Lenovo moves into China’s hinterland and invests in the country’s sixth-tier

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Below is an excerpt from an article that ran in China Daily today on Lenovo’s plans to expand into China’s fourth- to sixth-tier cities:

Lenovo will expand its presence in rural China to maintain its competitive edge, according to one of the computer giant’s top managers.

“China’s fourth- to sixth-tier cities will become our major growth engine,” said Chen Shaopeng, Lenovo’s senior vice-president and president of China operations. “We plan to intensify cooperation with local partners to roll out new products that could help our customers find their needs.”

According to figures from the research firm IDC, the average growth rate of the Chinese PC market in the next five years is expected to reach 11.7 percent. Meanwhile, the growth rate in China’s fourth- to sixth-tier centers is expected to hit 23 percent. 

The question is what exactly constitutes a sixth tier city? Running water and a stable electrical supply?