Quietly, Sony launches Aiwa

Sony India, the wholly owned subsidiary of Japanese consumer electronics giant Sony Corporation, has silently launched the Aiwa brand of audio systems in the country.

What is more, the company has also drawn up plans to manufacture the Aiwa products at its Daruhera unit in Haryana in the near future.

Aiwa makes a return to Indian shores after around two years since it split with its Indian marketing partner, the Kabir Mulchandani-promoted Baron International.

Until then, for about two years, Baron assembled and marketed Aiwa brand of televisions and audio systems for the Indian market, much to the chagrin of Sony India since Sony Corporation already owned around 51 per cent in Aiwa Corporation, Japan. Today, Aiwa is a wholly owned subsidiary of Sony.

Sources in Sony India told Business Standard that the Aiwa products, the first import consignments of which hit retail shelves last week, will complement Sony audio products. Sony will continue to have a premium positioning, while Aiwa will be targeted at the lower price segments of the market.

The Aiwa range, now restricted to only 5 models (four hi-fi stereo systems and one DVD player), starts with a 3 CD player with MP3 compatibility priced Rs 13,000.

The Sony audio systems are priced much higher. The executive said Aiwa will be targeted primarily at the youth.

Sony is the leading brand in the audio market in India, but is facing competition from Philips which has reorganised its product strategy to notch up volumes. The addition of Aiwa to the Sony portfolio is likely to change the dimensions of the market once again.

Sony has not made any noise about the launch -- there are no immediate advertising plans either -- since there is a thinking within the company that it may create a confusion in the minds of consumers.

The launch has happened during the festival season, which accounts for a large chunk of the year's sales.

The Sony India executive said that advertising will commence once the back-end for the brand is in place.

"It is a completely new brand--new logo, new designs and new owner. The consumer has to be adequately educated about this," he said.

Earlier this year, Sony had taken a step towards launching Aiwa in India by announcing that all existing Aiwa products will be serviced by Sony India's service centres.

This had come as a big relief to several thousands of Aiwa product owners who were left in the lurch after Aiwa and Baron separated.

In October last year, Sony India had told this newspaper that a feasibility study was on to assess the market for Aiwa products in India.

Sony India's possible role in the business was also being considered. In the south-east Asian countries, Sony markets Aiwa through a separate subsidiary, Sony Marketing, and not through its own manufacturing arms.