Korean media: "Kingdom of TV" is fading, Panasonic hands over European and North American TV sales rights to Chinese manufacturers!
On March 24, Korea Economic Daily reported that Japanese company Panasonic will transfer its television sales operations in Europe and North America to Chinese home appliance manufacturer Skyworth. The move aims to cease direct sales and reduce costs such as labor and logistics. Following Sony's decision to spin off its TV business and entrust it to a joint venture led by China's TCL, the restructuring of Japan's struggling home appliance industry is accelerating.
Panasonic has signed a comprehensive partnership agreement with Skyworth, including the handover of European and North American TV sales operations starting April. Panasonic’s TV sales performance in Japan and Europe is comparable; as of 2024, these two markets together account for 80% to 90% of total sales. In the United States, Panasonic exited the plasma TV market due to weak demand but re-entered in 2024, though its sales volume remains small.
Due to intense competition with Chinese firms in the European market, Panasonic has cut back on its mid-to-small-sized TV product lines, leading to persistently low sales. This plan aims to transfer sales operations in Europe and North America to Skyworth in order to reduce fixed costs.
The Nikkei explains: “Panasonic is focusing on high-profit products sold domestically while outsourcing overseas sales and low-cost production, reforming its underperforming TV business structure.” Recently, Sony signed a memorandum of understanding to divest its TV business unit and establish a TV joint venture with TCL. The joint venture is scheduled to launch in April next year, with TCL holding 51% equity and Sony holding 49%.
With increasing cooperation between Chinese and Japanese enterprises, Samsung Electronics and LG Electronics are closely watching developments. If Chinese companies' cost competitiveness, supply chain advantages, and Japanese brands’ reputation combine, Chinese dominance in the premium OLED TV market—where Korean firms have traditionally held strong positions—could grow even further.
Original article: toutiao.com/article/1860527800276042/
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