Panasonic names Suga Indonesia chief as it seeks to tap middle class consumption | Executive data
(The Insider Stories) –PT Panasonic Gobel Indonesia, the joint-venture local sales arm of Panasonic Corp. (PC), has appointed Hiroyoshi Suga president director to replace Ichiro Suganuma, with the company seeking to tap Indonesia’s fast-growing middle- and upper-income consumer segments to boost sales.
Panasonic Gobel aims to place Indonesia in the top 10 global markets for Panasonic products this year and and to topple Sharp Corp. (SHCY) as the market leader by sales in Indonesia’s electronics industry, and increase sales beyond those in Malaysia, the company’s biggest Southeast Asian market, media report. He plans for Indonesia to be in Panasonic’s top five in 2014 alongside the U.S., China, Russia and Europe, Businesslounge.com reports.
“We will increase our middle [income] market with products like airconditioners, refrigerators and TVs. We see Indonesia as an important market for Panasonic so we hope that this business strategy that we are employing can increase Panasonic sales by 20% this year,” compared with 15% growth forecast for the electronics industry, Suga is quoted as saying by Bisnis.com. Indonesia has more than 70 million middle- and upper-income consumers, defined as households with spending of more than $200 a month excluding accomodation, and numbers could double in size by 2020 as stability and relatively strong economic fundamentals drive incomes higher, according to analysts.
Suga has worked for Panasonic for over 29 years, holding positions in the U.S., Japan, China and Singapore, and was appointed Managing Director for Panasonic Consumer Marketing for Asia Pacific in 2012, according to media reports.
Suganuma first came to Indonesia in 1984 and has been with Panasonic since 1985, serving in Indonesia, Malaysia and Japan, according to Wharton Global Alumni Forum. He will continue to work at the parent company, heading Panasonic Manufacturing Indonesia, which produces electronics locally, The Jakarta Globe reports.
Bisnis quotes Suga as saying that “the ‘three pillar’ strategy will continue to be the backbone and we will add two new pillars, televisions and small appliances,” referring to the company’s strategy of driving revenue via sales of refrigerators, washing machines and air conditioners.
Electronics portal T3.co.id reports that Panasonic is aiming to tap middle-income TV buyers in Indonesia this year after focusing on upper-income TV consumers for the past two years, launching smaller 22- and 29-inch variants of its Smart Viera TV, which comes in sizes up to 65 inches and features customizable home screens, facial recognition and voice interaction along with internet capability and features that allow it to work with smartphones. Without citing a source for the information, it reports that Panasonic’s air conditioner sales rose 120% last year, driven by products like its ECONAVI line which uses spatial sensing technology to direct air flow towards people in a room, as well as sunlight detection to reduce power use. It adds the company saw a 140% increase in the sale of Alowa+ refrigerators, which offer low wattage and power-saving features such as LED internal lights.
Panasonic has a history in Indonesia that stretches back almost to the time of the country’s independence. Originally owned by Thayeb Mohammad Gobel, the company produced its first Tjawang-branded radio in 1954 and its first television in 1962, changing its name to National in 1970 and to Panasonic in 2004. Rahmat Gobel serves as President Commissioner of the company. Aside from consumer goods it also offers business including communications and audio-visual products.
