Just six months after the reunification, Liu Jun restarted the interruption of 5 years of Lenovo's summer promotion activities, doing live on the Jingdong, opened in Beijing WuChangCheng Lenovo's first offline experience shop.
Back to Lenovo Liu Jun served as Group Executive Vice President and President of China, began to take responsibility for the China Platform and China PC and smart device business. To reinvigorate the PC business, from product line planning, channel sales to team management, Liu Jun open A series of adjustments and changes.
When CBN asked what was the hardest part of the process, Liu Jun admitted frankly that the consumer market was the hardest part of the PC market in the past few years, declining market, while online channels grew rapidly, and now more than half of the sales Online, Lenovo's traditional advantage is the offline sales channels, with thousands of Lenovo brand stores.
'How to get online and offline open, with the concept of new retail, Lenovo Lenovo online + offline channels, back to a user growth track up, is the hardest.' ThinkPad25 Anniversary Edition conference Liu Jun said.
Difficult to change
PC business has always been Lenovo's main business.From Lenovo's latest earnings report, personal computer and smart device business revenue has accounted for 71% of the group's overall revenue.Especially in the acquisition of IBM ThinkPad business, Lenovo's PC sales have been leading.
However, under the impact of smartphones and mobile Internet, the PC market in China dropped significantly. New PC brands such as Huawei and Xiaomi began to grab market share. The rivals such as Hewlett-Packard and Dell also pressed harder and harder. From the first quarter of this year, Hewlett-Packard go-ahead, lost the position of the world's PC boss.
In the face of double-digit oppor- tunity growth, Liu Jun tries to break up the previously segmented online and offline channels. 'We cut 60% of the SKUs and merged many of our products at the same price. Users can choose online Or buy offline. 'Liu Jun said.
This change is also reflected in the ThinkPad business, ThinkPad is synonymous with business notebooks, introduced in the latter part of the development of relatively low-end notebook products, positioning fuzzy, and personally fencing the new strategy of the ThinkPad Liu Jun said it will adjust ThinkPad positioning for the high-end crowd, and the introduction of the corresponding VIP services, brand positioning more clearly than ever before.
On the Internet, Lenovo began intensive cooperation with JD and Tmall. In July last year, Lenovo and JD.com signed a cooperation agreement, indicating that Lenovo's entire line of products will strive to achieve the target sales volume of RMB60 billion in the next three years. In the subsequent 6.18 and 11 Lenovo PC in the event launched many promotional activities.
Like Xiaomi and Huawei, Lenovo is also embarking on a grandiose new retail sale, with Lenovo looking to change its single-storefront form and expand its PC store into an eco-shop that will include sales, experience, service and maintenance in an environment. Behind is through online and offline get through to understand the store's sales, sales staff, explosive sales of products to enhance the logistics efficiency.According to Liu Jun said the pilot shop Ping effect reached 22.6 million, 2.9 times before .
In this year's visit to Lenovo's new retail pilot on the occasion, Liu Jun has also visited the Huawei store inspection.But in the view of Liu Jun, everyone is talking about the new retail concept, but the real success is not many practitioners, is still trying to Groping period.
But you can be sure that Lenovo does not want to define itself as a PC company and look for hardware sales outside of the model to expand.In Thinkpad future strategic planning, around the PC will extend the ThinkPad peripheral products, Think Smart-IoT smart products, or even Expand to service.
This is only a microcosm of Lenovo's PC business adjustment, in the view of Liu Jun, 'These products are not just hardware products, IoT products must be connected to the cloud, you must need the software, and then expand from software to service.' According to Liu Army's vision, step by step to 10,000 PC stores are transformed into 4S retail stores.
Market share of the dispute
Ship big trouble turn around, the bigger challenge is the change of corporate culture and management thinking.
In August this year, a Lenovo China strategy and culture of all management communications meeting, Liu Jun denounced the 'only on the' and 'inaction' and other phenomena, stressed the need to mud with both hands so that the organization more flat.
With the implementation of a series of changes, Lenovo's PC business has indeed picked up. According to Lenovo Group's second quarter results, personal computer and smart device business revenue rose 4% to 15.387 billion U.S. dollars, accounting for 71% of the Group's overall revenue.
However, its profit performance was not satisfactory. Profit before tax in PC and smart device business dropped 15% YoY to US $ 659m. Profit before tax dropped 0.9 ppt YoY to 4.3%.
With the earnings together attracted the attention of the industry, it is as long as a year of Lenovo merger Fujitsu case finally settled. 'After the merger Fujitsu still remain independent of the company will further strengthen Lenovo's PC in Japan' s competitive position. Liu Jun said.
According to a previous JP Morgan research report, the overall PC market in Japan in 2016, NEC Lenovo market share of about 24.6%, Fujitsu was 17.5%, the United States Dell was 12.3%. After the transaction, Lenovo's share of the Japanese PC market Or will be more than 40%, accounting for absolute advantage.
According to IDC data, as of the third quarter of 2017, Lenovo PC global market share of 21.6%, if combined with Fujitsu 4% share will exceed HP 22%, is expected to once again return to the world, which is also interpreted as 'Buy back' first.
Compared with Hewlett-Packard, regardless of the upper and lower market share, the latter double-digit growth rate to make the association vigilance.With M & A to do the bulk, adhere to the "three waves" strategic association how to turn itself into a non-PC company? Under the background of big market, there is not much time left for Liu Jun and Lenovo.