Panasonic Offers Low-Cost Appliances In Emerging Markets

from Brand Channel - Stephanie Startz, December 5th, 2009

Panasonic boast "ideas for life." Now, in an effort to compete with low-end imitators, they're offering ideas for every walk of life, with a new line of lower-cost domestic goods for sale in select international markets.

Known primarily as an electronics manufacturer in the US, Panasonic has been building a domestic goods unit. Launched in several European and Asian countries at the beginning of 2009, Panasonic's white goods are high tech, low emission, and energy efficient appliances that carry a high price tag. Now, in select markets, the manufacturer is introducing a line directed at lower-earning consumers.

The Financial Times profiles Panasonic's efforts to appeal to low-earning consumers in Indonesia while maintaining their international standards. Panasonic offers the white goods at such low costs (e.g., $170 refrigerators) thanks to local sourcing and manufacturing: the company uses existing plants in Indonesia to build their products. Panasonic's strategy is distinguished from retailers who have outsourced their low-end operations to other countries.

In Indonesia, Panasonic has tailored refrigerators to accommodate consumers who must store well water in bottles in their fridges. And since Indonesian consumers "buy little packaged food," more space is given to storing fruits and vegetables.

To protect their brand integrity in global markets, Panasonic has limited its promotional material. Instead of mass media ads, the brand circulates flyers and distributes the low-cost goods on their own.

Panasonic plans to expand their offering of lower cost refrigerators, air conditioners, washing machines and televisions into China, Mexico, Brazil, Nigeria, India, and Turkey in 2010.