TOKYO -- Japan's Fujitsu General targets about 25 billion yen ($206 million) in operating profit from the overseas air conditioning business in fiscal 2019, more than double the figure for last fiscal year, the company's top executive told The Nikkei.
President Etsuro Saito sees the mainstay business generating 300 billion yen or so in sales abroad in the year ending March 2020, up 79% from fiscal 2014. Foreign markets are expected to account for 80% of Fujitsu General's global air conditioner sales at that time, compared with 77% last fiscal year.
As the Japanese market matures, the company will step up marketing of new offerings in Europe, the U.S., the Middle East and Australia. In addition to products sold at consumer electronics retailers, large air conditioner systems used in commercial buildings will be a focus. The company aims to have such high-priced products account for 70% of sales, up from about 50% now, Saito noted.
The Mideast, where the Japanese manufacturer has maintained a presence since the 1970s, will be a key market. Thanks to brand strength cultivated over the years, "we can sell our products for 20-30% higher than others," Saito noted. In the Americas, marketing efforts will be strengthened for air conditioner systems that allow the temperature in each room to be controlled.
In Thailand, Fujitsu General will open a development site adjacent to a production facility next summer. By enabling frequent feedback from the production plant, the company hopes to shorten development times and thus improve cost efficiency.