|
Japan's electrical groups need new business models
|
|
BBC-interview November 19, 2012
|
|
Greetings!  
Japan's 8 electrical groups (Hitachi, Panasonic, Sony, Mitsubishi-Electric, Sharp, Toshiba, Fujitsu, NEC) combined are of similar economic size as the Netherlands.
Over the last 15 years, their combined annual sales growth was zero, and their combined annual loss was YEN 50.6 billion/year (= US$ 0.6 billion/year).
Compelling evidence that new business models for this sector present a huge opportunity - as explained in this BBC interview.
Read more below, and read detailed analysis in our report on Japan's electrical industries, covering Japan's top 8 electrical manufacturers compared to Japan's top 7 electronic parts makers:
[ download content outline | view contents | purchase report | subscribe ].
|
 | | Sales growth of Japan's top electrical manufacturers vs component makers |
Contrasting Japan's 8 electrical groups with Japan's 7 electronic parts makers:
Over the last 14 years since FY1997, the combined growth in revenues (=sales) of Japan's top 7 electrical groups was zero.
The compound annual growth rate (CAGR) of Japan's top 7 electronic parts makers combined was +3.1%.
|
 | | Net income/losses of Japan's top electrical groups vs component makers |
Net income (profit) of Japan's electrical groups vs parts makers:
Over the last 14 years since FY1997, Japan's top 8 electrical groups combined showed average losses of YEN 50.6 billion/year (=US$ 0.6 billion/year), while Japan's top 7 electronic parts makers combined earned YEN 196 billion/year (= US$ 2.4 billion/year).
|
 | | Net income/losses of Japan's top electrical groups |
Net after tax income of Japan's top 8 electrical groups:
This figure shows net after tax income for Japan's top 8 electrical groups (Hitachi, Panasonic, Sony, Mitsubishi-Electric, Sharp, Toshiba, Fujitsu, NEC), for the years since FY1997. For 5 of these 14 years the industry sector reported combined losses, which in total exceeded the profits achieved in good years.
As a result, averaged over all 14 years, the industry sector shows combined losses on the order of US$ 0.6 billion/year.
Creating new business models for this very large industry sector (of similar economic size as the Netherlands) is a huge opportunity. |
 | | Net income/losses of Japan's top electronic component makers |
Net income of Japan's top 7 electronic parts makers:
Japan's top 7 electronic parts makers are in a much better financial situation than Japan's electrical groups.
Over the last 14 years since FY1997, this industry sector only showed a net overall loss one single time - in the year following the Lehman shock, but showed combined net profits during all other years, resulting in average annual net profits on the order of US$ 2.4 billion/year.
|
 | | BBC interview: "New business models for Japan's electrical groups needed" |
BBC interview:
|
|
|
|
|
|
Founded in 1996/1997 in Tokyo, Eurotechnology Japan KK focuses on telecommunications and environmental industries. We work on M&A and help foreign companies grow in Japan, we help Japanese companies globalize.
Need more information?
- Watch video clips of live interviews on CNBC,
-
- purchase or subscribe to our reports,
- or send us email because we need your feedback.
Sincerely, |
| Your Eurotechnology-Japan Team Eurotechnology Japan K. K. |
| ::: (c) 2012 Eurotechnology Japan KK. All Rights Reserved. ::: |
|
|
|
|
