JVC 2006 Annual Report Download - page 15

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Victor Company of Japan, Limited 13
Japan. As for individual products, we intend to launch additional full HD models as
well as models with even larger screens and sets that are even slimmer to offer an
even higher level of added value.
In addition, JVC will develop D-ILA front projectors, which the Company has tradi-
tionally positioned as products for professional systems, for use in the home, with an
eye to the prosumer and high-end consumer markets. Armed with full HD, high-
resolution home projectors with a 10,000:1 contrast ratio, we will establish JVC as
aleading brand in high-quality, large-screen displays.
In fiscal 2006, our LCD TV operations missed out on sales opportunities in the first
half of the year due to development delays stemming from outsourcing management
failures, mainly with regard to products for the European market, and encountered
greater-than-anticipated price erosion in the North American market in the latter half
of the year, leading to substantial deterioration in the Company’s performance.
Against this backdrop, JVC implemented its H (High)/L (Low) strategy, which is
designed to reflect the added value of innovative products in prices and ensure profit-
ability through the development of a high-end line and a low-end line to support high-
end products by securing a certain volume of sales, in Europe in the fiscal year under
review. This strategy started to produce solid results in the latter half of fiscal 2006.
In fiscal 2007, we expect the market environment to remain tough and will put our
H/L strategy into full play. Large screens, high-quality images, and fast response will
serve as differentiating features of our high-end products. We will introduce 46-inch
screen sets and strive to deliver even better pictures via our Genessa/D.I.S.T. DynaPix
image processing engine. In addition, we will bolster our product lineup by expanding
the use of our Clear Motion Drive, which plays an instrumental role in setting our LCD
TVs apart from the competition by achieving crystal clear reproduction of fast-moving
images, to include full HD models as well as 32-inch models of product lines for which
the drivers are already in use in larger models.
Turning to regional strategies, JVC will strive to enhance sales in Europe where the
Company is securing a market position via its H/L strategy to raise the portion of net
sales of our LCD TV business accounted for by this region to 60% in fiscal 2007. In
addition, we will establish a solid procurement framework for panels to ensure that
quality, volume, and cost needs are met by forging additional alliances with panel
manufacturers. Through these initiatives, we aim to improve earnings and develop
LCD TVs as a growth engine for the Company’s operations.
LCD TVs
LCD TVs Equipped with a Clear
Motion Drive
Armed with the world’s fastest* Clear Motion
Drive, these LCD TVs keep up with fast-paced
action to deliver sharp, realistic images.
*At 120Hz, this is the fastest driver used in the world
for household LCD TVs. (Based on the Company’s
findings)