Lenovo is set to create a new brand targeting the consumer mobile device market in China.
The new brand will be under a new company which will be operational from 1 April, 2015. The new brand will focus on customers who are buying using online platform.
However, Lenovo branded smartphones will not disappear from China.
Lenovo said the main strategy of the initiative is to assist the company to strengthen the growing consumer mobile device market in China, with a focus on devices, software and application development and close customer engagement.
Currently Lenovo has a leading smartphone business, which sells mainly through open market sales and carrier relationships.
While Lenovo continues to strengthen its own company-branded online channels as part of its go-to-market strategy, the new company will exclusively focus on direct-to-consumer sales, marketing and product development using an internet-based business model.
Lenovo will be announcing the structure of the new company at a later stage.
Chen Xudong, currently president of Lenovo’s China geography and Asia Pacific – Emerging Markets (East Asia, Hong Kong, ASEAN and India), will become CEO of this new company.
Liu Jun, executive vice president and head of Lenovo’s Mobile Business Group, and George He, senior vice president and head of Lenovo’s Ecosystem and Cloud Services Group, will be the co-chairmen.
Tong Fuyao, currently vice president of China’s relationship business will become head of Lenovo’s China business.
Ken Wong, currently vice president and general manager of Asia Pacific – Emerging Markets (East Asia, Hong Kong, ASEAN and India) will become head of this business, a role also previously held by Chen Xudong.
Both will report to Gianfranco Lanci, Lenovo’s chief operating officer and head of the company’s Personal Computer Group.