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Benq, a Taiwan-based Chinese electronics firm, says it expects its business in the Chinese mainland to remain on the fast track with the execution of its 4C strategy.
"The proportion of our sales from the Chinese mainland is not very high," said K. Y. Lee, chairman of Benq, "I hope we can move faster and strengthen our position in the market."
He made the remarks in an interview during the Suzhou Electronics Manufacturers Exhibition (eMEX), which is one of the biggest electronics and information industry shows in China. It concluded on Saturday.
Last year, Benq received 21 percent of its total revenue from the Chinese mainland out of its total of 32 billion yuan (US$3.86 billion), compared with 32 percent from Asia Pacific region, the Middle East and Africa, 29 percent from Europe, and 18 percent from the Americas.
However, this year Benq has achieved strong growth from the Europe market, which is likely to contribute about 35 percent of the company's total. Because of the faster increase of revenue from Europe, the proportion from the Chinese mainland is estimated to fall to about 19 percent.
Despite the decline of the proportion of the Chinese mainland, Lee said he believed it would remain the most important single market for his company.
"In the long term, we expect we can generate 30 percent of our sales from the Chinese mainland."
He said the Chinese mainland has a middle-class population almost as big as that of Europe, so the proportion should be the same.
The 4C strategy, including computer, consumer electronics, communications, and components, will provide sustained growth for Benq's business on the Chinese mainland.
Michael Tseng, managing director of Benq IT Co Ltd and head of Benq's operations on the Chinese mainland, said he believed that handsets may become the biggest business for his company, if Benq can get a handset manufacturing licence next year.
In China, handset makers need to obtain a licence to make phones and only 49 handset manufacturing licence have been granted to 35 companies.
Benq began considering making handsets in the Chinese mainland and the company hoped it can obtain a licence next year.
The company, one of the biggest mobile phone makers in Taiwan Province, has the capacity to make 15 million units a year and has been engaged in the business for 10 years.
Tseng said he hoped that his company could become one of the top five players because of its long-time experience in the Chinese mainland, its success in overseas markets, and its technological capability.
Notebooks will be the focus for Benq in the computer business.
Tseng said his company's shipments of notebooks to the Chinese mainland had risen by 40 to 50 percent every month and about 5,000 units were expected to be sold this month.
For Benq, which previously focused on IT products, to build strong distribution channels is the key for its consumer electronics business. Liquefied crystal display (LCD) TV sets will be a growth engine in this area.
(China Daily October 25, 2004)
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