TOKYO : Fuji Xerox Co, a maker of printers and other office gear, deems Thailand a suitable springboard for expanding into Myanmar and other emerging Southeast Asian markets.
The 75:25 joint venture of Japan's Fujifilm Holdings and the Connecticut-based Xerox Corporation is waking up to the potential of high-quality multifunction printers (MFPs).
President Tadahito Yamamoto dubs Thailand the region's geographical centre for business, with potential as a hub serving the Asean Economic Community (AEC) when it begins in late 2015.
Fuji Xerox's consolidated revenue reached 1.02 trillion yen (324 billion baht) in its fiscal 2012, up by 2.8% year-on-year, for a net profit of 52.4 billion yen.
Asia-Pacific, particularly China, accounted for 43% of revenue last year and will reach half the total this year.
Copiers and printers accounted for 64% of overall sales last year, down from 72% in 2007. The service business rose to 27% from 20% in the same period.
"We expect our service-business ratio to reach 30% this year," said Mr Yamamoto.
Despite the slow global economy, Fuji Xerox has enjoyed double-digit revenue growth thanks to the group's strategy execution and the launch of innovative, high-function products.
Mr Yamamoto said Asia-Pacific is in a growth trend and driving the group's international push in terms of revenue and business expansion.
The company is preparing to open a new factory in Vietnam this month, mostly for digital colour multifunction devices and small LED printers. Annual capacity will be 2 million units.
Fuji Xerox makes 90% of its products at a Chinese factory and the rest in Japan.
Masashi Honda, the president for Asia-Pacific operations, said Fuji Xerox plans to keep its top spot in the Thai market this year with a 30% share, up from 28% last year, fuelled by strong sales of colour MFPs.
He said the company sees huge potential for MFPs in Thailand, especially once the AEC begins.
In the wider region, Fuji Xerox set up a sales office in Myanmar this year to capitalise on increasing trade volume between the two countries, said Mr Honda, a former president of Fuji Xerox Thailand.
Sales at the Thai unit grew by 17% last year.
"I believe Thailand will continuously play an important role in the Indochina region and expect double-digit growth again this year," Mr Honda said.
The company held a "Solutions and Services" fair in Tokyo last month, unveiling a series of full-colour digital multifunction devices.
These included what it billed as the world's first printers with facial-recognition technology, offering a personalised menu with a smartphone-like icon-based interface.