Sony Electronics Singapore Pte Ltd -
Consumer Electronics - Singapore
Sony Electronics Singapore Pte Ltd
Strategic Direction
·
Sony, despite the recent
success of its popular PlayStation 3 and PlayStation Portable gaming consoles,
BRAVIA range of flat-panel HDTVs, Vaio line of ultra-chic laptops and a host of
other iconic consumer electronics, is expected to experience a decline in
growth over the short to medium term as it suffers from an overall decline in
demand for consumer electronics in a recessionary economic environment. This
has been further exacerbated by the recent strengthening of the yen, which has
made Sony’s consumer electronics, already considered to be priced at a premium
over its competitors, pricier in an ultra-competitive market. However, Sony’s
strong brand name, good reputation for product quality and high performance,
coupled with its iconic consumer electronics, will insulate Sony to a certain
degree from the slow down expected in the consumers electronics market in the
forecast period.
·
Sony plans to retain its
position as the leading players in the Singapore’s consumer electronics in the
face of intense competition from its Japanese and Korean rivals, the latter of
which have been making progress in product quality, market share and brand
prestige. Sony’s main strength rests in its ability to create and successfully
market iconic market products that stand out from amongst its peer in a class
of its own. Sony is expected to further leverage its iconic consumer electronic
lines to expand its market share by attracting new and loyal consumers. Classic
examples includes the PlayStation 3 and PlayStation Portable gaming consoles,
Vaio laptops, the Cybershot digital cameras and HandyCam digital camcorders and
its BRAVIA range of flat-panel HDTVs.
·
Sony’s main challenge in the
short to medium term mainly rests in dealing with the expected decline for
consumer electronics over the next two years as demand falls in tandem with
consumers’ confidence level and disposable incomes as they cope with the
fallout of a global recession. A stronger yen has worsened the situation by
making Sony’s consumer electronics, largely manufactured in and imported from
Japan, more expensive than usual in the local market, in a retail environment
where consumers from all segments are expected to be more price-conscious.
Already, Sony Corp announced a 72% drop in profits for Q308, illustrating the
problems facing Sony worldwide. Its South Korean rivals on the other hand have
been enjoying a weakening won, which have made them more competitive and with
some consumer electronics from leading South Korean brands such as Samsung and
LG matching their Japanese counterparts in terms of quality, Sony will face a
challenge in convincing new and existing consumers to choose Sony products.
Key Facts
|
Full name
of company:
|
Sony
Electronics Singapore Pte Ltd
|
|
Address:
|
2
International Business Park, #01-10, Tower One, The Strategy, Singapore
609930
|
|
Tel:
|
+(65) 6544
8888
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Fax:
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+(65) 6544
8469
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www:
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http://www.sony.com.sg
|
|
Activities:
|
Sales and
marketing of all Sony products in the region.
|
Source: Euromonitor International from
company reports, Trade press
Company Background
·
Sony Electronics Singapore Pte
Ltd is a fully owned subsidiary of Sony Corp and handles the marketing, sales
and service of Sony products in the region.
·
Sony Electronics Singapore Pte
Ltd is present in the televisions and projectors market, the home audio and
cinema market, the cameras market, the camcorders market, the portable media
players market, and finally the in-car consumer electronics market. It also has
a small but steady presence in the laptops sub-sector of the computers market.
·
Sony’s recent strategy has been
to create new and iconic consumer electronics in various market segments to
capture consumer loyalty and attention from both the media and market, before
leveraging on the increased visibility and brand awareness offered by these
iconic products to launch new technology or product lines in the market. For
example, Sony’s resounding success in establishing Blu-Ray as the dominant
new-generation technology for DVD media and players largely rested in how it
made its iconic PlayStation 3 gaming console a fully-featured Blu-Ray DVD
player as well, leveraging on its cult status in the gaming console market.
Sony’s iconic range of BRAVIA flat-panel HDTVs have also enjoyed resounding
success in the local markets and Sony has leveraged on that to substantially
expand its flat-panel HDTV offerings across all screen sizes and product
segment such as HD-Ready and Full-HD, as well as in marketing its new range of
home theatre systems and solutions.
·
There have been no major
changes in Sony Electronics Singapore Pte Ltd labour force recently.
·
Sony Electronics Singapore Pte
Ltd distributes Sony products both locally as well as regionally in the
Asia-Pacific region.
·
Sony Electronics Singapore Pte
Ltd recently introduced Joi Chua, a regionally acclaimed music artist, as
Sony’s first Alpha Brand – representing Sony’s premium DSLR cameras – as
ambassador in Singapore.
·
Sharp and Sony announced a
collaboration early in 2008 to set up a joint company that would produce
advanced LCD panels for the next generation of large screen LCD HDTVs, with
Sharp to contribute 66% of the capital and Sony the remaining 34%. This is on
top of Sony’s currently existing joint venture with Samsung, which resulted in
the company S-LCD producing LCD panels in South Korea for both manufacturers.
Production
·
Sony Electronics Singapore Pte
Ltd imports all of its consumer electronic products that it retails from
various manufacturing sites and factories worldwide. It does not directly
manufacture any of its consumer electronics products in Singapore.
·
Sony Electronics Singapore Pte
Ltd does not export to other countries.
·
Sony Electronics Singapore Pte
Ltd does not manufacture products for other brands under license.
·
Sony Electronics Singapore Pte
Ltd presence in Singapore is to oversee the distribution and marketing of Sony
products in the Singapore market; with Sony Electronics Asia Pacific overseeing
distribution and marketing of Sony products in the South East Asian, Oceanic,
Middle East and Africa regions.
Competitive Positioning
·
Sony Electronics Singapore Pte
Ltd core business is in the distribution, marketing and support of consumer
electronics products. It has a significant presence in multiple sectors within
the consumer electronics industry and is a market leader or a leading player in
some of these sectors. Sectors in which Sony Electronics Singapore Pte Ltd is
present includes televisions and projectors, home audio and cinema, cameras,
camcorders, the laptops sub-sector in the computers market and the in-car
consumer electronics market.
·
Sony Electronics Singapore Pte
Ltd markets a wide and diverse range of consumer products including cameras,
television sets, camcorders and laptops, which mostly cater to consumers in the
middle- to higher-end of the market, although it has recently expanded its product
range in the entry-level segment of the market.
·
Sony Electronics Singapore Pte
Ltd largely positions itself in the medium to high range of the mass consumer
market with its products generally being more expensive than its competitors
but also being perceived to be of a higher quality and better design.
·
Sony Electronics Singapore Pte
Ltd is the market leader in the camcorders market and the in-car consumer
electronics market. It is also the number two player in the cameras market and
a leading player in the televisions and projectors market and the home audio
and cinema market.
·
Sony’s market share in the
televisions and projectors market has been declining gradually over the current
review period as it faces intense competition from rivals, especially the leading
South Korean brands such as Samsung, which offer high quality and more
affordable models. However, it has been gaining market share in the home audio
and cinema market, the cameras market, the camcorders market and the in-car
consumer electronics market.
·
Sony has been a market leader
and trend-setter in consumer electronics due to its ability to create and
market iconic consumer electronics that capture the hearts and minds of
consumers with a combination of next-generation technology, ultra-chic design
and innovation. Its PlayStation 3 and PlayStation portable gaming consoles are
in a class of their own and its CyberShot digital cameras have long been
regarded as a forerunner in the design department.
·
Sony’s strong presence in
multiple subsectors and segments across the whole breadth of the consumer
electronics market clearly indicates its goal of dominating the consumer
electronics market. It is already regarded as the global leader in consumer
electronics by many and its Singapore subsidiary is clearly aiming to establish
the same status for Sony in local markets.
·
Is wide range of products
across the consumer electronics market has put Sony in a unique position of
straddling both the mature and emerging segments of the market, capturing the
former with its tried-and-tested models, which have gained a positive
reputation in terms of quality and value, and being a leading player in the
latter segment as it constantly renews previous-generation models with new
technology and modern design cues, as well as introducing next-generation
models with cutting-edge technology and innovative features.
|
Product
type
|
Value share
|
Rank
|
|
Televisions
and Projectors
|
15.3%
|
2
|
|
Home Audio
and Cinema
|
17.0%
|
3
|
|
Cameras
|
17.7%
|
2
|
|
Camcorders
|
41.8%
|
1
|
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In-Car
Consumer Electronics
|
29.5%
|
1
|
Source: Euromonitor International
