Calcutta, Jan. 19: German audio company Sennheiser Electronic expects revenues from the Asia Pacific region to increase to 25-30 per cent of the total from 15 per cent within three to four years.
The smartphone boom and the demand for better sound through audio accessories will play a key role in driving growth.
The company plans to penetrate deeper into the organised audio market worth Rs 100-150 crore with its products ranging from headsets and headphones to microphones, studio and live music devices.
This market is growing at a rate of 20-25 per cent annually.
“We are in a very early stage of market development. Less than one per cent of those using smartphones buy a headphone. They make do with whatever comes bundled. One of the drivers of headphone growth will be the smartphone boom. Our strategy is to create experience in-store and incorporate the needs of Indians into our products,” said Gunjan Srivastava, managing director of Sennheiser Electronics India Private Ltd.
“In the next three years, we should open one store in every big metro. We are importing products from Germany,” he added.
The company, which has been selling its products for the last seven years through multi-brand outlets, has launched its first exclusive store nationally in Calcutta at Quest Mall.
Srivastava said the company would also tap the installed sound market that caters to boardroom needs such as speakers and conference systems.
“We have specific products designed for call centre headsets. But we would not want to focus on a single segment. The Asia-Pacific (APAC) is an integral part of Sennheiser. We want to make it the next strong pillar. India’s contribution has been 10-15 per cent of APAC. In 2013, India has been the fastest growing market in APAC,” he said.
In 2012, turnover from the APAC stood at 95 million euros. Global revenues during the same year was 584.4 million euros with the consumer division contributing 49 per cent, the professional systems 35 per cent and the integrated systems 16 per cent.