Pioneer CEO expects its flat-panel sales to prevail through economic downturn
By Darren Murph 
posted Nov 18th 2008 7:13AM
posted Nov 18th 2008 7:13AM
While some boutique outfits are finding it hard to stay afloat during these cash-strapped times, many are faring just fine. At first glance, it's easy to say that Pioneer is certainly not one of those outfits with nothing to fret over, but according to Masao Kawabata, chairman and CEO of Pioneer North America, things aren't nearly as bad as they seem. In a recent interview, he explained that while he was saddened about the recent events surrounding Tweeter and Circuit City, he still felt that "strong relationships with independent channels" would spur sales. In fact, he noted that "premium products [read: Pioneer products] are not subject to too much of the ups and downs of the economy, and for those who can [afford] the very best they will go and shop for the very best." Make no mistake -- KURO flat-panels and Elite Blu-ray players aren't the cheapest on the block, but we're still hesitant to say they're recession proof.
Yeah Okay!
He's dreaming or being overly optomistic. Or running for president
They'll be stuck with a warehouse full of plasma TVs they can't move.
Some have already slashed production (according to the Samsung story endgadgetHD carried here only a week or 2 ago).
I wonder what he's smoking.
Japan officially went into recession last week (2 consecutive quarters of negative growth), the EU is about to, including the UK & so too is the USA.
Right now with this terrible economic, you got Samsung and Sony struggling in moving out low levels LCD TVS that cost 1200 dollars,and the Pioneer CEO thinks that his company will selll a lot of those Kuros that cost 3000 dollars and Up , I don't think so.
We are large Pioneer and Pioneer Elite dealers and our Kuro sales are still strong and steady, but admittedly slightly softer than last month. Audio/Videophiles and those who can easily afford a Kuro are still actively buying these high-end panels.
As one of my wealthy clients told me, "I'm not getting the big bonus this year, but I still have plenty of money and I want to enjoy the best possible TV available."
No doubt the entire CE market is down in all catagories, but surprisingly, not as bad for the premium products.
-Robert
Does anyone know what he's smoking??? I couldn't find it in the article?? :)
In Cincinnati, the premium boutiques are still having strong sales of high-end products. I recently
bought the new Kuro 60" Elite and got 1000 dollars off. They ate the cost difference between Elite
and 6020.
howdy ^^ same experience here. We have lowered our selling prices to attract more buyers. So it's a buyers market.
The high end business is still strong and steady, but retail margins are down.
-Robert
I think some of the replies here are actually correct... I do not think high end/luxury retail market responds to recession the same way as standard retail market does, and that does not just apply to electronics.
For example, I have a few friends who work in the clothing market. The high end product such as Rena Langa, the brand of clothing Sarah Palline wore during her VP campaign, which a coat can cost up to $10,000, actually saw a rise in sales this quarter. The regular cheap stuff like Calvin Klein saw a drastic decrease of sales... My friend who makes a very good income just bought 2 Pioneer 60" Kuros, and I just bought one myself, and the sales person actually told me that they are selling these sets very well when compared to other lower cost sets despite the down turn...
I think people who have the $ to spend, $4000 to $5000 is only pocket change, and these are the people who has been the majority of buyers of high end products regardless of economic downturn... The % of people buying high end products who never had the kind of money even before the downturn is very small, and would have not spend that much for a TV anyway. The same friend who bought the 2 Kuros just bought a 1 bedroom condo in downtown Manhattan for $1.3 million CASH, he said he lost a LOT of $ during these times, but $10,000 for 2 TVs is still really nothing for people like him....