China's Lenovo Group announced the establishment of a new wholly-owned subsidiary aimed at mobile Internet-enabled devices.
This new subsidiary will reportedly start formal operation on April 1, 2015, and it will have an independent company name and a new sub-brand. Chen Xudong, Lenovo Group's China president, will be chief executive officer of the new company.
According to Lenovo, the new company will develop product plans with "Internet thinking" and will deeply involve users in the creation plans. Its new business model will integrate hardware, software, application and Internet services on an end-to-end basis. The new company will focus on using the Internet business model to implement in-depth interaction with consumers in various links, including sales, marketing, and product development.
Yang Yuanqing, chairman and chief executive officer of Lenovo Group, said that mobile Internet, e-commerce and interactive marketing are developing rapidly and they are significantly changing traditional technology business models. The company needs to transform fast and seize new opportunities.
In November 2013, Lenovo established its digital marketing team; in July 2014, the company launched its Internet business platform named Lenovo New Business Development; and in August 2014, the company formally published its Music Fund investment strategy.