- Panasonic Manufacturing Malaysia’s 40 percent-owned associate Panasonic Malaysia, commented that the group is on track to achieve five percent sales growth target for FY17 ending 31 March 2017.
- The sales growth is driven by its “shopfront” strategy which focuses on promoting the value of the product via demonstration and promotional activities, and closing the deals in the shopfront.
- The weaker Malaysia ringgit does not impact Panasonic Malaysia’s operations significantly, as currently around 64 percent of their sales consist of locally assembled products. Although over 30 percent of their products incur import costs, but its competitors are also facing a similar situation. In addition, many of its export-orientated factories in Malaysia are earning better margin due to the weaker ringgit.
Significance: Panasonic Malaysia is aiming for another five percent sales growth target for its FY18 revenue. As consumer spending tightened, the group will focus on strengthening its product line by introducing new models with better features, at a more affordable price.