Sony's Vice President Checks China's Economy: Japanese Giants' Strategies

A few days ago, Sony released its 2010 financial report. It suffered a huge loss of 3.1 billion U.S. dollars last year, but Sony China has achieved good results. Its sales in consumer electronics business has increased by 26%, which has further increased the Chinese market's position in Sony's global position.

On June 2nd, the vice chairman of the Sony Group, Mr. Nakajima, accepted an interview with the "Daily Economic News" at the Sony headquarters in Beijing. From the new energy strategy road to the sinking of the third and fourth line channels, to the 3D strategy advancement, Sony has demonstrated to the outside world a distinctive Chinese market strategy.

New energy strategy

As the world's leading supplier of commercial lithium-ion batteries, Sony's battery business has not been significantly degraded at the strategic level of the Group. Nowadays, Sony has taken advantage of the strategic planning of new energy sources, allowing the battery business, which has been silent, to move from behind the scenes to the stage, becoming one of the three major growth engines of the Group in parallel with 3D electronic products and network services.

The real power behind this is that current new energy has become a global topic. In 2010, China’s strategic emerging industries policies including new energy were first written into the Chinese government’s work report. Sony also targeted the expansion of the global new energy battery map to China.

“We have a battery factory in Wuxi and we will carry out related production business in the future. Sony’s storage technology is a very promising technology and business,” said Zhongji Liangzhi, a reporter for “Daily Economic News”.

At the end of June last year, Sony announced a new energy storage module for the newly developed olivine lithium iron phosphate battery. The energy storage module is commonly known as the battery pack. This degree is considered by the outside world to be Sony's killer product.

In addition, Sony demonstrated dye-sensitized solar cell technology at this year's China-Japan Green Expo, which is the result of a collaboration between Sony and the Chinese Academy of Sciences Institute of Silicate.

"We are studying how to carry out industrialization promotion. The possibility of first producing and promoting in China is very large, but the timetable for specific commercialization is still difficult to give." Zhongli Liangzhi expressed that in the future, Sony Research and Development Staff and funding will also increase substantially. According to him, Sony's investment in environmental technology development in 2009 reached 17.1 billion yen.

Sink to the third and fourth line channels

In addition to the layout of the new energy strategy, the competitiveness brought about by the scale effect has enabled Sony to extend the reach of the channels to three or four cities.

Before this, Sony's feeling to the outside world still emphasizes the "high-end image." Insiders pointed out that the three or four cities are relatively unfamiliar to Sony, mainly because of low brand awareness, inability to cover the service network, and the inability of product prices to be competitive.

However, Sony has its own plan.

"Continuously expanding the sales volume in the 3rd and 4th markets is Sony China's strategy. For the 3rd and 4th cities, we mainly do two things: one is the laying of maintenance outlets, and the other is the local brand building." "Especially TV products, if there are no good service outlets, will not be able to form satisfactory sales." According to the plan, Sony is expected to expand the number of repair stations from 280 to 580 within two years.

Nagata Qingkang pointed out that although Sony has just begun its "lower grassroots" market share in the 3rd and 4th markets, Sony is optimistic about the growth rate and prospects of this market. He believes that the next 30 to 40-inch TVs will be mainstream products in the 3rd and 4th markets. Sony will only have a certain amount of sales to gain competitive advantage.

Advancement of 3D strategy

With the popularity of high-definition televisions, 3D has become a battleground for television companies. In addition to the foreign giants such as Sony, Samsung, and LG who first landed on the domestic market, almost all TV manufacturers such as Hisense, Skyworth, Konka, and TCL have swarmed in, making the 3D TV field a rapidly becoming a Red Sea.

According to industry research agency DisplaySearch, China's LCD TV market will increase from 45 million units this year to 57.77 million units in 2014, of which 3D LCD TV sales are expected to increase from 2.29 million units this year to 13.92 million units in 2014. Swelled more than 5 times.

Nagata Qingkang pointed out that, like the development of the high-definition industry, 3D TVs are also facing the lack of content, especially in China. He believes that the key to solving the lack of content lies in the Blu-ray problem. According to him, Sony has occupied more than 50% market share in China's Blu-ray market, and Sony's 3D solutions and content will be more abundant in 2011.

In addition to adhering to the 3D strategy, Sony also included Internet TV in the three major directions this year. Before this, Sony cooperated with Hangzhou Huaji and launched a web-based TV product in China. It is understood that Sony's Internet TV service is based on China Digital Services's platform to launch network video services. On the other hand, through smart remote control and other link methods, mobile phones and computer keyboards act as remote controllers, enabling Internet browsing.

"Mobile Internet is a very challenging area for Sony, especially in terms of localization. Sony has many cooperation models with other partners such as Google in other markets, and there are many precedents for success." Nagata Qingkang pointed out that in China In the market, Sony wants to maintain cooperation with Sony Ericsson. At the same time, it needs to cooperate well with domestic operators. In the mobile Internet market, Sony is still in its infancy.

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