We have focused on localization of products: Panasonic India's Daizo Ito

Four and a half years ago, Panasonic's acquisition of electrical major Anchor was the biggest deal ever by a Japanese company in India. That was soon followed by dozens of Japanese companies entering India through friendly M&As. Daizo Ito, president at Panasonic India, talks to Business Today about the India journey so far.

Panasonic made the largest acquisition in the Indo-Japanese corridor when it acquired Anchor a few years ago. How has the acquisition benefited the company?
We acquired Anchor Electricals to introduce LED lighting in the country.  Panasonic globally has plans to double its production capacity for LED light bulbs within two years to tap the growing market for energy-saving devices. Currently, Anchor contributes significantly towards our annual turnover and we are looking at a significant increase in the market share in this segment in coming years. Going forward, Anchor will play a significant role for Panasonic in offering solutions in the Indian market. We are already increasing our engagement with the end customer and the influencers and will strengthen this further year after year.

While we have an extensive distribution covering the length and breadth of India, we are increasing the depth of our control to capture emerging business opportunity from the smaller districts and the new developing geographies. We are very confident that by developing on-going synergies between the Anchor and the Panasonic brand, we will continue to offer our consumers higher value for money; easy availability and supportive post-sales service; and contemporary and technically superior electrical products aimed at customer comfort and energy savings.

Over the last several years, Panasonic India has faced all kinds of competition in India from domestic brands as well as Korean to Chinese brands, yet the company still managed to occupy a market share in many product niches. What have you learned about the Indian marketplace?
The consumer electronics market in India is fairly competitive and price sensitive, at the same time consumers are also very conscious about the value for money aspect and do not necessarily go for the lowest priced products. We have studied the Indian consumers' mind-set and the market well to learn that products that work well in international markets such as the United States and Europe need not work for Indian consumers. Further, we focus on communicating the research and innovation advantage and energy saving features which are integral to the products that not only reduce power bills but also preserve our habitat. Taking learning from all this, we have focused on localization of products and technologies to suit the domestic requirements. Localization being the key to our success for penetration in the Indian market place, we aim to continue bringing more India-specific innovations in various product categories.

With the US and several European economics wobbling, China's export led growth shaky and no signs of improvement in the Japanese economy, do you think Panasonic India can be a big contributor to global top line and bottom line?
Yes, we do believe that Panasonic India will contribute to both global top-line and bottom-line. Undoubtedly, the BRIC countries are being viewed as potential growth markets by global giants and next level growth is expected to come from countries like India.   India has enjoyed 7 per cent plus growth rate for over a decade now and is the second fastest growing economy in the world, after China. Panasonic India contributes significantly to the global revenue of the company. Achieving over 200 per cent growth year on year in India, Panasonic has aggressive plans for strengthening its position on the global roadmap.

What will be your focus product segment in the next 5-10 years, or which are the promising product segments you see for the next decade?
Our primary focus category is flat panel televisions in which we have introduced Viera LCD/LED and 3D TVs keeping in mind the technology requirements of the consumers. Our R&D team continuously keeps introducing new innovations in products to strengthen the existing line up and cater to consumer demands. Air-conditioners are the second promising segment we are expecting huge growth in.  In the coming years, while Viera TVs and ACs remain the main product categories which will drive the business growth and the company foresees foray in healthcare segment. The company will continue to focus on product differentiation for consumers, developing India-specific products which cater to domestic needs.