MANILA, Philippines–Panasonic Corp. of Japan is counting on economically promising Asian markets such as the Philippines to help it meet its target of hitting 10 trillion yen in sales by fiscal year 2018, company officials told the Inquirer on the sidelines of a ceremony to donate solar lamps for off-grid areas in the country.
Asked how a small market such as the Philippines fits into the overall growth strategy, Panasonic officials said Manila’s increasingly affluent youth population had been drawing the attention of consumer products manufacturers and those offering business-to-business services.
Asia, including the Philippines, could make up a combined 25 percent of Panasonic’s sales by 2018, said Masaru Toyota, vice president for sales of Panasonic Manufacturing Philippines Corp.
At present, Asia accounts for about 20 percent of Panasonic’s global sales.
“The Philippines is a young market and the economy is growing. My intention is to have a wider product line. Our solar lamps, beauty products (from hair dryers to straighteners), and automotive-related products are not as widely distributed here as appliances but they are growing,” Toyota said.
Appliances presently make up 85 percent of the company’s sales in the Philippines, he said.
Undergoing restructuring, Panasonic is exploring new growth areas while also strengthening its brand, partly through corporate social responsibility or CSR projects, said Akira Hoshi, general manager of Panasonic’s corporate citizenship office.
“Being a corporation operating globally, we feel responsible in dealing with issues like environment and poverty by using our competencies, like battery-supported solar power technology,” Hoshi said.
“The Philippines is strategically important as a market and it so happens that this country also fits our focus on corporate citizenship activities.”
According to the World Bank, 16.7 percent of the Philippines’ 100 million population lacks access to electricity supply, hindering their learning and work potential.
Panasonic is still best known among Philippine consumers for home appliances but it is diversifying its product portfolio, reflecting its global strategy for a more stable income base.
The company is banking on housing- and automotive-related operations for future growth. Its automotive arm, which supplies lithium-ion batteries to US-based electric car maker Tesla Motors Inc., is a key provider in the solar lamp donation project. The rechargeable solar lamps given to beneficiaries in off-grid areas rely on battery-backed solar power technology.
Panasonic will turn 100 years old in 2018. By that time, not only does it aim to boost sales from 7.7 trillion yen in 2014 (fiscal year ended March 31, 2014), it also wants to strengthen its CSR track by distributing a total of 100,000 solar lamps to developing countries (from fiscal year 2012).
It may be recalled that in March 2014, Panasonic Corp. president Kazuhiro Tsuga said in Tokyo that the company was set for a turnaround and was targeting sales of 10 trillion yen by fiscal 2018. Panasonic posted a better-than-expected attributable net income of 120.4 billion yen (forecast was 100 billion yen) in 2014. That was a big improvement from two straight years of losses of more than 750 billion yen and could be a signal of better years to come.