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3
VTech Holdings Ltd Annual Report 2013
3 Source: MZA Ltd, 2013
4 Source: NPD Group, Retail Tracking Service. Ranking based on total retail sales in the toy categories of infant electronic learning and preschool electronic learning, for the
combined market of US, UK, France, Germany and Spain
Our Strategies
VTech will build on its strong fundamentals, with a strategy
centring on its four growth drivers of product innovation,
gains in market share, geographic expansion and operational
excellence, to drive sustainable growth.
Product Innovation
Innovative products will remain the key to expanding our sales
in all regions and across product lines.
In TEL products, we launched the world’s first home entrance
monitoring system, combining a versatile cordless phone
with a digital video door bell, in the US in April 2013. This
innovation shows that VTech is once again pioneering market
breakthroughs with its proprietary Video on DECT TM
technology. In addition, we will expand the well-received
CareLine TM, our home safety telephone system for seniors.
We are also developing our first wireless conferencing system
featuring proprietary acoustic technology, which will be
available by the end of the current financial year. In Europe,
SIP (Session Initiation Protocol) phones for commercial use
willbelaunchedbySeptember2013.Othernewproductsin
the pipeline include a range of new applications based on
the DECT ULE (ultra low energy) platform. Internationally, we
are planning to launch enhanced versions of our video baby
monitors and new hotel phones.
VTech’s strategy for ELPs is to apply the latest proven
technology to innovative educational toys that help kids
learnanddevelopthroughfunandsmartplay.Ourlineup
of children’s educational tablets will be upgraded to a new
generation in 2013, offering advanced functionalities and rich
learning experience to children between 1 and 9 years old.
By the end of the calendar year 2013, our worldwide software
library will comprise close to 70 cartridges and over 1,000 apps
in five languages, offering a wide variety of age-appropriate
content, from e-books and learning games to music, videos
and creative activities. We will continue to introduce innovative
products to our core infant and preschool lines. A new
generation of Kidizoom®, our market leading line of children’s
digital cameras, will be launched. Beyond the learning aisle,
our successful Switch & Go Dinos® and Go! Go! Smart Wheels TM
lines will be expanded with more dinos, vehicles and play sets.
Products mean services at CMS and innovation in service is
how we keep our customer base growing. With a stringent
quality management system and experienced staff, CMS has
the expertise to produce, optimise and successfully launch
products for different markets. In addition to its recognised
strength in DFM (Design for Manufacturing) and flexibility
in services, our CMS has the unique manufacturing know-
how in certain product categories that has made it a market
leader.Ourdedicatedmanufacturingfacilitywasanimportant
investment that has helped customers to reduce logistics and
customs clearance costs when distributing their products in
China. The many customer service and product quality awards
we received demonstrate how successful CMS is in meeting
customers’ expectations.
Gains in Market Share
Despite a challenging economic environment, VTech will
continue to gain market share across product lines.
VTech is the world’s number one manufacturer of cordless
telephones, with leadership in both the US and Western Europe 3.
In the US, our TEL products are benefiting from a new round of
consolidation in the cordless phone market. This is resulting in
more shelf space that will support further market share gains
in the financial year 2014. In Europe, gains will be driven by
collaborationwithourODMpartnersaswebringthemfeature-
rich products of superior design at competitive prices.
VTech is the largest supplier of ELPs from infancy to preschool
in the US and Western Europe 4, a position we have achieved
through our commitment to product innovation. Last year,
vtech.indb 3 13年5月29日 上午3:17