Story of a Brand: Panasonic

Similar to Cisco, Panasonic is one of these tech companies that are big and influential. Still, somehow you don't see them in the news every day. Its history is long and like that of all successful companies - marked by ups and downs and the flexibilities needed to keep up at all times. Today, Panasonic is the fourth largest manufacturer of TVs and makes $94.78 billion annually in sales, ranking it 69th in the world, according to Forbes' Global 2000.

Until 2008, the company behind the Panasonic brand was actually called Matsushita Electric Industrial Co., Ltd. As is common in business, the brand name became more popular than the company name. Thus, at the beginning of 2008, during a shareholders' meeting, the company was officially renamed Panasonic Corporation.

Konosuke Matsushita

Panasonic came to life in 1918, founded by Japanese industrialist Konosuke Matsushita. Born into a well-to-do family, he left school at nine because his father lost most of the family assets.

Despite his lack of formal education, he had a very sharp mind and saw the enormous potential behind electrical usage. He eventually landed a job with the Osaka Electric Light Company. Due to his eagerness to learn, he was quickly promoted and was soon making a good living. But Matsushita was never content with a convenient life. After he came up with a new invention that would improve light sockets, which his boss was indifferent to, he quit his job and started his own company.

Matsushita had no expertise, no money, and no connections. The young Japanese entrepreneur seemingly lacked everything you needed to start a successful business. Yet, with just his wife and a few partners, he began manufacturing the improved light sockets and worked on bettering other products, such as one of the first battery-powered bicycle lamps.

Soon Matsushita realized the need to expand and market his products better because their superior quality alone was insufficient. By the end of the 1920s, Panasonic was manufacturing lamps, sockets, and retail equipment.

The Panasonic Brand

Initially, the company sold its products under the National brand. The first time the name Panasonic appeared on a product was Panasonic speakers in 1955. The word Panasonic is a portmanteau of pan and sonic, signifying the company's intention to bring its products to a global audience. In 1961, Panasonic started exporting TVs to the United States. It later expanded its market share with audio and radio equipment.

Meanwhile, the Japanese economy was growing, and Panasonic exploited this opportunity. The company began manufacturing all kinds of home appliances: fridges, washing machines, air conditioners, microwaves, etc. Coupled with an aggressive marketing campaign with billboards and neon signs, the shift to home goods brought a 30% increase in sales in 1966.

This whole success was mainly due to Matsushita's management philosophy. It was back in 1934 when he opened the Employee Training Institute, realizing the need to work on both industry innovation and employee development. He established a generous healthcare plan and held meetings where every employee could participate and give ideas. After he retired, the company's founder wrote 44 books on successfully running a business. The most popular one is "Developing a Road to Peace and Happiness Through Prosperity."

Panasonic Today

Today, Panasonic is an established name in consumer electronics. It remains widely known for its TVs and audio-visual equipment. For example, suppose you are driving a Japanese car, a Volkswagen, or a GM car. In each case, chances are Panasonic installed your audio components. Yet the company continues to tap into new markets, such as energy, home improvement, design, and healthcare. For instance, in 2015, Panasonic was one of the first major investors committed to producing batteries for Tesla. This resulted in a $3.6 billion stake that the company sold in 2021.

After experiencing such a massive return on investment, Panasonic is refocusing its efforts towards its automotive and industrial businesses. As a result, the company has stopped producing solar panels and LCD screens, instead opting to shift production to products like electric car batteries.

Panasonic has been a huge innovator since its founding. Its electronic gadgets are legendary. If you love technology as much as we do, check out all the technology promotional products now available through Logotech, customized with your logo.