Even as the jury is still out on the implications of Goods and Services Tax (GST) on the domestic economy, electronics goods major Sony India managing director Kenichiro Hibi on Thursday said in the long run the decision was beneficial for India.
He observed GST was good for the country and would usher in more transparency in the system through pilferage proof systems and compliances.
“Currently, we are in the transitory phase of GST and there are some challenges regarding registrations and compliance with the new taxation system. But, Indian economy and enterprises would benefit hugely with GST in the long run and we at Sony welcome GST,” he told Business Standard.
He further noted Sony India had been prompt in aligning with GST and the required compliances therein, as it already had robust systems in place.
Hibi added India was one of the fastest growing economies in the world and a focus region for Sony Corporation, the parent of Sony India. The company is targetting 25 percent growth in sales in the current festival season despite the talks of slowdown and the aftereffects of GST in India.
He was in town to announce the launch of the festive season offers and meet with the company’s channel partners in the region.
“Uttar Pradesh is one of the most prominent markets for Sony and contributes about 15 percent of the total sales of the company,” he informed. Last year, UP had clocked Rs 415 crore sales during the festive period of Aug-Nov 2016 and this year Sony is targetting 25 percent growth in sales.
Hibi said apart from TV and sound systems, Sony was bullish on the mobile phone segment, however, beyond the entry level handset space.
Sony was concentrating on mobile phone segment having price points upwards of Rs 15,000 to retain its premium tag. He observed the entry level handset space had become quite cluttered with some players having an aggressive strategy.
Meanwhile, Sony has Rs 500 crore purse for marketing expenses this fiscal to consolidate its position across product segments.