The Legend Group, China's largest manufacturer of personal computers, plans a big push into foreign markets soon, probably including forays into the U.S. and Europe, a senior Legend executive said.
Most domestic Chinese technology companies have been satisfied with supplying the fast-growing domestic market and with working under contract for foreign companies that do much of their manufacturing in China, instead of establishing their own brand names overseas. But Mary Ma, the CFO and senior vice president of Legend's publicly traded unit in Hong Kong, said in a speech that the group's recent entry into the Hong Kong market was just the beginning of an effort to sell Legend computers around the world. "The next step will probably be a market test in the United States and Europe," she said.
Legend's goal is to increase the share of its sales from markets outside mainland China to 25-30 percent by 2006, compared with less than 7 percent now, Ms. Ma said.
The company plans an extensive marketing campaign to raise awareness of its brand as it enters other countries. Legend is also considering overseas acquisitions as it studies how best to distribute its computers, Ms. Ma said, comparing Legend to Dell Computer. The mainland Chinese market for personal computers is expected to pass the Japanese market in sales this year and become the world's second largest, after the U.S. Because the cost of even a simple desktop PC can equal 2-3 years' savings for a typical urban Chinese household, ruthless competition on price is common. (The New York Times)
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