TV sets spur Panasonic growth

Panasonic Romania, a company owned by Japanese electronics giant Matsushita, in the fiscal year that ended this March derived turnover worth more than 37 million euros, up 12% from about 33 million euros in the previous fiscal year.

The increase slightly exceeds estimates made by the general manager of the company, Catalin Savulescu, early in the fiscal year, pointing to a 10% growth pace.

a??The TV set is the product with the highest weight in our sales,a?? Savulescu says, as TV sets accounted for about 40% of the companya??s sales in the past fiscal year.

a??Products in the entertainment category, especially car entertainment, have also witnessed a spectacular evolutiona??, Savulescu states. Sales of car LCDs, DVD players and navigation systems confirm growing desire for a comfortable car interior. According to statistics, car sales were up 65% in the first four months of 2005, close to one billion euros. Audio and video equipment in their turn hold a significant share of Panasonic sales in Romania, according to Savulescu, as the Panasonic and Tehnics brands enjoy high brand awareness.

Panasonic products have been officially present on the Romanian market since 1991, when Electronica International was the distributor of Matsushita products. The results of this company determined the Japanese giant to set up its own company, Panasonic Romania (in 1996), which now represents the two brands, Panasonic and Tehnics.

In this regard, Panasonic and its main competitor Sony have embraced different strategies. The lattera??s approach to Central and Eastern European countries saw the creation of offices (Sony Overseas) that are only involved in the promotion of the brands, not in the import and effective distribution of products.

The two Japanese groups have similar strategies, though, when it comes to the distribution channels. Both Sony and Panasonic products are sold in specialised store networks (Altex, Cosmo, Domo, Flanco) and in stores belonging to international traders (Carrefour, Metro). ionut.bonoiu@zf.ro