Running Head: Marketing Internationally

Consumer Electronics in Australia

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The Australian economy has a great potential for growth. It has been one of the best developed countries to experience growth in these economic downturns. The government’s fiscal stimulus has lead to job creations and created potential for growth with continued high demand for consumer electronics. We shall analyse the consumer electronics in Japan so that we can get a clear picture of the great benefits and returns from the industry .Out of this I wish to recommend the import of consumer electronics from Japan to Australia. Consumer electronics are products equipped for everyday use to satisfy consumer needs. They range from laptops, computer appliances, TV sets, mobile phones and other household appliances. There is a demand for consumer electronics due to the rising communication needs, their nature and potential for raising consumer spending to boost the economy as a whole and the benefits that supersede the costs.

Consumer Electronics in Japan

Japan is one of the most technologically developed countries. The industry of consumer electronics has been expanding over the years with the demand still being high. Despite some

Running Head: Marketing Internationally

downturns in the economy, Japan’s industry has thrived with the characteristics of quality, durability and technological sophistication. Electronic companies need more visibility and access to real time, accurate data with which they can develop products that suit the market needs. There has been improved convergence for audio and video products and other consumer electronic products, with an increased demand for technology, portability and efficiency. The focus of consumer electronics industry in Japan has shifted focus from low level products in high volume to high value products of medium volume. Japan boasts of a continued trend of high product standardization and product lifecycles. The industry has accelerated the rise of Japan to a superpower. This paper shall focus on analysing the market mix of consumer electronics to a conclusion that Australia desperately needs to import such products from Japan. (Mark, 1997)

Company Background

The consumer electronics companies in Japan have continued to dominate the world’s consumer electronics market. Sony corp. remains first while following consecutively are; Matsushita Electrical Industrial Company limited, Sanyo Electrical Company, Canon Inc, Pioneer Electrical Corp, NEC Corp, Olympus Corp, Sharp Corp, Nikon Corp and Kenwood Corp among others. Sony has remained competitive in the industry while maintaining a reputable brand name. It has a history of investing new technologies and modifying existing ones to come up with new versions. It manufactures, design, develops and sells communication and information products, video and audio products, semi conductors, televisions and other electronic components. It operates in games, pictures, electronics, financial and other segments. Sony as a brand has remained efficient and offers solutions to the economic crisis through investing in products that are meant to improve efficiency, raise the consumer’s prestige level while helping in economic growth through technological researches.

Consumer Electronics Segmentation and Marketing Mix in Japan

Marketing mix refers to a combination of marketing tools used by a company to meet its market objectives. It comprises also the decisions that marketers make to appeal to their target markets and consists of the product, price level, distribution and promotion used.

Running Head: Marketing Internationally


Sony’s consumer electronics ranges from portable ones, home products, car products etc. The transition from analogue to digital formats shows consumers’ shift to more sophisticated models. The manufacturers plan to completely stop the production of analogue formats by 2013. The Japanese government introduced a broadcasting of digital televisions to accelerate this shift. However, despite this shift the consideration of portability still remains a primary criterion by consumers while selecting consumer electronics. Another issue is the issue of manufacturers which is the top most consideration by consumers in making their demand for consumer electronics. Sony has continued raising their product image and offering services such as replacement of old versions with new versions at subsidized prices. (Catley, 1996)


According to reports Sony consumer electronics are sold at retail selling prices. What is more, they have experienced declining prices (Numakura Dominique, 2005). This means that a product’s price declines once it is introduced into the market with new versions being more expensive than the existing ones. The prices of consumer electronics also varies from one manufacturer to another taking into consideration the cost of production, level of production and quality. Japan has numerous consumer electronic manufacturers and because of the competition the price levels tend to be low.


There is a high concentration of consumer electronics companies of Japan being the largest manufacturer in the entire world. Sony usually enters into agreement with distribution agencies that are responsible for the distribution and marketing of consumer electronics. Many of these distribution agencies are usually wholesalers who purchase the electronic products from the manufacturers. Distribution is even done for consumers outside the country.

Running Head: Marketing Internationally


This is usually done through mass media such as newspapers, television and radio and Internet advertising. It has been revealed that most visited websites such as yahoo form a good basis for advertising, while networking sites such as you tube, twitter and facebook form a good form of advertising. There are advertising agencies specialised in various forms of advertising which produce good results. With present technological developments, the consumer needs to shop online for the consumer electronics they need but this does not limit the relevance of mass advertising.

Analysis of the Australian Market

Australia has a great potential for growth if taking the opportunity to import from Japan. The Australian companies involved in consumer electronics have a very small share of the market share of consumer electronics. Facts reveal that most Australians love spending money on gadgets with many seeking to simplify their household cores, engage in online marketing and prefer foreign brands to local ones depending on the reputability of the brand. Though limited in terms of manufacturing of consumer electronics the benefits to be derived from imports are big. Though the government has offered stimulus and lowered interest rates, the Australian lifestyles may hinder mew manufacturers in the sector and instead import.

Most Australians spend time on the Internet. With 31% in online sales and purchase, the broadband width is diminishing and speed improving. Only 5% of Australians are engaged in online grocery purchase unlike in the UK where a majority of citizens do online purchase of groceries. There is need to take action and improve as an opportunity for lucrative progress is vivid (Consumer electronics in Australia, 2009).

Running Head: Marketing Internationally

Australians love spending money on gadgets and other consumer electronics. The executive conclusion from reports is that Australians desire the newest consumer electronic gadgets of multi national brands and companies rather than of the local brands. It is thus a great opportunity for Sony consumer electronics.

Semiconductors’ demand is rising as per reports and is expected to continue rising to 2010. All these emerging behaviours are developing a fruitful market for semiconductors and eventually for consumer electronics (Databns, I). Semiconductors are used in consumer electronic devices such as microcontrollers, microprocessors and DSPs.

Australia calls for offering durable consumer electronics in the most efficient way. Sony has online sale of its products and is in collaboration with local consumer electronics distributors where customers can get the products and receive door delivery. The price needs to be retail standard as customers judge the quality of products from the price set. Promotion of Sony products in Australia can be effective through the brand name as it is stable and reputable.


The benefits from importing consumer electronics from Japan include a lucrative opportunity that will meet the needs of the economy. The Australian market provides more than just opportunity for good returns but also allows for growth of the industry due to the technological potential. Consumer electronics demand in addition has been reported to be increasing despite the economic downturns. This provides an opportunity to both Sony and Australia which is too critical to be ignored.


Consumer electronics in Australia, April 2009.

Running Head: Marketing Internationally

Catley, R. (1996). Globalising Australian Capitalism. Australia: University of Cambridge publishers.

Databns, I. (2005) Consumer demand grows exponentially. Vol 2, pp 45-176.

Mannions, J. (2009).Consumer electronics in Japan.


Mark, T. (1997).Europe and the Japanese Challenge: The regulation of multinationals in

Comparative Perspective. United Kingdom: Oxford University Press.

Michael, H. (2006). The Smollmert revolution. Austria: Ingram pub services.

Numakura, D. (2004). The consumer electronic survival game as prices drop each year. http://w


Smith, (2009) Australian economy continues to shine. Financial times, September 2009.