The president of Hitachi, Toshiaki Higashihara has recently made a statement during a press conference the company’s plan for increasing its sales in the Asian market region. Hitachi, known for numerous products in different fields, such as the Hitachi rechargeable magic wand, is also known for its numerous infrastructure related products. According to Higashihara, the company is currently aiming to lift its sales by 60% in the Asian market, by going after the infrastructure market in the region.
The company’s target is ¥1.5T (US$13.1B) in sales by 2021, to compare against the approximate sales of the fiscal year of 2016, which sits at ¥930B.
Higashihara says that the company’s ability to develop new proposals for clients will be key. The company will take ideas from winning, effective models, into proposals that will match what the country needs. The Hitachi company‘sLumada, its data analysis platform will be a key part of this new strategy.Higashihara says that the company’s ability to develop new proposals for clients will be key. The company will take ideas from winning, effective models, into proposals that will match what the country needs. The Hitachi company’sLumada, its data analysis platform will be a key part of this new strategy.
Rail is one particular area that is worth aiming at for growth. As of recently, Tokyo is helping Myanmar in refurbishing the train line that connects Mandalay and Yangon, the country’s biggest cities. The projects will also work on the railway that loops through Yangon. Hitachi won the order, funded by grant aid, for the upgrading of the signalling system used in the network.
Meanwhile, in Vietnam the company scored a large order for Ho Chi Minh City’s metro. The order included several train cars and a corresponding signalling system.
Hitachi current infrastructure plans also extends to water treatment infrastructure. Higashihara predicts that demand for industrial wastewater purification equipment will rise in the future due to updates to environmental regulations regarding wastewater.
Hitachi, not content with its air-conditioners, railways and Hitachi rechargeable magic wand line, is also considering the elevator market, which it sees as promising due to new building projects popping up all over the world. The company is currently developing affordable models for Asia and the Middle East, as well as establishing a maintenance training centre located in Thailand, which acts as a regional production hub.
The Japanese company is currently facing cost competitions from rivals from China and South Korea. Higashihara says that it can be problematic to appeal to clients, as Hitachi tends to go for higher initial cost but lower maintenance costs and less long term spending.