Yamaha 2011 Annual Report Download - page 23

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Annual Report 2011
How do you assess the first year of YMP125?
Q
A
Yamaha designed this flagship concert grand piano with
the aim of creating the world’s best piano, utilizing the
most advanced production technologies throughout this
instrument. “Beauty & Power” is the underlying concept,
with Beauty signifying the wide range of tonal colors and
Power referring to their unprecedented tonal projection.
Completing this masterpiece was a labor of love that
took a total of 19 years. In addition to expert designers,
technicians and manufacturing engineers, Yamaha Artist
Services staff members, who provide support to leading
artists worldwide, took part in the project.
During the three-year period of the plan, the Group will focus on
building a firm foundation for future development and growth.
Facing a yen which appreciated more sharply than anticipated
when we first formulated the plan poses a new challenge that
we must overcome. Still, we made steady growth in terms of
profit and the Group had many achievements including double-
digit growth in China and other emerging markets, the integra-
tion of piano manufacturing plants in Japan, and the launching
of the CFXTM, our flagship model concert grand piano.
At the International Fryderyk Chopin Piano Competition,
one of the world’s most prestigious and the oldest piano com-
petitions, the pianist performing on Yamaha CFX concert grand
piano was awarded the Grand Prize. Her CFX selection in the
competition enabled the CFX, a piano developed with Yamaha’s
accumulated technological know-how and craftsmanship, to
not only win the admiration of the world’s top pianists for its
high quality, but showcase to the world the true potential of the
CFX and inspire greater confidence in our entire piano line.
Yamaha views China, with its high growth potential, as one of
its key markets. While the size of China’s musical instruments
market is now valued at almost 7.0 billion yuan (approximately
¥90 billion), we expect this to grow 40%, to 9.8 billion yuan
(approximately ¥130 billion) by March 2013.
From early on, Yamaha sought to not only strengthen its
production base in China, but to build up a sales network in this
important consumer market. Thanks to these efforts, over the
course of the previous medium-term management plan, Yamaha
achieved double-digit growth for three consecutive years (from
April 2007 through March 2010). In YMP125 as well, we have set
growth targets in double digits and sales targets of ¥24.5 billion
in fiscal 2013, and ¥35.0 billion in fiscal 2015. We have invested
our management resources based on four key policies, which
include developing and launching products adapted to the
Chinese market and expanding our sales network.
Above all, China—where educational demand for acoustic
pianos is strong—is unique among all the world’s markets in that
pianos occupy nearly 60% of the musical instruments market,
excluding professional audio equipment. With the rapidly grow-
ing digital piano market also attracting attention, the expansion
of piano sales has now become the foundation of our growth
strategy in China.
In fiscal 2011, sales in China climbed 15% year on year, to
¥19.0 billion, continuing the double-digit growth of the previ-
ous medium-term management plan. In the mainstay piano
domain, sales jumped after we launched a model specifically
designed for China that vies with other Chinese-made pianos
at a price close to the affordable range. Having expanded our
sales network as far as possible in key cities in coastal regions,
What are your primary initiatives and achievements in China—where growth is in
double digits—and what measures are you planning to take?
Q
A
Yamaha CFX Concert Grand Piano
Pianist Yulianna Avdeeva selected Yamaha’s CFX for
her Grand Prize winning performance at the 16th
International Fryderyk Chopin Piano Competition. The
competition is known as a gateway to success with
many of the world’s greatest pianist.