JVC 2003 Annual Report Download - page 22

Victor Company of Japan, Limited
20 Annual Report 2003
Digital Video Cameras
Compact and easy to use, these products
incorporate JVC’s own CCD megapixel technology
for superior quality
DVD Digital Home Cinema Systems
The ultimate experience in home entertainment
Car Navigation/CD Receivers
A combination of turn-by-turn navigation and music
CD enjoyment in a single compact package
Eiichi Tsuchiya
President, AV & Multimedia Company
In displays, we aim to boost market
share with high-definition display prod-
ucts. And in DVD products, we are
moving into the DVD recorder market
to spur growth. We have a major ad-
vantage as the only company in the
world to offer consumers equipment for
viewing, recording and creating high-
definition material. We collectively pro-
mote this strength as JVC’s “Digital
High-definition Universe.” Success will
depend on further refining sound and
picture quality, two traditional JVC
strengths. Equally vital is forming part-
nerships. The high-definition and part-
nership strategies are already yielding
results. The GR-HD1 high-definition
digital video camera, which debuted in
March 2003, was extremely well re-
ceived. We had another hit with our
recently introduced Plasma TVs (avail-
able in 35-inch and 42-inch models).
Their superior picture quality clearly
give them an edge in the market, indi-
cating these TVs will further lift seg-
ment sales and earnings in fiscal 2004.
We injected distinctive technology in
all these recently launched products to
give them new levels of value. At the
same time, we created an even more
profitable operating structure by mak-
ing significant improvements in three
crucial areas: manufacturing costs,
product quality and logistics.
Transferring the “Only One” Concept
to Established Products
As JVC puts more emphasis on new
value-added, high-margin products, we
are also applying the same themes to
established products. We are reducing
output of low-end models that contrib-
ute little to earnings by halting or, in a
minority of cases, outsourcing produc-
tion to other companies. However, in
mature markets certain JVC products re-
tain a clear competitive edge and con-
tribute to earnings. Car AV products are
a prime example. Although competing
in a mature market with intense price
competition, we achieved double-digit
growth in this product category in fiscal
2003. This was achieved by stressing
the outstanding audio quality and stylish
design of our products, inspired by the
core qualities of the JVC brand. Another
example are VHS-DVD combo decks. As
we reduce manufacturing expenses and
promote these products’ dual-function-
ality in order to create new sources of
demand, we expect these VHS-DVD
combo decks to continue contributing
to segment earnings.
By implementing the “Only One”
strategy and other core initiatives, the
consumer electronics segment plans to
further enhance the value of the JVC
brand and boost sales and earnings.