Name: – Hisakazu Maeda
Position – Chief Representative of Panasonic Asia Pacific (Myanmar Branch)
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MI: Please tell us briefly about Panasonic and Panasonic in Myanmar.
Panasonic was founded in 1918 and has since grown to become a global electronics giant. The company is committed to provide “A Better Life, A Better World” through its suite of products and solutions. Last year, we achieved consolidated net sales of 7.7 trillion yen. Moving forward to our 100th year in 2018, Panasonic targets 10 trillion yen in sales by the year ending March 2019. The company has a long history in Myanmar. After World War II, four Japanese companies (Matsushita, Kubota, Mazda and Hino) set up their bases in Myanmar to aid its economic development. In 1963, Panasonic Corporation, formerly known as “Matsushita Electric Industrial Co., Ltd”, set up a radio factory in Myanmar manufacturing products under the “National” brand name. The following year, the company expanded our business to include batteries, light bulbs, wiring devices, refrigerators, air conditioners, heating appliances, rice cookers, and motors.
Unfortunately, with the US sanction in place in 2003, we had to cease our operations. In June 2013, Panasonic returned to Myanmar and opened the Panasonic Asia Pacific Myanmar Branch Office. Currently, we have 35 employees here (including five Japanese expatriates). The company has also partnered with 19 local distributors so far.
MI: When was your first visit to Myanmar?
What was your impression of the country then? I have been in Myanmar since February 2013, before Panasonic Asia Pacific Myanmar Branch was opened. When I first arrived at the airport for a business trip, I was totally surprised by the taxi drivers who were noisy and aggressively searching for customers. To tell you the truth, I was quite scared at that point of time. As you can imagine, this scenario is rather different from Singapore where I was living then.
The first time I brought my family over, my son told me, “Daddy I can’t watch YouTube here!” That was his initial impression.
It has been three years now. Over the years I have stayed in Myanmar, I gradually understood the local culture and how kind Myanmar people are. We have local and international friends with whom we enjoy sports and meals from time to time. I am so happy to be here, together with my family.
MI: How did you end up as the Chief Representative of Panasonic Myanmar Branch?
My overseas work history is quite long. I left Japan 2003. Since then, I have moved around various Asian countries together sibilities.
As the Chief Representative of Panasonic Asia Pacific Myanmar Branch, one of my key responsibilities is to roll out local-fit products for Myanmar people. These products should not only improve their quality of living, but also make daily lifestyles comfortable. This is in line with Panasonic’s business philosophy of “contribution to society”. The products we manufacture are for both people in urban and rural areas of Myanmar.
The establishment of the branch office here is to promote “locally autonomous management”, to ensure quicker and more efficient response to economic and political changes in Myanmar; strengthen the relationship with customers and stakeholders; expand sales with business partners; and to conduct comprehensive market surveys in order to effectively develop products which will meet local needs.
MI: In which ways working in Myanmar different from working in different other countries?
I find that some of my local members can be quite shy when it comes to sharing their thoughts and opinions openly even though those comments are really good. That is why I always find time to talk to each employee individually so they will feel more comfortable to share. I think it is important to cultivate an open working environment which promotes trust.
MI: Please highlight the current Panasonic products being promoted here.
In urban areas, we are promoting our air conditioners. As for rural areas, I would like to highlight the eneloop Solar Storage System. Rural areas often have limited access to electricity. Through our market survey visits, we often receive comments that it is hard for children to study at night. In addition, villagers have to make their way to town just to charge their mobile phones. Although some households use diesel, running cost is too high. Our eneloop Solar Storage operates using clean energy (sunlight) and is easy-to-use.
Hopefully, with the system, it will be more convenient for students to study at night or when there is a power outage during heavy rains. The bright, long-lasting LED light can operate between seven and 24 hours. It is also a practical light and power source, meaning villagers do not need to go to town just to charge their small mobile devices.
MI: What is the target market segment for Panasonic in Myanmar?
In Myanmar, Panasonic is working towards making our products accessible to various communities, regardless of income brackets. This is true to our business philosophy of “contribution to society” which I mentioned earlier. Our competitive advantage is that we have a wide array of products and solutions, from consumer electronics to commercial solutions. This essentially means that we are a one stop solutions provider for our stakeholders, with expertise in various portfolios. Panasonic will continue to manufacture high quality and durable products which people all over the world have come to associate the brand with. Here, we are one of the top three brands in all electronic products.
MI: Who in your opinion are your potential competitors and how are you planning to compete against them?
Panasonic manufactures a wide range of products, so our competitors vary. We will continue to manufacture high quality and durable products for our consumers.
MI: What are the Panasonic Myanmar branch Cooperate Social Responsibility (CSR) activities?
Panasonic has organised various CSR activities in Myanmar. Since 2012, we have donated more than 7,000 Solar Lanterns to various social institutions such as the Myanmar Red Cross Society, Japan Heart, Bridge Asia Japan, Seatanar, ARTIC, Peace Winds Japan, Save the children and Greater Mekong Initiative, etc. The lanterns fall under the umbrella of our global 100 Thousand Solar Lanterns Project, aimed at providing safe and stable lighting for homes, schools and the community, helping to increase access to education, healthcare services and business opportunities. We are planning to donate another 2,500 Solar Lanterns here next January.
Last September, Panasonic donated US$20,000 as part of our flood relief efforts. Partnering with UNESCO, 500 eneloop Solar Storage systems have also been donated to 40 schools near the Bagan monuments on December 22. In addition, we conducted the Eco Learning Programme focused on raising awareness on the importance of taking positive environmental action and putting in place the right foundation to grow future leaders who are passionate about environmental sustainability.
MI: What are the customers’ expectations here and how are you responding to their feedback?
Regarding customers’ expectations in Myanmar, people are willing to invest in products which are of high quality and long-lasting. As a company, after sales service is crucial so that customers can have a peace of mind in the event they encounter any issues with their purchase. That is why we opened two showrooms which double up as service centres – one in Yangon and the other in Mandalay.
MI: What are Panasonic’s future plans?
We are constantly trying to partner with more local distributors and supermarkets. Right now, we have 19 distributors. The number of supermarkets in Myanmar is also booming. We can see supermarkets not only in big cities such as Yangon and Mandalay, but also in smaller cities like Mawlamyaing and Monywa. By utilising supermarkets as one of our sales channels, more customers can touch and try Panasonic products near their homes. We also have promoters to explain the products to them.
MI: Please give your comment on the market potential of the country’s electrical and electronic consumer product business.
Myanmar’s electrical and electronic product business has very high potential. Currently, only 33% of Myanmar has access to electricity. The local government hopes to increase electrification rate to 100% by 2030. I am positive as a company, Panasonic can contribute to this vision through products such as eneloop Solar Storage System.
With GDP growth averaging at 8% annually, we can see that the economy is growing. Customers have higher spending power compared to years ago. Therefore, there are also opportunities in the appliances sector
MI: From a business standpoint, what do you feel are the biggest challenges facing you and your team in Myanmar in next 1-3 years?
In the next three years, the construction sector will grow significantly as the country urbanises. This is a big challenge for Panasonic. Globally, the company is strengthening its business-to-business (B2B) portfolio, which accounts for 75% of our overall sales. We can replicate and adapt knowledge garnered from successful B2B case studies overseas for the Myanmar market. Specifically, we are exploring how we can partner with key business players in the construction industry.
MI: What advice would you give to someone looking to start up a business and invest in Myanmar?
Firstly, as with any foreign country, we need to spend time understanding the uniqueness of Myanmar culture and its way of business. Respect and adaptation is also important. This can be achieved through communication and collaboration. Also, to see the real Myanmar, do not stay only at urban areas like Yangon or Mandalay. You must go to rural areas as well. The more you understand the Myanmar people, the more you can contribute to the society.
MI: How are you enjoying your days in Myanmar?
I enjoy spending time with my son, Shinnosuke, playing football over the weekend. Sometimes, I will invite my friends for a game of American Football.[/paypal]
