Yamaha, Kawai bullish on growing piano sales in China+

TOKYO, March 9 Kyodo -
Japanese piano makers Yamaha Corp. and Kawai Musical Instruments Mfg. Co. are
bullish on piano sales in the fast-growing Chinese market while other markets
are shrinking on an economic slump.

The two companies are competing with dozens of other piano makers, mostly
Chinese firms, to expand their respective shares of the Chinese market that
accounts for half of the approximately 500,000 units in annual global new piano
sales, Yamaha and Kawai officials said.
Kawai saw a 16 percent year-on-year rise in its piano sales in China for the
April-December period last year, compared with a 35 percent drop in the United
States and a 21 percent decline in Europe.
Yamaha realized a 17 percent increase in sales in China, against a nearly 10
percent decrease in Japan and a fall of close to 20 percent in Europe.
Kawai and Yamaha have priced their pianos for the Chinese market at between
230,000 and 300,000 yen per unit, compared with prices of around 150,000 yen
offered by Chinese firms.
Although a price-cutting race is expected to intensify in China, Yamaha
Director Hiroo Okabe said, ''We'd like to take advantage of our brand
reputation to maintain the present price range to some extent.''
Yamaha plans to expand its Chinese sales network to inland regions from coastal
regions and to increase its annual production capacity in China to 50,000 units
from 30,000 units in several years.
Kawai, meanwhile, is prepared to join the price-cutting race in the country.
''We'll thoroughly reduce costs to offer cheaper pianos as well,'' said
Executive Vice President Yutaka Kasahara.
==Kyodo
2010-03-10 00:21:15