Feeds

Acer eyes 'untapped' rural China as West snaps purse shut

PC-maker plans to make cash by penetrating farmers' market

Combat fraud and increase customer satisfaction

World number four PC-maker Acer is focusing on the folk still buying computers and hoping to grow its China sales by 20 to 25 per cent next year.

The Taiwanese firm set up a strategic alliance with Founder Technology last year for that Chinese company to use its trademark on the mainland in an effort to boost its presence there.

"Next year we plan about 20 to 25 percent (sales) growth," Oliver Ahrens, head of China operations, told Reuters.

"The integration with Founder went successfully and we dramatically increased our stake in the notebook business in China," he added.

This year, Ahrens is predicting a 60 per cent growth rate in China sales as the Founder boost makes itself known in the fourth quarter.

Meanwhile, Acer has also been investing in marketing campaigns in the country to help increase its brand recognition.

"We spent over the last two years, this year included, more than $100m in marketing and retail management, so it's a strong investment we made here," Ahrens said.

PC and notebook manufacturers are increasingly looking eastwards as the bottom falls out of the market in the UK, Europe and the US.

Western consumers are still feeling the big squeeze from the global credit crunch and recession and the ongoing unemployment, recent euro crisis and rising living costs are keeping their wallets firmly closed as they anticipate a double dip.

Part of Acer's Chinese push will be to break into rural markets in the country, Ahrens said.

The company forecasts that rural market PC and notebook volume will grow to 35 or 40 per cent of total China volume from 15 per cent now.

The Taiwanese firm plans to invest in distributor networks and marketing structures that will cater for the rural customer, Ahrens added. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.