Panasonic wants to double revenue in Brazil in five years

The Brazil tends to gain more space in business from Panasonic with the 2016 Olympics and as a platform for export to countries of Latin America. The Japanese inaugurated, on Friday, 23, their first Office in Rio de Janeiro, where he will focus on the development of projects aimed at the Olympic Games, sponsored by mark for 26 years. In line with the global strategy of the company, the focus is the sale of products and solutions for other companies, the so-called B2B. The country will be the basis for developing this market in the region, which already accounts for 50% of annual sales.
Panasonic's goal is to achieve global sales of $ 100 billion in 2018, an increase of 30% in relation to the financial year ended March 31, 2014. B2B will respond by 80%, with areas such as automotive (components such as radios and batteries), domestic utensils and enterprise solutions (security systems) 82% 54% growing and 39% if the goals when they meet. Already consumer electronics consumer (B2C), like TVs and washing machines, will grow at a lower pace in those five years, with sales target of $ 20 billion. In Brazil, the objective is to double turnover in the next five years.
"The Office in Rio aims to expand this targeting to B2B, which can be driven by the 2016 Olympics," said the Chairman of the Board of Directors of Panasonic, Shusaku Nagae.
He came to Brazil to inaugurate the Office and to close a sponsorship deal for the next four years with the Arena da Baixada Stadium in Curitiba (PR), one of the venues of the 2014 FIFA World Cup. Panasonic will provide high-definition screens and security cameras into the Arena da Baixada Arena and Pantanal, in Cuiabá. The manufacturer also plans to equip gyms and Olympic stadiums with their audio and video equipment. In February, the brand has expanded its portfolio in Brazil and started producing washing machines in the factory of Extrema (MG). The Group expects an increase in the results of Brazil in 2014 with 30% higher sales of TVs on the World Cup.
After the 3D in London 2012, it is expected that the Rio 2016 consolidate 4 k technology, which captures and transmits high resolution images. Panasonic already has the technology but still is studying whether it will produce such equipment in Brazil and will be broadcast in 4 k. "Everyone can perform the capture in 4 k, but the transmission to consumers depends on the preparation of TV stations to receive and send that signal," says the President of Panasonic Brazil, Hirotaka Murakami. The Japanese are in negotiations with the networks Globo, Band and Record, which will broadcast the 2016 Games.
Consolidation
Without detailing how the Rio 2016 is forecast on business for the group, the Panasonic sees the event as an opportunity to consolidate the brand in Brazil and develop partnerships. If all goes well, the "Olympic" carioca Office will be maintained for playing B2B operations closed from it. Judging from the poster boys of Panasonic in Brazil the plans are serious: Mark account with host Fernanda Lima to sell their products of white line and with the player Neymar. In the case of striker of Barcelona and the Brazilian national team, the advertising contract is global and includes advertisements for the company's B2B solutions to be released in 193 countries and regions.
The Panasonic does not open numbers by region, but the President of the company in Latin America, Yorihisa Shiokawa, says that sales of Panasonic Brazil are still below the potential of the country. The expectation is that Brazil win more space serving as a base for the marketing of B2B solutions and the export of products of white thread. The 110-volt coolers and 127 volts that began to be produced in the factory of Extrema (MG) last month and began to be exported to neighbouring countries.
The Japanese faces difficulties with the troubled political and economic environment in countries such as Venezuela and Argentina, which reinforces the tendency to direct more investment to Brazil. The Panasonic Argentina became a Brazilian subsidiary a decade ago and the Group intends to use the plant absorbed from Sanyo to manufacture locally TVs and air conditioning, giving a survival to the operation. In Venezuela, there are obstacles to obtain import licences-made from the Panama-and ensure that payments, which led to Panasonic to sign directly with the local government a $ 10 million agreement to provide electronics until September.
Transfer
The chairman of Panasonic, Shusaku Nagae, denied the news that the company plans to transfer to Japan the production of some products for the Japanese consumer, due to higher import costs due to the weaker yen. The information was conveyed on Thursday, 22, Kyodo News Agency, citing company sources. According to Nagae, the exchange rate can affect the operating results with the importation of products from China, but temporary currency fluctuations are not sufficient to support this change.