Recently, a significant announcement from the Panasonic Group stirred considerable attention and discussionThe company revealed its intention to disband Panasonic Electric, transitioning it into a business entity under a somewhat ambiguous term: "developmental dissolution." This phrasing sparked a wave of speculation about the company's future and strategic positioning.

Panasonic, once a giant in the television manufacturing industry, is now facing the harsh reality of a steep declineThe shift from being a globally respected brand known for producing quality televisions to announcing such a drastic restructuring has left many bewilderedWithin a mere two days of the initial announcement, Panasonic was compelled to issue two clarifications, asserting that it is reorganizing Panasonic Electric rather than dissolving the entire groupAdditionally, they indicated that no decisions had yet been made regarding the potential sale or withdrawal from their television operations.

This turn of events highlights the challenges auto manufacturers face in the realm of consumer electronicsPanasonic has been a cornerstone of Japanese manufacturing for decades, boasting a portfolio of over 520 companies worldwide and an annual revenue exceeding ¥4.3 trillionIn the late 20th century, many in China became acquainted with the Panasonic brand through its television setsDuring the 1980s and 1990s, advertisements featuring the iconic deep male voice uttering "Panasonic" became nostalgic fixtures in Chinese homes, evoking sentiments of prestige and qualityFor countless households, owning a Panasonic television was a source of pride, symbolizing a certain status in society.

However, as time marched on, the glory days of Panasonic televisions began to fadeIn recent years, the company made troubling decisions, including shutting down production facilities in Japan, Vietnam, and IndiaCurrently, the company produces only around one million televisions annually—a mere fraction of its former output

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In stark contrast to Panasonic's plight is the meteoric rise of Chinese and South Korean television manufacturersBrands like TCL, Hisense, Xiaomi, and Huawei have increasingly captured the market share, demonstrating remarkable growth and innovation.

As of the first half of 2024, Hisense secured the second position globally in television shipments, capturing 14% of the marketTCL continues to be a formidable player, ranking among the top in panel market sharesBetween the third and fourth quarters of 2024, Samsung, TCL, Hisense, LG, and Xiaomi emerged as the top five television brands, collectively holding a remarkable market share of 63.3%. In this mix of dominant players, the absence of any Japanese brands is particularly noteworthy, with local names holding a significant share of the market.

Panasonic's struggle is further underscored by its dwindling market presence; as of 2024, the company's global television market share had plummeted to just 1%. This once-prestigious entity now finds itself grappling with deep-seated issues within its television business, which has become a liability rather than a profit-generating segmentConsequently, the decision to integrate the home appliance division comes as no surprise—not only must they revitalize their image, but they also face the pressing need to reassess their core business strategies.

Looking ahead, the remaining question is where Panasonic intends to stake its claim following the dissolution of its television armThe company has expressed a shift in focus towards automotive batteries, a burgeoning industry witnessing preeminent growth and competitionPanasonic aims to develop its battery division, demonstrating confidence in the quality of its products, even as it acknowledges the intense price competition posed by leading firms like CATL.

In recent months, Panasonic has identified automotive batteries as a "key investment area," committing substantial resources to bolster its production capacity

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