While their sales in developed markets have been steadily decreasing, Japanese consumer electronics companies are finding a new lease on life in the Indian market, as consumer demand is keeping their businesses robust in the South Asian country. Companies like Sony, Panasonic, Hitachi, Daiking and Sharp are investing significantly in this developing market.
Panasonic recently announced plans to set up their second manufacturing plant for business to business products like energy and high-definition video conferencing solutions, following the completion of their first manufacturing unit in Haryana. The company will also be infusing 250 million dollars just for marketing and advertising by March 2015. Panasonic President Kazuhiro Tsuha visited India April of this year and said that this is a key market for them as they plan to return to profit by fiscal year 2013-2014 by focusing on emerging markets. Hitachi President Hiroaki Nakanish also recently announced that they have already lined up investments to establish a manufacturing plant in India by March 2016.
While Japan focused on the Chinese markets in the past few years, Korean electronics giants like Samsung and LG established their dominance in the Indian market as Japanese companies refused to lower their prices to match their competitors. But now that diplomatic and political issues have weakened demand for Japanese products in China, the electronics companies are refocusing on other markets, with India becoming a main target. Just in the past year, Japanese consumer electronic have reduced prices by 10-20 percent to match the aggressive pricing by its Korean rivals. Sony and Panasonic are adding to their retail and distribution presence across the country, not just in the cities but even beyond them. These consumer electronic companies are realizing that it is still better late than never to join the party in India.
[ via Business Standard ]
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