Osaka, Japan – Tetsuro Homma, executive vice president of Panasonic Holdings Corporation and group chief executive for China & Northeast Asia, vividly recalls the annual business policy presentation in 1986. It was during this event, held in an Osaka gymnasium, that he first met Konosuke Matsushita, the founder of Panasonic.
“At the time, he had difficulty walking and needed assistance to enter the venue, and his speech had to be translated by a secretary. But when he appeared in the gymnasium, there was thunderous applause,” Homma reminisced.
Matsushita, who passed away in 1989 at the age of 94, was one of the earliest foreign entrepreneurs to support China's reform and opening-up. He was posthumously awarded the China Reform Friendship Medal in 2018, a testament to his significant contributions to China's development.
Panasonic's dedication to the Chinese market can be traced back to Matsushita's foresight. He visited China twice in the late 1970s and recognized the importance of young Japanese individuals who understood Chinese language, culture, and history for the company's future growth. This led to Panasonic launching a Chinese language program in 1981, making it one of the first Japanese companies to send young employees to study in China.
Homma, who joined the program in 1986, initially struggled with the language. "In the late 1980s, when I first visited Shanghai, Pudong was just empty land, and Puxi had no overpasses. There were hardly any cars on the streets," he recalled. However, by 1994, when he became directly involved in marketing in China, the country had undergone rapid development.
Reflecting on his three decades with Panasonic, Homma credits Matsushita's foresight for the company's success in China. "At Panasonic, Chinese has become the second foreign language after English, and many employees are learning it," he said.
Today, China accounts for 23% of Panasonic's global revenue, a significant increase from less than 1.5% when Homma joined the company. “Without the growth of the Chinese market, there would be no Panasonic Group today," Homma emphasized.
Since taking charge of Panasonic's Northeast Asia market in 2019, Homma has led the business to achieve double-digit growth in 2020 and 2021. He attributes this success to developing products tailored to the local market and fostering strong relationships with Chinese entrepreneurs.
With a rapidly aging population in Japan, Homma sees the need to nurture Panasonic's Chinese workforce to support the company's global operations. "We have 50,000 employees in China, including 10,000 in research and development, and they play a crucial role in our global business," he said.
Homma highlighted the newly launched ALPHA washing machine and dryer, designed and developed by a team of young Chinese professionals, as a prime example of Panasonic's success in China. "The entire project was led by a group of dynamic, young Chinese professionals. It took less time to move from concept to market, and I couldn't be prouder of their achievement," he said.
"In the past five years, we've worked tirelessly to build an 'In China, For China' strategy. Moving forward, Panasonic's Chinese team is committed to developing a team that serves not just China but the global market," Homma concluded.
With China's robust supply chain and highly efficient R&D capabilities, Panasonic is confident that its efforts will continue to drive global growth.
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