Feeds

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

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

Designing a Defense for Mobile Applications

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. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.