After getting out of the TV business in Australia Japanese Company Panasonic is now looking to sell their Panasonic business despite several retailers in Australia pushing for a return of the popular TV brand, the only problem is that no one wants to buy a TV brand.
Last night the business confirmed that they are looking to “sell or scale down” the Companies struggling TV business as it pursues a group restructuring to enable faster decision-making and focus on growth, President Yuki Kusumi said.
The move comes as Samsung and LG struggle to fend off a TV market share attack from Chinese brands TCL and Hisense.
“We are prepared to sell it, if necessary, but we have not yet decided on a plan,” Kusumi said of the TV business during an online press conference.
“Currently, we do not think there is any company that will buy the business,” he added. “We will consider various options.”
Executives claimed that they plan to focus on appliances with new categories set to be introduced by the end of 2025.
The Company is also setting up three operating businesses that will oversee the production of white goods appliances including refrigerators and washing machines. They also plan to expand their air conditioning and lighting and other electrical businesses.
The restructuring plan includes merging its black goods division overseeing entertainment appliances like TVs and stereos with white goods.
Dissolving Panasonic and merging the appliance divisions would increase the number of companies operating under the group umbrella to seven claims Nikki Asia.
Panasonics share of the global TV market has halved recently due to the rise of more affordable Chinese TVs.
In 2016, Panasonic stopped in-house production of liquid crystal display panels for TVs and switched to procuring them from South Korean and other suppliers.
This was despite the Company acquiring Pioneers TV business and the patents to Kuro which at the time was considered as the best TV engine in the world because it delivered high res imagers.
he Kuro’s plasma technology reduced light emissions from black areas of the screen to such a degree that at its maximum brightness, the contrast ratio was considered “almost infinite”.
Hard-core home theatre enthusiasts and home cinema aficionados claimed at the time including myself that the Kuro was the only HDTV to achieve the “true black”.
The future of the TV business is likely to depend on how investors and potential business partners view its brand power and sales network.
The company also set a new goal of raising adjusted operating profit more than 300 billion yen from the fiscal 2024 plan to 750 billion yen or more in fiscal 2028. Its goal for return on equity, which is projected to be around 7% in fiscal 2024, will climb to over 10% for fiscal 2028.
“We will complete the necessary reforms in fiscal 2025,” said Kusumi. He also indicated that Panasonic plans to solicit early retirement by fiscal 2025. It will also work to improve profitability in its key electric vehicle battery business.
The group announced that its consolidated sales for fiscal 2024 are expected to total 8.3 trillion yen, down 2% from the previous year. The figure is 300 billion yen lower than the previous forecast due to the sale of an in-vehicle equipment company.
The group’s operating profit and net profit forecasts for fiscal 2024 were left unchanged.
