JAPAN'S Brother Industries Ltd expects sales in China to account for 10 percent of its total by 2012, said Masato Narita, chairman and chief executive officer of Brother (China) Ltd.
Narita said he is very optimistic about the market for the firm's printing and solutions (P&S) products including printer, facsimile machine and multifunction equipment that could print, fax and scan.
"The products fit the requirements of saving space and energy amid the growing number of small companies and SOHO (small offices and home offices)," said Narita.
"With increased economic development in inner cities, the market potential for the products will be huge," he added.
Since 1990, the company has set up six plants in China that produce sewing machines, printers and other office equipment. Total investment is around 950 million yuan (US$140 million).
Narita said its Chinese business has increased four times in 2006 from the 2003 level, and is projected to grow six times this year.
But sales in the world's fourth largest economy still account for less than 10 percent of its total, compared with 33.6 percent for the United States, 31 percent for Europe and 20.3 percent for Japan in 2006.
"We are still not satisfied with the current sales, and we will step up more efforts to lift the brand image in the new market and broaden the sales channel to boost sales,'' Narita said.
Brother, which started as a sewing machine maker, is focusing more on P&S equipment market as the clothing industry in China slows the demand for sewing machines. P&S generated about 70 percent of Brother's global revenue.
China is one of Brother's five major markets primed for global expansion. It set up its Chinese headquarters in Shanghai in 2005.