Lenovo leads Chinese brand penetration into Australian market

Lenovo Chairman and Chief Executive Officer Yang Yuanqing speaks during a news conference announcing the company's annual results in Hong Kong in this file photo from May 21, 2014. [Photo / Agencies]

SYDNEY -- Australian shopper Bill Sprawson was looking to spend A$1,500 ($1,164) on a laptop computer and had conducted his research.

Sprawson was not a fan of Apple so he looked for other trusted brands including Hewlett-Packard, Dell, Acer and Toshiba.

And then he spotted Lenovo.

He had heard good things about Lenovo, but was surprised to learn that this computer maker, the world's largest PC maker, was Chinese.

"I've heard of Lenovo and it's a good brand, but I didn't know it was Chinese," the Sydney man said. "There were 30 percent off the market price, so that made me go for Lenovo."

Lenovo is the highest profile Chinese brand that is attracting attention outside China, and its reputation is growing as the tech giant looks to dominate foreign markets.

Lenovo chief marketing officer for Asia Pacific Mature Markets Nick Reynolds said the company launched the consumer PC and tablet business in October last year with Harvey Norman and JB Hi-Fi, two of Australia's largest electronic retailers.

"This means our brand and products are more visible than ever in over 400 stores," he said.

The company is planning to expand in Australia by introducing smartphones in second half of 2015 with the Motorola brand and a range of products after purchasing Motorola Mobility in 2014 from Google.

"To succeed in the Australian market any organization, Chinese or otherwise, needs to position their brand carefully with consumers," Reynolds said.

Lenovo launched its latest premium YOGA convertible PCs and tablets by leveraging a partnership with US actor Ashton Kutcher in his role as a Lenovo product engineer.

"As a popular actor who is well recognized, Lenovo leveraged his star power in a worldwide marketing campaign to build its brand," Reynolds said.

"Lenovo is a company with R&D prowess and Ashton worked closely with us to deliver a ground-breaking tablet with 18 hours battery life and in-built subwoofer and projector.

"It's important to know your strengths and weaknesses and invest to build your brand in a sustainable manner."

Lenovo Australia last month hosted a technology conference in Sydney attended by Kutcher, who spoke at the event. The actor also features in a comical TV advertisement milking a goat, in a bid to attract younger Australians.

Another Australian shopper Anne Johnson, aged in her 20s, said she had seen the ads, but more importantly, read reviews about the best computers, and was considering a Lenovo.

"I looked at them online and Lenovo had good reviews. They weren't the cheapest but I wanted quality and I was impressed with what I saw," she said.