Consumer durables major Panasonic India announced yesterday that it would focus aggressively on Tier-III markets in the country by next fiscal (2013-14), according to a BL report. Panasonic India, a subsidiary of Panasonic Corporation of Japan would focus on 'mass segment products' and look at new channel partners to get into smaller towns. What is more, the firm currently has 8,500 dealers and 134 standalone stores. Plans are afoot to take the exclusive store count to 200 by the end of this year.
Manish Sharma, Managing Director, Consumer Products, Panasonic India Pvt Ltd told reporters on the sidelines of the launch its beauty products range in Kolkata: 'We were earlier considered as a niche product. But now we want to focus into the mass category. The biggest growth is in smaller towns'.
According to Sharma, non Tier-I towns, currently, account for 15 percent of the consumer products’ segments top line. The division was eyeing to push the contribution (of Tier-II and Tier-III markets) to nearly 30 percent of its turnover. The consumer products division reported a turnover of Rs 3,200 crore last fiscal (2011-12). Sharma said that the consumer division segment was expected to break even during the current fiscal. However, the official did not speak about the accumulated losses of the company. 'We are looking at consolidating our position in the Indian market, Sharma added.
It may be recalled that Panasonic India had already announced an investment of $ 300 million (Rs 1,700 crore) in India, including setting up a new plant at Jhajjar (Haryana) and marketing campaign.