Sony Vice President China Economics: Japanese giants' turnaround strategy

A few days ago, Sony released its 2010 financial report, which suffered a huge loss of US$3.1 billion last year. However, Sony China has achieved good results. Its consumer electronics business sales increased by 26%, which further enhanced the Chinese market in Sony's global position.

On June 2, Vice Chairman of the Sony Group, Mr. Nakajima, was interviewed at the Sony headquarters in Beijing. From the road of new energy strategy to the sinking of the 3rd and 4th lines, and then to the 3D strategy, Sony has demonstrated the distinctive Chinese market strategy.

New energy strategy

As the originator of the global lithium battery commercialization, Sony's battery business has not shown any dew on the strategic level of the group. Nowadays, Sony's new energy strategy has made the battery business, which has been quiet, from behind the scenes to the front of the stage, becoming one of the three growth engines of the group alongside 3D electronic products and network services.

The real driving force behind this is that the new energy has become a global topic. In 2010, China’s strategic emerging industry policy, including new energy, was first written into the Chinese government’s work report. Sony also targeted the expansion of the global new energy battery map to China.

"We have a battery factory in Wuxi, and we will carry out related production business in the future. Sony's power storage technology is a very promising technology and business." Zhongzhi Liangzhi told reporters.

At the end of June last year, Sony announced the newly developed energy storage module of the olivine lithium iron phosphate battery. The energy storage module is commonly known as the battery pack, which is considered by Sony to be the killer product of Sony.

In addition, Sony demonstrated dye-sensitized solar cell technology at this year's China-Japan Green Expo, which is the result of Sony's cooperation with the Institute of Ceramics of the Chinese Academy of Sciences.

“We are studying how to promote industrialization. The possibility of first production and promotion in China is very large, but the timetable for specific commodification is still difficult to give.” Zhongzhi Liangzhi said that in the future, Sony research and development in this field Personnel and funding will also increase significantly. According to him, Sony's investment in environmental technology development in 2009 reached 17.1 billion yen.

Sinking to the third and fourth line channels

In addition to the layout of the new energy strategy, the competitiveness brought by the scale effect also allowed Sony to extend the reach of the channel to the third- and fourth-tier cities.

Previously, Sony’s feeling to the outside world was still to emphasize the “high-end image”. Industry insiders pointed out that third- and fourth-tier cities are relatively unfamiliar to Sony, mainly because brand awareness is not high, service networks cannot be covered, and product prices are not competitive.

However, Sony has its own plan.

"Continuously expanding sales in the third and fourth-tier markets is Sony China's strategy. For the third- and fourth-tier cities, we mainly do two things, one is the laying of maintenance outlets, and the second is the local brand building." Sony China President Nagata Haruka said "Especially TV products, if there is no good service network, there will be no satisfactory sales." According to the plan, Sony is expected to expand the number of repair stations from 280 to 580 within two years.

Nagata Haruko pointed out that although Sony has just begun to "under the grassroots" Sony's share in the third- and fourth-tier market is not large, but Sony is optimistic about the growth rate and prospects of this market. He believes that the future 30-40 inch TV is the mainstream product in the third and fourth grade market, and Sony can only have a competitive advantage if it reaches a certain sales volume.

Advancement of 3D strategy

With the popularity of high-definition TVs, 3D has become a must-have for TV companies.

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