When it comes to Matsushita Electric, this birth has been a brand for 100 years, and the Chinese are not strangers. Centennial Panasonic has been working in the Chinese market for 40 years. In the field of home appliances, especially color TV, it has been very popular among Chinese consumers. However, with the iteration of technology and the rise of Chinese brands, Matsushita's home appliance business has not been as brilliant as it was in the past, and it is basically marginalized in the Chinese market.
Panasonic still has strong strength in the CRT era of color TV. However, with the evolution of CRT to the tablet era, Panasonic mistakenly bet on the plasma, and it turns out that LCD has become the absolute mainstream of the industry and the market.
In 2011 and 2012, due to the failure of betting on plasma TVs, Panasonic suffered a huge loss of more than 700 billion yen for two consecutive years. In order to reverse this situation, Matsushita began a drastic reform in 2013, including the massive layoffs, the closure of plasma factories, and the divestiture and restructuring of loss-making businesses such as plasma and semiconductors.
At the same time, Panasonic has accelerated its transformation into the B2B field of vehicles, homes, and components, and established four business divisions: AVC, Environment, Residential, and Automotive. Since then, Panasonic has in fact become a 2B company, and 2C's home appliance business has a small proportion.
This is basically the case in the Chinese market. In 2017, information released by Panasonic China showed that the home appliance business accounted for only about 20%, and it was mainly white.
Indeed, in terms of color TV, Panasonic’s share of the Chinese market is almost negligible. It is understood that Zhongyikang's April color TV retail monitoring data shows that Panasonic's color TV retail sales in April was only 1,741 units, accounting for only 0.2% of the market; retail sales of 9.15 million yuan, accounting for only 0.24%. The retail volume ranks second to last among the 20 statistical brands.
In the Chinese market, Panasonic TV is not only difficult to maintain sales, but also has a quality problem. At the end of March, Matsushita Electric (China) Co., Ltd. re-issued the product recall plan, indicating that it will recall two models of about 15,000 TV sets in China.
Quality issues don't stop at TV. In the past four months, Panasonic has announced four recall plans, recalling products ranging from notebooks, cooking machines, and television sets to millions of units.
The white-light business is relatively optimistic, but in reality there is not much competitiveness. The market share of Panasonic air conditioners, refrigerators, and washing machine products is basically five, and in these mature home appliances market, brand concentration is getting higher and higher, and the long tail brand like Panasonic has basically no chance to turn over.
For example, in the air-conditioning market, only the Gree, Midea, and Haier brands have a market share of more than 70%. If you add brands such as Oaks, Chigo, and Hisense Kelon, the remaining share is very small.
Matsushita said that Matsushita Electric Appliances has set a target of 20 billion yuan in sales in the Chinese market by 2020, and will achieve a double growth in three years. In other words, the current size of Panasonic's home appliances in the Chinese market is about 10 billion yuan.
Compared with the general household appliances companies such as Haier and Haier, the scale of such revenues is also quite different from that of kitchen appliances with a relatively single business such as Fangtai.
Moreover, from the perspective of product categories, Panasonic's layout of China's home appliance business involves almost all categories, including TVs, refrigerators, washing machines, air conditioners, kitchen appliances, and consumer appliances. White electricity, black electricity, kitchen appliances, small household appliances, etc., together with 10 billion yuan, the competitiveness of Panasonic home appliances is obviously insufficient.
Of course, even if the home appliance business is marginalized, Panasonic China may not be nervous. In accordance with Panasonic's plan, in addition to the home appliance business, Panasonic has also focused on three major business segments: residential, automotive, and system solutions. At a time when the profit of the home appliance business is getting thinner, the latter three businesses can provide greater profit support.
The tens of years before Panasonic have created a lot of brilliance, and it is indeed worthy of Chinese companies to study and learn, but there are no successful enterprises, only the enterprises of the times, the next hundred years, may not belong to Panasonic.
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