Pioneer 2011 Annual Report Download - page 9

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Pioneer Corporation Annual Report 2011 07
Expanding Businesses in Emerging Markets
Brazil is a priority region in
Pioneer’s overseas strategy.
What are your specific plans for
this market?
Among emerging markets, we are targeting Brazil
in particular in fiscal 2012.
Brazil has shown steady growth in automobile
sales volume every year, and we expect this trend
to continue going forward. Since roughly 70% of
new cars sold are not equipped with car audio, we
see major growth potential for this consumer-
market car audio business.
Pioneer’s consumer-market car audio products
have a strong brand reputation and a broad prod-
uct lineup overseas, and we are working to ensure
top market share in car audio products in Brazil by
aggressively introducing products that match local
market needs and by increasing local manufactur-
ing.
We will launch new initiatives in the Home Elec-
tronics business. Pioneer do Brasil Ltda., our local
subsidiary, already has a car electronics plant in
Brazil, and now plans to manufacture home AV
products at this facility, and sell competitively
priced products through the car electronics sales
channels it has already established. Using Pioneer’s
many patents in force as our strength, we plan to
enter the market with cost-competitive Blu-ray Disc
players, and then, by subsequently increasing the
number of models offered, establish a presence for
our home AV products in Brazil.
In addition, in February 2011, we reached an
agreement with Asia Optical Group for the joint
production of parts at Pioneer do Brasil Ltda. We
will begin mutually utilizing the parts procurement
expertise of both companies, and we intend to
launch a joint venture. Initially, this business
will manufacture parts for Asia Optical Group
and Pioneer products, but in the future we will con-
sider manufacturing and sales of parts for other
companies.
Significant Strategies in Brazil
Sales expansion of car audio products both
for consumer-market and OEM businesses
Local manufacturing of home AV products
and establishing presence in the market
Cost reductions promoted through joint parts
production with Asia Optical Group
Pioneer do Brasil Ltda. (Manaus, Brazil)