Restructuring reluctantly: Toshiba could not stand the competition in Russia
The Director General of Toshiba Rus LLC, Hiroaki Tezuka, said that the restructuring of the company's business in Russia has been completed. In this case, this leads to the liquidation of the Russian division for the sale of televisions and kitchen appliances. The Japanese corporation stopped sales of refrigerators and teapot thermos, deciding to focus on b2b contracts.
The general director explains this decision by high competition and fluctuations in the ruble exchange rate. In the TV segment, Samsung and LG were the largest competitors. “It was hard to work in this market, Korean companies have a market share of 70%,” said Tezuka.
Toshiba accounted for up to 10% of the TV market. Now only the Toshiba Rus b2b division, which cooperates with Russian Post, Sberbank and Power Machines, will remain. Earlier it was also reported that Toshiba may completely abandon the production of televisions due to unprofitability. It has already closed all TV production plants in Japan and is now considering selling overseas sites.
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Toshiba Rus is responsible for the b2b agreements, including the contract for equipping the FSUE “Russian Post” sorting center with postal processing equipment for about 2 billion rubles from Vnukovo Airport, and supplying automatic cash processing stations to Sberbank. Toshiba Rus also oversees the joint venture with Power Machines for the production of high-voltage transformers. In addition, negotiations are underway on projects in the field of agro-industry and energy in the Moscow region and Mordovia, said Vladimir Maximov.
However, investing in a new business in Russia has become more difficult, admits Hiroaki Tezuka. “The management of the corporation reads negative news from the Russian Federation, so it’s very difficult to convince them to invest,” he says.
Toshiba last summer announced a global restructuring. This was preceded by a scandal with the rigging of financial statements. The corporation has for several years falsified financial statements, thus attributing to itself 152 billion yen ($ 1.2 billion) of non-existent profits. Toshiba sued him and other former top managers to recover 300 million yen ($ 2.4 million). As a result, the president of the company Hisao Tanaka resigned.
The head of the representative office of the Japanese organization for the development of foreign trade ( JETRO ) Kunihiro Nomura says that Toshiba did not notify him of leaving the consumer market in the Russian Federation. “Until we received this information. This is the decision of every company [entering JETRO], because the Russian economy is getting worse in crisis. Naturally, companies are cutting back on something, ”he said.
Pavel Komarov, the reseller’s purchasing director for the retailer, did not receive any official notification of this by the Toshiba reseller in the Citylink online store. “We have been working with Toshiba almost since its opening - since 2009. The format of our cooperation has not undergone any changes, ”he said.
Toshiba Corporation, founded in Tokyo in 1875, is one of the largest Japanese manufacturers of electronics, power and medical equipment. Since the beginning of the 2000s has an office in Russia.
In the third quarter of 2015, the consumer electronics market turnover amounted to 55 billion rubles, which is 11.2% less than the same period last year, according to GfK. The turnover of the market of household appliances and electronics in the Russian Federation in the same period decreased by 2.4%, to 329 billion rubles.
The general director explains this decision by high competition and fluctuations in the ruble exchange rate. In the TV segment, Samsung and LG were the largest competitors. “It was hard to work in this market, Korean companies have a market share of 70%,” said Tezuka.
Toshiba accounted for up to 10% of the TV market. Now only the Toshiba Rus b2b division, which cooperates with Russian Post, Sberbank and Power Machines, will remain. Earlier it was also reported that Toshiba may completely abandon the production of televisions due to unprofitability. It has already closed all TV production plants in Japan and is now considering selling overseas sites.
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Toshiba Rus is responsible for the b2b agreements, including the contract for equipping the FSUE “Russian Post” sorting center with postal processing equipment for about 2 billion rubles from Vnukovo Airport, and supplying automatic cash processing stations to Sberbank. Toshiba Rus also oversees the joint venture with Power Machines for the production of high-voltage transformers. In addition, negotiations are underway on projects in the field of agro-industry and energy in the Moscow region and Mordovia, said Vladimir Maximov.
However, investing in a new business in Russia has become more difficult, admits Hiroaki Tezuka. “The management of the corporation reads negative news from the Russian Federation, so it’s very difficult to convince them to invest,” he says.
Toshiba last summer announced a global restructuring. This was preceded by a scandal with the rigging of financial statements. The corporation has for several years falsified financial statements, thus attributing to itself 152 billion yen ($ 1.2 billion) of non-existent profits. Toshiba sued him and other former top managers to recover 300 million yen ($ 2.4 million). As a result, the president of the company Hisao Tanaka resigned.
The head of the representative office of the Japanese organization for the development of foreign trade ( JETRO ) Kunihiro Nomura says that Toshiba did not notify him of leaving the consumer market in the Russian Federation. “Until we received this information. This is the decision of every company [entering JETRO], because the Russian economy is getting worse in crisis. Naturally, companies are cutting back on something, ”he said.
Pavel Komarov, the reseller’s purchasing director for the retailer, did not receive any official notification of this by the Toshiba reseller in the Citylink online store. “We have been working with Toshiba almost since its opening - since 2009. The format of our cooperation has not undergone any changes, ”he said.
Toshiba Corporation, founded in Tokyo in 1875, is one of the largest Japanese manufacturers of electronics, power and medical equipment. Since the beginning of the 2000s has an office in Russia.
In the third quarter of 2015, the consumer electronics market turnover amounted to 55 billion rubles, which is 11.2% less than the same period last year, according to GfK. The turnover of the market of household appliances and electronics in the Russian Federation in the same period decreased by 2.4%, to 329 billion rubles.
Source: https://habr.com/ru/post/297252/
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