Panasonic Looks to China for Design Inspiration to Boost Appliance Unit
Panasonic looks to China for design inspiration to boost appliance unit. Emulating China's minimalist approach to product design. Increasing collaboration between design teams in China, Japan, and Vietnam.
In an effort to stay ahead in the consumer electronics market, Panasonic plans to adopt China's minimalist approach to product design.
Masahiro Shinada, President and CEO of Panasonic Corp., stated that the company has learned from China to design products with specific capabilities and strip down unnecessary features. By emulating China's method of product planning, Panasonic aims to address the challenges it is currently facing in consumer electronics markets across Asia.
Panasonic's Chinese division has already achieved success in reducing manufacturing costs by adopting the Chinese approach. The company plans to increase the number of products designed in China and shipped to Southeast Asia. Additionally, Panasonic aims to enhance collaboration between its design teams in China, Japan, and Vietnam, which currently focus on their respective markets. This collaboration will result in more "shared models" being sold in different Asian markets.
Shinada revealed that by September 2026, around half of the products sold in Vietnam or Malaysia are expected to be shared models, compared to less than 10% currently. This shift in strategy reflects a departure from Panasonic's traditional approach of manufacturing and selling products locally. Instead, the company is following the lead of Chinese and South Korean manufacturers who prioritise efficiency by producing goods in selected sites and shipping them globally.
Panasonic's refrigerators and microwaves have lost their leading position in the Japanese market due to increased sales of Chinese-made models from competitors like Toshiba, which sold its consumer electronics brand to Midea Group in 2016.
The company is also likely to miss its original target of a 71% increase in EBITDA (earnings before interest, taxes, depreciation, and amortisation) by March 2025. The revised forecast now predicts a 24% increase for the period.
Shigeru Dohno, President of Panasonic's Living Appliances and Solutions Company, highlighted the difference in approach between Japanese and Chinese manufacturers. Japanese companies tend to focus on achieving perfection at each step of the product planning process, while Chinese companies are more willing to take risks and launch products even if they are not perfect. This difference in approach gives Chinese companies a competitive edge.
Shinada added that Japanese designers often try to include as many features as possible to satisfy customers, which may be the reason why Panasonic's products are lagging behind those of Chinese companies like Haier or Midea. By trying to please everyone, Japanese-designed products lack a clear focus and definition.
Despite this, Panasonic has experienced success with its minimalist designs. The Solota personal dishwasher, targeted at young individuals living alone, exceeded its initial sales target by 40% in 2023. The compact machine with limited functions can handle up to six pieces of tableware at a time.
Panasonic looks to China for design inspiration to boost appliance unit
Emulating China's minimalist approach to product design
Increasing collaboration between design teams in China, Japan, and Vietnam
Source: NIKKEI ASIA