A10 : In Europe, our market share has declined in some countries because of falling demand for high-end products and the emergence of OEM models from Chinese manufacturers.
In North America, cuts in school budgets following the collapse of Lehman Brothers are a major cause of the downturn in sales. The rate of decline is currently starting to slow, and we hope to see a recovery going forward.
In China, we plan to sell almost 20,000 units in the current fiscal year. We will have to cut costs by about 30% from the current level to reach the price range of high-volume instruments, which are made mainly by Chinese companies. Our goal is to become sufficiently cost-competitive to compete successfully with Chinese manufacturers.
Our worldwide sales of wind instruments were 310,000 units in the previous fiscal year, and we expect to sell 335,000 units this fiscal year.
We expect a small decrease in sales in Japan from one year earlier. However, we plan on a big increase from 97,000 units to 110,000 units in North America and increases from 81,000 units to 90,000 units in Europe and from 61,000 units to 65,000 units in the Asia-Pacific region. We, therefore, expect sales to increase in all regions except Japan.
In the fiscal year ending March 2013, we plan to sell 37,000 units in China and 76,000 units in the Asia-Pacific region. We also plan to sell 120,000 units in North America and 100,000 units in Europe. Furthermore, in that fiscal year, we expect to start selling low-cost models that can compete with instruments made by Chinese companies.