Kenwood's regional sales hit $50m

Helped by new dealership arrangements in Saudi Arabia and Iran and continuing growth from the UAE, Kenwood Electronics recorded sales of $50 million from its regional operations for the 12 months ended March 31, 2002.

The regional office covers 30 markets, including the CIS. During the same period, the company's global turnover was $2 billion.

The Japanese manufacturer of car stereos has been helped by year-on-year growth rates of 50 per cent, which it hopes will be maintained during its current financial year ending March 31.

In 2001, Kenwood went in for distributor changes in Saudi Arabia and Iran, and the move has started to pay good dividends.

Iran is its second biggest market after the UAE, with the Kingdom taking up third position.

"Our market share for car audio in the UAE is around 30 per cent according to our survey through sales outlets. And our share in the Middle East is estimated at about 30 per cent as well for the middle to high segment," said Ryo Mizuhara, managing director of Kenwood Electronics Gulf, based in Jebel Ali Free Zone.

In the last two years, Kenwood has recorded some strong numbers in its re-exports from Dubai.
"We feel the re-export market is still active despite the situation in Iraq. Iran is still buoyant as far as we are concerned, and we are sure this will last," added Mizuhara.

As for the broader consumer electronics market in the UAE, there is every indication that the present dip will be overcome within the short-term itself, according to Sajid Mohammed, managing director of MidAsia Trading, which represents Kenwood in the UAE.

"This time, everyone was prepared for the war, unlike in 1990-1991, when no one knew what the consequences for the UAE market would be. We are watching international companies still retaining their staff here, which is also a departure from the 1990 situation," added Mohammed.

The consumer electronics sector is reportedly worth about Dh3.5 billion annually, and indications are that similar numbers will be registered this year as well.

However, MidAsia expects to continue with its momentum on the Kenwood line. It saw a 60 per cent gain in car stereo sales during last year and 250 per cent over the last two years. The local firm is looking for a repeat of its growth rate for this year.