Global tech giant secretly dumps South Africa

After years of fanfare about its activities in South Africa, including a huge marketing campaign with Springbok captain Siya Kolisi in 2018, Panasonic has all but vanished from the local market.

There was no announcement from the company — it just quietly withdrew its products from the market.

Panasonic relaunched its brand in South Africa in April 2015, announcing the return of its full catalogue of products to the country.

This included electronics and appliances like TVs, home theatre systems, home audio systems, portable audio systems, cameras, washing machines, and fridges.

Panasonic also planned to sell its beauty care products, a range of business-to-business equipment, and air conditioners in the country.

The company said it had flown a dozen or so Panasonic executives to South Africa to meet with key distributors and retailers, led by Daizo Ito, who then served as regional head for MEA, India, and South Asia.

In 2018, Panasonic signed Springbok captain Siya Kolisi as brand ambassador and launched several campaigns based on the partnership.

These included its “You can be the light” project, which aimed to donate 10,000 solar lanterns to the Nelson Mandela Foundation for distribution to needy families.

It also ran “Follow Panasonic with Siya Kolisi” in conjunction with its sponsorship of the Tokai University Solar Car Team competing in the 2018 Sasol Solar Challenge.

That same year, Panasonic opened a new office at Century City in Cape Town, complete with its “Life Experience Center” showroom.

Kolisi and former Western Cape Premier Helen Zille were at the event, with Ito in attendance.

When the world went into lockdown in 2020, Panasonic quietly retreated from South Africa.

20 July 2018: The launch of Panasonic South Africa’s office in Century City, Cape Town.
From left to right: Yasushi Naito, Consul of Japan in Cape Town; Ivan Meyer, provincial finance minister; Helen Zille, Western Cape Premier; Siya Kolisi, Springbok captain; Daizo Ito, Panasonic regional managing executive; Hiroyuki Shibutani, Panasonic Africa regional head; and Hidetoshi Kaneko, Panasonic South Africa MD.

The company registration for Panasonic South Africa (Pty) Ltd shows that it failed to file its annual returns and pay its CIPC fees in 2019, 2020, and 2021.

After being threatened with deregistration in June 2021, the outstanding returns were filed and fees paid by 15 November 2022.

Panasonic’s company records show that it paid a R4,000 fee in 2019 and 2020, but its annual return fee dropped to R150 in 2021 and 2022.

According to CIPC’s fee schedule, this means Panasonic reported more than R25 million turnover in its 2019 and 2020 financial years, and less than R1 million turnover in subsequent years.

Panasonic also didn’t just quit South Africa. It abandoned whole product categories globally.

Huge Group revealed in 2021 that Panasonic closed its business communications division, dropping its PBX, SIP, and scanner product categories.

This left one of Huge’s subsidiaries, Pansmart, without any products to sell.

Pansmart was established to import and distribute Panasonic telecommunications equipment in South Africa. Huge had acquired a stake in the company in 2019.

In response to Panasonic’s shake-up, Pansmart was also overhauled with a new management team and rebranded to Huge Distribution.

“In January 2021, Huge Distribution secured the right to import NEC products and distribute them throughout South Africa. A new management team was hired in March 2021 and they intend to grow the company’s range of products,” Huge Group said in its 2021/22 annual report.

Panasonic products listed on Masons

While Panasonic is no longer active in South Africa, some of its products can still be found online.

A search for Panasonic on Takealot and Makro returns mostly electronic components like switches, capacitors, and batteries. Some kitchen appliances, sound systems, and beard trimmers also remain available.

However, a handful of retailers, like Masons in Johannesburg, still have Panasonic TVs in stock.

“Panasonic haven’t traded in South Africa for the last 2–3 years,” Masons managing director Imran Aziz said when MyBroadband asked about it.

“The items listed on our website are products that we cleared from Panasonic when they decided to exit SA,” he said.

Aziz said that while Panasonic doesn’t trade in South Africa, it does still have service agents in the in the country.

MyBroadband contacted Panasonic for comment, but it did not respond by publication.

As for Daizo Ito, he was promoted to executive vice president in charge of Panasonic’s overseas business on 24 February 2022.