Tuesday, December 03, 2013: It is a well known fact that when it comes to consumer electronics, Koreans, with its giants like Samsung and LG, rules the electronics space. However, now Japan is gearing up to take back what once belonged to them.
Sony, Panasonic, Hitachi, Daikin and Sharp have been announcing investments worth Rs 80,000 million in the country, aimed at setting up manufacturing plants, marketing and product innovation for the local market. In comparison, the Korean firms have invested Rs 40,000 million and plan to invest an additional Rs 20,000 million in the coming months.
Japan’s interest in India is only affirmed by the visit of their Emperor Akihito, who is here on a week long visit. The importance of the visit is evident from the fact that Prime Minister Manmohan Singh personally received the monarch.
Japan Chamber of Commerce and Industries in India, and Assocham, have organised several meetings. This business interest is just not limited to consumer electronics companies alone but also includes FMCG firms. Food & beverage companies like Nissin Foods (maker of Top Ramen Noodles) and brewers like Suntory, too, are considering stepping up India investments, Business Standard reports.
A consultant with a global advisory firm said, “Japanese companies are looking to balance out their investment in Asian countries. It’s the anti-Chinese sentiment that is driving Japanese investments to India. After years of focusing on China, these firms are now taking a more regionally-balanced approach.”
Despite the slowed business in developed markets, consumer demand for Japanese consumer brands continues to be high in India.
“The growing young consumer base in India, a potentially huge-growth economy, and the Indian government’s efforts to woo Japanese investment are key reasons for the manifold increase in interest. Recent investment announcements by Japanese companies are an indication that the Indian market is set to drive their growth,” a top-level consultant at Protiviti Consulting told BS.
Panasonic and Hitachi have announced investments in the country already. Realising Korean firms like Samsung and LG had swept the Indian market with aggressive pricing, local production and huge product offerings, most of these Japanese consumer electronics reduced prices of their products by 10-20 per cent last year, the report added.
