JVC 2006 Annual Report Download - page 16

14 Victor Company of Japan, Limited
Video Cameras
SHARE STATION DVD Burner for
“Everio*” Series Camcorders
No computer needed. Just connect this DVD
burner to an “Everio*” camcorder with a USB
cable and enjoy.
* Not compatible with certain models.
“Everio” Hard Disk Camcorders
These camcorders are the first in the world1
to offer easy, direct DVD burning2when used in
combination with the “Everio” SHARE STATION
(sold separately).
Notes: 1. As of February 2006, for household-use camcorders
(according to Company data)
2. Not compatible with certain models
DVD/CD Receiver
This DVD-CD receiver with a 3.5-inch wide
monitor features a true-to-life 5.1 channel
surround sound processor.
Recordable media for video cameras is shifting from conventional videotapes to DVDs,
solid-state memory, and other new forms of media at dizzying speed. In this setting,
JVC turned its attention to the outstanding features of hard disks—compact size, high
capacity, and high-speed access—and in fiscal 2005 became the first to bring hard disk
camcorders to the market with the launch of “Everio.” In fiscal 2006, the Company built
on this success with the introduction of its second generation of “Everio” camcorders
with built-in hard disk drives, winning over numerous customers worldwide with new
groundbreaking ways to use video cameras. As a result, tremendous growth was
reported in sales of “Everio” products, making for highly profitable video camera opera-
tions, which helped to support the Company’s revenue base along with car AV systems.
The popularity of “Everio” camcorders has put hard disk-based video cameras on the
market’s product category map. However, competition is expected to heat up in the
future as a spate of new players emerges to vie for a share of the expanding market. In
this business climate, JVC will accelerate its shift from conventional videotapes to hard
disks, reinforce its product lineup to meet diverse user needs, and enhance its DVD
burner and other peripherals to improve its market position. In addition, we will lead the
industry as a pioneer in hard disk camcorders, offering customers a more enjoyable,
convenient AV life.
Car AV Systems
In car AV equipment, factory-installed products gained a larger share of the market, main-
ly in developed countries, and there was contraction in the after-market. Against this
backdrop, JVC’s car AV systems business shifted the focus of its lineup from audio prod-
ucts to visual products while working to offer even greater added value and expand sales.
In fiscal 2006, the Company’s DVD/CD receiver with a built-in 3-inch LCD monitor
(KD-AVX1) was a huge hit in Europe and the United States, helping to boost the per-
centage of car AV systems sales accounted for by visual products to around 20%. In
addition, we strengthened our brand image by launching a stream of distinct products
that offer superior added value, including wood cone car speakers that employ JVC’s
proprietary technology. As for performance by region, although we struggled in the key
market of North America, we captured a larger market share in Europe and did even
better than expected in Asia, excluding Japan.
In fiscal 2007, JVC will endeavor to enhance its product offerings, primarily DVD
receivers; strengthen its presence in the car AV market; and expand sales. In April 2006,
we established a sales company specializing in car AV systems in the United States to
bolster the development of new sales channels, including specialty stores, in North
America. In the growing market for factory-installed car AV system, we will establish a
foothold in the secondary market for factory-installed products in countries in Asia out-
side of Japan, from which we will gradually build up sales.
Car AV systems is one of JVC’s businesses that consistently generates revenues.
Going forward, we will work to fortify this revenue base by leveraging new product cate-
gories and sales channels to expand sales.