In the consumer business, the JVCKENWOOD Group has gained an industry-leading market share both in car navigation systems and car audio systems especially in Europe and the U.S. by launching marketing and sales strategies that leverage the JVC and KENWOOD brands with different characteristics in overseas markets.
In 2016, JVCKENWOOD marks the 10th anniversary of its collaboration with Garmin, a U.S. corporation and the industry leader in the field of car navigation systems. By combining the strengths of both companies, we have long maintained the largest market share exceeding 50% in North America and will continue to strengthen our competitive advantages mainly in that market.
In Japan, where the focus of demand is on car navigation systems unlike in overseas markets, the JVCKENWOOD Group has successfully expanded both its sales volume and market share despite a declining market. This is owing to the popularity of the Saisoku-Navi series of car navigation systems developed by integrating the technologies of JVC and KENWOOD, for which the Group has released the first high-resolution audio model in the industry.
In addition, dashcams launched in 2014 have received a very high evaluation. We have developed them by fully leveraging our know-how accumulated through video camera development, realizing an industry-leading full HD high-quality video recording ability, and also loading driver assistance and other systems.
In the Japanese market, the JVCKENWOOD Group will continue working to expand sales and improve its cost competitiveness by further enhancing the product appeal of the Saisoku-Navi series and stepping up efforts for cost reduction. In addition, we will launch products that accommodate changes in market needs, such as dashcams and car-mounted cameras.
In overseas markets, where demand for car audio systems, our key products, is expected to continue declining gradually, we will work to enhance the lineup and expand sales of smartphone-compatible Apple CarPlay® products and the Android Auto™-enabled DVD Entertainment System. Furthermore, driven by strong domestic sales of dashcams, we will seek to enter the relevant overseas markets. In addition, expansion into emerging markets is being scheduled.
Dealer-Installed Option Business
Our customers in the dealer-installed option business are automobile manufacturers and Tier 1 suppliers that provide parts to automobile manufacturers. JVCKENWOOD is seeking to increase the amount of new orders from them for car navigation systems, DVD ntertainment systems, dashcams, and other products by leveraging its achievements and strengths in the consumer market and cooperating with partner companies.
In the Japanese market, notably, we are winning new orders for large-lot projects from leading Japanese automobile manufacturers thanks to the high evaluation of the Saisoku-Navi series and dashcams, which we deploy in the consumer business.
Factory-Installed Equipment Business
In the factory-installed equipment business, the JVCKENWOOD Group is working on developing, mass producing, and acquiring new orders for dedicated design infotainment, car navigation systems, DVD entertainment systems, ADAS* products (e.g., VGA cameras), etc.
As for in-car CD/DVD mechanisms, JVCKENWOOD is striving to win new customers through a collaboration with Shinwa International Holdings Limited, which became its subsidiary in June 2013. In addition, we will seek to expand and strengthen business in emerging markets, notably in China and Asian markets that have great potential for growth.
Furthermore, we will leverage the strong partnerships with leading automotive manufacturers and extensive distribution channels built mainly in Europe by ASK Industries S.p.A. (hereinafter “ASK Industries”), which became JVCKENWOOD’s subsidiary in April 2015, in order to expand the factory-installed equipment business by offering integrated systems combining both companies’ products as well as the ASK products.
*ADAS is an abbreviation of Advanced Driving Assistant System.
In the dealer-installed option business, JVCKENWOOD will continue to aim at winning new orders for large-lot projects in the Japanese market by leveraging its track record in the consumer business and expand sales in overseas markets, centering on Asia. To deal with the increases in development costs incurred for new orders received, JVCKENWOOD will also focus more on cost reduction measures and strive to strengthen competitiveness and reduce costs by reviewing the development structure and building a common platform for operations, including the consumer business.
In the factory-installed equipment business, JVCKENWOOD will further focus efforts on the development of CAROPTRONICS devices (digital cockpit systems) that have the highest growth potential, such as car-mounted cameras, head-up displays, e-mirrors and e-meters (i.e., ADAS products).
JVCKENWOOD is one of a few specialized manufacturers that have the various core technologies essential for the development of CAROPTRONICS devices within its Group, such as technologies related to car electronics, audio, image/optical and sensing. We will take full advantage of this merit and further promote the development of CAROPTRONICS devices to expand the factory-installed equipment business.