As we entered 2015, Japanese electronics giant Panasonic Holdings Co., Ltd. announced a major strategic shift, abandoning its traditional TV business with plans to sell or dispose of it in other forms. This move marked the end of Panasonic's TV manufacturing journey, which spanned over 70 years.

Panasonic's connection with the TV industry dates back to 1952 when Matsushita Electric Industrial Co., Ltd. officially ventured into the household TV market. Over the decades, it garnered the love and trust of consumers worldwide through its exceptional quality and technological innovation. However, with the swift rise of Chinese and Korean electronics companies and the accelerating pace of technological change, Panasonic's TV business gradually struggled. According to data, global shipments of Panasonic TVs declined from 6.31 million units in 2016 to 2.02 million units in 2024, with its global market share plummeting to just 1%.

Confronted with this dire situation, Panasonic Holdings had to reassess its business strategy. In February 2025, the company unveiled a major restructuring plan, including dissolving its subsidiary Panasonic Electric, responsible for household appliance production and sales, and focusing on high-margin areas such as AI data centers. Yuki Takei, Representative Director, President, and Group CEO of Panasonic Holdings Co., Ltd., stated that the company would exit its traditional TV business and consider selling it. While specific details remain unclear, it has been confirmed that Panasonic's TV business will be "discontinued".

The decline of Panasonic's TV business can be attributed to several factors. The pricing and technological advantages of Chinese and Korean brands gradually eroded Panasonic's market share in the fiercely competitive landscape. Additionally, Panasonic's substantial investment in plasma TV technology failed to yield the expected returns, exacerbating its financial woes. Furthermore, shifting consumer preferences and technological advancements drove changes in market demand, and Panasonic was slow to adapt to these rapid transformations.

Faced with challenges, Panasonic chose to decisively adjust its strategy to achieve a breakthrough in the new market environment. Takei emphasized that Panasonic would concentrate on high-margin areas like AI data centers and integrate its home appliance business into a new "Smart Living Company." This initiative aims to bolster Panasonic's profitability and market competitiveness through business transformation and innovation.

It's worth noting that Panasonic is not an isolated case. Previously, Toshiba, Funai Electric, and other Japanese companies have also successively divested their TV businesses. These transformations reflect the strategies adopted by traditional electronics giants in response to market changes. The exit of Panasonic TV is not merely the end of a brand but also a microcosm of the entire electronics industry's evolution. In this era of rapid change, enterprises must maintain keen insight and an innovative spirit to remain competitive.

The Inevitable Demise of Panasonic Electric

Panasonic Electric, once a prestigious brand hailed as the king of Japanese manufacturing, has fallen into a continuous predicament in recent years, even announcing the dissolution of Panasonic Electric and a complete withdrawal from the TV business. So, how did Panasonic Electric gradually decline?

The decline of Panasonic Electric is closely tied to its reliance on outdated technological paths. While competitors like Samsung introduced ultra-thin LED TVs, Panasonic was still entrenched in plasma technology, missing out on market opportunities. Although Panasonic later joined the LCD display race, it never secured a dominant position under the fierce competition from Chinese and Korean rivals. This dependence on legacy technologies not only hindered Panasonic's TV business but also eroded its competitiveness in the display market.

Beyond technological challenges, Panasonic Electric also grappled with high labor costs and inefficient supply chain issues. Like other Japanese manufacturing enterprises, Panasonic faced immense pressure regarding labor costs. Meanwhile, its inefficient supply chain left it vulnerable in price wars. As Chinese and Korean electronics companies rapidly gained prominence with more flexible market strategies and lower prices, Panasonic's market share was severely impacted.

As the post-80s and post-90s generations became the primary decision-makers in families, consumer demand for electronics brands also evolved. They generally prefer brands with high intelligence and fashionable designs. However, Japanese brands like Panasonic, with their "old-fashioned" image, gradually became marginalized. Though Panasonic attempted to launch innovative products like smart home devices, its innovation capabilities and market response speed were relatively slow, failing to meet consumer demand promptly.

In response to the declining home appliance business, Panasonic's senior management attempted transformations. In 2013, the company announced a shift towards the B2B sector, encompassing automotive batteries, smart homes, and energy solutions. However, the transformation path was not smooth. While Panasonic secured the battery supply business for Tesla, it continuously lost market share in its automotive battery business to Chinese companies like CATL. The energy business, despite heavy investments, has a long payback period, unable to compensate for the losses in the home appliance business in the short term.

With increasingly fierce global market competition, Panasonic's brand influence has also gradually waned. On one hand, the rise of Chinese and Korean electronics companies in the global market poses a significant threat to Panasonic. On the other hand, Panasonic's business model in markets like China has failed to adapt to local characteristics, leading to a continuous decline in market share. This decline in brand influence further exacerbates Panasonic's predicament.

The decline of Panasonic Electric is the result of multiple intertwined factors, ranging from technological path dependence to high costs and supply chain disadvantages, aging brand image and evolving market demand, transformational challenges, and intensifying market competition.

Why are Japanese Electronics Giants No Longer Glorious?

In recent years, Japanese electronics companies such as Panasonic, Sharp, Toshiba, and Sony have gradually lost their footing in the global consumer electronics market. Their past glory seems to be a relic of the past. These once-leading home appliance giants now face unprecedented challenges and difficulties.

In February 2025, Panasonic Electric announced its dissolution and abandonment of the TV business. This news not only signals the end of Panasonic TV but also symbolizes the further contraction of Japanese electronics brands in the global consumer electronics market. As a century-old brand, Panasonic's name has almost become synonymous with "electronics".

However, amidst intensifying global competition and rapid technological development, even once-giant companies cannot escape the fate of decline. Faced with outdated organizational structures and a reluctance to let go of traditional business segments, Panasonic Electric finally realized that only by completely breaking these constraints can it seek new vitality. While Panasonic's transformation path is fraught with challenges, it strives to find new growth points by divesting businesses and developing batteries and smart homes.

Sharp is also facing severe challenges. As the only Japanese company producing TV panels, Sharp announced the suspension of production activities at its LCD panel factory in Sakai, Osaka, by the end of September 2024. The reason behind this decision is the factory's huge losses for Sharp. Faced with rapid capacity expansion and price wars from Chinese manufacturers, Sharp's operational pressure has been mounting.

Sharp's predicament mirrors the gradual marginalization of Japan's display industry in global competition. With the shutdown of Sharp's TV LCD panel factory, the global competitive landscape of the LCD panel industry is undergoing significant shifts.

Toshiba's decline is even more striking. This 148-year-old Japanese company, listed on the Tokyo Stock Exchange for 74 years, announced its delisting on December 20, 2023. Toshiba's downfall stemmed from its 2006 acquisition of U.S. nuclear power technology company Westinghouse Electric Company at a colossal cost, incurring a heavy financial burden.

Furthermore, the injection of external funds prioritized short-term gains over Toshiba's long-term business plans, ultimately leading to Toshiba's collapse amidst operational difficulties. Toshiba's delisting not only reveals the struggles of Japan's comprehensive electromechanical enterprises but also highlights the challenges faced by Japanese companies in acquiring American firms.

Although Sony has not yet reached the extremes of Panasonic, Sharp, and Toshiba, its business is also undergoing significant adjustments. Sony recently announced plans to fully cease production of Blu-ray Discs (BD) in February 2025 and subsequently stop the production of other related products. This move reflects the impact of the digital wave on the consumer market.

With the rapid development of online streaming media and cloud storage technologies, traditional physical media are gradually being replaced by digital products. While Sony's decision to halt production marks the end of the Blu-ray Disc era, it also paves the way for its new business direction of providing commercial-grade Blu-ray Discs in the film and gaming markets.

The decline of Japanese electronics companies like Panasonic, Sharp, Toshiba, and Sony is not coincidental. The intensification of global competition, rapid technological development, and evolving market demands have posed severe challenges to these companies' survival and development. Faced with difficulties, these companies are striving to find new growth points through transformations and adjustments to their business structures.