Aiwa gets wired for sound

After a decade-long hiatus, the brand looks to resurrect its sounds systems in India and extend its product range to household electronics

In the early 2000s, as the car market began to take off, Aiwa of Japan was among the best-known brands for car audio systems. Together with TVS, it was a reasonably well recognised brand in India even as the Sonys and Panasonics were making strong inroads. Around 2010, it went off the radar. Now, the consumer electronics company, which made the first-ever tape recorder, is looking to resurrect its legacy charm for audiophiles in India.

Aiwa’s retreat from the Indian market had partly to do with serial ownership changes. Though it made a name for itself with tape recorders and Walkmans in the eighties and early nineties, the modern Aiwa has been through several twists and turns. In 1961, it was listed on the Tokyo Stock Exchange. Soon after, it went up for auction, as part of the bankruptcy proceedings of its parent company Aiwa Corporation, with bids that led it to be acquired by a consortium of investors. In 2002, it was then taken over by Sony and delisted. While it was part of Sony, Aiwa officials say, the brand saw reduced visibility as part of a larger firm and went silent for multiple reasons. Now, Towada Audio owns rights in Japan and elsewhere and has been manufacturing Aiwa-branded products since 2017. In India, Ajay Mehta, Aiwa India’s managing director, is looking to build on its legacy reputation of premium sound at affordable prices while expanding its offerings across product categories that include headphones, true wireless earphones, sound bars, portable speakers and more.

As ambitious as this may sound in a crowded and competitive market, Mehta said he wants "to build a billion dollar consumer electronics business in the next five or six years." His optimism is based on the fact that Aiwa is now independent as a company and can make clear-cut calls without being dragged down by legacy baggage. Also, the Indian market is in digital revolution mode, and though conventional products remain, it’s the next-gen products that are driving revenue mainstream sales. The digital audio market has no exact audit but its estimates to be well over $1 billion and growing fast.

Aiwa’s India headquarters are in Delhi and the firm is in the process of rolling out six major branch offices in key cities to look after core regions. Products are made in Vietnam, Taiwan and China. Design is mostly done in Japan. The wearable electronics business will target between 1.5 and 2 million units this year. Some products such as TVS, fridges and washing machines will be made in India starting next fiscal.

Pricewise Aiwa sells true wireless sound systems (in-ear pods) at a starting price of ~1,999 and neckband audio systems for ~2,500. Higher-end stainless steel desktop speakers can range from ~13,000 to ~49,000. Products started getting sold in May 2021. Traction has been good despite the local lockdowns of the second wave, but luxury acoustics have given the brand strong visibility. “We expect monthly sales of more than 10,000 units in the luxury segment,” Mehta said.

Strategically, the long-term plan for Aiwa is to set up verticals that include TVS, washing machines and fridges. Mehta said while he cannot disclose exactly which product categories will be launched, they will not be restricted to headphones or earphones alone. He is looking to set up an exclusive boutique a year down the road and is currently selling products online on Amazon, and through 300 stores across Reliance and Croma. The company’s distributors are Ingram Micro, the same outfit that works with Apple. While Aiwa may enjoy a reputation for quality and reliable sound, there are many more players in the Indian market now, focusing on a variety of price and consumer segments when it comes to speakers and wearables. So younger buyers may not be as easy to woo, said Devangshu Datta, CEO of Third Eyesight, a management consulting firm that focuses on consumer goods.

Mehta isn’t daunted, however. “Aiwa is already investing in manpower for sales and service and will infuse around ~75 crore in the next three years to ramp up the company. We are building the team as we speak and are aware that the upwardly mobile consumer groups will pay for high quality sound which won’t burn a hole in their pocket.”

Datta said one challenge that Aiwa will face is that it has been missing from the market a long while and the landscape today is entirely unlike what it was even a decade ago. “In terms of brand and production, even a mildly aware customer today does look at country of origin and then the country of brand and there is a cache of Japanese production.”

That can be double-edged in terms of brand and customer appeal. “Sharp, for example, the brand renowned for its TVS, is owned by Foxconn but still has Japanese connotations and such a legacy does carry forward unless a company just messes it up,” Datta said, adding, “The other aspect is brand and there are some strong incumbents now at every level. So Aiwa will have to do a lot of work to create the market so it won’t be as simple as reviving the brand.”

In fact, history shows legacy revivals for audio equipment are no walk in the park. Akai, for example, tried to make a comeback in 2009 but failed for lack of loyal customers. Pioneer pulled out of the audio businesses in 2015, selling its assets to Onkyo, another Japanese maker of audio gear, and a private equity fund. Its plans to move into the automotive equipment market failed to adapt to the trend toward connectivity and the need to market to manufacturers versus consumers. Akai and Nakamichi fell into the hands of various investment funds and gradually faded as well.

Even so, Japanese sound has always had pride of place in the pecking order for audiophiles, and if Mehta can walk the talk with the promise of premium sound that's affordable, crack a deal or two with auto makers and set up a visible presence, Aiwa may well make itself heard.

While Aiwa may enjoy a reputation for quality and reliable sound, there are many more players in the Indian market now, focusing on a variety of price and consumer segments when it comes to speakers and wearables