- The group aims to achieve net zero emissions by 2030 and all of its products will be produced from sustainable sources and energy concept factories.
- Despite some challenges in some developing African markets and Pakistan, the brand expects close to 20% growth in its key markets – UAE, Saudi Arabia and Oman.
Japanese electronics brand Panasonic is expecting a 10 per cent revenue growth from the Middle East and African markets in the next fiscal year, which starts from March 2023.
Speaking to TechChannel News in an interview, Hiroyuki Shibutani, Managing Director for Panasonic Marketing Middle East and Africa (PMMAF), said that the company is making a good recovery in sales after Covid and “our profits are quite stable”.
“We are expecting close to 20 per cent growth in our key markets such as UAE, Saudi Arabia and Oman despite some challenges in some developing African markets and Pakistan,” he said.
For the current fiscal year, which ends in March 2023, the Japanese giant is expecting a 10 per cent growth, led by the consumer sector and products such as air conditioners and small kitchen appliances.
Even though Panasonic launched new TV models, Shibutani said that they just started selling TVs in Saudi Arabia, the biggest market in the region, despite the lack of presence for many years.
“So, we expect some growth in TV sales this fiscal year. Despite making a profit in the last three years amid tough market and economic conditions, we were not able to grow substantially,” he said.
However, he said that they are seeing new growth opportunities in the regional e-commerce space and in new premium products that focus on people’s health, hygiene and well-being.
Last year, the brand launched more than 60 models and will be adding more to the portfolio this year.
New action slogan
In the e-commerce space, Panasonic currently focuses on three main markets – UAE, Saudi Arabia and Egypt – and contributes about 20 per cent to the group’s regional sales.
Shibutani said that the brand’s new action slogan – “Create Today. Enrich Tomorrow” – will provide innovative products and solutions to help people live their best lives and make life simpler, safer, healthier and more enjoyable.
“We will continue to work hard to contribute to a more sustainable future not only through green operations strategy but also through the development of more energy-saving products and supplying energy-saving solutions and green energy technologies by 2030,” he said.
By 2030, Panasonic Group aims to achieve net zero emissions and all of its products will be produced from sustainable sources and energy concept factories.
Reducing CO2 emissions
“We don’t have any factories in the Middle East and Africa but our value chain will be net zero by 2030,” he said.
The four major items which we recycle are TVs, washing machines, refrigerators and air conditioners in many regions. Depending on how fast the recycling regulation takes place in the region, we may set up a recycling plant in the Middle East soon.
“We do some recycling but our value chain does it on behalf of Panasonic. Recycling is one of our key factors to achieve net zero emission and make progress towards a greener planet for tomorrow,” he said.
Panasonic Group, by 2050, aims to contribute a total of more than 300 million tonnes in CO2 emissions, including 110 million tonnes from its value chain and avoided emissions of approx. 200 million tonnes.
Within this, Panasonic Corporation aims to reduce CO2 emissions by approximately 150 million tonnes by 2050, which is about half of the Group’s total target.
Despite being one of the oldest consumer technology brands globally, South Korean and Chinese brands are eating into Panasonic’s market share and profitability.
Losing in price competitiveness
Shibutani agreed that South Korean and Chinese companies, with a young mindset, have learnt a lot from Japanese companies in the existing business and “we are losing in price competitiveness”.
“We are shifting to a new premium range, which will be competitive to the Korean and Chinese brands and focusing on new business areas such as supply chain solutions and EV batteries, in which the competitors are not very competitive,” he said.
To strengthen its supply chain solution offerings, Panasonic acquired digital fulfilment platform provider Blue Yonder in 2021 and expects to invest up to about 600 billion yen in the three years through March 2025 in a new battery plant it started building in Kansas last year.
According to SNE Research, Panasonic is ranked the fourth largest battery maker with a 7.3 per cent market share.
Contemporary Amperex Technology is the leader with a 37 per cent share, followed by BYD with 13.6 per cent and LG with 13.6 per cent.