Viewpoint

1. Desktop PC sales volume in 2000 was 6.2 million, with an increase rate of more than 38.2%.
2. The "avalanche" increase in the family computer market was the main feature of desktop PC market development in 2000.
3. Personalization of products and detailed market categories are the focus of desktop PC market competition.
4. How to actively cultivate both enterprises and individual markets, and how to penetrate into regional markets are becoming the hot point for desktop PC market competition.
5. Following the basic trend of desktop PC market development in the internet era, domestic and overseas manufacturers must adjust their competition strategy, and transfer from public marketing to integrated marketing, and change from scale-decisive strategy to speed-decisive strategy.

I. Overview of desktop PC market environment in 2000

1. Economic environment
2. Industrial environment
3. Technological development
4. Political environment
5. Financial environment

II. Total volume and composition of desktop PCs in 2000

1. Market scale and composition of PC market
a. Market scale of PC market
b. Market composition of PC market
2. Market scale and growth of desktop PC
a. Market scale of desktop PC
b. Market growth of desktop PC
3. Market composition of desktop PC
a. Measures of market division
b. Regional market composition
c. Market composition of industrial applications
d. Market composition of enterprise applications
e. Market composition of individual consumption
4. Analyses on supply and demand of desktop PC market
a. Analysis on supply composition
b. Analysis on demand composition
c. Status of the balance of supply and demand

Chapter Highlights
On the basis of in-depth research, CCID has made a detailed analysis on the overall scale and composition of PC s in China in 2000. Desktop PCs are the mainstream product of the market with a sales increase rate of 38.2% in 2000. From the perspectives of regional and industrial markets, this chapter describes the basic features and characteristics of demand for desktop PCs in various regional markets and application markets. Middle and small-sized enterprises, and individual consumption, have increased dramatically among the desktop PC market composition in 2000. The focus of the market turned from central cities to regional borders. Family computers from famous brands such as Legend Business Doctor, Tianxi, Tongxi, Tsinghua Tongfang, TCL had good sales, which demonstrates the important change in China's desktop PC market.

III. Market composition of desktop PCs in 2000

1. Market concentration level
a. Brand concentration level
b. Vendor and manufacturer concentration level
2. Analysis of product differences
a. Family and commercial computers
b. Famous brands, domestic brands and compatible machines
c. Brand composition of family computers
d. Brand composition of commercial computers
3. Analysis of industry penetration
a. Convergence and separation of commercial and family computers
b. The arise of informational electronic appliances and the development of the desktop PC

Chapter Highlights
This chapter analyzes the concentration level of market sales volume and sales revenue from the angles of brands and manufacturers. It also analyzes product differences from the angles of family and commercial computers, as well as brand and compatible computers. The development of the internet has totally changed the traditional competition pattern. The desktop PC market in 2000 saw famous brands coexisting with various small brands. Because of the boom in internet usage, family computers have been increasing like an "avalanche" and are in high demand in middle and small enterprises and the education market. Internet access has become the main feature of the desktop PC market. The market share of family computers is 38.5%，but commercial computers are still the mainstays of the desktop PC market, with a market share of 61.5%. Advanced, family-use internet computers from Tsinghua Tongfang have been introduced to the market, creating a new idea "New Trend Internet," which won the market with high performances and low prices and became the "dark horse" in China's desktop PC market in 2000. It is obvious that the middle and small enterprises of more than 10 million have a large demand on desktop PC, with an annual increase of 30%-60%. Therefore, individual and enterprise markets will most likely become the fastest growing segment in the future of the desktop PC market.
IV. Market and competition performances of desktop PCs in 2000

1. Analysis of product competition
a. Overview of product competition
b. Competition of product concepts
c. Market subdivision and product competition
2. Analysis of technology competition
3. Analysis of brand competition
4. Analysis of price competition
5. Analysis of channel competition
a. Development of licensed shops
b. Transfer of desktop PC channel
6. Analysis of service competition

Chapter Highlights
This chapter describes desktop PC market competition in 2000 in terms of products, technologies, brands, prices, channels and services. Some measures such as research discovery, brand concept promotion, personalized products, brand promotion, low price, flat channel and electronic services are significant to the market competition. The competition of the domestic desktop PC market has promoted some small brands, especially some service brands such as "Blue Express", Tsinghua Tongfang's "Guardners Project", TCL Computer's "Star Messenger", which have laid a brand foundation for collective operation. Price competition is not just the battle for lower prices, but also for improved configurations. Channel competition mainly includes the setup of licensed shops and the transfer and innovation of channels.

V、Predictions for the desktop PC market from 2001 to 2003

1. Analysis of main factors affecting market development
a. Macro economy and desktop PC market
b. Social life and desktop PC market
c. Technology application and desktop PC market
d. Market competition and desktop PC market
2. Predictions for the desktop PC market
a. Selection of prediction models
b. Predictions on market sales

Chapter Highlights
Macro economic environment, social life models, technology application features and market competition patterns are the main factors affecting the development of China's desktop PC market. The future will witness the rapid development of the desktop PC market. Facing the vast potential market, the development will mainly be driven by factors such as technology advancement, and application innovation. It is estimated that the development of the Internet will make possible the reorganization of the desktop PC market. Middle and small enterprises, famous brands, as well as domestic and overseas manufacturers will be faced with new market competition.

VI. Conclusion and Suggestions

1. Strategic selection：brand competence helps to decide the differentiated, strategic selections of PC vendors and manufacturers.
a. Scale-decisive competition strategy is the inevitable choice of manufacturers with high brand competence.
b. Speed-decisive competition strategy is the inevitable choice of the manu-facturers with middle and low brand competence.
2. Strategy implementation：Market motion capacity decides the differentiated strategy implementation of PC vendors and manufacturers.
a. Using "break-out force" to have "a battle to annihilation" is the main characteristic of scale-decisive strategy for manufacturers with high market capacity.
b. Using "endurance" to have a "protracted battle" is the basic way of implementing speed-decisive strategy for manufacturers with low market capacity.
3. Product strategy：Personalize to customer needs and provide detailed product categories
a. Fashionable design concepts are the premise for meeting customers' personalized needs.
b. Diversified promotion plans are the guarantee for the detailed market categories.
4. Marketing strategy：4P and 4C
a. Pursuing customer satisfaction is the essential goal and the tool allowing adaptability to customers' psychological change.
b. Realizing value-added service is the main task of transfer, allowing adaptability in IT industry.
5. Channel strategy：Integration in cross directions and expansion in vertical direction
a. Flat channel requires that the manufacturers have a strong channel integration capacity in cross direction.
b. Stereo channel requires that the manufacturers have a complete and flexible channel expansion mechanism.
6. Service strategy：Connection service and value-added service
a. Change from "passive service" to "active service"
b. Change from "product is service" to "service is product"

Chapter Highlights
This chapter indicates that China's PC market has stepped into a new development stage from 2001, from "arrangement" to "Fight". Therefore, manufacturers with different capacities and competencies in the stage of "arrangement" will start from the same scratch line in "fight" stage, which provides an equal opportunity for every manufacturer. The manufacturers with high capacities and competencies should maintain their advanced positions while those with low ones should improve themselves. They all need to make a new selection and implementation of competition strategy, as well as the innovation and realization of new technology, product, marketing, and channel and service strategies

Data

Figure 1 Desktop PC sales volume from 1998 to 2000

Data source：CCID

The demand on desktop PCs in individual and enterprise markets are increasing, but the largest area is still industrial demand.

Figure 2 Market composition of desktop PCs in 2000

Data Source：CCID