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 Amar Babu, Managing Director, Lenovo India believes innovative products that deliver greater value will be preferred in 2010 and customers will be keen on long–term savings
Year 2009 was a year of learning—especially for businesses, IT vendors and the channel fraternity. Faced with recession, market slowdown and economic uncertainties, organizations focused on revising company priorities and strategies. They instilled efficiencies and fortified their USPs to prepare for 2010.
The economic recession had global repercussion. How India weathered the storm compared to other countries is a matter of separate debate. However, recent indicators show that the Indian economy is heading towards better times. India’s GDP grew a robust 7.9 percent in July-September 2009, exceeding expectations and setting the tone for 2010.
The last quarter of 2008 and the first quarter of 2009 were the most challenging times for the Indian PC market as their key purchasers—large and medium enterprises—curtailed spending.
Instead of fresh upgrades and investments, they focused on optimizing their existing IT infrastructure and consolidating resources. But in the latter half of 2009, with increased uptake of PC investments, the situation improved.
As per IDC India, the July-September quarter saw a record quarterly growth of 24 percent. Notebook PC sales too topped 7 lakh units in a single quarter—the first ever time.
Buoyed by the potential to invest in untapped sectors and expansion of e-governance charters, the government segment was one of the strongest during the year.
Consumer and technology trends
From a product and technology perspective, it was evident that the falling PC demand and hesitance by enterprises to invest would affect premium PCs. In 2009, products pegged at lower price points were more in demand.
However, the market also embraced PCs that could offer higher return on savings from a long-term usage and an energy consumption point of view. It was pleasing to see that innovative products that delivered far greater value were preferred over discounted ones that failed to offer long–term savings to customers.
In 2009, we saw all-in-one (AIO) PCs go mainstream. It was one of the most transformational changes in the desktop history. We believe AIO is the future of desktop computing. Expect more compelling and exceptionally engineered PCs.
Notebook segment was among the leading newsmakers of 2009. Portable and packaged with features that users want in a PC—like connectivity, video and audio for entertainment, TV tuner, built-in rescue and recovery options—notebooks were primed to do well in the market.
In response to the increasing customer sentiment on prices, notebooks that did very well were the mainstream and value ones.
At the same time, consumers were also intrigued by netbooks for their ultra-portability. They have become attractive buys for first-time users and as a second PC for evolved users who can afford the additional investment.
Netbooks will create more impact in the market in 2010, especially with the much anticipated 3G roll out, and its sales model will change drastically.
In 2009, the enterprise segment was keen on mobile computing. Extreme mobility, powerful performance and energy efficiency, underlined with low total cost of ownership (TCO), made it attractive for users.
In 2010, Microsoft Windows 7’s better set of tools and features, and optimized system performance that offers enhanced user experience, will further propel growth of mobile PCs.
What to lookout for in 2010
In 2010, we foresee enterprise buying rise. The focus will be on products that offer a low TCO proposition and energy efficiency. Government and education will be major contributors, as will telecom, BFSI, retail and manufacturing sectors. We expect OEMs to lay greater emphasis on building stronger channel relationships within the top 10 non-metro cities, which have been at the base of growth in recent quarters.
| Takeaways for 2010 | - AIO is the future of desktop computing
- Expect more compelling and exceptionally engineered PCs from OEMs
- Netbooks will create more impact in the market, especially with the much anticipated 3G roll out
- Enterprise will focus on products that offer a low TCO proposition and energy efficiency value
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Year of transformation
Year 2009 has been a significant year for Lenovo’s operations, both globally and in India. We implemented strategic and bold moves in our channel and distribution structure, to streamline our operations and pave way for greater channel and customer intimacy. In 2010, our aim is to develop core channels across tier-1 and tier-2 cities by establishing transparency in all actions and absolute clarity in the roles and responsibilities for all members of channels.
Our channel program for 2010 has been devised specifically for each segment we wish to address. For the consumer segment, our focus will be on the four verticals—Lenovo Exclusive Stores (LES), Lenovo multi-brand outlets, large format retail and regional distributors. We plan to roll out simpler versions of our exclusive stores across tier-3 cities as well. SMB will be a big focus for us this year. |