Devices went into production at Sony’s former TV factory in the country
11/07/2022
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Giovanni Cardoso — Foto: Ana Paula Paiva/Valor
Sony’s brand Aiwa, which became popular in Brazil for its stereos in the 1990s and 2000s, is back in the country with a new line of TVs and audio equipment manufactured by Grupo MK, owner of the Mondial brand. The devices went into production at Sony’s former TV factory, which was bought by the group in December 2020.
Since taking over the 27,000-square-meter facility, MK has invested R$70 million in updating the plant, licensing the Aiwa brand, and developing products, in addition to transferring part of Mondial’s electronics production from a leased plant in the region to the new industrial unit.
With a factory already prepared to make televisions, the group started producing five models of connected televisions (smart TVs), with screens ranging from 32 to 55 inches, which will hit the stores in August. In November, the month of the FIFA World Cup and Black Friday, the company will launch two more TVs with 65-inch and 75-inch screens. Some models will feature Google’s Android TV system, which also come in Sony TVs. Others will have a system called Speed Smart.
“The initial investment in the production of the TVs is R$164 million just in components such as integrated circuits and screens imported from China, Korea, the United States and Japan,” said Giovanni Cardoso, founder and president of Grupo MK.
Aiwa TVs hit the market to compete in the premium segment with more expensive products from brands like Samsung and LG. “The goal is to have a 5% share in the segment by the end of the year,” Mr. Cardoso said. In 2023, he estimates that the company will reach 18% share in the segment.
The plant has a production capacity of 1.8 million TV sets per year, and 85% of the assembly stage is executed locally. Initially, according to the executive, the annual production will be of 500,000 TV sets, but this figure may increase according to market demand.
In September, the group will expand the offer of Aiwa headphones imported from China. In November, the audio line will grow to include automotive and portable stereos with powerful boombox speakers produced in Manaus.
Founded in 1951, Aiwa was the first company to manufacture a cassette tape recorder, in 1964, and had its control acquired by Sony in 1969. In the 1990s, it became world-renowned for its stereos with CD player, radio, two cassette tape slots and amplifier. In 2008, Sony discontinued the brand and sold it nine years later to Towada Audio, a third-party electronics manufacturer.
Grupo MK will also hire 1,000 employees by the end of the year to speed up production of both the newcomer Aiwa and the Mondial and Xzone lines of gaming accessories. “There will be 370 new employees in Manaus, where we already employ 220 people coming from Sony, and 630 in Bahia,” the executive said. The industrial unit in Conceição do Jacuípe, Bahia, produces Mondial-branded appliances and cooktops.
The return of Aiwa in a quarter that is usually weaker in retail sales, according to the executive, is more related to the schedule of modernization and product development in Manaus. “Coincidentally, we had time to hit the market in a World Cup year, when people tend to change their TV sets for models with slightly larger screens,” Mr. Cardoso said.
The founder of the group, created in 2000, says he is not concerned about the impact of the economic scenario of inflation and high interest rates on the company’s results. “We have products for all audiences,” he said.
This year, the group expects to gross R$4.5 billion, up 18.4% year-over year – revenues reached R$3.8 billion in 2021. “The goal is to reach R$6 billion in revenues in 2023,” he said.
*By Daniela Braun — São Paulo
Source: Valor International