Distance May 16 Legend Group Chairman and CEO Yang Yuanqing announced the return of Liu Jun just six months time .In six months, the former Lenovo two figures Liu Jun restarted the interruption of five years of Lenovo summer big promotion activities, in the Jingdong do live, opened in Beijing WuChangCheng Lenovo's first offline experience shop.
After the reunification, Liu Jun served as executive vice president and president of Lenovo Group in China, and started to take charge of the PC and intelligent equipment business in China Platform and China Region. With the heavy task of revitalizing PC business, Liu Jun started from product line planning and channel sales to team management A series of adjustments and changes.
When CBI asked what was the hardest part of the process, Liu Jun admitted frankly that the consumer market is the hardest part of the PC market in the past few years, or a drop in the market, while the online channel is growing 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, Lenovo's latest earnings report, personal computing and smart device business revenue has accounted for 71% of the group's overall revenue, especially after the acquisition IBMThinkPad business, Lenovo's PC sales have been leading.
However, under the impact of smartphones and mobile Internet, the PC market in China dropped significantly. Newer PC brands such as Huawei and Xiaomi began to grab market share. Hewlett-Packard and Dell rivals such as Hewlett-Packard Co., Ltd. and Dell Co., Ltd. followed each other closely. From the first quarter of this year, Hewlett-Packard go-ahead, lost the position of the world's PC boss.
The face of double-digit opponents growth in the channel Liu Jun split the previous online and offline channels to get through, 'We cut off 60% of the SKU, the same price combined a lot of the same product, the user can choose Buy online or 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 the likes of Xiaomi and Huawei, Lenovo has also started to lay out new retail stores online, and Lenovo hopes to change its previous single-storefront status to 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 sales, sales staff, burst product sales volume, improve logistics efficiency.According to Liu Jun revealed that this pilot shop Ping effective reached 22.6 million, is the previous 2.9 Times
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 his view, we are talking about the new retail concept, but most are still in the trial and exploration 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, ThinkSmart-IoT smart products, or even expansion 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.
'First' dispute
The bigger challenge lies in the changes in 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 so on, emphasizing Keep your hands clean and flatten your tissues.
With the implementation of a series of changes, Lenovo PC business has indeed picked up. According to Lenovo Group's second quarter results, personal computing and smart device business revenue rose 4% to 15.387 billion US dollars, accounting for 71% of the Group's overall revenue, Personal computer sales rose 17% qoq in the quarter.
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.
For Lenovo, not only in the Japanese market but in global market share, IDC figures show that Lenovo's PC market share was 21.6% by the third quarter of 2017, adding HP's 4% share of HP's 22%, is expected to once again return to the top in the world, which is also interpreted by the outside world as 'buy back' first.
However, compared with the HP regardless of the upper and lower market share, the latter double-digit growth rate is the association of vigilance.With the aid of mergers and acquisitions to do the bulk, the adherence to the "three waves" strategic association how to become a Non-PC company? In the context of the PC market, leaving Liu Jun and Lenovo time is not much.