Sony exports Indian strategy to Europe

9 January 2013

NEW DELHI: Sony, the consumer electronics giant, is seeking to export the core business strategies employed in India to major markets in Europe.

"We want to replicate everything of India in Europe," said Masaru Tamagawa, the president of Sony Europe's operations, as reported by the Economic Times.

Before taking up a position in Europe for Sony in July 2012, Tamagawa led its Indian unit for five years, and believes the approach used in the latter market could greatly benefit the former.

"The working style of various divisions, including product strategy, distribution channel and marketing, are very good in India and we want to replicate these in Europe," he said.

Sony Europe incorporates six countries: France, Germany, Russia, Spain, Sweden and the UK. These nations yielded sales of Rs18,930 crore in the firm's last reporting quarter, up by 2.3% year on year.

By contrast, India delivered Rs6,313 crore in the whole of the last financial year. However, sales are expected to rise by between 30% and 40% in the current fiscal year.

Moreover, while the value sales provided by the Asian nation may lag behind at present, Tamagawa suggested that when discussing corporate models, "India is much ahead of Europe."

Reflecting the prominent status that Sony affords to India, it plans to boost local headcount levels by 500 staff or so this financial year, despite cutting its workforce by 10,000 people last year.

Indeed, the company hopes to triple its annual revenue in India to Rs 20,000 crore in India by 2015, as part of a broader push to further improve the returns generated by fast-growth economies.

"When I was made the CEO nine months ago, my focus was to revitalise the business," said Kazuo Hirai, Sony's chief executive. "My aim is to drive growth in the emerging markets, where we are already strong."

Data sourced from Economic Times; additional content by Warc staff