Saturday, March 22, 2014: Electronics maker Panasonic Corporation has confirmed that the company will make India its regional hub, by 2015. This move counter targets the direct dominance of South Korean empires of LG and Samsung that prevail the Indian markets. Since India is still a developing market, Panasonic aims to create a fresh variety of products that suit the local industry, and further double its revenues to $3.6 billion.
According to an ET report, Kazuhiro Tsuga, global president at Panasonic said, “India has the most potential in terms of a region for creating a second Panasonic hub because of good population, R&D capability and to expand business to the neighbouring countries.”
A top official from the company further expressed that India, as a regional hub will export products to various adjacent countries and may even house a manufacturing unit. The unit will depend on the needs of local and nearby international markets. Tsuga added, “We want to understand the needs specific to these markets and develop products focusing on price and functionality in India,” He said that the company’s product development has major dependence on Japan, which this largest electronics maker of Japan purposes to change.
The Indian market will assist Panasonic in understanding the necessity, which including countries in SAARC, West Asia and Africa. The company keenly wants to develop products that are suitable for these markets., as it eyes major revenue shares.
The Indian market accounts for approximately 2 per cent of the total revenue of Panasonic, and the individually powers for 4 per cent of the company’s total international business. With this move, it will make India account for 4 per cent by the next year. While, the region is likely to be up by almost 7 to 8 per cent. The company is successful in air conditioners and flat panel TV sales in India.
