In a bold resurgence that has caught the eyes of industry analysts and consumers alike, venerable Japanese electronics manufacturers like Sony, Panasonic, and Hitachi have embarked on a remarkable revitalization of their Indian operations. By pivoting towards more lucrative avenues—specifically focusing on the lucrative large-screen television market—these brands are stepping back from the low-margin entry-level segments that have long plagued their profitability. With the rise of fierce competitors, notably from Chinese brands, the landscape had turned increasingly treacherous, leading to a notable stagnation in sales across the board.
Panasonic’s consumer division, which encompasses high-end televisions and essential home appliances ranging from refrigerators to air-conditioners, has experienced a resurgence, emerging from a precarious position. Following a harrowing net loss of ₹53 crore in the fiscal year 2023-24, the company has now reported a commendable break-even in the first half of the current fiscal year. Rather strikingly, sales have leapt by over 30%, erasing years of sluggish growth to target more than ₹3,000 crore this fiscal year—an impressive leap from the ₹2,338 crore achieved in FY24.
Sony India, too, has turned a corner, announcing its most significant profits in eight years, driven by a robust 20% increase in sales. After grappling with declining revenues for an alarming six consecutive years, FY24 witnessed sales reach ₹7,663 crore. This is a stark contrast to the zenith of ₹11,000 crore witnessed back in 2014-15. Net profit for the year climbed to ₹168 crore, reflective of this turnaround.
Manish Sharma, Chairman of Panasonic India, articulates a shift in strategy, distancing the brand’s identity from the incessant price wars that characterize much of today’s market. He asserts that the focus has pivoted toward delivering enhanced value—highlighting low maintenance costs and high reliability over mere pricing competition. In an era where consumers are increasingly leaning towards premium products, this strategy appears prescient.
As the consumer electronics scene in India grows more congested by the day, overshadowed by aggressive pricing strategies from Chinese juggernauts like Xiaomi and Hisense, Japanese brands have taken decisive steps to reclaim their foothold. Johnson Controls-Hitachi has notably reversed its sales dip, reporting a staggering 64% surge, with first half sales soaring to ₹1,392 crore, translating into a net profit of ₹6 crore—an impressive turnaround from a net loss of ₹97 crore in the previous year.
Industry experts, such as Pulkit Baid from Great Eastern Retail, note the strategic repositioning of Japanese brands as more premium offerings. These companies have prudently trimmed their operations, shedding less profitable branches and categories.
Director of Sony India, Sunil Nayyar, highlights a key demographic shift—rising incomes among the middle and upper middle classes are driving the demand for premium products, enabling Sony to reposition itself effectively. Notably, the brand has shifted dramatically; just six years ago, 80% of its sales stemmed from entry-level 32-43 inch televisions, whereas today, that figure has plummeted to below 20%.
Finally, as the industry evolves, Johnson Controls-Hitachi’s strategy of exiting the mass market and implementing a modest price increase of 5% this fiscal has yielded remarkable results. Noteworthy is the impending acquisition of their parent company by Bosch, which could reshape the dynamics of this market segment yet again.
In this fiercely competitive landscape, the resurgence of Japanese brands marks a significant narrative shift, one grounded in strategic repositioning and an unwavering commitment to quality—transforming challenges into unparalleled opportunities.
