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18 Jun 2007
PC goliath Lenovo has claimed it is gaining ground in the UK as it continues the local roll-out of a new transactional business model and gears up for entry into the retail sector.
The China-based vendor recently lost fourth spot in the global PC rankings to Acer, prompting market-watcher Gartner to assert it had “stagnated” since buying IBM’s PC unit two years ago .
The new transactional model, which Lenovo calls its business that includes firms with 500 or fewer employees, encompasses a commitment to cutting channel inventory and moving to a campaign-based sales strategy.
Speaking to CRN, Milko van Duijl, president of Lenovo, claimed that the vendor is achieving its highest growth in European countries that are furthest through the roll-out process.
The UK, which is still part-way through the process, saw a 35 per cent year-on-year growth in transactional sales for the three months to March, he said. Germany, which acted as a test-bed for the new model, hit 50 per cent growth for the quarter.
Defending Lenovo’s progress in Europe, van Duijl said: “Acer has a brand name and retail presence and its cost structure was ahead of ours when we came out of IBM.
“However, we are catching up to it with our transactional model and entry into retail.”
Van Duijl revealed that Lenovo was now “formalising relationships” with retail channels in Europe as the firm prepares to launch its first consumer models in the continent.
Warren Hudson, commercial director at Lenovo distributor Interface Solutions, said he expected to have access to the new portfolio.
“If Lenovo can get anywhere near Acer’s price points, it would be a good option for small independent retailers that are looking to reduce dependency on Acer,” he claimed. “A lot would prefer not to be selling Acer because of the pressure on margins.”
Shaune Parsons, managing director of reseller Computer World Wales, said: “The more Lenovo gets into people’s homes, the more chance we have of selling Lenovo to them when they are at work.”
Parsons added that Lenovo had also raised its profile through its sponsorship of the Beijing Olympics.
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