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Sony India is looking to double its notebook Vaio's sales in the year ending March '12 to five lakh units. The company claims to have sold 2.5 lakh units in 2010-'11, up from 1.2 lakh units in 2009-'10.
A wider product portfolio, aggressive marketing campaign and expanded retail presence, are the legs on which the Japanese electronics major is hoping to achieve this growth.
The Vaio portfolio will now expand to include 62 notebook models across four series — Vaio S (Rs 47,990-1,29,900), Vaio C (Rs 54,990-69,990), Vaio E (Rs 27,990 onwards) and Vaio Y (Rs 24,990 onwards). At present, the Vaio E series contributes maximum volume, accounting for 70 per cent of Vaio notebooks sold in India. The Vaio C series comes next for the company.
Mr Masaru Tamagawa, MD, Sony India, said, “The market for laptops priced over Rs 40,000 in India is less than 20 per cent of the overall laptop market. And we have been very strong in that segment. Now, with a wider portfolio, we can cater to different lifestyles, without narrowing down the target consumers.”
The Indian notebook market was estimated to be 17 lakh units in the year ended March 2011, and is expected to touch 25 lakh units this fiscal.
Marketing, Distribution Push
Sony will back the new launches with a new multimedia campaign ‘More Colour. More Style' featuring brand ambassador Kareena Kapoor. The campaign will get half of Vaio's marketing budget of Rs 50 crore for this year. Sony India's overall marketing budget is in the region of Rs 360 crore. Vaio, which is said to have contributed 20 per cent to Sony India's top line last year, is expected to contribute a similar share this year.
Bravia televisions are expected to continue to be the largest contributor, backed by a ‘big campaign' before Diwali. Other growth drivers will be CyberShot and Playstation, explained the company spokesperson. From its current presence in 800 distribution outlets, Vaio seeks to be present in 1,500 outlets by March 2012. The number of Sony Vaio flagship stores is also set to go up to 50, from the current 20. The flagship stores will reach out beyond the metros to Tier 2 cities, but stop short of Tier 3, said Mr Tamagawa. At present, 40 per cent of Vaio's sales are from the top five metros.
Sony Centres are expected to jump from 270 at the end of last year to between 300 and 320. All the brand's stores — Vaio flagship stores and Sony Centres — follow a franchised model.
Slow Growth, No Input Cost Impact
Sony India is looking to grow at 30 to 35 per cent this financial year, down from the highs of 2010-'11, when it registered a 46 per cent growth.
“The overall economic sentiment now, compared to last year, is not as exciting, with high inflation and interest rates. General industry growth will slow down, I think. But we do not see Sony products sales being affected much, especially not the Vaio, where we are now getting into new segments with affordable products,” said Mr Tamagawa.
He added that with 85 per cent of purchases of Sony India products being cash purchases, the company's sales are unlikely to get affected, even as he acknowledged that in categories like flat panel televisions and home theatre, there may be a “light slowdown” in growth.
On the impact of rising input cost on Sony India, he quipped, “I did read it in the newspaper, but it has not affected us I think.”
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