Feeds

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

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

Build a business case: developing custom apps

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. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.