Business Talk with Akio Ota, President, Panasonic Manufacturing Philippines Corporation
Driving the market with consumer-focused products
Panasonic’s strength lies in its localized approach
Mr. Akio Ota
President, Panasonic Manufacturing Philippines Corporation
Panasonic, a Japanese brand operating worldwide, is widely recognized in the Philippines for home appliances such as refrigerators, washing machines, and air conditioners. We spoke with Mr. Akio Ota, President of Panasonic Manufacturing Philippines Corporation, about the company’s history in the Philippines, its strengths, and future business development.
Philippine Primer
Please tell us about your business development so far.
Mr. Ota
The company was established in September 1967 as the first Japan–Philippines joint venture between Matsushita Electric and Precision Electronics Corporation. Guided by the principles of “customer first” and “contributing to the people of the Philippines,” we initially manufactured televisions, batteries, electronic components, and karaoke systems.
Today, we focus on local production and sales, with refrigerators, washing machines, and air conditioners as our core products. We also handle beauty appliances such as hair dryers, as well as commercial refrigerators, lighting, and touch-panel ordering systems for restaurants.
Our sales reached approximately ¥50 billion in 2024, doubling over the past decade. We hold about 30% market share in refrigerators and washing machines, ranking first, and also maintain a top share in air conditioners (Based on a study by Panasonic).
We have two factories: Taytay, Rizal (refrigerators and washing machines) and Santa Rosa, Laguna (air conditioners). To meet strong demand, we are constructing a new factory in Santa Rosa to further expand production capacity. We also have a corporate sales office in Makati.
Philippine Primer:
What are your company’s strengths?
Mr. Ota
Our competitiveness comes from offering a full lineup of products for all consumer segments, addressing diverse needs across different living standards.
In the Philippines, electricity costs are as high as in Japan, while average income is about one-fifth. In this environment, we have gained wide support by providing products that balance energy efficiency, durability, and cost performance.
We also focus on product development suited to local lifestyles. For example, we developed single-tub washing machines without spin functions for low-cost washing needs. For refrigerators, we introduced the world’s first energy-efficient model combining traditional frost-type design with inverter control. Window air conditioners are equipped with nanoe™ ion technology and Wi-Fi—products uniquely evolved in the Philippines.
While some manufacturers only assemble locally, we handle everything from market research, product planning, design, manufacturing, sales, to after-sales care. This allows us to respond closely to local consumer needs—something mass-production manufacturers cannot do.
We also optimize products for the Philippine environment while maintaining durability, including stable operation in areas with unstable power supply and protection against foreign objects like ants. Some customers still use refrigerators from the National brand era.
In an island country like the Philippines with limited infrastructure, logistics and after-sales service are essential. We operate about 300 service centers and 10 warehouses nationwide, enabling quick repairs and delivery. This strong service supports trust in our brand.
Philippine Primer
Please tell us about your organization and human resource development.
Mr. Ota
We have about 1,000 employees (as of May 2025) across manufacturing, sales, marketing, and other departments. Around 50 engineers—mainly Filipinos—are involved, and recently Japanese engineers have joined to strengthen product development in the Philippines.
Our corporate culture is rooted in founder Konosuke Matsushita’s philosophy of contributing to society. Employees recite the Basic Business Philosophy (BBP) every morning. There are also BBP instructors trained in Japan who promote these values locally.
The shared mindset of working sincerely, taking on challenges, and delivering useful products forms the core of our human resource development. Employee turnover is low, with many working 20 to 30 years, supporting our quality and reliability.
Filipinos have strong English and communication skills. We have supported education through scholarships and are considering partnerships with universities to develop STEM talent. By sending manuals and technical documents in English from the Philippines, we can support global operations and strengthen competitiveness as a development hub.
Philippine Primer:
What are your future business plans?
Mr. Ota
The Philippine appliance market still has large growth potential. Refrigerator and washing machine penetration is around 50%, while air conditioners are even lower.
We aim to expand our share of major products to 40% while contributing to market growth. This has already been achieved in parts of Taiwan and Malaysia.
Although income disparity is larger than in Vietnam, Thailand, and Indonesia, appliance demand continues to grow with GDP. When GDP per capita exceeds USD 4,000, demand shifts from essential goods to lifestyle-enhancing products such as beauty and health appliances.
We will strengthen offerings in products like hair dryers, oral care devices, and rice cookers.
We are also launching a certified refurbished appliance business. Products collected through trade-ins or returns will be refurbished in factories and sold with warranties, making Panasonic products accessible to those who cannot afford new ones. This also creates a resale cycle similar to automobiles and promotes recycling in a resource-limited country.
Philippine Primer:
What has been most memorable in your career?
Mr. Ota
My most memorable experience was in India in 2009. We developed a low-cost air conditioner for the local market. Customers wanted strong direct airflow and low prices, so we removed unnecessary functions and designed it more like a fan.
As a result, even households that never owned air conditioners could afford one. Seeing air conditioners installed in mud houses surprised me. Families told us they could sleep better and babies no longer developed bedsores.
When I realized that our products were truly helping people, I felt a deep sense of fulfillment. It made me reflect that true success is not only business results, but how much we contribute to people’s lives.
About Mr. Akio Ota
Born in Tokyo. Graduated from the University of Tokyo. Joined Panasonic in 1993. After working in sales and marketing in Japan, he was assigned to Dubai, then spent five years in India and six years in Vietnam expanding business operations. After returning to Japan, he served as head of the Kitchen Business Division before assuming his current role in the Philippines in February 2025.
Hobby
Golf and cooking, including preparing Japanese dishes using ingredients from local markets in the Philippines.
Professional Philosophy
Stay positive—“Good fortune comes to those who smile”.
