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2008/09 Annual Report Lenovo Group Limited
15
PERFORMANCE OF GEOGRAPHIES
The worldwide PC market showed year-on-year
negative growth in the second half of the 2008/09 fiscal
year, caused by the widespread economic slowdown.
No country was immune in this PC market slowdown.
Lenovo’s performance in various geographies was
also affected in varying degrees. Nevertheless, the
Group continued to acquire commercial customers at
a strong pace, resulting in an increase of its worldwide
commercial market share to approximately 10.9 percent
during the year.
Greater China
Lenovo Greater China accounted for approximately 43
percent of the Group’s overall sales in the 2008/09 fiscal
year, continuing to be the largest sales contributor. The
growth of China PC market was negatively impacted
by earthquake, floods, softer consumer demand and,
later in the fiscal year, the global economic slowdown.
Nevertheless, owing to its outstanding execution and
leadership position across all customer segments,
the Group achieved approximately 8 percent year-on-
year growth in PC shipments in China as compared
to the 4 percent growth of the overall market. Lenovo
strengthened its number one position by gaining 0.9
percentage points in market share, accounting for
approximately 28.8 percent of the market.
The Group’s solid performance in China was attributable
to continuous efforts to enhance its dual business
model. In the 2008/09 fiscal year, Lenovo implemented a
business management system for its transaction model
to ensure a more consistent performance across the
country. At the same time, Lenovo expanded its channel
partnerships by collaborating with Taobao, the largest
Internet retail website in China, and it also refreshed
storefronts to strengthen the coverage of consumer and
small- and medium-sized business (SMB) customers.
The Group also formed a strategic relationship with
Alibaba, the largest online business-to-business (B2B)
marketplace, to launch a customized Lenovo
eCommerce PC model for SMB in China.
ThinkPad T400 notebook
Refreshed retail store, Beijing, China