Recently, the loss of home electronics companies in Japan has become the most interesting topic. Panasonic released its first-quarter 2011 financial report, showing that the net profit for the current period was a loss of 30.4 billion yen, while the company made a profit of 43.68 billion yen in the same period last year. Panasonic’s report on Sanyo Electric’s operations, which was announced at the same time, showed that Sanyo Electric had a total loss of JPY14 billion in operating profits.
At the same time, Haier and Midea, both Chinese household appliances, are accelerating their international mergers and acquisitions. Haier and Sanyo reached an agreement for the acquisition, the United States will be interested in Carrier.
Between advances and retreats, the global electronic landscape seems to be brewing a handover.
The March earthquake in Japan seems to have not stopped the "aftershocks". Japanese home electronics companies, including Sony, Panasonic, Toshiba, Sharp, Sanyo, etc., are undergoing an unprecedented major adjustment.
Panasonic’s latest financial report showed that its net loss in the first quarter was 30.35 billion yen, and its sales decreased 10.7% year-on-year, compared to a net profit of 43.68 billion yen in the same period last year. The operating conditions of Toshiba, Hitachi, Sony, and Sharp are equally unsatisfactory. According to successively released results for the first quarter of 2011, Toshiba’s operating profit was 4.12 billion yen, down 87.8% year-on-year; Hitachi’s first fiscal quarter profit Only 2.93 billion yen, a sharp drop of 96.6% year-on-year; Sharp's first-quarter operating profit fell 84.4% year-on-year; Sony's first-quarter net loss was 15.5 billion yen.
Many Japanese home appliance makers are almost identical in their causes of losses, which is the huge impact of the earthquake in Japan.
However, the Japanese electronics giant suffered heavy losses may be due to weak consumer demand. Both Sony and Sharp have attributed the huge losses to this. Investment bank Citigroup Tokyo analysts said that the economic recession, especially the economic recession in Europe and the United States, led to the decline in television prices and the problem of oversupply worsened. In the United States, for example, the largest market share is Samsung and Vizio, which rely on low-cost advantage so that consumers no longer favor the higher-priced Sony.
Experts pointed out that the Japanese electronics industry is declining. There is another factor that cannot be ignored. It is the “fragile yen price structureâ€. “The United States imposes economic sanctions against Japan and the appreciation of the yen. Japanese manufacturing companies are bound to suffer tremendous export pressure. This economic background determines that Japanese companies are destined to struggle on the edge of meager profits for a long time, not only electronics companies such as Panasonic and Sony, and automobile manufacturing in Japan. Businesses also feel depressed."
Therefore, even if there is no earthquake, it will be sooner or later that Japan’s home appliance companies will come back in the face of fierce global market competition. The traditional Asian electronic industry's goose-shaped structure is dispelling, and Japan, as the “geese headâ€, is increasingly blurred.
The major cause of earthquake loss
Japan’s top eight electronics companies almost all issued huge losses or warnings of falling profits in the first quarter, which is even worse than the response after the financial crisis in 2008. Panasonic’s quarterly report in 2011 showed that net profit for the current period was a loss of 30.4 billion yen, while the company’s profit for the same period last year was 43.68 billion yen. Panasonic’s financial report also announced the operation of Sanyo Electric. In terms of operating profit, Sanyo Electric suffered a total loss of 14 billion yen.
Toshiba, Hitachi, Sony, and Sharp have not been spared huge losses or profits. Their successive fiscal results for the first quarter of 2011 showed that Toshiba’s operating profit was 4.12 billion yen, a year-on-year decline of 87.8%; Hitachi’s first Financial quarterly earnings were only 2.93 billion yen, which was a sharp drop of 96.6% year-on-year. Sony's first-quarter net loss was 15.5 billion yen, while the company earned 25.7 billion yen in the same period last year. Sharp's first-quarter operating profit fell 84.4% year-on-year. In addition, NEC lost 19.44 billion yen, and Fujitsu lost 17.14 billion yen.
Judging from the reasons for the performance losses of several giants, the March 11 Great Earthquake in Japan was not detrimental to the Japanese home appliance manufacturing industry. Matsushita said that "the earthquake caused the company to reduce sales," in addition to price competition, raw material prices and Other factors. Sony also said that "the impact of the March 11 Japan earthquake and tsunami on the company's business," Toshiba also said that "because of the impact of Japan's earthquake, Toshiba's investment in electronic components can not be recovered, thus seriously affecting the efficiency of enterprises ".
Japanese Reorganization and Transformation Opportunities
However, the optimistic side is that the current difficulties are accelerating the pace of restructuring and transformation of the Japanese electronics giant. According to Japanese media reports, on August 3, Hitachi announced that due to the impact of fierce price competition caused by the declining global TV market, the company will soon outsource all TV manufacturing operations in the current fiscal year. In fact, currently 80% of Hitachi's TV sets are assembled by outsourcers. At home, Hitachi only has a factory that specializes in producing screens. It is reported that the plant will also be closed before March 2012, or transform into other electronic products.
Hitachi is not alone. Sony announced last week that it will announce a restructuring plan for its loss-making TV manufacturing business this month, which will include alliances with other companies. In the past two years, in order to reduce company expenses, Sony has sold three television manufacturers and reduced the number of its global TV manufacturing plants to four. Japan’s Matsushita Corporation, which also suffered a loss, is implementing a large-scale layoff plan. The company’s acquired Sanyo Electric has just sold its home appliance business to China’s Haier Group due to business integration needs.
The technology and manufacturing capabilities of Japanese semiconductors and key components have always been at the forefront. Analysts pointed out that even if Japanese electronics companies are outsourced, they can participate in the global industry sector with the role of key component suppliers. In the industry chain, Japan’s home appliance has transformed from high-end manufacturing to mid-to-high-end manufacturing, transforming from low-profit machine assembly to high-profit industrial core component manufacturing; in terms of industry form, Japan’s home appliance has transformed from the terminal retail market to the home and commercial market. This means that the business model of Japanese home appliance companies has quietly changed, making money from selling products to selling programs and providing services. This has become the foundation of future global industrial change.
Asian goose pattern change
“Even if there is no earthquake, it will be sooner or later that Japan’s home appliance companies will be retreating in the face of fierce global market competition.†Hong Shibin, an observer of the household appliances industry, believes that Japan’s electronics companies are as if they are hovering in the air. “We must respond to the United States. Enterprises such as Apple's 'system warfare' will have to face the 'position war' in the Chinese market."
In almost every segment, Japanese electronics companies face at least one strong competitor. In the field of television, the declining Sony has been squeezed by South Korean companies such as Samsung and LG. According to DisplaySearch data, last year Sony TV had a 12% share in the global market, lagging behind Samsung and LG. Since the beginning of this century, South Korea’s Samsung and LG’s Korean companies, which are chasing Japanese companies, have continued to expand globally on the basis of cost advantages, and the Korean government has provided funding and policy support to two Korean companies, causing Japanese companies to lose A lot of positions. Coupled with the rise of home appliance companies in mainland China to seize the global low-end market, Japanese companies can only continue to retreat to the high-end market under dual pressure.
In the field of mobile phones, the emergence of iPhONe is enough to eclipse other smartphones. In the field of game consoles, game giant Nintendo plans to increase sales of game consoles by substantially reducing prices, because social games including Apple's iPhone, iPad, and Facebook all have a huge impact.
"Japan originally had a wild goose structure. It was Yantou. South Korea and China Taiwan were wild geese. Chinese mainland was a geese. Now Yantou has begun to obscure." Senior Consultant Luo Qingqi of Pall Consulting (Weibo) judged that Japan now Electronic companies are faced with the dilemma of “difficulties within China†and the cost advantage is no longer in Japan.
“Japanese companies have sought to find cheaper foundry bases overseas to offset the cost pressures brought about by fluctuations in raw material prices. A considerable part of this has been transferred to China; and the second round of supply chain advantages has begun to appear in Chinese companies. Technology, product quality, retail scale, or innovation resources are all tilting toward Chinese companies such as Lenovo, Haier, etc. This will lead to the adjustment of the layout of the electronics industry in East Asia as a whole.â€
At the same time, Haier and Midea, both Chinese household appliances, are accelerating their international mergers and acquisitions. Haier and Sanyo reached an agreement for the acquisition, the United States will be interested in Carrier.
Between advances and retreats, the global electronic landscape seems to be brewing a handover.
The March earthquake in Japan seems to have not stopped the "aftershocks". Japanese home electronics companies, including Sony, Panasonic, Toshiba, Sharp, Sanyo, etc., are undergoing an unprecedented major adjustment.
Panasonic’s latest financial report showed that its net loss in the first quarter was 30.35 billion yen, and its sales decreased 10.7% year-on-year, compared to a net profit of 43.68 billion yen in the same period last year. The operating conditions of Toshiba, Hitachi, Sony, and Sharp are equally unsatisfactory. According to successively released results for the first quarter of 2011, Toshiba’s operating profit was 4.12 billion yen, down 87.8% year-on-year; Hitachi’s first fiscal quarter profit Only 2.93 billion yen, a sharp drop of 96.6% year-on-year; Sharp's first-quarter operating profit fell 84.4% year-on-year; Sony's first-quarter net loss was 15.5 billion yen.
Many Japanese home appliance makers are almost identical in their causes of losses, which is the huge impact of the earthquake in Japan.
However, the Japanese electronics giant suffered heavy losses may be due to weak consumer demand. Both Sony and Sharp have attributed the huge losses to this. Investment bank Citigroup Tokyo analysts said that the economic recession, especially the economic recession in Europe and the United States, led to the decline in television prices and the problem of oversupply worsened. In the United States, for example, the largest market share is Samsung and Vizio, which rely on low-cost advantage so that consumers no longer favor the higher-priced Sony.
Experts pointed out that the Japanese electronics industry is declining. There is another factor that cannot be ignored. It is the “fragile yen price structureâ€. “The United States imposes economic sanctions against Japan and the appreciation of the yen. Japanese manufacturing companies are bound to suffer tremendous export pressure. This economic background determines that Japanese companies are destined to struggle on the edge of meager profits for a long time, not only electronics companies such as Panasonic and Sony, and automobile manufacturing in Japan. Businesses also feel depressed."
Therefore, even if there is no earthquake, it will be sooner or later that Japan’s home appliance companies will come back in the face of fierce global market competition. The traditional Asian electronic industry's goose-shaped structure is dispelling, and Japan, as the “geese headâ€, is increasingly blurred.
The major cause of earthquake loss
Japan’s top eight electronics companies almost all issued huge losses or warnings of falling profits in the first quarter, which is even worse than the response after the financial crisis in 2008. Panasonic’s quarterly report in 2011 showed that net profit for the current period was a loss of 30.4 billion yen, while the company’s profit for the same period last year was 43.68 billion yen. Panasonic’s financial report also announced the operation of Sanyo Electric. In terms of operating profit, Sanyo Electric suffered a total loss of 14 billion yen.
Toshiba, Hitachi, Sony, and Sharp have not been spared huge losses or profits. Their successive fiscal results for the first quarter of 2011 showed that Toshiba’s operating profit was 4.12 billion yen, a year-on-year decline of 87.8%; Hitachi’s first Financial quarterly earnings were only 2.93 billion yen, which was a sharp drop of 96.6% year-on-year. Sony's first-quarter net loss was 15.5 billion yen, while the company earned 25.7 billion yen in the same period last year. Sharp's first-quarter operating profit fell 84.4% year-on-year. In addition, NEC lost 19.44 billion yen, and Fujitsu lost 17.14 billion yen.
Judging from the reasons for the performance losses of several giants, the March 11 Great Earthquake in Japan was not detrimental to the Japanese home appliance manufacturing industry. Matsushita said that "the earthquake caused the company to reduce sales," in addition to price competition, raw material prices and Other factors. Sony also said that "the impact of the March 11 Japan earthquake and tsunami on the company's business," Toshiba also said that "because of the impact of Japan's earthquake, Toshiba's investment in electronic components can not be recovered, thus seriously affecting the efficiency of enterprises ".
Japanese Reorganization and Transformation Opportunities
However, the optimistic side is that the current difficulties are accelerating the pace of restructuring and transformation of the Japanese electronics giant. According to Japanese media reports, on August 3, Hitachi announced that due to the impact of fierce price competition caused by the declining global TV market, the company will soon outsource all TV manufacturing operations in the current fiscal year. In fact, currently 80% of Hitachi's TV sets are assembled by outsourcers. At home, Hitachi only has a factory that specializes in producing screens. It is reported that the plant will also be closed before March 2012, or transform into other electronic products.
Hitachi is not alone. Sony announced last week that it will announce a restructuring plan for its loss-making TV manufacturing business this month, which will include alliances with other companies. In the past two years, in order to reduce company expenses, Sony has sold three television manufacturers and reduced the number of its global TV manufacturing plants to four. Japan’s Matsushita Corporation, which also suffered a loss, is implementing a large-scale layoff plan. The company’s acquired Sanyo Electric has just sold its home appliance business to China’s Haier Group due to business integration needs.
The technology and manufacturing capabilities of Japanese semiconductors and key components have always been at the forefront. Analysts pointed out that even if Japanese electronics companies are outsourced, they can participate in the global industry sector with the role of key component suppliers. In the industry chain, Japan’s home appliance has transformed from high-end manufacturing to mid-to-high-end manufacturing, transforming from low-profit machine assembly to high-profit industrial core component manufacturing; in terms of industry form, Japan’s home appliance has transformed from the terminal retail market to the home and commercial market. This means that the business model of Japanese home appliance companies has quietly changed, making money from selling products to selling programs and providing services. This has become the foundation of future global industrial change.
Asian goose pattern change
“Even if there is no earthquake, it will be sooner or later that Japan’s home appliance companies will be retreating in the face of fierce global market competition.†Hong Shibin, an observer of the household appliances industry, believes that Japan’s electronics companies are as if they are hovering in the air. “We must respond to the United States. Enterprises such as Apple's 'system warfare' will have to face the 'position war' in the Chinese market."
In almost every segment, Japanese electronics companies face at least one strong competitor. In the field of television, the declining Sony has been squeezed by South Korean companies such as Samsung and LG. According to DisplaySearch data, last year Sony TV had a 12% share in the global market, lagging behind Samsung and LG. Since the beginning of this century, South Korea’s Samsung and LG’s Korean companies, which are chasing Japanese companies, have continued to expand globally on the basis of cost advantages, and the Korean government has provided funding and policy support to two Korean companies, causing Japanese companies to lose A lot of positions. Coupled with the rise of home appliance companies in mainland China to seize the global low-end market, Japanese companies can only continue to retreat to the high-end market under dual pressure.
In the field of mobile phones, the emergence of iPhONe is enough to eclipse other smartphones. In the field of game consoles, game giant Nintendo plans to increase sales of game consoles by substantially reducing prices, because social games including Apple's iPhone, iPad, and Facebook all have a huge impact.
"Japan originally had a wild goose structure. It was Yantou. South Korea and China Taiwan were wild geese. Chinese mainland was a geese. Now Yantou has begun to obscure." Senior Consultant Luo Qingqi of Pall Consulting (Weibo) judged that Japan now Electronic companies are faced with the dilemma of “difficulties within China†and the cost advantage is no longer in Japan.
“Japanese companies have sought to find cheaper foundry bases overseas to offset the cost pressures brought about by fluctuations in raw material prices. A considerable part of this has been transferred to China; and the second round of supply chain advantages has begun to appear in Chinese companies. Technology, product quality, retail scale, or innovation resources are all tilting toward Chinese companies such as Lenovo, Haier, etc. This will lead to the adjustment of the layout of the electronics industry in East Asia as a whole.â€
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