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'It's a Sony? Sure it's not phony?' Superbrand seeks to smother India's grey market

Our Correspondent in Panaji

There was a time when electronics major Sony was rated as the world's top brand; it is among the top ten now. Sony Corp's Indian arm is trying to leverage the brand equity in semi-urban areas and non-metro cities even as it gears up to counter the threat from the grey market.

Sony India is planning to double its turnover in Goa while expanding its dealership network in the semi-urban areas all over the country.

"The grey market for our products is double than our official turnover in India," admits Muneesh Dhawan, senior manager of the western region.

He also suggests reduction of import duty structure in order to stabilise the authorised market.

The Japanese company's Indian subsidiary has now begun Sony Vision, an exhibition of its wide range of products, where Sony's marketing executives convince the customer of the advantages of buying from the authorised market.

"The grey market does not provide the benefit of warranty or after-sales service, while the risk of fake products is equally high," points out Dhawan. "Buy Sony from Sony" is the slogan they are presently popularising.

Although its market share is presently hardly five per cent, Sony India is planning to increase its turnover to Rs 10 billione by 2000 while this year's target is Rs 5.5 billion. Sony India began with Rs 1.8 billion in 1995.

Having 34 distributors and 1400 dealers in almost all the major towns of the country, the company is now planning to spread its tentacles in the semi-urban towns by adding at least 600 more dealers by March next year.

Having entered the market of TVs, audios, video cameras, telephones, car stereos, cellulars, computer monitors, video CDs and recording media, Sony is planning to launch a new range of products in all these categories.

It includes the world famous "Play Station" video game, the flattest Waga TV that is popular in the USA and Japan, new video CD hi-fi systems and also latest range in the digital designs. They are also planning to set up three new branch offices, besides the existing five ones in Kerala, Lucknow and Chandigarh.

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