 2,102KMarket YTY Growth = -31.6%Lenovo YTY Growth = 133.2%

FY08/09 FY09/10

Lenovo’s Market Share in Russia

World longest ThinkPad banner in Moscow

FY2009/10 Q2


Summary

• Further expand leadership in China– Continue to leverage our unique dual model– Strengthen channel coverage – Expand product line-up to meet customer needs– Focus on sustainable profitability

• Drive growth in other Emerging Markets– Replicate our strengths from China– Focus on key countries– Drive growth in shipments and expand market shares


IR Contacts (Hong Kong)Gary Ng – [email protected] / +852 2516-4840Feon Lee – [email protected] / +852 2516-4843

Date post:	08-Jul-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Analyst Roundtable – Protect Strengths, Attack Opportunities · Sell Out Sell Through-In Sell In...

Documents