To: kemble s. matter who wrote (93990 ) 2/6/1999 11:56:00 AM From: Mohan Marette Read Replies (1) | Respond to of 176387
<China-TrendWatch>Brand name PCs gain on White Boxes,price not a factor. Hi Kemble: Looking good no? ====================================== Home PC Market in China is Booming Demand and Purchase Decision Revealed in New Report CUPERTINO, Calif.--(BUSINESS WIRE)--Feb. 3, 1999--The home PC market in China continues to grow at a rapid pace, according to a new consumer and channel survey report being published by Advanced Forecasting-HuiCong (AFHC). With an annual growth rate for 1998 expected to exceed 60 percent and with more than 1.2 million units sold, marketing opportunities for foreign vendors are also increasing. The report shows that Legend, a Chinese domestic computer company that leads in market share in the Desktop PC market is also now the brand of choice for the Home PC market. Legend is closely followed by IBM and Compaq. The new report confirms the trend of increasing popularity of Chinese High-Tech products by Chinese consumers. However, U.S. high-tech products still maintain an overall preference by business and individual consumers. The large-scale survey involved 3,000 Home PC owners as well as 300 Home PC vendors and manufacturers in 39 major cities across mainland China. The 100 page report includes a quantitative study of the leading PC brands' market share, sales volume and future sales forecast. ''This report is unique because of the large sample size and the fact that it is comprehensive in its scope and includes primary data,'' said Dr. Peng Fu, chief analyst with AFHC. Dr. Fu noted that the report also includes the competitive and promotional strategies of the various vendors, a market evaluation by the Chinese distribution channel members and distributors and consumer purchasing behavior (preferred hardware and software configuration, prices, purchasing outlets, etc.). Dr. Fu, also noted that, ''brand named PCs are replacing the low priced 'white boxes' that were so popular with Chinese Home PC consumers a couple of years ago. This trend indicates that the price of PCs is no longer the number one factor influencing consumers' purchasing decisions.'' AFHC's research further discloses that rapid upgrades in PC configuration and frequent price reductions together most hinder the Chinese consumers' purchasing behavior. Dr. Fu stated that many consumers postpone their purchases to obtain a lower price and better configuration. Despite these factors, the report indicates that the China market remains a tremendous opportunity for international PC companies. ''In a sense the market is unlimited,'' says Patrick Driscoll, vice-president of sales and marketing for AFHC. ''There remains a huge number of potential consumers and a relatively small installed base. The findings indicate that the need for high-tech products in China will only grow, in particular, PCs, software and multimedia products.'' Advanced Forecasting-HuiCong is a joint venture of Advanced Forecasting, a leading forecasting Silicon Valley company, and HuiCong, China's largest High-Tech Market Research and Advertising Group of approximately 2,500 employees. AFHC's data collection capabilities in China provides its clients direct access to the Chinese market for a broad selection of several industries and over 100 product categories -- down to the board level. It also delivers quantitative and qualitative information on market trends via subscription services, reports, and a variety of customized consulting services. Industries include automobile, broadcasting and TV equipment, chemical, office automation, personal computer, and telecommunication. -------------------------------------------------------------------------------- Contact: Advanced Forecasting-HuiCong, Cupertino Dr. Peng Fu/Patrick Driscoll, 408/725-2964 driscoll@adv-forecast.com www.adv-forecast.com