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Lenovo considers link to retail market

Lenovo considers link to retail market

Lenovo's decision to actively target the consumer market in Australia through retailers such as Dick Smith could see similar deals happening here.

Lenovo has entered the Australian retail market for the first time this month, signing deals with Dick Smith Electronics, Dick Smith Powerhouse and Domayne, while saying it plans to also enter the local consumer market with its IdeaPad notebook and IdeaCentre desktop products.

“We’re currently having discussions with retailers and we have met with Dick Smith New Zealand, so it is aware of our strategy and the partnership with Dick Smith Australia. That’s certainly a possibility we’re looking at,” says Lenovo Australia small business and consumer director David Nicol.

Lenovo country general manger Dean Butchers says the company has spoken with a number of different parties, but adds that a retail partner has not yet been chosen. “It’s still at the discussion phase. There are a number of organisations that have approached us [about the IdeaPad and IdeaCentre products] such as some of our distributors.”

Lenovo currently sells its 3000 range locally through The Warehouse with no immediate plans to change this deal, says Nicol. “We need to evaluate which channels are best for the new range of IdeaPad and IdeaCentre products, given it does reach a higher price point than the products we sell through The Warehouse.”

The local strategy will be similar to that in Australia, says Nicol. “We’ll look to launch premium products at relatively higher price points while still competitively priced and look for retail partners that can articulate our value proposition.”

Butchers says Lenovo will continue to use the channel for its professional products.

“The Lenovo ThinkStation workstations were announced last year and we’ve already had sales in the enterprise space and we’re finalising distribution through the channel of those products.”


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