Channels, product quality key to HP China's revival

Hewlett-Packard's China President lays out five strategies, including extending its channel partners' reach and improving product quality, to boost its business in the country.

Hewlett-Packard (HP) has revealed five strategies to reclaim the domestic market in China, with a strong focus on improving its channel ecosystem and ensuring product quality remains high.

In a Sina Tech report Friday, HP China President Yi Xiaohui laid out the company's strategy in the domestic market, listing five key strategies.

These strategies include: breaking down the siloes between its research and development (R&D), design, marketing, sales and channel teams; developing customized products for the Chinese market; maintaining the confidence of the channel market and expanding into Tier-5 and Tier-6 cities; focusing its marketing efforts on consumer and commercial markets; and building a new quality control and service system, Yi said.

This is the first time the executive gave an indepth explanation of how the company plans to turn around since he took over the position six months ago. He left Lenovo Group to join the IT vendor, it added.

Growing the PC business
On HP's PC business in China, he said it was "steadily rising". Citing figures from IDC, he said the company's market share in China was at 7.3 percent in the third quarter of 2012, up 2 percentage points quarter-on-quarter. Its domestic ranking among other vendors also rose one spot from 5th to 4th during the same time period.

The channel distribution strategy was played up by Yi, particularly for its PC and printing businesses.

"Since there's no better way, the most efficient [method to sell is through] channels. For the PC business, the more we develop, the greater the need for our channels to go deeper. Markets, including farming villages, will provide more and more opportunities. HP used to stop at the Tier-1 to 3 markets, but we need our channels to go deeper. This is the same for the printing business," he said.

The president also believed channel partners will disregard past events that have shown the company in negative light, and focus on profitability and stability instead.

Additionally, the company's plans to build a new quality control and service system will also help win over its clients, Yi said. "As our product quality has been proven, HP wishes to use stricter quality control to win the hearts of our clients."