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Lenovo: The challenge is to focus on moving towards the PC+ era

Sathya Mithra Ashok | April 7, 2014
As Lenovo pushes into the consumer market in the A/NZ, Matt Codrington, MD of Lenovo A/NZ talks about the shape of things to come.

Q: How will you be driving the consumer business in the region?
MC: We are talking to a number of retail partners now about the right strategy. I think my strategy would be a focused play in retail. I am not going to have a broad distribution across all partners and all products.

There are some products - like tablets - that are already in market and available. But from a pure consumer perspective, what you will see in the next year is a more focused strategy with specific retailers.

We are talking now with them. Nothing is 100 per cent defined or locked. We are talking to retailers both sides of the Tasman. In October last year we launched some products into JB Hi-Fi in Australia. It was a relatively limited release with mainly tablet-based products. The PCs, the Yoga product that has been very successful for us in Best Buy in the US will come this quarter.

We have quite a wide portfolio of products. Some are better suited to some products than others but I would say that we would launch the right set of products to cover most of the markets.

We have a JV with NEC with Japan. NEC produce some really cool innovative interesting products that are only available in Japan. I would even potentially look to bringing some of those to market here. They have got the thinnest 12 inch, the lightest 13 inch, the lightest and thinnest 14 inch. These are more premium products, absolutely, but we may get them out here as well.

I am working on it now. I hope in the next 12 months we will see some products land.

But I think the reality is that we will have to expand not only our product sets but also our retailer base over time to make sure we have got the right market coverage.

Q: With your push into the consumer space, do you see the ratio of revenues between commercial and consumer changing in the region?
MC: Around 90 per cent of our revenues are from the commercial side.

I see our commercial revenue growing. But I also see our consumer revenue growing faster, given that we will be investing in market addressability.

In the commercial and enterprise business we will still continue to see some strong growth. If I look at last year, in Australia and NZ, we grew at quite strong premiums to market. We hold a reasonable position in the commercial space, and yet we still grew much stronger than the market, and that will continue to be our intent in the commercial space.

 

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