Panasonic Gets Out Of Another Category
After getting out of the TV market earlier this year Japanese Company Panasonic has moved to quit the cash the cash register market.
According to Paul Read CEO Panasonic Australia “Cash registers make up a small part of our business”.
Lumped in with their Toughbook’s B2b business Panasonic has been selling cash registers and point-of-sale, or POS devices since 1970.
Used by supermarkets and the likes of McDonald’s Panasonic has struggled up against Japanese archrivals Toshiba, NEC and Fujitsu who now control up to 80% of the market.Founded in 1918, Panasonic has more than 30 divisions, including home appliances, automobile products, industrial machines and electronic parts, they also supply entertainment systems for Boeing and Airbus aircraft.
The Company that has a long history in Australia has been shifting away from selling devices and toward making money from services.
They recently hired Yoky Matsuoka, a former Google executive who worked on Google’s Nest smart-home unit.
Some are tipping that Panasonic could enter the Smart Home market next year in an effort to enhance Panasonic’s own offerings which includes appliance es in Australia.
Executives at the Japanese Company claim that Panasonic is now planning to shift upstream, offering solutions to optimise the entire supply chain.
Central to this effort will be its partnership with Arizona-based supply chain management software provider Blue Yonder.
In May, Panasonic announced a roughly $800 million investment to take a 20% stake in the company.
Blue Yonder aids clients in building lean, fast supply chains with help from cloud computing, artificial intelligence, and machine learning. “Panasonic can advance its digital shift by teaming with Blue Yonder,” said Hideaki Harada, a senior vice president at the group’s connected-solutions unit.
Especially enticing for Panasonic is Blue Yonder’s business model that continues to deliver high margins. The American company not only has a stable revenue stream of system usage fees, but also a merit-based incentive from clients pegged to how much they succeed in improving profits.
Blue Yonder’s EBITDA, or earnings before interest, taxes, depreciation, and amortization, to sales ratio was 24% in the most recent fiscal year.
Panasonic, which has gone through a particularly rough patch due to the new coronavirus, seeing group net profit drop roughly 20% in the fiscal year ended March 31, wants to emulate Blue Yonder’s success.