ASiAn invASion wElcomEd - ProMéxico

mexico’s partner lenovo
lines of communication and is a great source
of qualified workers,” he said.
Besides its easy access to North and Latin
American markets, Mexico was chosen for
another very important reason. The Mexican
market is –after Brazil– the biggest in
Latin America for the personal computer
industry.
With an investment of 40 million usd,
Lenovo’s plant in Monterrey is the company’s
first manufacturing center on the American
continent. It is located in a building that measures
24,155 square meters and sits on an area
that stretches over 6 hectares –leaving open
the possibility for future expansion. The facility
produces desktop computers, workstations,
laptop computers and servers.
The plant has an annual production capacity
of 5 million units. Its activities include the
manufacture and configuration of products,
distribution with added value and customer
service. It directly employs 1,450 people and
is responsible for indirectly employing about
another 1,000 from the region.
A question of strategy
At first, Lenovo Mexico’s most important
clients were large global companies and government
institutions. In the last few years,
the company has aimed to broaden its market.
“We are looking closely at medium and
small companies that most of the time get
their products from traditional distributors
or from retail stores...And one of our biggest
goals is to reach the consumer market, specifically
the home sector,” Fernández said.
But one of the peculiarities of the Mexican
market is that many companies like to buy
their products from retail stores where customers
typically buy things for their homes:
price clubs or office supply stores. Another
distinctive characteristic of the national market
is its preference for quality brands. Mexicans
like buying brand name products.
“The Mexican citizen looks for the best
product –the brand name product– that he
or she can afford to buy. It’s a characteristic
trait that cannot be found with such intensity
in any other Latin American market,”
Fernández said.
Facing the crisis
Lenovo is dealing with the current financial
crisis thanks to a worldwide restructuring,
which is expected to help the company save
up to 300 million usd during this fiscal year.
In Mexico –where it values its pragmatic
and frugal way of doing business– the company
has focused on keeping all of its employees
while it looks to efficiently capitalize on the opportunities
the national market offers.
“Our offer has contributed to the reduction
of costs, not only in the price of acquisitions but
also in the operation of equipment,” Fernández
said. “Our way of buying machinery, our use
of energy and heat generation and conservation
is the most competitive in the market. In
the long run, it reduces operation costs.” The
company’s directive affirms that this has allowed
Lenovo to navigate through the storm,
continue capitalizing on opportunities and has
let it move ahead. On a slow but firm pace, it
continues with the intention of creating a long
lasting brand in Mexico and the rest of the
American continent.
Local and global: a glance to the future
Lenovo’s future is focused on two points:
expansion on a national scale and assisting
individual markets on a global scale.
Lenovo Mexico is looking to build distribution
and value chains through relationships
with consultants, marketing agencies
and software companies. This will allow the
company to reach the entire country and all
segments of the market.
“It’s an expansion project so we can
participate in market segments where we
weren’t before,” Fernández said. “The first
steps are modest but firm. We are sure that
when the economy rebounds, we will be on
the crest of a wave.”
Worldwide, Lenovo has focused on two important
market segments: emerging markets
and developed ones like Canada, the United
States and Europe. Countries like Mexico and
Brazil make up a sui generis group, on horseback
among many types of markets.
“We have a special category and we have
decided to invest in this segment,” Fernández
said. n
Lenovo’s Worldwide Sales
(2008-2009 fiscal year, by region)
China
1.2 billion usd
(43.6% of global sales)
America
682 million usd
(24.6% of global sales)
Europe, Middle East and Africa
591 million usd
(21.3% of global sales)
Asia Pacific (excluding China)
291 million usd
(10.5% of global sales)