Panasonic Malaysia eyes 5% sales growth in FY18

Posted on : 17-05-2017 | By : sabah today | In : National Business

KUALA LUMPUR: Panasonic Malaysia Sdn Bhd is aiming for a five per cent increase in sales in its financial year ending March 31, 2018 (FY18) after recording sales of RM1.72 billion in FY17, said managing director Cheng Chee Chung.

He said consumer goods, which contributed over 70 per cent to sales in FY17, would probably contribute between three and four per cent of sales projection, while the balance would come from project sales and solutions business.

Speaking to reporters at the announcement of its partnership with Media Prima group for Ramadan and Hari Raya campaigns, here yesterday, he said the company was positively optimistic of the target although demand for consumer electronics, which grew 5.2 per cent in FY17, was expected to be flat in FY18.

“Panasonic is not the only company impacted by slowing demand in consumer goods last year. But, we managed to grow.

“Consumer sentiment index had improved in the first quarter of this year, rebounded 6.8 per cent to 76.6 point quarter on quarter, we belief consumers have adjusted and getting used to weaker ringgit,” he said.

On its Ramadan and Hari Raya campaigns, Cheng said it allocated RM5 million for advertising and promotions, including its collaboration with the Media Prima and others.

The collaboration with Media Prima group was aimed at deepening Panasonic’s penetration across the larger Malaysian households especially the wider mass Malay consumers, he said.

Moving forward, Cheng said Panasonic was also looking to expand its dealership network from the current 1,032 dealers, in line with the expansion of its partners like Sen-Q, AEON, Harvey Norman and Tesco by allocating about two per cent of its total sales for expansion capital.

To create more demand for its products, Panasonic would introduce a few new models this year for all product categories, he said.

On online sales, which contributed less than five per cent of its total sales, Cheng said it would continue to sell small items like hair dryers and beauty products but it was rather difficult to extend to bigger items like refrigerators and televisions as consumers still preferred buying those items from shops.

Despite being quite insulated from a weaker ringgit as 64 per cent of its products are made locally , he said consumers should expect some price increase of 5-10 per cent from July this year on fridges, washers and beauty products which were imported.

The price increase, he added, was to adjust to the ringgit depreciation against the prices that were stated in the business plan, but it would depend on the exchange rate and the ringgit’s fluctuation against the US dollar.

SOURCE— BERNAMA

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