SPECIAL FEATURE 02Growth Strategies and Value Creation Initiatives in India
India is a massive country garnering attention as one of the constituents of the global economy with the greatest growth potential. Yamaha established its first production base in this country in Chennai in June 2019. Together with our existing sales office, this production base was utilized to launch full-fledged business activities in India. In this country, we aim to capitalize on the comprehensive strengths of Yamaha pertaining to development, production, sales, and the promotion of music to improve our corporate value through the creation of social value. In this section, we will explain Yamaha’s medium- to long-term strategies for the Indian market.
Unexplored Potential of the Indian Market
In 2020, India's population has been estimated to be approximately 1.3 billion, with roughly half of this population being comprised of youths under 25. Moreover, global population estimates released by the United Nations project that India will surpass China as the global population leader by 2030. Accordingly, this country represents a massive market with potential for growth in terms of both production and consumption. The current government administration led by Narendra Modi, who became prime minister in 2014, is advancing campaigns such as Make in India and Skill India, thereby transforming the country from an importer to a producer and creating jobs through economic reform and the revitalization of the manufacturing industry. Moreover, India boasts a geographical advantage due to its ease of access to the Near and Middle Eastern and African markets. Numerous companies from around the world have been entering the Indian market in recent years with the aim of capitalizing on these advantages.
Construction of Growth FoundationsDevelopment of Integrated Production and Sales Bases to Realize Local Production and Consumption and Expansion of Customer Contact Points
The Yamaha Group's presence in the Indian market can be traced back to the 2008 establishment of local subsidiary Yamaha Music India Pvt. Ltd. (YMIN). With the start of operations of our first directly operated production site in Chennai in 2019, we are now developing operations that integrate both sales and manufacturing in which we produce and sell products to the growing Indian market as well as to other emerging markets.
At the Chennai Plant, we produce entry-level portable keyboards, acoustic guitars, and PA equipment primarily for the Indian and emerging markets. Yamaha offers local portable keyboard models designed specifically for countries such as India and China and regions like the Near and Middle East, where musical content based on local musical traditions is a must. The PSR-I500 and I400 portable keyboards launched in 2019 were designed for the Indian market as part of this series of local models. Produced at the Chennai Plant for local consumption, these made-in-India, made-for-India keyboards are packed with music content based on the musical traditions that are familiar throughout India.
Ranking No. 7 in terms of geographic area, India is an expansive country in which strengthening ties with customers and the greater society and increasing contact points with customers is imperative. Accordingly, we are focusing on in-person sales through retail locations in developing our sales network while also establishing online sales venues to accommodate customers with limited access to such stores and to cater to the projected rise in e-commerce demand. The level of IT and social infrastructure can vary by region in this vast market. We are therefore developing region-specific strategies as we advance forward-looking initiatives to expand customer contact points and solicit Yamaha's value.
PSR-I500 and I400 Portable Keyboards Produced at the Chennai Plant
The PSR-I500 and I400 portable keyboard models were designed to allow users to enjoy performing the pop and traditional music popular throughout India to an even greater degree. Features of these models include an expanded range of reproducible notes, enhanced automated accompaniment functions, and various other characteristics matched to the predominate music trends of the country. Moreover, the PSR-I500 and I400 propose new ways of enjoying music, such as creating one's own unique melodies using the quick sampling feature or sharing one's favorite performances on social media using USB memory devices. With these features, PSR-I500 and I400 portable keyboards have proven incredibly popular among Indian customers.
Medium- to Long-Term Value CreationCreation of Social Value through Business in India to Drive Future Market Growth
India is a country in which people enjoy listening to music as part of their everyday lives, whether that be traditional music, music from movies, or popular local songs. Despite this love of music, instrumental music education is not part of the compulsory education curriculum of schools, and the vast majority of people therefore have no experience playing musical instruments.
To address this issue, Yamaha launched the School Project, a program for supporting the provision of musical performance experiences primarily in emerging countries, in India in 2018. Focused on private elementary schools, we are providing instrumental music education programs using recorders, which are ideal for one's first musical performance experience due to their easy playability. We began offering this program to 44 schools in India in fiscal 2019 and an additional 81 schools in fiscal 2020, making for a total of 125 schools as of April 1, 2020. By communicating the joy of musical instrument performances to children that had not been given the opportunity to play a musical instrument and helping them grow in a more fulfilling manner, we aim to familiarize them with the Yamaha brand and thereby drive the expansion of the Indian market.
In Emerging Countries Where Yamaha Offer the Project – Experiencing the joy of performing with musical instruments
Growth through Community-Rooted Value Creation
Yamaha was quick to establish production bases overseas, with which it has continued to develop business activities that respect local cultures through local production and sales. The Company is also promoting the spread of music on a global scale. By communicating the joy of musical instrument performances and providing opportunities to experience the fun of learning about music to people around the world, Yamaha is creating new demand and thereby growing its business. The experience and expertise we have accumulated over the years will be utilized to spur our growth in the new market of India. This growth will be accomplished while treasuring our connections with customers and creating social value through our business activities.