PANASONIC UNVEILS PRODUCT STRATEGY

       Electronics giant Panasonic has elaborated three key concepts that will guide its product development from now on.
       President Fumio Ohtsubo recently said his firm believed the three concepts - "Eco Living", "Connected Living" and "Living with Peace of Mind and Safety" - encapsulate the major consumer trends of the foreseeable future and that developing products in line with these trends would ensure steady growth and boost profitability in the long term.
       In particular, the "Eco" concept will be central to all of Panasonic's activities from now on, he said. As a result, developing ecofriendly electrical appliances is the firm's long-term priority.
       The focus on these three areas was motivated by the need to keep up with consumers' changing lifestyles and a desire to conduct Panasonic's business in a socially responsible way, Ohtsubo said.
       Between now and 2020, the percentage of households in Panasonic's major markets is expected to rise dramatically, the president said, with the epicentre of this growth being the BRIC markets (Brazil, Russia, India and China).
       Another important factor for Panasonic is the increasing proportion of older consumers in major markets, said Ohtsubo, citing a UN estimate that the proportion of Japanese people aged 65 and above would increase from 20 per cent in 2005 to 38 per cent in 2050. The proportion of Japan's population aged 15-64 will decline from 66 per cent to 51 per cent in the same period and that of people aged below 14 from 14 per cent to 11 per cent.
       The so-called greying of the population is also an issue in Germany, France, China and the US, Ohtsubo said.
       "We have to develop products from the customer's perspective. Consumers in each region have different needs and tastes. Our challenge is finding ways to make appliances they really want," he said.
       The "Eco Living" guidelines require that products save energy, create energy and store energy. At the CEATEC Japan 2009 exhibition held recently at Makuhari Messe in Chiba City, near Tokyo, Panasonic displayed its Intelligent Home Energy Management System, which showcased the firm's latest technologies developed to save, create and store energy in the home.
       Panasonic now sells 96 appliances deemed to be "energy-saving products", but all of its products are developed with an eye to reducing carbon dioxide (CO2) emissions, Ohtsubo said, adding that Panasonic had set its own emissions-reduction targets in each product category.
       A total of 296 Panasonic products were certified as Superior Green Products in fiscal 2008, ended this past March 31. By the end of that fiscal year, the firm had reduced its CO2 emissions 65 per cent from the 1990 level.
       Ohtsubo said another technology Panasonic was developing was the Advanced Video Motion Detector (AVMD), the world's most advanced tracking technology for use in security and behaviour-analysis systems. Among its functions, AVMD automatically detects intruders or the abandonment of packages or other possibly suspicious items in a particular location. The technology is aimed at enabling immediate responses to and prevention of accidents and crimes.
       Panasonic is also developing life-assisting robots designed to assist the elderly, both in hospitals and households. The robots are expected to enter the market soon, Ohtsubo said.
       Along with developing products, Panasonic is gradually updating its brand image to make it more fashionable, in order to better compete with other brands.Takumi Kajisha, managing executive officer in charge of corporate communications, said that since changing its name from Matsushita Electric Industrial last year, Panasonic had allocated a large budget to advertising its products worldwide, setting aside ?175 billion (Bt65.5 billion) for that purpose.
       The figure represents less than 10 per cent of Panasonic's total global sales. The advertising budget is expected to decline next year, Kajisha said.
       "Panasonic has been in the appliance market for a long time. We need to build recognition among consumers worldwide that we're still developing and manufacturing [cutting-edge] appliances," he said.
       Hitoshi Otsuki, senior managing director, said this had been a tough year for Panasonic, as the strong yen had affected the company's competitiveness. Nevertheless, the firm expects revenue worldwide to increase at a double-digit rate next fiscal year (starting April 2010).
       "Currently, the yen is 25 to 30 per cent stronger than it was a year ago. This has reduced our competitiveness relative to other brands, such as those from South Korea, by 25 to 30 per cent, as well. However, Panasonic isn't overly worried about this problem. The yen's value changes cyclically ... We expect the yen to begin weakening in the near future," he said.