JVC 2010 Annual Report Download - page 13

JVC KENWOOD Holdings, Inc. 11
Memory navigation systems for the overseas consumer
markets developed in cooperation with Garmin
Integrated navigation system manufactured by Kenwood
and JVC for the first time (for Japanese consumer markets)
AV-integrated navigation systems using newly developed
navigation platform for U.S. consumer market
DVD/CD/USB Receiver with Ultra-Wide Monitor for iPhone
for overseas consumer market
DVD mechanism which can boast of being
the thinnest and lightest in the OEM Business
The JVC Kenwood Group positions the Car Electronics business
as the profitable one with the largest sales among the four
business segments. It is the business segment in which both
JVC and Kenwood participate and the segment expected to
be most affected by the management integration. In line with
this view, the Group integrated both companiesʼ functions for
car audio and car navigation systems. These functions include
product planning and marketing, technological development,
design, procurement and production. The Group integrated
them into J&K Car Electronics Corporation, a joint venture of
both companies, and manages it as a virtually independent
operating company.
In the consumer segment that boasts a large sales ratio,
the aggregate market share of the Kenwood brand and the
JVC brand ranked first in Europe and the U.S. This is thanks to
the integration effects resulting from a rise in sales. The sales
increased by leveraging the strengths of both brands that have
different product features and sales networks. As seen in this
case, in major regions, the market share for and sales of car
audios and car navigation systems increased. Besides, there
were other integration effects resulting from a cost reduction
that was brought by the adoption of common platforms, joint
procurement of parts and mutual use of intellectual property.
This led to a further improvement in product competitiveness
and reconstruction of a highly profitable structure.
In the OEM segment, sales of car navigation systems
remained brisk due to the recovery of automobile sales as a
result of measures for stimulating new car purchases executed
by various countries. In addition, the shipment volume of CD/
DVD drive mechanisms to be mounted in vehicles sharply
increased because of large orders received. These favorable
factors, together with the effects of previous structural reforms,
contributed to making this segment profitable.
In future, the consumer segment that enjoys large market
shares in the European and American markets will actively
explore and advance into emerging markets such as Latin
America, Middle and Near East, Russia, India and China. We
are already enhancing our business structure in those areas,
and the segment will advance by making the most of such
large shares. Furthermore, we will focus on new car navigation
systems, which we expect to create a new market between the
markets for conventional car navigation systems and portable
navigation devices. Thus, we will aim to expand our business
in the domestic market and solidify our No. 1 position in the
world in the consumer segment. Meanwhile, in the OEM
segment, we will strive to expand our business by increasing
orders received in each of the dealer option goods segment
and the genuine goods segment. We will also develop new
media and services for the next generation. Further, we will
also develop car electronics to be used, for example, in driving
support systems so that the Car Electronics business will be
able to drive the Groupʼs profitable growth.
KIV-700 is Kenwood's first IN-Dash Digital Media
Receiver without a CD mechanism,and it is designed
specifically for iPod / iPhone and USB media applications.
* KIV-700 Digital Media Receiver has garnered the 2010-2011
European Imaging and Sound Associationʼs (EISA) European In-
Car Head Unit award.
*