Sony Corporation is a Japanese multinational conglomerate and its Indian counterpart is on the path of making $1 billion in revenue from the consumer electronics business during the ongoing financial year. Celebrating the thirtieth year in the country’s market is remarkable given this achievement.
In a sit-down interview with one of the journalists, Sunil Nayyar who is the Managing Director of Sony India spoke about how the company’s revenue has been increasing, the last two fiscal years recorded 20% increase each year. Last year the Sony India’s operating revenue crores was 7,664 (960) as they turned away from the sales of television. the company has broadened its audience as there is an increasing market for premium products due to diversification in its members and hence the company makes revenues from high-end audio products, digital imaging and gaming.
Nayyar emphasized the positive development within the company noting that after the pandemic, there has been a lot of resurgence in Sony India and certain product categories such as premium TVs, gaming systems, and image conveyance systems have been the key areas of growth dynamics. Sticking out from the low margin, cheap product categories like that of budget television sets has been a significant factor in the firm’s policy to create room in the market for concentrating on luxurious high value products. Though television sales account for still about 55-60 % of total sales of the firm, the sales from other segments like that of digital imaging that constitutes about 15-20 % and gaming about 10-12 % have grown significantly.
“The strategy to concentrate on high end products is bearing fruits. There is less variety in our offerings and the demand for high end” flat screen televisions in particular has increased a lot.” Nayyar explained. He further mentioned that the company’s marginal figures of such premium products in the past are much lower compared to the impressive figures now which has led to an upward trend in the company’s net profits. ₹225 crores were the net profit that Sony India achieved in the financial year28FY23 Nurtured not only by strategic product placement, but also by the increased outlay on advertising efforts.
The strategies that Sony India has developed to avoid resorting to damaging price cuts, particularly in the television business, have also enabled the organization to achieve a certain level of positioning. Although it has stopped marketing budget televisions, Sony controls a substantial share of the Indian market for TVs with screen sizes of 50 inches and above.
In the gaming market, Sony’s PlayStation 5 has played a major part in the expansion of the company, more so in a competitive environment with an increasing number of gamers. The upturn of this market is also cushioning the company against possible dips in other sectors especially sales of electronic products.
Moving forward, Nayyar seemed assured that there will be well over strong double-digit growth because the company is correctly, concentrating on premium products and high-margin areas in the coming years. With its strong brand equity in Sony India and the ongoing efforts to broaden the product offerings, the company is expected to experience even better performance in the upcoming financial years.
Having established its presence in India for the past three decades, Sony remains a force to reckon with in the consumer electronics sector, prioritizing innovation and quality over pricing model strategies.
