Eastern exposure

The whole world is switched on to gadgets from the Far East. At least it seems so. But how do you choose a product suitable for your particular needs from the barrage of choices? Aryeman Raj seeks the help of two major electronics firms.

It just so happened that one day, the world woke up to a new slew of products - from the Far East. Suddenly, from tapping one's feet to a beat, jiving along a footpath to a strain of music or getting your mind wired to the images on a computer were all happening on brand names that came to you from a different part of the world.

Wander through any mall today and you will see electronic stores packed with models and colours and functions and frequencies that all have one thing in common - the geographical region they are manufactured in. And, judging from the eager throngs, entertainment technology appears to attract the lion's share of the market.

While it is a booming business for manufacturers and retailers, those who remain baffled by the surge in variety are the consumers. The sheer range of brands, options and components to choose from can be daunting to say the least.

To help you with your next purchase, Friday speaks to two executives from the Far East electronics industry about product trends and what to watch out for. First stop at Chitaranjan Patra, deputy general manager, Hitachi business division, Eros Group.

Second stop at Sathish Shenoy, deputy general manager, Samsung business division, Eros Group.

Why are electronic products from the Far East so popular in the Middle East and across the globe?
Chitaranjan Patra: Entertainment products from the Far East are popular for their competitive prices, sleek looks and user-friendly options. They are in line with the latest technology. The trend (to purchase electronic products from the Far East) is catching on almost everywhere.

Products assembled in Thailand and Malaysia are more inexpensive since labour costs are low. In most cases, core components come from Japan. Besides this, Hitachi also has a factory in Thailand.

Sathish Shenoy: Far Eastern products have come a long way in establishing a reputation for quality and reliability. The manufacturing operations in the Far East enjoy significant advantages over the rest of the world. They have a large pool of skilled labour (earning) low wages while also having excellent industrial infrastructure and manufacturing facilities.

The help of liberal government policies has paid off handsomely, as has the burgeoning demand for electronic products. Companies such as Samsung have established manufacturing capabilities in components for a wide variety of consumer electronic products, including chip manufacturing, LCD and plasma panel manufacturing.

'Made in Far East' products are now universally accepted. This acceptance is (based on) manufacturing quality, brand reliability and the product's value for money - not its country of origin.

Value for money, brand equity or packaging: what entices consumers to choose electronic entertainment products from the Far East?
Shenoy: Manufacturing quality, reliability, functionality and value for money are key factors that influence a consumer's purchase decisions.

Far Eastern manufacturers have invested vast amounts of money for research and development (R&D). They carefully study consumer requirements and come up with products that meet the needs of consumers in design, functionality and performance.

The finish of a product made in the Far East by known brands is as good as or, in some cases, superior to those made in Europe and North America. The dominance of Far Eastern manufacturers in the consumer electronics industry is testimony to the excellence of Far Eastern products.

Patra: Value for money certainly wins hands down. But quality counts. Testing standards are not compromised by the manufacturing units. A clearance of the final product is given only after complying with stringent quality control tests.

End products are rejected wherever low standards or defects are noticed. Even a 'Made in Thailand' or 'Made in Malaysia' product ensures that tolerance for a specific performance is not lowered.

Japan is known for its high-quality consumer electronic products. How high are manufacturing standards in other countries in the Far East?
Shenoy: Far Eastern manufacturers have huge R&D facilities for applied research. (This enables them to) come up with new products as well as manufacturing processes that help them make superior quality products.

The quality of engineering is evident in component manufacturing, assembly of products and the reliability factors which are results of these processes.

The human productivity generated by application of industrial engineering techniques and supply chain management contribute to lower costs of production. The standards are never lowered - in fact, they are more stringent - if they are assembled in the Far East.

Patra: When it comes to Japanese or Taiwanese brands and their manufacturing facilities, they use the same R&D sources and similar quality standards. In other words, there is no compromise on parts, quality, assembly and testing.

What are the hot products on the shelves at the moment?
Shenoy: The hottest products are flat panel televisions, multifunctional mobile phones, digital camcorders, digital still cameras, gaming equipment and digital music and multimedia players.

Flat panel TVs - which include LCD, plasma and projection TVs such as DLP TVs - are replacing older CRT TVs due to imminent arrival of high definition content. Samsung, Sony and Sharp are the leaders in LCD TV while Panasonic, Hitachi and LG are battling for supremacy in the plasma TV market.

PDA phones and MP3 players offer incredible functionality at very attractive prices.

Samsung and Motorola's slimline phones are now the rage. Personal digital music and multimedia players are becoming ubiquitous, led by Apple, Creative and Samsung.

Gaming equipment is also becoming a hot market with the introduction of new products such as Sony's PSP and Microsoft Xbox 360.

Patra: High definition XGA plasmas and LCDs are hot products. High definition in televisions is normally one mega pixel. Hitachi has a good range of plasmas and LCDs
to be introduced in phases in 2006.

In terms of newer versions replacing older models, what are the trends?
Shenoy: Flat panel TVs are a must, as sporting events such as the Fifa World Cup 2006 have stimulated consumer demand. High definition (HD) TV content will become a reality in the near future. LCD TV prices have reached affordable levels, prompting consumers to replace their older CRT TVs.

Digital cameras, mini DV (digital video) camcorders and DVD camcorders are becoming increasingly powerful and at the same time more affordable. Mid-priced music systems are also becoming more affordable and popular. Digital music and multimedia players (for example, MP3 players) are becoming as common as mobile phones.

What innovations are expected to hit the shelves in the near future?
Shenoy: The latest trend in consumer electronics is to combine functionality with design. Many new products reflect this trend, including Samsung's Bordeaux line of LCD TVs. Apple's Nano and Samsung's Z5 also combine design with functionality.

Slimness is another design feature which is increasingly important for consumers. Mobile phones are getting increasingly thinner and an example of this is the new Samsung X820 mobile phone which is only 6.9 mm thick.

We can expect larger size LCD TVs of 56" to be introduced by several manufacturers. DVD recorders with large-size hard disc drives of 250GB and more will also become available.

Multimedia players with increased functionality will be launched before the end of the year. High definition DVD players from both the HD DVD camp as well as Blu ray camp will also make an entry into the UAE by the end of the year.

Patra: With high definition available in parts of Europe and North America, it is catching the imagination of customers in the Middle East. The Fifa World Cup has aroused a lot of interest for big size home entertainment screens. Maybe by 2007, the UAE will have HD broadcasting.

Do the latest entertainment products sometimes come to the UAE later than elsewhere?
Shenoy: The UAE does indeed (experience) the late arrival of several products, as the market size is still small compared to European countries or North America.

Limitations on paid content for music and video available on the internet will limit several new products from becoming popular. The unavailability of high definition TV transmission will limit the sales of HD TVs and related products such as DVD recorders with large capacity hard drives.