Their timing is strategic. India’s $75-billion client electronics market is projected to just about double to $130-150 billion by 2029, per Redseer. But Japanese corporations account for lower than 5% of the market, estimates Praxis International Alliance, a administration consultancy agency. To regain floor, these companies are coming into with narrower portfolios and measured methods and are betting on reliability, design and premium worth.
The brand new India technique
OM System formally re-entered India this 12 months with a variety of cameras and lenses, 5 years after pulling out when Olympus transferred its imaging division to Japan Industrial Companions.
“Our determination to return to India was very acutely aware. It has turn into clear that India’s trade is rising quickly, and for any model to achieve success over the subsequent couple of many years, India shall be a vital market. It made good sense for us to come back again,” mentioned Vivek Handoo, vice-president—head of APAC and managing director at OM System.
“In hindsight, we most likely ought to have by no means left. However higher late than by no means,” he added.
The corporate acknowledges that to achieve the lots in India’s price-sensitive market, it should stability entry-level choices with premium fashions, transferring past its popularity for under high-end cameras.
“To achieve the lots and play the amount recreation, worth shall be vital,” mentioned Handoo, “We wish to have a transparent technique masking each entry-level and premium merchandise—entry-level to catch shoppers early and younger, and premium for these keen to spend lakhs.”
The corporate is betting on the rise of out of doors pictures and content material creation to drive development, whilst weddings stay India’s largest pictures phase.
An identical balancing act can also be underway at Akai, which is trying a comeback in India by way of the air-conditioner (AC) market. The model had exited main presence in India round 2009, after its licensing association with Videocon ended.
“We’re positioning Akai India within the premium worth area, not within the highest worth band…” mentioned Anurag Sharma, managing director and chief govt officer of Akai India. “Our purpose isn’t to win worth wars, it’s to win client belief by way of long-lasting merchandise, considerate options and after-sales reliability. Clients right this moment don’t simply need an reasonably priced AC, they need one which lasts longer, makes use of much less energy, and improves their residing setting.”
Its wager comes amid a projected growth in demand. India is anticipated so as to add 130–150 million new AC models over the subsequent decade, which might improve peak energy demand by 180 gigawatts by 2035, in accordance with a research by the India Vitality and Local weather Heart on the College of California, Berkeley. “The AC market in India right this moment is the place the tv market was twenty years in the past—stuffed with potential, pushed by rising aspirations, and prepared for considerate innovation,” Sharma mentioned.
JVC, as soon as a well-recognized tv model in India, light from the market over the previous decade as competitors intensified. It has staged a comeback this 12 months by way of a licensing partnership with Tremendous Plastronics Pvt Ltd (SPPL), launching a variety of made-in-India sensible TVs.
The incumbents regulate too
Different Japanese majors resembling Sony, Panasonic and Hitachi stayed on in India, however they too are reshaping. They’re specializing in worthwhile classes like large-screen TVs, premium home equipment and B2B options, whereas vacating low-margin entry segments and avoiding worth wars triggered by Chinese language manufacturers.
Others like Sony, Panasonic and Hitachi by no means absolutely left India however are reshaping their playbooks—specializing in extra worthwhile large-screen TVs, exiting low-margin entry segments, and steering away from worth wars pushed by Chinese language rivals.
Panasonic, as an illustration, has exited fridges and washing machines as a part of a strategic restructuring this 12 months. The corporate posted gross sales of ₹9,872.8 crore in FY24, barely decrease than the earlier 12 months, with revenue earlier than tax at ₹779.7 crore, in accordance with regulatory filings, sourced by Tofler.
“Our determination to streamline sure product classes aligns with our world technique. We’re centered on future-ready development segments, together with residence automation, HVAC, B2B options, electricals and vitality options,” mentioned Tadashi Chiba, managing director and chief govt officer of Panasonic Life Options India.
Air-conditioners stay Panasonic’s strongest client class, rising over 45% in FY24, with sensible fashions now accounting for practically half of gross sales. “The premiumization wave is seen throughout segments, from large-screen TVs to sensible ACs. In TVs, for instance, we’re witnessing a rising demand for 55-inch and 65-inch fashions. In air conditioners, prospects are more and more choosing linked and inverter fashions. This means that buyers are keen to pay extra for merchandise that provide long-term high quality and clever options, whereas being vitality environment friendly,” he mentioned.
Sony India, in the meantime, reported gross sales of ₹7,663 crore in FY24, with a internet revenue of ₹168 crore.
Chinese language manufacturers like Xiaomi, Hisense and Haier, and online-first entrants resembling Kodak and Thomson, have pushed years of aggressive discounting. That worth strain even compelled Korean majors Samsung and LG to introduce cheaper traces.
Why it is smart
Analysts say Japanese corporations are actually repositioning after shedding floor globally. “Among the incumbent Japanese manufacturers have misplaced market share and their aggressive edge. As they refresh portfolios globally, they’re re-positioning in India to wrest market share again,” mentioned Madhur Singhal, managing associate at Praxis International Alliance.
In contrast to Chinese language rivals, Koreans have averted “irrational” discounting, however broadened product portfolios to achieve the mass market. “Some discounting has been tactical throughout competition gross sales, however ecommerce marketplaces are additionally fixing for profitability now,” Singhal famous.
Japanese manufacturers, he added, nonetheless have moats in reliability and engineering, however the Gen Z shoppers chase traits and wish to be at the vanguard of expertise. The holding and utilization cycles are shortening and longer life has turn into much less vital in smaller worth client electronics, defined Singhal.
For Japan’s client electronics giants, India’s problem is much less about reclaiming misplaced glory and extra about discovering a sustainable foothold in a crowded, fast-changing market. By betting on reliability, design and long-term worth, they hope to face aside from discount-driven rivals. The true take a look at shall be whether or not these moats nonetheless matter to a brand new era of Indian shoppers who prize traits, upgrades and velocity over endurance.
