Panasonic Plans to End Fluorescent Lamp Production by 2018; Lighting Revenue Target Set at 20 Billion

According to foreign media reports, Panasonic announced its lighting business growth strategy on the 26th. In addition to plans to expand sales of automotive lighting products such as automotive LED headlights, the company also plans to end fluorescent lamp production in fiscal year 2018 and convert all lighting products shipped in Japan to LED. The goal is to expand the lighting business revenue to 400 billion yen (approximately 20.16 billion RMB) in fiscal year 2018, an increase of approximately 26% compared to approximately 300 billion yen in fiscal year 2014, with an operating profit margin target of 8% or more (operating profit margin in fiscal year 2014 was less than 5%).

Overseas, sales revenue in the Chinese and Indian markets is planned to reach approximately double that of fiscal 2014, while sales revenue in Indonesia is targeted to reach approximately four times.

Panasonic's lighting business head Kitano Ryo also pointed out that in order to obtain LED headlight orders from European automakers and expand sales channels for automotive lighting, the company also plans to conduct M&A in Europe and other regions in the future. In addition, the company will also expand products such as LED display signs for commercial facilities.

Reports indicate that Panasonic holds about 40% of the domestic lighting market in Japan, ranking first, while the penetration of LED lighting in Japan has been slow, with only about 10% adoption rate in fiscal year 2014.

According to other news, Toshiba (東芝) ended the production of fluorescent lamps for residential use in March this year, and as industry leader Panasonic has also decided to end fluorescent lamp production, it is expected to further accelerate the spread of LED lighting in Japan. According to reports, Panasonic began producing fluorescent lamps in 1952.