Acer to zero in on mainland China, U.S. markets

Dec 15, 2003 Ι Industry In-Focus Ι Electronics and Computers Ι By Ben, CENS
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Taipei, Dec. 15, 2003 (CENS)--Acer Inc., one of Taiwan's leading suppliers of own-brand personal computers, will make all-out efforts to expand its share of the world's PC brand market next year.

To that end, the company will expand sales of own-brand products to the massive mainland China and U.S. markets next year, no longer focusing on the pan-European market like before.

The company said it would spend NT$800 million (US$23.52 million at US$1:NT$34) on marketing to expand sales to the mainland. It will also place ads on the mainland's state-run China Central TV station next year, becoming the first Taiwanese PC firm to do so. The ads will help the company enhance corporate image and brand recognition in that market.

Acer will also set aside NT$350 million (US$10.29 million) in marketing budget to expand sales in Taiwan.

Lin Hsien-lang, president of Acer's greater China operation, said his company will post NT$7.2 billion (US$211.76 million) in sales of own-brand products in the mainland this year. The company has set a goal of between NT$12 billion (US$352.94 million) and NT$13 billion (US$382.35 million) for sales of own-brand products in mainland China next year, up 67% up to 80% from this year's level. The sales goal for the mainland market next year will equal the sales amount in the Taiwan market.

Acer projects to score sales of US$800 million in the greater China market next year.

Lin said mainland China's operating environment has improved significantly since the nation entered the World Trade Organization some two years ago. Since then, Acer has successfully sold products to grass-root governments and colleges in the mainland.

Acer now operates 18 branches in the mainland and will set up seven more branches in 2004. The new branches will be located in Changchun of Jilin Province, Tianjin Municipality, Dalian of Liaoning Province, Qingdao of Shandong Province, Hefei of Anhui Province, kunming of Yunnan Province, and Huhehaote of Neimenggu.

Lin noted his company would pump in between NT$400 million (US$11.76 million) and NT$500 million (US$14.7 million) for sales promotion in the mainland market next year.

In addition, Acer chairman Stan Shih has promised to appropriate an extra US$10 million for boosting mainland sales next year. In total, the company's marketing budget in the mainland will total NT$800 million (US$23.52 million) in 2004.
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