Japanese electronics company Panasonic Corporation vows to aggressively expand its electric components production and housing solutions in Thailand as the population changes and there are growing health concerns.
"There are many modern-style housing [developments] in Thailand and Thais travel a lot and need better living. This creates a business opportunity for Panasonic," said Daizo Ito, senior vice-president of Life Solutions Company, part of Panasonic. "Social issues such as health, labour shortages and an ageing population allow Panasonic to provide solutions to these problems."
Mr Ito said Panasonic has actively expanded this business sector because sales in Southeast Asia account for less than 3% of the company's electric components production and housing solutions, which are worth about 580 billion baht. This could mean huge potential to grow its business, he said.
The population in five Asean nations -- Indonesia, the Philippines, Thailand, Vietnam and Malaysia -- is expected to increase from 580 million in 2020 to 640 million in 2030. The number of new housing projects in these countries is projected to reach 4.41 million units in 2021, five times higher than the figure in Japan. All these factors have been driving the construction sector in this region, said Mr Ito.
Panasonic has operated its electronic components and housing materials business in Thailand for over 35 years. Sales of electric components and housing solutions in the company's fiscal 2018 ending March 2019 tallied 3 billion baht.
Of the total, about 50% of sales came from energy, with 20% from lighting, 12% eco-solution products and 10% engineering.
"Thailand is among the growth engines of Panasonic along with Indonesia and Vietnam. Together they have driven major growth of its electric components production and housing solutions business in Asean," he said.
The company aims to boost sales of its electric components and housing solutions in Southeast Asia to reach 27.8 billion baht in the fiscal year ending March 2022, up from 17 billion in the previous two fiscal years.
To achieve its sales goal, Panasonic will adopt three core business strategies in Thailand similar to those pursued elsewhere in Southeast Asia. It plans to expand sales through a local partnership, increase product variety and strengthen human resources. The company also wants to foster collaboration within its affiliates to offer safer, more convenient and comfortable living spaces.
Panasonic plans to develop new businesses through partnerships, cooperating with a local partner in Thailand to sell module kitchens, lighting and modular bathrooms.
Mr Ito said the company is joining hands with a local locker service provider in Thailand to pilot an Internet of Things-enabled "Smart Box" parcel delivery box that can be operated remotely via a smartphone.