Elecom Co., a Japanese manufacturer of peripheral products and accessories for personal computers and other digital equipment, has closed its Indian unit after less than four years in the country, with one executive saying it failed to gain traction in the price-sensitive market.
Takeshi Kawakami, in charge of overseas marketing and sales at the Osaka-based company said in a statement that Elecom India Pvt. Ltd. has stopped all operations since August 2016, and is in the process of liquidation now
Raghav Kumar Sharma, who resigned as director of Elecom India this year after the company decided to close, also confirmed the development, saying the firm was doing well despite facing many challenges.
Elecom India had targeted a $3 million turnover in the first year of operations and $30 million by 2017. It had also planned to set up 10 exclusive showrooms in India, according to local media reports in 2012.
An Indian executive, who until recently was working with Elecom India, said some of the challenges the company faced included lack of a proper business strategy for the Indian market and communication issues within the organization.
Elecom is currently operating in South Korea, China, Hong Kong and Singapore.
According to ABI Research, global revenues for mobile accessories alone were estimated at $81.5 billion in 2015 and are likely to grow to $101 billion in 2020 at a compound annual growth rate of 4.3 percent.
By Shruti
