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CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, announces findings from their report on the current state of HP China in China's PC market, particularly its relationship with long-standing competitor Lenovo. Recently, HP China has upped its game to better take on its main competitors.
After Lenovo brought in a number of senior managers from Dell and HP, Mr. Fu Biaobang, who had just left Hasee,[link widoczny dla zalogowanych], succeeded Mr. Sun Zhenyao and took the office of President for HP China. The inter-flow of senior management between HP, Lenovo and Dell, three giants of the PC industry fundamentally proved the original trend of the PC industry in business models, namely seeking complementary matches and integration, or the integration of supply chains, channels and sales models. Whoever cultivates new business models will gain an upper hand in the future market in China. Thus CCID Consulting believes that Fu Biaobang's return to HP will tend to add new momentum to the rapidly growing HP, which will upgrade to the ''2.0 era'' and launch a full-scale challenge against Lenovo.
HP successfully replaced Dell to become the king of the PC industry in 2006 under the leadership of Mark Hurd; the Company's operational revenues of the fiscal year also surpassed those of the ''Blue-Chip'' giant IBM and became the top of the IT industry. However, on the Chinese PC market, Lenovo continued to leave its competitors far behind with its well-developed distribution networks and its brand effects from the merging of IBM's PC services.
CCID Consulting's research shows that even though HP China's PC sales revenues in 2006 increased more than 27% over 2005, much higher than the 7.7% growth rate of the whole market, the absolute numbers in sales were far behind Lenovo. China's PC market will maintain a compound growth rate of over 13% in the next five years and will become the world's second largest right after the United States.
Catching up with Lenovo became a difficult but necessary goal for HP China. Consequently, HP launched its ''wall brushing'' campaigns in 5- and 6-level cities since 2006 and continued to explore the SMB market. At the same time, HP China also kept up the rapid growth in performance for years under the leadership of the former president Sun Zhenyao. Mr. Sun carried out a series of administrative reforms that helped to build and cultivate a top-rated team at HP China, which served as a guarantee for HP China's wholesome development. While Lenovo was integrating its global supply chains and incorporating Dell and HP ''genes'' and while Dell was further exploring operational models other than ''direct marketing,'' HP Global presented higher requirements and standards to HP China,[link widoczny dla zalogowanych], which is pushing HP China to a new era of ''large growth and large profits.''
The HP under Mark Hurd is at a stage of ''pursuing outstanding performance,'' where the company will need to achieve both high-speed growth and unceasingly increased profits. The biggest challenge for HP China is how to reduce costs, raise efficiency,[link widoczny dla zalogowanych], and invest more in R & D, channel building and customer service, so that HP can supply more competitively priced products and spread its marketing networks to the level-3 to 5 markets in China. As Fu Biaobang served as the President for Dell-Greater China Region for over four years, he is well-accomplished in supply chain management, direct sales, standardization, zero inventory and so on, which is exactly what is lacking in HP China. Furthermore, since Mr. Fu has had about 10 years of working experiences at HP, he generally will not encounter confrontation in corporate culture.
CCID Consulting believes that in terms of raising the performance of HP China under the dual challenges of Lenovo and upgraded Dell, Fu Biaobang has a long way to go and a heavy task on his shoulders.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore,[link widoczny dla zalogowanych], Italy and Russia, with the aim of going global.
Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications,[link widoczny dla zalogowanych], energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at [link widoczny dla zalogowanych]