FEATURE STRATEGY
In the US, Hardy said the company’ s operations are heavily weighted towards B2B. Europe has also moved increasingly towards B2B, while retaining consumer businesses in categories including cameras and beauty products. The Middle East and Africa are different.“ Our business in the Middle East and Africa is massively more diverse than Europe or the US,” said Hardy.“ The product portfolio is much bigger and the number of business divisions that we’ re engaged with is much larger.”
That diversity means a single global strategy cannot simply be applied to every market. Panasonic’ s regional operation consequently has considerable freedom to determine which channels to pursue, where to invest and how to respond to local opportunities.
Even decisions around local manufacturing are heavily influenced by recommendations from the regional team. Where the business believes there is a strong commercial or operational case for local production, it can present that recommendation to Panasonic’ s senior leadership in Japan for consideration.
The company already undertakes some local manufacturing within the wider region, although it remains limited to selected product categories.
The strength and complexity of diversification A broad portfolio creates both resilience and complexity.
Different product categories expose Panasonic to entirely different competitive landscapes. In major appliances, competitors may include Samsung and LG. Kitchen appliances bring another group of brands, while beauty products create yet another competitive set.
Hardy likens the challenge to fighting battles on multiple fronts. However, diversification also provides a degree of protection against market cycles. When one category or geography is experiencing pressure, another may be expanding.
“ Nothing in life is good forever. There’ s nothing in life that’ s bad forever. They tend to go in peaks and troughs,” he said.
A broad portfolio allows the company to benefit from stronger-performing categories while other areas face headwinds, helping create a more balanced regional business.
Understanding the Middle Eastern consumer The consumer electronics market itself has also changed dramatically. Design, sustainability, energy efficiency and connected experiences increasingly influence purchasing decisions, particularly in premium segments. At the same time, Hardy believes the way consumers reach those decisions varies considerably between regions.
In markets such as Japan, the US and parts of Europe, purchasing decisions can be strongly influenced by functionality and whether a product satisfies a clearly defined requirement. In the Middle East, Hardy sees a stronger emotional dimension to the relationship between consumers and brands.
“ In this region, decision-making is much more emotional. It’ s not based purely on logic. It’ s based on that emotional connection people have with the brand,” he said.
That creates a different challenge for manufacturers. Product specifications remain important, but companies must also understand how consumers perceive brands and how those relationships translate into purchasing decisions.
Sustainability becomes an operating model Sustainability is another area where Panasonic sees opportunities to apply its technology capabilities across the region.
Through its Green Impact strategy, the company is looking at how it can reduce environmental impact while continuing to support growing demand for consumer and B2B technologies.
Hardy pointed to Panasonic manufacturing facilities that already operate without relying on grid electricity. One example is its site near Kyoto, where a combination of battery storage, solar panels, hydrogen fuel cells and intelligent energy management provides the energy required for production.
The company is working to extend similar approaches across more of its manufacturing footprint, with the longer-term ambition of making its factories increasingly selfsustainable, including facilities it owns in the Middle East and Africa.
But Hardy stressed that sustainability extends well beyond how a product is manufactured.
“ The sustainability aspect is not purely about making something or how it’ s consumed. It’ s much more complex than that,” he said. Recyclability, logistics, supply chain efficiency and resource management all form part of the equation. This is another area where technologies such as Blue Yonder can contribute by optimising logistics and reducing inefficiencies across supply chains.
Tackling the region’ s water challenge Water provides another example of how technology developed for one market could potentially address specific Middle Eastern requirements.
Much of the GCC depends heavily on desalination, making water both resourceintensive and expensive to produce. At the same time, cities across the region are creating more landscaped areas and green spaces, increasing the importance of efficient irrigation.
Hardy highlighted smart irrigation systems using sensors and intelligent management to determine when water is actually required. Panasonic has experience with such technologies in Asian markets, including Singapore.
Rather than watering according to a fixed schedule, intelligent systems can respond to environmental conditions and actual requirements, potentially reducing waste while maintaining green spaces.
For Hardy, the Middle East and Africa provide a natural environment in which technologies focused on smarter resource management can create meaningful value.
AI moves across the organisation AI is also beginning to influence multiple stages of Panasonic’ s product and business lifecycle.
Hardy said elements of design and product functionality are already being influenced by AI. The company is also examining how AI can improve product servicing, support service infrastructure and provide better feedback that can feed into future product development.
The impact extends beyond the product itself.
AI is increasingly being used in areas such as advertising, video production and still imagery, changing processes that previously involved more complex production and licensing arrangements.
But Hardy is conscious that the technology introduces challenges alongside efficiencies, particularly around regulation.
As governments develop new rules for AI, businesses must understand what applications are permitted and how accountability should work. The pace at which AI is evolving can make that particularly complicated.
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