By adjusting the strategy, Sitronics has renounced its original idea of setting up the national megabrand of consumer electronics.
Photo: Dmitry Dukhanin
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No Siemens of Russia
Having yielded to electronic producers of Asia, Russia’s IT-consortium Sitronics is winding up production of household devices and rearranging the business.
Sitronics winds up all production of small household devices and computers, Sitronics President Yevgeny Utkin said. It will no longer produce the moderate-priced electronic devices of mass demand – car stereos, CRT TV sets and the like, but limit the product range of consumer goods to LCD TV sets and some types of portable electronic devices (cellular phones and MP3 players), DVD players, players for fee television and hi-end audio devices.
By adjusting the strategy, Sitronics has renounced its original idea of setting up a national megabrand of consumer electronics. Sitronics major holder, AFK Sistema, which advocated creation of so-called Siemens of Russia just a few years ago, currently calls abandonment of cheap electronics a part of the marketing strategy.
Sitronics generated $57.4 million (around 8 percent of the overall revenues) from selling household devices and electronics in the first half of this year. The H1 loss of consumer division reached $4 million.
The restructuring will start in 2007, said a source familiar with the plans of consortium. The project budget stands at $5 million. “The funds will be spent to develop research and designer divisions, for marketing and promoting product. Sitronics will be repositioned as a maker of premium-priced devices,” the source specified.
www.kommersant.com
All the Article in Russian as of Nov. 03, 2006
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