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2009/10 Annual Report Lenovo Group Limited
17
year, while rebounding in the second half of the fiscal
year. Lenovo showed a strong growth momentum
in the region in the last fiscal year, and grew by 34.5
percent in unit shipments compared to last year.
According to initial industry estimates, Emerging
Markets showed a year-on-year increase of 1.0
percentage points to 4.8 percent for the fiscal year.
To gain better efficiency and speed to market, Lenovo
set up distinct end-to-end business models for each
key country in the region. The Group launched a series
of innovative and popular Idea branded products
into 18 countries to address the needs of consumer
segment. Meanwhile, the Group also kick-started its
efforts to develop core channels across the region,
resulting in increased share of wallet and stronger
bonds with core business partners.
Mature Markets
Mature Markets accounted for approximately 37
percent of the Group’s total sales. Impacted by
sluggish commercial demand in mature markets,
Lenovo started off in a low growth environment in
the first half of the year, but greatly improved its
performance during the second half. The improvement
in second half performance was largely attributed to
the strong growth in SMB and consumer segments.
Strong notebook growth was seen consistently across
all key geographies within the region which helped
offset a continuing decline in the desktop PC business.
However, PC demand from the enterprise market
continued to remain relatively weak during the year,
while future growth indicators, such as requests for
proposals, increased towards the end of the fiscal year.
The Group implemented its new Mature Markets Group
structure at the start of the year to better leverage best
practices across the region. This action resulted in a
more streamlined and unified business management
system as well as reduced operating expenses. The
Group also re-invigorated its channel strategy with the
formation of a dedicated channel partner organization
to broaden its reach through channel partners for
improved growth and profitability. The channel strategy
also aimed to simplify and increase the reach and
customer coverage of the relationship business through
the use of channel partners.
The Group has also implemented its transactional
business model across the mature markets, replicating
best practice developed in China, optimizing its
organizational structure to support end-to-end
campaign management and broadened coverage
for multiple price cells. Lenovo has also expanded its
consumer and retail presence in the region.
Lenovo grew by 8.9 percent in unit shipments in
Mature Markets compared to last year. The Group’s
overall market share increased in all countries within the
region with exception of those in North America, and
reached 4.4 percent according to the latest industry
estimates. With relatively limited retail presence in
this region, Lenovo’s share gains highlight its strong
execution in the market segments in which it has
presence.
ThinkPad X100e notebook