Panasonic's new direction

In Southeast Asia, the Japanese electronics company is pursuing the premium hair dryer segment to reach the booming middle class.

A high-end hair dryer model from Panasonic. Photo: Nikkei .

Electronics giant Panasonic is shifting its focus to high-end hair dryers and beauty devices to boost sales in the Southeast Asian market.

According to Nikkei , the Japanese company expects its new strategy to be successful in a dynamic region like Southeast Asia, similar to what it has built in its home country.

Panasonic has begun distributing several high-end hair dryer models, once popular in Japan, in Southeast Asia. This move aims to tap into the growing middle class and meet the increasing demand for beauty and wellness products.

A different path

Inside a large electronics store in a high-end shopping mall in Bangkok, Thailand, Panasonic's luxurious hair dryers are displayed alongside major competitors such as Philips, the Dutch healthcare technology giant, and Shark, the flagship brand of SharkNinja in the US.

Prices for the display items range from $18 to $277 . With the average salary in Thailand around $616 , consumers will have to think twice before buying these high-end models.

"In the past few years, the premium hair dryer segment has rapidly emerged in Southeast Asia," commented Akatsuki Kamimoto, head of beauty brand management at Panasonic.

In emerging markets like Thailand and Malaysia, middle-income households earning over $10,000 per year account for about half the population, creating a huge demand for personal beauty and wellness products.

A high-end hair dryer model from Panasonic. Photo: iF Design Award .

Previously, Panasonic's products focused on the mass market, but the company is rapidly shifting towards the higher-end segment.

For example, the Nanocare EH-NA0J is a premium hair dryer that can both dry hair quickly and provide hair care benefits. First launched in Japan in 2022, the device achieved impressive sales before being distributed in Thailand and Malaysia in April 2024.

According to Nikkei , the device's standout feature is Panasonic's proprietary moisturizing technology, which helps keep hair soft, smooth, and easy to style.

While many competitors like Dyson focus on promoting fast drying speeds through their signature motors, Panasonic carves its own niche by prioritizing hair care features.

Priced at around $270 , slightly higher than the price in Japan, the Nanocare line of hair dryers is popular among women aged 30-40, according to Panasonic statistics. The company emphasizes that its hair dryer sales in Southeast Asia have seen double-digit growth year after year.

Regain your position

Beyond simply selling products, Panasonic has localized its sales and planning operations. Previously, Japan was the primary development center, while the Southeast Asian market typically distributed similar models, albeit at a slower pace.

This has caused Panasonic to fall behind its regional and Chinese competitors, who update their products with new designs every year.

To bridge the gap, Panasonic established a planning unit in Thailand in 2024. This allows upgrades unrelated to structural design, such as new colors, to be approved and implemented domestically.

The company is also building a product testing facility at its Thailand factory to expedite the testing of new devices. Panasonic aims to launch beauty products, specifically designed for Southeast Asia, as early as fiscal year 2027.

Panasonic's new strategy comes amid increasing competitive pressure from foreign brands in the regional beauty device market.

Factory workers at Panasonic in Thailand. Photo: Nikkei .

In the hair dryer market segment in Thailand, Dyson holds approximately 20% of the market share, while Philips and Panasonic each hold around 10%, meaning the second position is highly competitive. Recently, the game has seen the entry of Chinese brands and several domestic companies.

"We aim to become the number one hair dryer market leader in Asia by 2027, with sustained annual growth of 7%," Kamimoto said.

In addition to hair dryers, Panasonic is preparing to expand its product portfolio to include hair straighteners and facial skincare devices, such as massagers.

According to Nikkei , major Japanese consumer electronics corporations once dominated the global market with high-value exports such as refrigerators and TVs. However, as features became saturated and innovation slowed, these product categories became commonplace, leading consumers to prioritize price over brand.

Over the years, Chinese and Korean manufacturers have gradually dominated the market with affordable models. This is why Panasonic has chosen a new direction in the burgeoning beauty market of Southeast Asia.

Source: https://znews.vn/huong-di-moi-cua-panasonic-post1580370.html