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Not Out of Doldrums, Yet Lenovo was unable to stop its downward slide in FY10. In fact the dip this year could have been worse than in FY09, but for a spectacular turnaround in Q4 (40% growth) and a fairly decent Q3. These can be attributed to the twist in its distribution model in August 09—appointed Redington, Ingram Micro, Iris Computers and Neoteric Infomatique as national distributors, and subsequently regional distributors in upcountry markets. Lenovo focused on its ‘protect and attack’ strategy and launched twenty odd products in FY10 (targeted at consumer and SMB segments). Though, the SMB business never picked up momentum, consumer business at least fared better, as Lenovo was driving its products in the retail sector through Lenovo Exclusive and multi-branded stores. Partners who enrolled for the retail segment sold the products only through the retail stores and were not authorized to do business through the channel network. The enterprise business also fared better, especially education and government. It bagged orders from Amity University, Municipal Corporation of Greater Mumbai, Orissa Computer Association and Uttar Pradesh government. |
