PC maker Lenovo (India) has seen significant improvement in its business after the implementation of its revamped strategy in 2009. Lenovo India managing director Amar Babu reveals the company?s retail strategy, key industry verticals, and the changing dynamics of the PC market in an interview with FE?s Ayushman Baruah. Excerpts:

Which industry verticals have contributed most to Lenovo?s PC sales this quarter?

The consumer and SMB verticals were significant for Lenovo?s success this quarter. As per IDC India?s Quarterly PC Tracker February 2010 release, the home PC market share of Lenovo increased to 9.5% in the fourth quarter of 2009 calendar year from 7.2% in CY2009 Q3, making it the third-largest PC OEM in India for the quarter. This can be expected to grow further in the coming quarters with renewed channel confidence and an exciting product line-up of consumer PCs for the home segment. In the SMB segment, the market share has grown 2.7% in CY2009 Q4, from 1.7% in CY2009 Q3.

What will be Lenovo?s retail strategy, going ahead?

The retail segment has seen a rapid growth with the rise in consumer purchasing power and the increasing role of technology in day-to-day life. And it is evident that PCs will be a necessary productivity tool and a lifestyle choice for an emerging economy like India. Retail, therefore, becomes an important sector to connect with consumers and help drive PC penetration.

With the launch of Lenovo?s third flagship store in India (Bangalore), we will look at escalating our retail penetration in tier-I and -II markets. We are focussing on shifting our multi-brand stores into Lenovo exclusive stores (LES). We also plan to roll out simpler versions of our exclusive stores across tier-III cities.

How do you see e-governance as one of the emerging consumers of the PC market?

There is an increased emphasis on digitisation of government processes and communication to enable the smooth flow of information between the government and the citizens of India, leading to a growing demand for desktops and notebooks from the government sector. Lenovo has a strong product portfolio to target the demand presented by the public sector, which will be a key focus market for us in the coming months.

How do you see the PC market changing with most corporations increasing their IT spend?

Gartner projects growth in the overall IT spending in 2010, as the economy moves out of the recessionary phase and demand for IT by businesses and consumers goes up. While desktop shipments are declining, the proportion of notebooks in the overall PC sales is growing rapidly because of the affordable pricing of these products and the investments made in the PC industry. Mobility will be a significant element in the PC industry. With the launch of 3G, the market will definitely see laptops with 3G-ready features. Lenovo will meet the demand for IT products by introducing PCs with cutting edge technology catering to all segments.