Panasonic woos the Indian market

Daizo Ito, Panasonic India's Chief Executive is not unduly perturbed by the blistering 44 degree Delhi heat. As we enter the business centre at a star hotel, he questions one on the brand of air-conditioner being used at home.

As one involuntarily rattles off a Korean brand name, he earnestly urges one to try out the new model from the Panasonic stable that has been developed completely with Indian consumer insights.

Since April 2010, when Ito took charge of the Indian operations of Panasonic, his prime concern has been to convert the Japanese brand into a household name.

In the Rs 26,000-crore durables market monopolised by the Korean behemoths, the Japanese company wants to enhance competition and reclaim Panasonic's brand equity.

“We are the No.1 or 2 brand in most Asian countries,” he avers, “but in India our brand awareness compared to our rivals even till about four years ago was rock-bottom. But now India is a high ground of opportunities.”

The parent company, known for its technology, has, instead, been focusing on China as its growth driver. The result has been stark. China contributes nearly 8 per cent to its global turnover, while India contributes only 3-4 per cent.

But Ito says this will change in the coming years. “We are committed to our growth in India. The vision for Panasonic is to grow the business here and by 2018, the 100{+t}{+h} year of our founding, we hope this will go up to 10 per cent. We are building a rational brand and investing in research and technology and even customising for the Indian market,” he says.

On the turnover front, he says, “We expect Panasonic India's turnover to be Rs 5,500 crore in 2010-11 and we are on track to reach the Rs 9,000-crore mark by 2012. This next phase of growth will be a time of learning and understanding consumer behaviour,” he added.

Take a look at the new cube split air-conditioner. Ito says the product was developed completely with Indian consumer insights.

“Our R&D team from Malaysia had visited consumer homes and came to the conclusion that window ACs are noisy; besides, such ACs block the light coming in through the window. We, therefore, customised a product to marry need with desire,” Ito says. Indian consumers are still price- and value-conscious, but want technologically superior products.

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