Konica Minolta Ties up with Legend For China Printer Sales
Konica Minolta Holdings Inc. says it has formed an alliance with Legend Group Ltd. (H.LGP) to supply its personal computer-use printers to China’s leading PC maker on an original equipment manufacturing basis.
With the deal, the Japanese precision equipment maker will seek to boost its printer market share in China fivefold by the end of the next fiscal year ending March 2005, a company spokesman said.
“The printer market has become saturated globally, but China is an exception. In particular, the color printer market in China is growing rapidly, and we hope to cash in on that,” the spokesman said.
Legend appears to favor Konica Minolta among potential Japanese tie-up firms due to Konica Minolta’s product strength in color printers, he said.
Including products supplied under OEM agreement, Konica Minolta had a share of slightly less than 5% in China’s laser printer market in the previous fiscal year ended March.
Konica Minolta aims to lift its market share to 7%- 8% by the end of this fiscal year and to 25% by the end of the next year, it said. Under the pact with Legend, Konica Minolta will supply from May a monochrome and a color model laser beam printer, both of which will be manufactured at its factory in Guangdong Province. The company will ship about 80,000 monochrome and 10,000 color printers to Legend over the next year-and-a-half to two years.
Konica Minolta also hopes to expand the alliance with Legend to include other models in the future, the spokesman said.
Legend now ranks second in the Chinese printer market after market leader Hewlett-Packard Co