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Lenovo rolling Motorola back into China market

By GAO YUAN (China Daily) Updated: 2015-03-23 07:38

"I think it is a pretty clear strategy for these two brands. Lenovo has a very close relationship with Chinese telecom carriers," Liu, Lenovo's vice-president, said earlier this year.

"Because carriers are cutting smartphone subsidies, we are shifting our focus to other retail channels this year, especially online sales," he added.

Motorola is adopting its mother company's new marketing strategy as well. It is selling on top online shopping website JD.com in China.

Rick Osterloh, head of Motorola, said it came to China as a challenger. "We are more like a new company in this country despite our long company history," he said.

Lenovo is also trying to make Motorola more of a Chinese company. Its devices are currently manufactured in Tianjin and Guangdong province. Lenovo is planning to move the manufacturing to Wuhan in Hubei province, where the Chinese electronics giant operates its largest phone and tablet assembly facility.

But Lenovo does not seem to be in a hurry to introduce every Motorola product to China. For example, Moto 360, a smartwatch that received wide praise globally, will not be available for purchase in the world's biggest consumer electronics market.

Lenovo's caution may mean it misses the chance of becoming the next big thing after smartphones because the Apple Watch is set to enter the Chinese market by April. Apple's star product will meet no serious challenge in China as Moto 360, arguably the best smart watch in Google's ecosystem, is not ready to make a debut.

Liu, Lenovo's vice-president, said the wearable devices market remains young in China and Lenovo is still trying to find the best way to introduce products.

Introducing Moto 360 is not the top priority for the executives after all. Motorola is set to have a bigger presence in China and the developed economies in the coming years, an important step in Lenovo's strategy to try and take a bite out of Apple's market share.

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