Pentax 2002 Annual Report Download - page 16

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In the market for crystal products, weak consumption has become a feature of the landscape, and the
decline in commercial demand has been particularly severe. Market conditions for the division continue
to worsen year by year, and sales have fallen. In response to the changes in the environment, the Crystal
division has adopted “contributing to the Hoya Group” as its principal motto, and is seeking to gear its
business to that theme.
Crystal
The market for crystal products can be broadly divided into four categories: corporate gifts, which
involve formal gifts between companies; social gifts, which center on “thank you” gifts to acknowledge
expressions of condolence or other social situations; personal gifts, involving private gift giving; and
household demand.
Of these, the personal gift and household demand markets remain quite small, and account
for only 10% of the Crystal division’s net sales. The corporate and social gift markets account for major
parts of the division’s sales, but as a result of poor economic conditions, demand has plunged dramati-
cally. This situation set the tone for the fiscal year under review, putting downward pressure on the
division’s revenues.
Hoya must shift to medium- and high-quality products. The Company is willing to decrease
the scale of products that are receiving harsh competition from East European and Asian manufactur-
ers. The Company is also concentrating resources in creating unique products in which corporate brand
can be emphasized.
Though the business scale of this division is small in relation to the Hoya Group as a whole, we
intend to strengthen its presence in the Group’s business portfolio as a business enhancing the Hoya brand.
There is some distance yet between the current reality of the Crystal division’s situation and
the Company’s vision for the division’s future. But Hoya is considering ways the crystal business can
recover, reconstruct its corporate brand and contribute to the Group.
14
Lifestyle Refinement
Operational Review part 5