(MENAFN- Live Mint)

Japanese consumer electronics brands are quietly retracing their steps into India. Once household names in televisions, video cassette recorders and stereo systems, companies such as Akai, JVC and OM System (formerly Olympus) are making cautious comebacks, chasing niches instead of mass markets dominated by aggressive Chinese entrants and steady Korean rivals. And those such as Sony and Panasonic that had chosen to stay on are also in a reset mode.

Their timing is strategic. India's $75-billion consumer electronics market is projected to nearly double to $130-150 billion by 2029, per Redseer. Yet Japanese companies account for less than 5% of the market, estimates Praxis Global Alliance, a management consultancy firm. To regain ground, these firms are entering with narrower portfolios and measured strategies and are betting on reliability, design and premium value.

The new India strategy

OM System formally re-entered India this year with a range of cameras and lenses, five years after pulling out when Olympus transferred its imaging division to Japan Industrial Partners.

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“Our decision to return to India was very conscious. It has become clear that India's industry is growing rapidly, and for any brand to be successful over the next couple of decades, India will be a very important market. It made perfect sense for us to come back," said Vivek Handoo, vice-president-head of APAC and managing director at OM System.

“In hindsight, we probably should have never left. But better late than never," he added.

The company recognizes that to reach the masses in India's price-sensitive market, it must balance entry-level offerings with premium models, moving beyond its reputation for only high-end cameras.

“To reach the masses and play the volume game, price will be important," said Handoo,“We want to have a clear strategy covering both entry-level and premium products-entry-level to catch consumers early and young, and premium for those willing to spend lakhs."

The company is betting on the rise of outdoor photography and content creation to drive growth, even as weddings remain India's biggest photography segment.

A similar balancing act is also underway at Akai, which is attempting a comeback in India through the air-conditioner (AC) market. The brand had exited major presence in India around 2009, after its licensing arrangement with Videocon ended.

“We're positioning Akai India in the premium value space, not in the highest price band..." said Anurag Sharma, managing director and chief executive officer of Akai India.“Our aim isn't to win price wars, it's to win consumer trust through long-lasting products, thoughtful features and after-sales reliability. Customers today don't just want an affordable AC, they want one that lasts longer, uses less power, and improves their living environment."

Its bet comes amid a projected boom in demand. India is expected to add 130–150 million new AC units over the next decade, which could increase peak power demand by 180 gigawatts by 2035, according to a study by the India Energy and Climate Center at the University of California, Berkeley.“The AC market in India today is where the television market was two decades ago-full of potential, driven by rising aspirations, and ready for thoughtful innovation," Sharma said.

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JVC, once a familiar television brand in India, faded from the market over the past decade as competition intensified. It has staged a comeback this year through a licensing partnership with Super Plastronics Pvt Ltd (SPPL), launching a range of made-in-India smart TVs.

The incumbents adjust too

Other Japanese majors such as Sony, Panasonic and Hitachi stayed on in India, but they too are reshaping. They are focusing on profitable categories like large-screen TVs, premium appliances and B2B solutions, while vacating low-margin entry segments and avoiding price wars triggered by Chinese brands.

Others like Sony, Panasonic and Hitachi never fully left India but are reshaping their playbooks-focusing on more profitable large-screen TVs, exiting low-margin entry segments, and steering clear of price wars driven by Chinese rivals.

Panasonic, for instance, has exited refrigerators and washing machines as part of a strategic restructuring this year. The company posted sales of ₹9,872.8 crore in FY24, slightly lower than the previous year, with profit before tax at ₹779.7 crore, according to regulatory filings, sourced by Tofler.

“Our decision to streamline certain product categories aligns with our global strategy. We are focused on future-ready growth segments, including home automation, HVAC, B2B solutions, electricals and energy solutions," said Tadashi Chiba, managing director and chief executive officer of Panasonic Life Solutions India.

Air-conditioners remain Panasonic's strongest consumer category, growing over 45% in FY24, with smart models now accounting for nearly half of sales.“The premiumization wave is visible across segments, from large-screen TVs to smart ACs. In TVs, for example, we are witnessing a growing demand for 55-inch and 65-inch models. In air conditioners, customers are increasingly opting for connected and inverter models. This indicates that consumers are willing to pay more for products that offer long-term quality and intelligent features, while being energy efficient," he said.

Sony India, meanwhile, reported sales of ₹7,663 crore in FY24, with a net profit of ₹168 crore.

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Chinese brands like Xiaomi, Hisense and Haier, and online-first entrants such as Kodak and Thomson, have driven years of aggressive discounting. That price pressure even forced Korean majors Samsung and LG to introduce cheaper lines.

Why it makes sense

Analysts say Japanese companies are now repositioning after losing ground globally.“Some of the incumbent Japanese brands have lost market share and their competitive edge. As they refresh portfolios globally, they are re-positioning in India to wrest market share back," said Madhur Singhal, managing partner at Praxis Global Alliance.

Unlike Chinese rivals, Koreans have avoided“irrational" discounting, but broadened product portfolios to reach the mass market.“Some discounting has been tactical during festival sales, but ecommerce marketplaces are also solving for profitability now," Singhal noted.

Japanese brands, he added, still have moats in reliability and engineering, but the Gen Z consumers chase trends and want to be at the leading edge of technology. The holding and usage cycles are shortening and longer life has become less important in smaller value consumer electronics, explained Singhal.

For Japan's consumer electronics giants, India's challenge is less about reclaiming lost glory and more about finding a sustainable foothold in a crowded, fast-changing market. By betting on reliability, design and long-term value, they hope to stand apart from discount-driven rivals. The real test will be whether these moats still matter to a new generation of Indian consumers who prize trends, upgrades and speed over staying power.

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