Yamaha 2008 Annual Report Download - page 29

27Annual Report 2008
Other Regions
Sales in other regions expanded sharply in fiscal 2008, driven by
brisk economic growth in most of the major markets. By product,
nearly every category posted an increase in revenues compared
with the previous fiscal year, and sales of high-value-added prod-
ucts such as digital musical instruments and professional audio
equipment, in particular, led the way. Strong performance contin-
ued in the Middle East and Latin America where demand for
musical instruments is expanding.
Sales developed favorably in China, as expansion in the
economy continued, with pianos posting especially strong
growth. To support sales and marketing efforts, Yamaha estab-
lished Yamaha music schools in the Shanghai, Beijing and
Guangzhou metropolitan areas. This is not only contributing to
an increase in the number of musical instrument players, but
also is elevating Yamaha’s profile in the market and increasing
brand recognition. To expand its network of sales channels in
China, Yamaha conducted marketing activities jointly with retail-
ers to increase the number of retailers with Yamaha piano dis-
plays inside their stores and to provide education and training to
retail staff in these stores to ensure that they can explain the
products’ features effectively.
05/3 06/3 07/3 08/3
0
80
60
40
20
05/3 06/3 07/3 08/3
0
70
60
50
40
30
20
10
Sales by Region (Europe)
(Billions of Yen)
Sales by Region (Other Regions)
(Billions of Yen)
Music schools, etc. Music schools, etc.
Yamaha musical
instruments (China)
Yamaha musical
instruments
Yamaha musical
instruments (non-China)
Upright piano
b1
Europe
Demand for pianos, digital musical instruments and wind instru-
ments was generally strong in Europe, resulting in overall growth
in sales. Although the market growth tapered off slightly from the
end of 2007, rapid growth during the first half in major countries
contributed to the sales increase. Sales in high-growth Eastern
Europe were particularly robust, recording double-digit growth,
centered on pianos.
Europe
In the major European markets—Germany, France and the U.K.—healthy
economic conditions and strong currencies are supporting steady sales
growth. Although the market showed some signs of slowdown in the
latter half of fiscal 2008, brisk market conditions in the first half supported
steady growth for the full fiscal year. In Eastern Europe, where classical
music and other forms of music are deeply embedded in the cultural
fabric, demand for musical instruments is increasing as the economies of
countries in this region expand.
Other Regions
In Russia, the Middle East, Africa, Latin America and other emerging
regions, favorable economic conditions are contributing to brisk
growth. Sales of digital musical instruments, professional audio equip-
ment and other high-value-added products are leading the way in
these countries.
In China, meanwhile, despite booming economic growth, the market
has tapered off over the past few years after a period of rapid expansion.
However, there are signs that the market for musical instruments is back
on a growth trajectory. Within the overall market for musical instruments in
mainland China, acoustic pianos account for roughly two-thirds of the
total market value, which is expected to exceed ¥60 billion this fiscal year.