With the tablet PC market dominated by giants such as Apple, Samsung and Lenovo, how has a Chinese tablet manufacturer like Eren Eben been able to survive so long?

The Chinese company is unique in many aspects. First, unlike the founders of many consumer electronics firms, who are industry professionals, Eren Eben was established by Du Guoying, an entrepreneur whose background is in traditional industries, the Chinese-language Business Value magazine reports.

At the age of 24, Du started a firm manufacturing shoulder straps with 500,000 yuan (US$79,350) in capital. He went on to become a billionaire in two years and subsequently set up a firm to produce electronic dictionaries.

Second, while most tablet computers are equipped with touchscreens, Eren Eben's tablets use a stylus to input using handwriting.

In addition, while other electronics products are sold through IT shopping centers and e-commerce channels, Eren Eben's tablets are advertised through web portals and sold at stores in high-end shopping malls. Industry insiders said the company's profits from hardware products stands at more than 50%.

These unconventional marketing practices have sparked speculation over whether this product, which targets customers born in the 1960s, can continue to survive.

While many industry experts doubt whether the 1960s generation represents a large enough market, Du believes that this demographic contains tens of millions of people and is therefore ample. According to Du, the number of Eren Eben tablets sold in 2011 was "merely" 300,000 — less than 1% of China's population. "Who can say this is a small market?" he said.

Du said his company has targeted this segment because it contains the social elite with strong purchasing power. Most importantly, compared with the generation born in the 1980s and 1990s, this age group prefers the handwriting style of input. Du said he is well aware that Eren Eben's market positioning depends mainly on this feature.

To the surprise of many, this product, which had a grim outlook two years ago, has not disappeared but has captured the second-largest market share. Du attributes his firm's success to letting market demand decide its strategy. On Dec. 23 last year, Eren Eben launched its T4 tablet, the handwriting feature of which is significantly more advanced.

Despite its success, many people continue to ask if Eren Eben ought to expand its target consumer segment beyond those born in the 1960s, to those born in the 1970s and 1980s. Others have questioned whether the company's hardware-only business model is sustainable.

References:

Du Guoying 杜國楹