Panasonic banks on white goods to boost Mena sales

Friday, Apr 13, 2012

Gulf News

Abu Dhabi Panasonic is pinning its hopes on home appliances, or so-called white goods, to boost its market share in the Middle East and North Africa (Mena) to six per cent this year.

Struggling with deep losses from its flagship television-set business, Econavi home appliances represent one of Panasonic’s few steadily profitable operations, and the company is now trying to make it more competitive, a senior executive told Gulf News.

“We are feeling the pressure,” said Kamran Birjees Khan, senior director, Panasonic Marketing Middle East and Africa, and deputy managing director of Panasonic Gulf.

Panasonic’s renewed focus on white goods is an indication of the tough situation the Japanese company faces.

The company enjoys a market share of around 40 per cent in home appliances in the region. However, Khan said that a firmer yen is hurting not only them but other Japanese electronics companies too at a time when the Korean currency is weakening.

Panasonic Marketing Middle East and Africa used its annual media convention held on Wednesday in Abu Dhabi to showcase a complete new range of eco-friendly products to be launched in the region this year.

Best known among consumers for its flat-panel TV sets, the Japanese electronics manufacturer is now searching for new sources of growth.

Confident

“As the company expands its market reach to include the African continent and Indian Ocean countries, we are confident that these new products will improve our brand image,” Khan commented.

Seeking to cash in on growing demand for green technology, the company bought Sanyo Electric Company in 2009 to focus on rechargeable batteries and solar panels, but those businesses are also facing fierce competition from South Korean and Chinese rivals.

“The white-goods business is extremely important for Panasonic’s future,” Khan said. “It’s the only business which is showing steady growth and profits.”

He said the market for white goods is less likely to be reduced to a simple price-cut battle like the one plaguing TV sets, because such products combine both digital and analogue technologies and the entry barrier isn’t as low as it is for TV sets.

The market for white goods is competitive, with strong global players such as Whirlpool, Electrolux, Samsung, LG and Haier Electronics.

Unlike the market for TV sets, though, local needs for specific features in home appliances are often different from country to country, he said.

Challenges

To meet the demand of the region’s climatic challenges, Panasonic launched a specifically designed tropical inverter air conditioner for the Middle East.

With temperatures in the region capable of reaching more than 50 degrees in summer, he said the new air-conditioners were installed with the smart inverter compressor capable of saving 30 per cent more energy compared to the conventional one but also can cool 1.5 times faster than the conventional one.

The new technology has made it possible for an 18,000 British thermal units (BTU) air conditioner to reach up to 22,000 BTU, while a 24,000 BTU model can perform up to 27,000 BTU, resulting in faster cooling, he said.

“We are winning increased market share and seeing bright future for Panasonic after the twin disasters,” he said.

By Naushad K. Cherrayil Staff Reporter