Lenovo to Open 2,000 Smart TV Stores in China
Marcel Woo | | Apr 20, 2014 01:53 AM EDT |
China's computer manufacturer Lenovo Group, the world's largest, revealed plans to open up to 2,000 physical stores that will sell its smart televisions in China before the end of this year.
Company executives said it will build at least 2,000 brick-and-mortar smart TV stores in China this year in order to boost its newly-released TV products, adding that the stores will be spread to around 2,000 counties in the mainland.
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The move is part of Lenovo's overall plan to seek new profit sources aside from personal computers and smartphones. The smart TVs will target Chinese families' living room, the company executives said.
The stores will be built in lower-tiered cities where online shopping is not yet developed. In tier-one to tier-three cities, Lenovo will depend on e-commerce sites to sell its smart TVs, said Lenovo China's smart TV unit head David Ren.
Ren refused to disclose the sales target for the 2,000 physical stores it plans to build this year but told reporters sales volume last year was 10 times higher than the sales volume registered in 2012.
A source, however, said the company aims to sell up to 1 million smart TV sets in the 2013-2015 period.
Analysts, however, said it will not be a smooth journey for Lenovo's smart TV because the company will be up against giant TV makers in China, including Skyworth Group and Konka Group Co, which are all based in Shenzhen. The two TV makers take the largest share in the the country's TV market.
China's smart TV demand, however, continues to increase, giving new players the chance to compete with TV OEMs. As of the end of last year, the penetration rate of smart TVs in China reached 45 percent and the potential market demand continues to be huge in the next few years.
Lenovo said its smart TV, dubbed S9 TV, will stand out from among the smart TVs in the market because it has the fastest data-processing speed.
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