ELECTRONIC appliances giant Panasonic is deepening its commitment to the ATL Group, a relationship that goes back over 40 years.

The Japanese company is now partnering with the ATL Group, founded by Gordon ‘Butch’ Stewart, to offer energy-efficient solutions. Last week, ATL signed a deal with Panasonic which sees it providing solar panelling for ATL’s Audi and Volkswagen showrooms housed on Kingston’s Oxford Road.

“With the continued increase in fuel costs worldwide, a solar transformation at this time is our best option as it will drastically reduce our cost of energy, thus saving us some money,” said ATL’s CEO Adam Stewart at the signing ceremony at ATL Eco-store in Manor Park.

In an exclusive interview, President of Panasonic Latin America Hiroki Kaji said: “From the bottom of my heart I would like to extend my thanks to ATL and in particular Butch Stewart and his successor Mr Adam Stewart. We have a long history of business with ATL that goes back over 40 years. Both Butch and Adam always trust our product quality which has helped us build a good brand image in Jamaica and boost our sales.”

Consolidated group sales of US$80 billion

Panasonic’s consolidated group sales for the fiscal year ended March 31, 2013 came to 7.3 trillion yen (US$80 billion) which saw its operating profit jump by 268 per cent to 160.9 billion (US$1.62 billion). The company expects its operating profit to rise to 250 billion yen (US$2.52 billion) in the current business year.

Panasonic’s new CEO, Kazuhiko Tsuga, has promised to cut out within two years any loss-making or low-profitability units that fall short of a 5 per cent annual operating margin threshold.

The company has taken the decision to pull away from TVs and other consumer gadgets in favour of selling machinery, components and electronic equipment to other businesses. TVs, DVD players and other home entertainment units represent less than one-fifth of its sales.

But while it withdraws from consumer electronics, its rival Sony is ramping up its offering of mobile phones, cameras and game consoles, all of which account for more than half of Sony’s revenue.

“Traditionally we have done business with ATL in the TV/ audio business and then moved into air-conditioner units which has gone very well. About three years ago Adam Stewart made the move into providing energy solutions. He made it clear that he was looking at ways to reduce Sandals’ high electricity costs and consumption. Two years ago we placed 100 solar panels over the Presidential Suite of Sandals Montego Bay. We followed that up with positioning other energy- saving products at Sandals such as inverter air conditioner units, energy- saving TVs and irons.

“The next step was to implement an energy-control management system that reduces costs and now we have partnered with ATL to open an Eco-Centre. This centre offers only Panasonic energy-saving devices like solar panels, refrigerators and lighting.”

Turning to eco-solutions

Kaji was in Jamaica to sign an MOU with the CEO of the ATL Group, Adam Stewart, to supply 60 kilowatt solar panels for the roofs of the new Audi and Volkswagen showrooms on Oxford Road. The new thrust with ATL will be to offer eco-solutions that save energy. This will not only target regular consumers but businesses and public entities such as government agencies.

Over the next two years, Panasonic plans to spend some US$2.5 billion to revamp its businesses. With over 300,000 workers it is one of the biggest employers in Japan. The weakness of the yen has helped to boost exports and since the start of the year Panasonic shares have gained 43 per cent.

Its worldwide eco-solutions sales have increased by one per cent year on year to 1,547.9 billion yen from 1,525.8 billion yen a year ago. Despite weak sales in Europe, sales increased due mainly to sales growth in LED lighting and energy management systems products with backing from power conservation demand.

So why is Panasonic pushing its eco-solutions and energy-saving technology in Jamaica?

“Because Jamaica is a suitable market for solar panels. The sunshine here means that radiation is double that of Japan and Germany, so the same solar panel can generate double the electricity that a solar panel in Japan can.

“The electricity cost in Jamaica is very expensive compared with many countries which means it is a very good market for our energy saving products and services ,” explained Kaji.

The president of Panasonic Latin America has served the company for 30 years. He notes that many people equate the brand with being conservative but he says it adheres to its mantra of always looking to improve the quality of life of its customers.

How does he view the rise of companies like Samsung that are challenging Panasonic’s dominance?

“We don’t just offer consumer electronic products like televisions and mobile phones. We offer wide-ranging products including housing, energy and health care products. Our healthcare products are not yet offered outside of Japan. Samsung doesn’t offer our range. It is very strong at the audio/visual and home appliances at the consumer level, but it does not match us at the industrial level, such as avionics and business solutions.

“It is here that we are concentrating upon and differentiating ourselves by offering a wider range of products and services and targeting business solutions. We are now looking to provide avionics and other industrial solutions to the Latin American market,” said Hiroki Kaji.

In Japan, Panasonic offers complete housing solutions — roofs, kitchens, doors, windows, bath systems, toilet systems — the entire range: 100 per cent Panasonic. Will we see this business line in Jamaica?

On this subject the Panasonic senior boss said: “Its easy for us to export cameras and televisions, but to supply housing solutions here we need to find reliable local manufacturers who can combine our core technology. We now need to study this new business model. ATL is our leading partner in Jamaica for appliances and consumer products and will also be our partner in Jamaica for our business to business solutions, avionics, housing and all our other offerings.”

Growing the Panasonic brand

So how does Panasonic intend to grow the Panasonic brand across the world?

“Quite frankly, our total sales of consumer products is not growing. We have taken the decision to shift from consumer products and focus more on business-to-business products,” explained Hiroki Kaji.

Despite this new strategy, appliances sales increased by one per cent to 1,554.4 billion yen from 1,534.2 billion yen last year, despite flat global demand.

Panasonic’s largest earning segments are appliances, such as washing machines, refrigerators and its ‘eco- solutions’ division which makes light fixtures, toilets, ceiling fans and other household fittings that hark to the company’s beginnings, in 1918, making electronic extension sockets. Panasonic has set its sights on becoming the world’s leading green energy company by 2018.