'The size of the Chinese market is comparable to the European and North American markets'

▲ File photo: On November 7, 2020, the Panasonic booth was photographed in the technical equipment exhibition area of ​​the 3rd China International Import Expo. (Published by Xinhua News Agency)

According to a report on the "Nihon Keizai Shimbun" website on September 29, 50 years have passed since the normalization of diplomatic relations between China and Japan, and the economic and trade relations between the two countries have undergone great changes. At the beginning, due to low labor costs and other reasons, Japanese companies built factories in China. With China's economic growth, China's position has gradually shifted from a "factory" to a "market". In an environment such as political issues between the two countries, how will the next 50 years go? "Nihon Keizai Shimbun" interviewed Japanese entrepreneurs such as global vice president of Panasonic Holding Group, Tetsuro Honma, general representative of China's Northeast Asia, vice president and executive director of Canon Co., Ltd., and Canon (China) chairman Hideki Ozawa.

Tetsuro Honma said that China's business accounts for about 30% of Panasonic's overall revenue, and its scale is second only to Japan. In China, consumer-oriented businesses such as home appliances account for about 35%, and business-oriented businesses such as auto parts and electronic components account for about 65%. By fiscal 2021, it has achieved double-digit growth for two consecutive fiscal years, and China is an important market driving Panasonic's overall performance.

Tetsuro Honma said that the product function and price competition in the Chinese market is very fierce, and Chinese companies with global competitiveness are constantly emerging in this market. If you can't win in the Chinese market, you can't be competitive in the global market.

Tetsuro Honma said: "The Chinese market is often ahead of other countries' markets in accepting new technologies. The market is constantly undergoing dynamic changes centered on young people. Among young people, the influence of short videos is growing, and they are beginning to require products to achieve 'Love at first sight' design."

According to reports, Panasonic has put the technology developed and accumulated in Japan into the Chinese market. For example, it has launched a non-rubbing washing machine for delicate clothes, and it also uses sensors to grasp the user's sleep state and precisely control the indoor temperature through the mobile APP. , humidity, air freshness systems, etc., have been well received in China.

Panasonic has also established a system for developing and selling products in China for the Chinese market. Products such as rice cookers, washing machines, and beauty equipment are selling well in China.

In the interview, Hideki Ozawa, vice president and executive director of Canon Co., Ltd., said that the Chinese market far exceeds that of Japan, and its scale is comparable to that of the European and North American markets. Especially in the field of high-end cameras, China's operating income ranks first in the world. 20 to 30 years ago, Canon finalized the product strategy based on Japan, the United States and Europe, but in the last 10 years, it has begun to give priority to the market demand in China.

He said that as the person in charge of the business in China, he will adhere to "do as the locals do", which will help improve the profitability of the business in China. However, with the rise of Chinese companies and the competition with Japanese companies around the world , Canon must further think about long-term strategies on how to achieve a win-win situation in the future.

When talking about the impact of epidemic prevention, Ozawa said: "Due to the impact of the epidemic, such as staying at home, there are not only products that have been sold very strongly due to the increase in demand, but also products that have been affected by the decline in market demand. However, in actual market sales , you can still feel very strong demand (in the Chinese market)."

[Original title] "The scale of the Chinese market is comparable to the European and North American markets"

Source | Reference News

Editor | Li Ran

Editor in charge | Chen Zhu