VG2020 - Omron

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[Special Feature 2] Interview with the Heads of Business Segments
in lifestyle-related diseases, such as high blood pressure
and diabetes.
In light of this trend, our growth strategy focuses
on broadening sales coverage. At present, we supply
products to 260,000 large chainstore and drugstore
outlets around the world. Our aim is to increase this
number to 400,000 by the year ending March 2021.
Most of the increase will come from emerging markets.
In China, our products are currently sold in 20,000
stores, and we plan to elevate this to 30,000 stores by
next year. In India too, we will raise the number of
stores handling our products to 10,000 in the current
fiscal year by increasing distributors from a handful to
more than 30.
One initiative to widen coverage is to restrict the
number of categories controlled from Japan to four:
blood pressure monitors, blood glucose monitors, thermometers,
and nebulizers. Meanwhile, we are
implementing a policy that transforms area sales companies
into business companies responsible for
planning in their respective areas. This is because some
areas have major health needs for specific conditions.
One example is chronic obstructive pulmonary disease
(COPD), which is connected to asthma and high smoking
rates. We are considering accelerating the shift from
sales companies to business companies so that in areas
where this disease is prevalent, we can broaden coverage
by getting local companies to engage in planning
and be responsible for selling all of their stock.
Store in Bangalore, India
——— What product strategies have you devised
for emerging markets?
Miyata (HCB): We will seek to deliver products with
cost and quality that surpass local value standards.
Bringing Japanese standards to emerging markets
won’t work. We will target these markets by offering
inexpensive models with simple functions. To capture
the top market share in emerging economies, of
course, we must manufacture products at the lowest
cost in the world. For example, in China, not Japan,
we are developing a ventilator that meets local demand
through an alliance with a local manufacturer.
However, this does not apply to mainstay products.
For these, collaboration with the Omron Group’ s horizontal
(head office) divisions in conjunction with the
Global Process Innovation Headquarters will become
increasingly important.
Top Runner of Team Omron to Raise
the Profile of the Omron Brand
HCB
Current position: Executive Officer
CEO & President, Omron Healthcare Co., Ltd.
Date of Birth: July 24, 1960 (age 51)
Words to live by: Innovation as a way of life
KIICHIRO
MIYATA
——— What are HCB’s brand strategies?
Miyata (HCB): In the case of consumer products, the
most effective method is to secure shelf space in retail
outlets and capture a sizable market with a full product
lineup first, and then invest in a broad strategy. You
can’t afford to be too quick or too slow off the mark. In
India, we are approaching the stage in which we should
invest in a brand strategy. First we will enhance recognition
of Omron as a medical equipment and healthcare
product manufacturer, then enhance brand recognition
amongst medical practitioners. Then we will roll
out a mass-marketing brand strategy.
More than anything else, the healthcare business
has the important mission of leading Team Omron’s
campaign of raising the Omron brand profile among
consumers. Under “Value Generation 2020,” we will
strive to spread the Omron brand as widely as possible
on a global scale while collaborating closely with
the head office.