Japanese consumer electronics giant Sony is eyeing the Indian market aggressively as it envisions the country will soon outshine its home market to become the third-biggest market for the company worldwide. Sony India Managing Director Sunil Nayyar said the company raked up INR 6,353 crore in the country last financial year and expects to touch INR 10,000 crore in the next couple of years. The company’s strategy is focused on growing with premium TV segments while developing audio and imaging products. How does Sony remain so optimistic, or rather, what exactly is strategic growth for them?
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Optimism and Strategic Growth at Sony
Sony has experienced a substantial transformation over the past decade, becoming a close number four as a single-country business globally. This outlook for Sony on India pertains to its rapid economic growth and strategic focus on premium products in this very context. Sony is looking at making India its third-largest market globally, after the US and China, and the primary market is Japan.
Growth Trajectory and Revenue Milestones
Sony India has posted consistent growth; the latest is 20% in 2023-24. It now wants to carry forward the momentum. Following its continuous positive growth trend, the group exuded confidence in touching the target of INR 10,000 crore quite soon.
Redirecting Consumer Preference
Post-COVID, India has become a robust market for Sony’s premium products. With the country’s income growth trajectory, consumers are spending more and more on quality products. With new technologies to come into the audio and video business, Sony shall further enhance its imaging and gaming businesses, where the company is already a leader. The TV business remains one of the key growth drivers while changing audio, which comprises sound bars, party speakers, and truly wireless headphones and buds.
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Future Growth Drivers and Diversification
Besides television, Sony is also eyeing massive potential in the digital imaging and gaming businesses. It’s trying to transform itself from an audio company to a more technology-based, Gen Z, millennial-focused company. Digital imaging, too, holds enormous potential. Though the contribution of televisions is currently half towards the Sony India business, the company is expecting other segments to grow. The professional solutions business, too, has been a strong pillar for Sony India as well.
Bouncing Back from Past Challenges
Sony India’s revenue had fallen after exiting the Vaio laptop and mobile handset business. The company’s revenue was over INR 11,000 crore at its peak in FY15. Sony has, however, recovered by focusing on other product categories to make up for the decline with solid performance in televisions and different segments.
About the Author
Akshita Siddhapura is a Business Analytics student at SCMS-B, passionate about finance and research. She has a keen interest in financial analysis and strategic growth, showing a strong commitment to business and finance.
