Harshit Singh
The audio [sector] in India is benefiting from the rapid expansion of smartphones. I believe the audio market would have been problematic if the cellphone hadn’t existed. They seem to work well together, in some way. The expansion of audio products in markets like India is allegedly being fueled by cellphones, according to Sunil Nayyar, managing director of Sony India.
Even though the categories of mobile and audio are distinct, they work together. On the sidelines of the Indian launch of the Sony XV800 wireless party speaker, Nayyar stated, “I think what’s helping audio is the evolution and growth of smartphones.”
Sony claims that audio is its next key growth area in India, despite the fact that it has not entered the smartphone market there. In fact, Sony India’s sales from the audio category currently account for almost 20% of total sales. This statistic demonstrates why Sony is optimistic about the audio business, particularly in the premium segment where its products are positioned.
Over the past five years, there has been a very noticeable change in customer behaviour, according to Nayyar. He added that people purchasing premium audio goods is a “natural progression” and is a mirror of the bigger consumer trend across industries. “Everyone says premium is growing, and we are also part of the same ecosystem,” he said.
By avoiding the budget sector and keeping its goods on the expensive side, Sony is able to dominate the high-end audio industry. “It’s not that we don’t sell entry-level headphones and TWS, but largely our growth and investment strategies are towards growing the premium sector,” he said. While introducing genuinely wireless earbuds under Rs 2000 may increase sales, Nayyar continued, it also means compromising on quality, and Sony doesn’t want to go down that road. “We want to make sure that the products are good, and when that philosophy is guiding us, price points never become a core philosophy.”
According to Sony’s own calculations, the business holds a market share of roughly 78% of the global ANC (active noise cancelling) headphones market. Similar to this, it controls roughly 56% of the market for soundbars in the sector over Rs 15,000. In India’s TWS sector over Rs 5,000, a fast-growing market where Sony competes with Apple, the Japanese manufacturer holds around 21% of the market.
Sony is increasing its focus on high-end headphones and soundbars while also introducing speakers made for house parties at a time when the business is up against fierce competition from domestic companies who play on pricing, such as BoAt and Noise. Its most recent SRS-XV800, which costs Rs 64,990, is a massive party speaker with wheels that make it simple to walk around, a loud volume, smooth smartphone pairing, and a 25-hour battery.
According to Nayyar, Sony is concentrating on getting customers to buy and stick with their audio devices. We desire our customers to improve…We want customers who purchase entry-level or midrange audio products to go up to the next premium level. Therefore, the endeavour is undoubtedly ongoing.
