Sony expects fast China sales growth

Sony, which rivals Matsushita as the world¡¯s top consumer electronics maker, was expected to see sales in China climb by about half in the fiscal year ending March 2005, its country chief said.

That exceeded its own forecasts and was driven by strong demand for digital cameras, camcorders and laptops, said Kei Kodera, chairman of Sony in China.

Sony has said previously its sales in China ¡ª its fastest-growing market ¡ª jumped 70 percent to US$1.7 billion in the year ended March 2004, on track to hit US$8 billion annually by 2008. Kodera said Tuesday that sales actually exceeded US$1.7 billion, but declined to elaborate.

China accounted for about 2 percent of global revenue but already generated more business for Sony than any other country except the United States and Japan.

"We saw strong growth in digital cameras, camcorders and VAIO notebooks," Kodera said.

"We expect sales to surpass our targets. Sales will grow by 50 percent this year."

Sony joined a wave of Japanese corporate giants that have built plants in China to capitalize on lower costs, while enhancing research and development capability and boosting staff.

Rivalry in China¡¯s US$9.8 billion consumer electronics market is heating up, with South Korea¡¯s Samsung Electronics Co. and domestic players such as Changhong slugging it out for consumers' cash.

Sony has invested about a US$1 billion in China over the past decade.

Source: Shenzhen Daily-Agencies