Casio eyes luxury watch buyers with Nairobi dealers plan

Japanese multinational Casio is seeking entry into the Kenyan market through distributorship deals that will give the electronics firm more direct access to buyers of its mid to high-end watches.

The Japanese conglomerate says it is seeking local distributors to push sales of its range of watches that include the G-Shock and Edifice series of sports, outdoor and luxury timepieces which cost up to $500 (Sh43,000).

The Tokyo Stock Exchange-listed company says it is seeking closer control of the distribution of its products in Kenya, which are currently imported by independent dealers from South Africa and the Middle East.

“We would like to distribute our products directly to Kenya after contracting with local distributors,” said Casio in an interview. “We’ll mainly focus on two brands in Kenya and Africa; G-Shock, shock-resistant watch, and Edifice, motorsports-inspired metal watch.”

Casio is well known for its wide range of electronic products including pianos, calculators, cash registers, printers and cameras; but the multinational is specifically looking for distributors of its watches targeting Kenya’s expanding middle class whose disposable income has risen steadily over the past decade.

The company says the move to directly avail its wrist watches in Kenya is part of a strategy to grow revenue from growth markets such as Africa which have not been fully exploited.

Kenya becomes the fifth market for Casio to enter through merchants having already established franchises in South Africa, Egypt, Nigeria, and Cote d’Ivoire.

“Sales in Africa are still very small for entire Casio sales, which means, there are many markets we haven’t approached. So we consider Africa as a market that has great potential to grow much more.”

Casio, established in 1957, is ranked among the world’s top 10 watch manufacturers.

Its net sales were ¥297.7 billion (Sh247.1 billion) in the year ended March 2013 which earned it a net income of ¥11.8 billion (Sh9.7 billion).

The Japanese group joins a list of foreign firms entering the Kenyan market to exploit the growing appetite for the finer things in life such as high-end watches, clothes, shoes, food and drinks.

READ: Luxury brands flock to Kenya as middle class tastes grow

Bacardi, maker of spirits such as Bacardi Martini, Dewar’s, Mojito cocktails, Grey Goose vodka and Drambuie Scotch whisky in October last year opened its regional hub in Nairobi seeking a to capture a larger share of the East African drinks market.

Spanish clothing retailer Zara entered the Kenyan market last year through a distribution agreement with local retailer Deacons, which has already launched other classy fashion brands including Massimo Dutti and Bossini.

Casio’s first G-Shock shock-resistant watch was released in 1983. Its other wrist watch brands are Baby-G, Oceanus, Protrek, and Sheen.

Casio wants to ensure availability of stock for sales, parts, offer repair services and warranty for local consumers.

“Applicants must specialise in selling timepieces. The capacity to cover the entire Kenya market is also desirable. Preference will be given to applicants with their own website.” Casio said in a notice.

The Tokyo-based electronics maker will also use the local watch distributors to sell its other products including calculators, cameras, musical instruments and projectors.“In future, we have a plan to let our sales subsidiary in Dubai act as a hub for African market.”

“Casio will aim to increase overseas sales, including in newly emerging nations, by strengthening its overseas sales structures,” said Kazuo Kashio, president and CEO of Casio in the 2013 annual report.