Panasonic makes a play for the kitchen appliance market in Southeast Asia

Over the next two years, Panasonic plans to expand its small appliance business in the region. It will also be rolling out a fresh brand concept for the brand, according to Kazuki Shirota, general manager, small appliances group. Products in the segment include microwaves, rice cookers, blenders, mixers, kettles and so on. As part of this, Pansonic is also readying plans to localise products in the region. “Our aim is to make cooking a lifestyle concept,” Shirota emphasised. Panasonic is currently conducting research to identify the gaps in the segment.

Experts feel the move will pay off for Panasonic, which is a strong player in the domestic market for small appliances. Moreover, consumers in Southeast Asia have still associate Japanese brands with high technology and reliability. However, brand experts warn that Panasonic will have to play at lower price points if its products are to gain mass appeal in the region.

At present, the small cooking appliances segment is growing at about five per cent according to Jamie Ko, Euromonitor’s head of consumer appliance research. Ko expects similar growth until 2017 with countries like Indonesia and India racing ahead of the pack, showing CAGRs of 14 per cent and 9 per cent respectively in the same period.

To get a sizeable share of the market in Asia, Pansonic will have to compete aggressively with the likes of Midea and Philips. Midea and Panasonic retain a strong footing in their home markets of China and Japan. However, local players lead the segment in Southeast Asia thanks to efficient supply chains, Ko said. For example, Hokinda Citra Lestari PT, a local company in Indonesia has the second largest share in the small cooking appliances segment in the country. In India, competition is evenly split between local, unorganised players and multinational companies.

For Panasonic, expanding its small appliances segment is key. Given the ongoing slump in Japan’s consumer electronics market, Panasonic is relying on its profitable consumer appliance business.

In line with this, last year the company set-up its regional marketing operations in Singapore, a hub for Asia-Pacific for marketing, sales and services. The regional headquarters will oversee operations in markets like Southeast Asia, India and Oceania. This was reportedly the first time the Japanese company shifted operations out of home turf. The move is aimed at sharpening its focus in the region and ultimately becoming the top consumer brand in Asia-Pacific.

In September, it launched a massive campaign for Panasonic Beauty in Thailand, Vietnam, Indonesia, Malaysia and Singapore. The campaign featured brand ambassadors from each market promoting Panasonic’s range of beauty precuts including hairdryers and so on. According to Panasonic, sales of beauty products in the region doubled during the period of the campaign.