Kenichiro Hibi, MD, Sony India, speaks to B&E about his company’s plans to ramp up its mobile division and grow its other businesses in the country
B&E: It’s been three months since you took up your current job. What are your immediate priorities?
Kenichiro Hibi (KH): I am just starting and everything looks challenging here. The market is very big, with a huge potential. We want to connect with our consumers both inside their homes and outside as well with our TV and mobile offerings. We are already the leading player in the flat panel space. In the mobile space, our aim is to be among the top-3 players. According to GFK, Sony Mobile already has a 9% share in the Indian market, and we will further build onto it. We are looking at a rapid growth in the mobile space. Our overall target is to triple our turnover three-fold by 2015-16 fiscal, from the current turnover of over Rs.63 billion to over Rs.180 billion.
B&E: Considering the steep revenue target you have set for 2016 fiscal, where will this growth come from?
KH: We have a three-pillar growth strategy. We expect the TV business to grow further. There is the CRT replacement market, with over 10 million customers who could possibly graduate to LCDs and LEDs. Our focus is on the premium range of products only. As in the case of Bravia though majority of sales still happens in the 22-inch range, but the 55 inches TV sets are doing well too. Also the segment is a big frontier for us. As India is a youth market, so we have products that appeal to the youth like digital cameras, Vaio PCs, gaming, etc.
B&E: What’s the revenue share of your main product lines?
KH: Our flat panel Bravia range contributes 35% of the revenue. Our laptop range Vaio contributes 20% of the revenue, while the Cyber-shot digital camera range contributes 15%. India is already the sixth-largest market for us country-wise.
B&E: Sony is facing strong headwinds in most of its major markets. How do you see those challenges affect your India business?
KH: The global weak economic sentiments have affected us, so has the situation in China. But in India the fundamentals like customer demand are strong. Though in India too GDP growth has slowed down, there’s still demand for our products. Also, since we import all our products, the weakening rupee and the appreciation of Yen creates some price-balancing issues for us here.
B&E: Are you considering local manufacturing here to become more price competitive?
KH: We will decide as we go ahead depending on the market conditions. For the time being we plan to use the FTA agreements that India has with Malaysia. We have production facilities in Malaysia for TV and audio products, while the majority of mobile phones are manufactured in China.
B&E: It’s been three months since you took up your current job. What are your immediate priorities?
Kenichiro Hibi (KH): I am just starting and everything looks challenging here. The market is very big, with a huge potential. We want to connect with our consumers both inside their homes and outside as well with our TV and mobile offerings. We are already the leading player in the flat panel space. In the mobile space, our aim is to be among the top-3 players. According to GFK, Sony Mobile already has a 9% share in the Indian market, and we will further build onto it. We are looking at a rapid growth in the mobile space. Our overall target is to triple our turnover three-fold by 2015-16 fiscal, from the current turnover of over Rs.63 billion to over Rs.180 billion.
B&E: Considering the steep revenue target you have set for 2016 fiscal, where will this growth come from?
KH: We have a three-pillar growth strategy. We expect the TV business to grow further. There is the CRT replacement market, with over 10 million customers who could possibly graduate to LCDs and LEDs. Our focus is on the premium range of products only. As in the case of Bravia though majority of sales still happens in the 22-inch range, but the 55 inches TV sets are doing well too. Also the segment is a big frontier for us. As India is a youth market, so we have products that appeal to the youth like digital cameras, Vaio PCs, gaming, etc.
B&E: What’s the revenue share of your main product lines?
KH: Our flat panel Bravia range contributes 35% of the revenue. Our laptop range Vaio contributes 20% of the revenue, while the Cyber-shot digital camera range contributes 15%. India is already the sixth-largest market for us country-wise.
B&E: Sony is facing strong headwinds in most of its major markets. How do you see those challenges affect your India business?
KH: The global weak economic sentiments have affected us, so has the situation in China. But in India the fundamentals like customer demand are strong. Though in India too GDP growth has slowed down, there’s still demand for our products. Also, since we import all our products, the weakening rupee and the appreciation of Yen creates some price-balancing issues for us here.
B&E: Are you considering local manufacturing here to become more price competitive?
KH: We will decide as we go ahead depending on the market conditions. For the time being we plan to use the FTA agreements that India has with Malaysia. We have production facilities in Malaysia for TV and audio products, while the majority of mobile phones are manufactured in China.
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