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Wednesday, 3 June 2015

Lenovo's Mobile division head replaced - New marketing strategy?

There might be a drastic change to the Mobile landscape in the coming month after WSJ reported that Lenovo is changing their mobile chief. A report by Juro Osawa from the WSJ show that there is significant change moving forward in the Lenovo Mobile division and that change might be on the marketing and sales method. 

Lenovo said in a statement Tuesday that Liu Jun, who heads its mobile business group and serves as chairman of Motorola Mobility, will become a special consultant to Lenovo Chief Executive Yang Yuanqing. In the statement, the company didn’t say why Mr. Liu was stepping down from his roles.
Chen Xudong, who currently heads Lenovo’s ShenQi smartphone unit, a separate handset brand in China that sells phones through e-commerce sites, will become the new chief of Lenovo’s mobile business group and Motorola’s chairman, Lenovo said.

Lenovo, still using normal retail channel as the main point of sale, might be heading to the online retail way that was employed successfully by Xiaomi. The personal change might be required to move the company forward since Lenovo are losing market share to Xiaomi locally in China even though Lenovo have more diverse mobile segment and higher shipment rate.

We might be seeing a smaller mobile segment and maybe more online exclusive sales moving forward since that the new chief was heading ShenQi, Lenovo sub brand that sells exclusively thru e-commerce. Lenovo together with Motorola is still the 3rd largest after Apple and Samsung globally but their market share are declining in China due to the rapid growth of sales from Xiaomi and Huawei.
Source : WSJ

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