Japan’s home appliance industry, which is suffering from serious injuries, is still experiencing “worst pains†in the winter. Panasonic recently announced that it will shrink its television business. Sony wants to merge its subsidiaries. Hitachi announced in August that it will outsource its television business.
While the Japanese home appliance companies collectively contracted their front lines, the transfer of manufacturing links was inevitable. When interviewed by the reporter of “Daily Economic Newsâ€, Hong Shibin, deputy director of the Marketing Committee of the China Household Electrical Appliances Association, said that in order to get rid of baggage and realize profitability, Japanese brands began to transfer production links to China or Southeast Asian countries, and then they gave up marketing. Only control product design research and development and brand maintenance.
Perhaps in view of the Japanese household electrical appliance companies, in order to reduce losses, such "abandoning" and "transfer" have to be, but Hong Shibin is also worried that the industrial transfer will make the original value chain community become a game body, many links can not control, invisible crisis Hidden.
Big companies make small
According to foreign media reports, Panasonic had to make adjustments to reverse the current embarrassment after the TV business lost for three consecutive years. This included stopping the production of the plasma TV display factory that was completed at the end of 2009 and selling an LCD TV display panel factory. In this adjustment, it is estimated that more than 1,000 employees will be cut.
Hong Shibin told reporters that in the face of numerous crises, companies can only choose to make big companies smaller, that is to cut down unprofitable projects and related investments and employees, in order to prevent losses from continuing to expand.
At the end of July, Matsushita Electric Co., Ltd. released its fiscal first-quarter financial report. The company suffered a loss of 30.4 billion yen (2.5 billion yuan), of which the television business has deteriorated significantly.
The Panasonic TV will go from here to now, the company is not conclusive. Panasonic Electric (China) Co., Ltd. Publicity Department Media Public Relations Indulge in replying to the "Daily Economic News" reporter's e-mail that the Panasonic flat-panel TV's growth strategy is under discussion, at this stage there is no content to be published. In addition, she also stated that there will be revisions on the second quarter accounts and annual forecasts, which will be released on October 31st.
Compared to Panasonic TV business's "three-year loss," Sony TV is "more competitive" and has been at a loss for seven consecutive years, and the analysis generally believes that the eighth consecutive year's losses have been difficult to avoid.
Earlier this month, Sony planned to merge its two wholly-owned holding subsidiaries into one company. After the merger of the two plants, Sony will have more than 100 employees laid off. To this end, the outside world have speculated that Sony will not give up TV business, but its high-level executives repeatedly made it clear that Sony will not withdraw from the TV industry.
Unlike the partial adjustments of Panasonic and Sony, Hitachi said in August that the group plans to stop production of televisions, and all of them commissioned overseas OEMs. Zhang Chenyin, manager of Hitachi (China) Co., Ltd.'s public relations department, said in an interview with the reporter of the "Daily Economic News" that at present, the market demand in Japan has shifted to low-yield small and medium sized products, combined with the declining sales prices in the global market. Thin TV business is facing a severe market environment. The company's business model will also be centered on thin TV services, and will be transformed into optical/storage equipment, LCD projectors and other image/component business.
In fact, not only the above companies, almost all Japanese home appliance companies feel the same crisis. The first fiscal quarter of this year's financial report showed that Sharp's net loss reached 49.3 billion yen (about 4.09 billion yuan), while Toshiba's net profit fell sharply.
According to the above-mentioned Hitachi sources, the company implemented measures such as reducing fixed fees, shrinking overseas operations, and conducting external procurement during the fiscal year 2008-2009, and thus the performance has improved significantly since the second half of 2009.
Industrial transfer to survive
According to Hong Shibin, in the future, there will be two directions for Japanese home appliance companies. One is to gradually abandon the home appliance business and shift to other areas that are more competitive. The second is to accelerate the pace of industrial transfer and increase the ratio of product manufacturing, that is, to abandon production and manufacturing. In the sales section, profits are made from product development and brand premiums.
At this stage, the latter path seems to be easier to go.
The latest example is that Panasonic plans to cut production at five domestic chip makers in Japan and outsource more capacity to Chinese companies such as TSMC. It is reported that Panasonic’s current outsourcing ratio is 10%, and its expected goal is to increase to 30%-40% within a few years.
Liu Buchen, a senior observer of home appliances, told the Daily Economic News reporter that the trend of Japanese household appliances as a whole has been very clear. In order to reduce costs and respond to fierce market competition and gain more profit, these foreign brands It had to hand over manufacturing to more OEMs for production.
Earlier than Panasonic, Sony in 2008 put a lot of LCD TV orders to Chinese Taiwanese companies for production, and later sold its LCD TV companies in Mexico and Slovakia.
“Initially, all research and development, production, sales, and brand cultivation were done. Later, it was found that production was no more than a Chinese company, and sales couldn’t be done by Chinese companies. In those cases where there was no advantage, they had to outsource.†said Hong Shibin. .
Outsourcing production can not only save the complexity of production processes, but also allow companies to devote more energy to research and development and occupy the high end of the value chain. However, this process also implies various risks. "Beginning is a community. After peeling off some links, it becomes a game body. This will inevitably lead to some problems." Hong Shibin believes that after the transfer of part of the industry chain involves more companies, different companies will Profit is the goal, which makes it difficult to coordinate some interests.
While the Japanese home appliance companies collectively contracted their front lines, the transfer of manufacturing links was inevitable. When interviewed by the reporter of “Daily Economic Newsâ€, Hong Shibin, deputy director of the Marketing Committee of the China Household Electrical Appliances Association, said that in order to get rid of baggage and realize profitability, Japanese brands began to transfer production links to China or Southeast Asian countries, and then they gave up marketing. Only control product design research and development and brand maintenance.
Perhaps in view of the Japanese household electrical appliance companies, in order to reduce losses, such "abandoning" and "transfer" have to be, but Hong Shibin is also worried that the industrial transfer will make the original value chain community become a game body, many links can not control, invisible crisis Hidden.
Big companies make small
According to foreign media reports, Panasonic had to make adjustments to reverse the current embarrassment after the TV business lost for three consecutive years. This included stopping the production of the plasma TV display factory that was completed at the end of 2009 and selling an LCD TV display panel factory. In this adjustment, it is estimated that more than 1,000 employees will be cut.
Hong Shibin told reporters that in the face of numerous crises, companies can only choose to make big companies smaller, that is to cut down unprofitable projects and related investments and employees, in order to prevent losses from continuing to expand.
At the end of July, Matsushita Electric Co., Ltd. released its fiscal first-quarter financial report. The company suffered a loss of 30.4 billion yen (2.5 billion yuan), of which the television business has deteriorated significantly.
The Panasonic TV will go from here to now, the company is not conclusive. Panasonic Electric (China) Co., Ltd. Publicity Department Media Public Relations Indulge in replying to the "Daily Economic News" reporter's e-mail that the Panasonic flat-panel TV's growth strategy is under discussion, at this stage there is no content to be published. In addition, she also stated that there will be revisions on the second quarter accounts and annual forecasts, which will be released on October 31st.
Compared to Panasonic TV business's "three-year loss," Sony TV is "more competitive" and has been at a loss for seven consecutive years, and the analysis generally believes that the eighth consecutive year's losses have been difficult to avoid.
Earlier this month, Sony planned to merge its two wholly-owned holding subsidiaries into one company. After the merger of the two plants, Sony will have more than 100 employees laid off. To this end, the outside world have speculated that Sony will not give up TV business, but its high-level executives repeatedly made it clear that Sony will not withdraw from the TV industry.
Unlike the partial adjustments of Panasonic and Sony, Hitachi said in August that the group plans to stop production of televisions, and all of them commissioned overseas OEMs. Zhang Chenyin, manager of Hitachi (China) Co., Ltd.'s public relations department, said in an interview with the reporter of the "Daily Economic News" that at present, the market demand in Japan has shifted to low-yield small and medium sized products, combined with the declining sales prices in the global market. Thin TV business is facing a severe market environment. The company's business model will also be centered on thin TV services, and will be transformed into optical/storage equipment, LCD projectors and other image/component business.
In fact, not only the above companies, almost all Japanese home appliance companies feel the same crisis. The first fiscal quarter of this year's financial report showed that Sharp's net loss reached 49.3 billion yen (about 4.09 billion yuan), while Toshiba's net profit fell sharply.
According to the above-mentioned Hitachi sources, the company implemented measures such as reducing fixed fees, shrinking overseas operations, and conducting external procurement during the fiscal year 2008-2009, and thus the performance has improved significantly since the second half of 2009.
Industrial transfer to survive
According to Hong Shibin, in the future, there will be two directions for Japanese home appliance companies. One is to gradually abandon the home appliance business and shift to other areas that are more competitive. The second is to accelerate the pace of industrial transfer and increase the ratio of product manufacturing, that is, to abandon production and manufacturing. In the sales section, profits are made from product development and brand premiums.
At this stage, the latter path seems to be easier to go.
The latest example is that Panasonic plans to cut production at five domestic chip makers in Japan and outsource more capacity to Chinese companies such as TSMC. It is reported that Panasonic’s current outsourcing ratio is 10%, and its expected goal is to increase to 30%-40% within a few years.
Liu Buchen, a senior observer of home appliances, told the Daily Economic News reporter that the trend of Japanese household appliances as a whole has been very clear. In order to reduce costs and respond to fierce market competition and gain more profit, these foreign brands It had to hand over manufacturing to more OEMs for production.
Earlier than Panasonic, Sony in 2008 put a lot of LCD TV orders to Chinese Taiwanese companies for production, and later sold its LCD TV companies in Mexico and Slovakia.
“Initially, all research and development, production, sales, and brand cultivation were done. Later, it was found that production was no more than a Chinese company, and sales couldn’t be done by Chinese companies. In those cases where there was no advantage, they had to outsource.†said Hong Shibin. .
Outsourcing production can not only save the complexity of production processes, but also allow companies to devote more energy to research and development and occupy the high end of the value chain. However, this process also implies various risks. "Beginning is a community. After peeling off some links, it becomes a game body. This will inevitably lead to some problems." Hong Shibin believes that after the transfer of part of the industry chain involves more companies, different companies will Profit is the goal, which makes it difficult to coordinate some interests.
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