Panasonic PHL unit sees strong sales momentum
THE Philippines has maintained its lead in Asian sales growth for Japanese home appliances maker Panasonic Corp., company officials said on Wednesday as the local unit marked 50 years of doing business in the country.
Shinichi Hayashi, president of Panasonic Manufacturing Philippines Corp. (PMPC), told reporters that the local business kept its growth dominance over Vietnam and Indonesia in 2016. The three countries have become the main drivers of global business growth.
“The Philippines grew much higher than the other Asian countries,” he said.
Mr. Hayashi said two factors propelled local sales growth: lower penetration rate for home appliances and the rising earnings of consumers, especially in the greater Manila area and Luzon, allowing stronger buying power.
PMPC has yet to report its official sales number for business year 2016, which ends next month, but Mr. Hayashi said the company is expected to post sales of P10 billion. In the 2015 fiscal year, sales jumped 25% to P6.7 billion from the previous year.
He said growth in 2016 should be “more than 30%,” marking two consecutive years of strong sales in the country.
For 2017, Mr. Hayashi said sales are expected to grow by at least 20%.
Masaru Toyota, vice-president for the sales division, said the Philippines had taken the lead in sales growth in 2014. In previous years, the company saw stable growth rates of around 5%.
Panasonic has a wide base of sales, distribution and service centers in big municipalities, cities and provinces in the country.
Mr. Toyota sees more potential for bigger growth rates in the Philippines given its population of more than 100 million, although consumers’ income remains comparatively lower than those of other countries.
“Unfortunately, volume sales is still very small compared with the others,” he said.
In terms of volume, the country came out third among the three countries, with sales that is less than half those of leader Vietnam, followed by Indonesia.
“In 2020, we [will] try to increase three times bigger than 2015... If we can do so, maybe our sales volume [will become] around P23-P24 billion... But it is still not number one,” Mr. Hayashi said.
To become Asia’s top seller, he noted the country should post revenues of “maybe P30 billion.”
Yuji Majima, managing director of Panasonic Appliances Asia Pacific, in a speech delivered during the event, said: “[We expect our] Philippine business to grow at a much faster pace than any other Asian countries.”
Founded on Sept. 14, 1967, PMPC manufactures and distributes electronic and mechanical appliances and components. It is known in the Philippines for its “Panasonic” brand refrigerators, air-conditioners, washing machines and electric fans.
PMPC has factories in Taytay, Rizal and in Sta. Rosa, Laguna. Its parent firm Panasonic Corp. is set to mark its 100th year in 2018.
Mr. Majima said the company hopes to strengthen its merchandising and marketing strategies in Asia by enhancing its premium products and strengthening its alliance with partners and dealers. Panasonic products boast of features that are certified “Japan quality,” which makes it durable and its quality world class, he said.