Following Panasonic’s third quarter results announced this week, the head of the company’s Middle East operations has spoken out about the local effects of these results and how the company intends to address the issues they have raised.
Commenting on the announcement of the company’s global results today, Seiji Koyanagi, Panasonic Marketing Middle East (PMM) Managing Director, says: “Although the results are not what we have become known for, we still view them as encouraging”.
Overall, Panasonic’s business in the Middle East has been favourable and it will continue on its growth strategy from a financially sound platform.
“The past quarter’s financials mirror the overall trend for most multinationals – not only in the electronics industry. The company as a whole had anticipated the impact of the downturn in global markets, and we had already begun positioning ourselves early on by implementing corrective measures via bold structural reforms and strengthening the company's management structure.”
“The consolidated net loss should be viewed not only against the backdrop of the global financial crisis, but also against an all-time high yen and continued restructuring initiatives within the company.”
Importantly, Koyanagi believes, one has to take a long-term view on the business, without dwelling on current negatives.
Koyanagi says that while Panasonic in the Middle East is not immune from world events, markets in this region had contributed positively to meeting sales targets. He explains that the strong support for the Panasonic brand by consumers in the region contributed greatly towards PMM’s bottom-line, which was ultimately consolidated in the company’s overall results.
PMM is under no illusion that 2009 will see further “challenging economic times,” but Panasonic’s Middle East boss believes that the markets in which his team operates are more stable than other international markets. Therefore, PMM is well-placed to take advantage of potential growth opportunities.
“We remain active and upbeat about future sales and profits. The current climate has not dampened our spirits – if anything, it is motivating us to increase our service focus for our markets in the Middle East. We are more committed than ever to be the number one customer preferred brand in the region by 2010,” Koyanagi adds.
Historically PMM enjoys strong loyal customer support which has continuously ensured double digit growth in the Middle East. Panasonic believes that there is much scope for growth in the Middle East markets, in spite of the global economic slowdown.
2009 Projections
The company will continue focusing efforts on its customer-centric approach to drive value forward.
Flat-panel TVs:
The number one plasma manufacturer in the world and a leading player in the LCD TV market, Panasonic has established itself as a leader in sales of flat panel TVs in the Middle East market, and intends bolstering its stronghold in this region. It recently announced an impressive global flat-panel TV sales target of 15.5-million units for the 2009 fiscal year, an increase of 50% from the past year.
Panasonic will focus on improving the basic performance of flat-panel televisions such as energy-saving and faster response time for moving pictures using the Neo PDPs and IPS Alpha LCD panels.
Market penetration of flat-panel TVs in this region is relatively low compared to, for example, the European markets. The majority of consumers in the Middle East still own CRT TVs, which by implication present growth opportunities as these consumers begin to upgrade to flat-panels.
VIERA TV technologies bring higher levels of quality, versatility and enjoyment to home entertainment in the strongest flat-panel display line-up ever. Consumers will find attractive enhancements in each plasma and LCD TV offered by Panasonic this year. In terms of both features and performance, this impressive new line-up will reflect Panasonic's quest to continually improve viewing quality, networking and environmentally-conscious manufacturing.
Environmental Consciousness:
Panasonic’s dedicated environmental consciousness, providing state-of-the-art technology that reduces carbon dioxide emissions, further places it at the forefront as a market leader. Panasonic’s Viera TVs boast universal designs that are unique to this manufacturer and is the epitome of energy-saving and eco-friendly products. The company’s plasma products, for example, are the only plasma products in the world that are truly lead-free.
The company has had a strong, successful drive in reducing CO2 emissions. With its Eco Ideas for everybody, everywhere, the company has encouraged the spread of environmental activities throughout the world.
