Jeremy Kerstetter, Contributing Writer03.23.15
Panasonic, traditionally a company known for the manufacturing of television sets and other household appliances, is enhancing its product offerings to break into pre-existing, but relatively untapped markets. Here in the U.S., the company is diving into the at-home beauty devices market, a $2.5B global industry. As noted by Corrie Murphy, VP of Beauty Strategy & Consumer Marketing here in the U.S., “We have been making the shift from being a TV-centric company to more of a consumer product industry over the last two years.”
Experiencing strong success with at-home beauty devices in its Asian market, principally Japan, Panasonic has begun to leverage that success to introduce new at-home beauty devices to the American market over the last two years, the outset of which Panasonic Beauty U.S. was launched. Running the team in North America—for all beauty devices and all consumer electronics, Murphy pays keen attention to detail, specifically in regard to how they should customize the products for the new American market, while simultaneously adhering to Panasonic’s Japanese heritage and market direction, something Murphy refers to as their “Japanese beauty secrets.” This is a challenge, according to Murphy, especially in transplanting spa or treatment products—such as laser hair growth and removal devices, wrinkle removers, etc.—into a new market.
“Historically, we’ve been a Japanese company innovating for Japanese and Chinese markets first and then offering those products, that we felt were right, to other countries after,” Murphy stated. Over the past two years, there have been multiple product releases that have all been well received, like the Panasonic Ionic Toothbrush, a product Murphy hailed as, “the Cadillac of toothbrushes,” and the more recently released Nano Spa Quality Facial Steamer, which is a Panasonic niche in Japan. “We’ve also begun working closely with our Japanese factory on market specific product design, which we believe is important,” she stated.
The electronic device market has, overall, undergone an aesthetic transformation, completely making an about-face from utilitarian-looking, small, black or silver electronics to fashionable accessories. Panasonic has not been an outlier here; rather, they have been on the forefront of improved aesthetics with their products. They have gone through a “brand personality refresh; mini-rebranding,” which according to Murphy, ensures product growth.
The product development includes packaging exploration that encompasses everything from naming conventions, to colors, to lifestyle of shopping. The goal being to find packaging that “elevates the look of the product and simplifies the message delivered on it,” said Murphy. These products will have customized product benefits, claims, and packaging design to aid the transition to the new U.S. market.
“From a global perspective,” Murphy stated, “our packaging tries to serve all markets, but hot pink is an artifact of Japan’s market; the strongest, most successful products tend to be this hot pink color.” Panasonic, though sticking with this color scheme initially, in an effort to adhere to “Japanese heritage,” does have plans for increased color availability for subsequent products in the U.S.—an attempt to provide an even greater, high-quality aesthetic to the products offered.
Increased aesthetics, however, are not the only obstacle to overcome for maximizing sales in the at-home beauty products industry. According to market research, the beauty device market has been struggling to overcome poor distribution problems as well as low awareness across most regions.
There is significant opportunity for marketers to attract new customers, if they can penetrate the markets and raise the knowledge and awareness levels. Building greater awareness of device benefits and growing consumer confidence in the efficacy and value of the devices is essential for market growth. The key is to leverage the satisfied customers, which, according to Murphy, is precisely what they intend to do. “Our marketing is intended to create evangelists to spread product awareness,” she stated.
Their overall marketing strategy is more comprehensive than just that, however. As part of their strategy to raise awareness among the right consumers, Panasonic is targeting “beauty influencers” who will bridge the gap between the products and the beauty audiences. In addition, Panasonic is also “initiating experiential, alternative, showrooming opportunities” to increase product awareness. Murphy explained that Panasonic has a partnership with Lifetime Fitness and plans to distribute the new nanoe hair dryer, for locker room use and sale, throughout these Lifetime Salons. Why? “When customers use our products, they are delighted by the results—we see that regularly,” Murphy stated.
Highly targeted, digital media campaigns are another aspect of Panasonic’s comprehensive marketing strategy to raise specific brand awareness and online sales. Adjusting these campaigns to the American market is critical and can be tricky, but Murphy finds that the best way to start is merely to simplify the product claims and benefits. At times, they find issues with the translation work, but often it just comes down to cultural differences—messaging that may appeal to the Japanese consumer, but not necessarily the U.S. consumer. According to Murphy, this is becoming less of an issue as the two cultures begin to converge and U.S. women become better educated about Japanese skin care techniques.
With its finger on the pulse of trends, Panasonic is currently exploring the European market as well, which was expecting an at-home beauty devices market boom of 25% for 2014, outpacing the U.S.—a growth largely driven by competing brands and their products. Knowing this, however, has not hindered Panasonic’s interest to push there or in the U.S. market. The key for Panasonic is to set products apart from the competition, and Murphy states that they are doing just that by sheer product design and customer experience. “They are good quality [products] and they do what they say they will do.”
Though the last two years have featured products created in either Japan or China, Murphy states that Panasonic has many new and innovative products in the pipeline that are currently being customized, and that over the next two years will be both developed and launched in North America.
In the coming year, Panasonic has plans for new product packaging, exploring development in skin care and hair care tools, as well as high-end men’s shavers. In addition, they have plans for a few unique products such as three new shaver and epilator systems: the ES-ED70, ES-ED50, and ES-EU20, each with its own different price point based on features and attachments. Each system will also have its own channel strategy for distribution, of which shopping channels and Internet sales hold the most share of the market’s distribution pie.
Panasonic’s distribution channels currently include Shop.Panasonic.com, Amazon.com, Ulta, Sephora, as well as numerous department stores. Commenting on the growth of online sales, Murphy stated, “Online will continue to grow, but brick and mortar is necessary for stability. I believe there is a value in the touch and feel experience the customer has available in a store.”
Experiencing strong success with at-home beauty devices in its Asian market, principally Japan, Panasonic has begun to leverage that success to introduce new at-home beauty devices to the American market over the last two years, the outset of which Panasonic Beauty U.S. was launched. Running the team in North America—for all beauty devices and all consumer electronics, Murphy pays keen attention to detail, specifically in regard to how they should customize the products for the new American market, while simultaneously adhering to Panasonic’s Japanese heritage and market direction, something Murphy refers to as their “Japanese beauty secrets.” This is a challenge, according to Murphy, especially in transplanting spa or treatment products—such as laser hair growth and removal devices, wrinkle removers, etc.—into a new market.
“Historically, we’ve been a Japanese company innovating for Japanese and Chinese markets first and then offering those products, that we felt were right, to other countries after,” Murphy stated. Over the past two years, there have been multiple product releases that have all been well received, like the Panasonic Ionic Toothbrush, a product Murphy hailed as, “the Cadillac of toothbrushes,” and the more recently released Nano Spa Quality Facial Steamer, which is a Panasonic niche in Japan. “We’ve also begun working closely with our Japanese factory on market specific product design, which we believe is important,” she stated.
The electronic device market has, overall, undergone an aesthetic transformation, completely making an about-face from utilitarian-looking, small, black or silver electronics to fashionable accessories. Panasonic has not been an outlier here; rather, they have been on the forefront of improved aesthetics with their products. They have gone through a “brand personality refresh; mini-rebranding,” which according to Murphy, ensures product growth.
The product development includes packaging exploration that encompasses everything from naming conventions, to colors, to lifestyle of shopping. The goal being to find packaging that “elevates the look of the product and simplifies the message delivered on it,” said Murphy. These products will have customized product benefits, claims, and packaging design to aid the transition to the new U.S. market.
“From a global perspective,” Murphy stated, “our packaging tries to serve all markets, but hot pink is an artifact of Japan’s market; the strongest, most successful products tend to be this hot pink color.” Panasonic, though sticking with this color scheme initially, in an effort to adhere to “Japanese heritage,” does have plans for increased color availability for subsequent products in the U.S.—an attempt to provide an even greater, high-quality aesthetic to the products offered.
Increased aesthetics, however, are not the only obstacle to overcome for maximizing sales in the at-home beauty products industry. According to market research, the beauty device market has been struggling to overcome poor distribution problems as well as low awareness across most regions.
There is significant opportunity for marketers to attract new customers, if they can penetrate the markets and raise the knowledge and awareness levels. Building greater awareness of device benefits and growing consumer confidence in the efficacy and value of the devices is essential for market growth. The key is to leverage the satisfied customers, which, according to Murphy, is precisely what they intend to do. “Our marketing is intended to create evangelists to spread product awareness,” she stated.
Their overall marketing strategy is more comprehensive than just that, however. As part of their strategy to raise awareness among the right consumers, Panasonic is targeting “beauty influencers” who will bridge the gap between the products and the beauty audiences. In addition, Panasonic is also “initiating experiential, alternative, showrooming opportunities” to increase product awareness. Murphy explained that Panasonic has a partnership with Lifetime Fitness and plans to distribute the new nanoe hair dryer, for locker room use and sale, throughout these Lifetime Salons. Why? “When customers use our products, they are delighted by the results—we see that regularly,” Murphy stated.
Highly targeted, digital media campaigns are another aspect of Panasonic’s comprehensive marketing strategy to raise specific brand awareness and online sales. Adjusting these campaigns to the American market is critical and can be tricky, but Murphy finds that the best way to start is merely to simplify the product claims and benefits. At times, they find issues with the translation work, but often it just comes down to cultural differences—messaging that may appeal to the Japanese consumer, but not necessarily the U.S. consumer. According to Murphy, this is becoming less of an issue as the two cultures begin to converge and U.S. women become better educated about Japanese skin care techniques.
With its finger on the pulse of trends, Panasonic is currently exploring the European market as well, which was expecting an at-home beauty devices market boom of 25% for 2014, outpacing the U.S.—a growth largely driven by competing brands and their products. Knowing this, however, has not hindered Panasonic’s interest to push there or in the U.S. market. The key for Panasonic is to set products apart from the competition, and Murphy states that they are doing just that by sheer product design and customer experience. “They are good quality [products] and they do what they say they will do.”
Though the last two years have featured products created in either Japan or China, Murphy states that Panasonic has many new and innovative products in the pipeline that are currently being customized, and that over the next two years will be both developed and launched in North America.
In the coming year, Panasonic has plans for new product packaging, exploring development in skin care and hair care tools, as well as high-end men’s shavers. In addition, they have plans for a few unique products such as three new shaver and epilator systems: the ES-ED70, ES-ED50, and ES-EU20, each with its own different price point based on features and attachments. Each system will also have its own channel strategy for distribution, of which shopping channels and Internet sales hold the most share of the market’s distribution pie.
Panasonic’s distribution channels currently include Shop.Panasonic.com, Amazon.com, Ulta, Sephora, as well as numerous department stores. Commenting on the growth of online sales, Murphy stated, “Online will continue to grow, but brick and mortar is necessary for stability. I believe there is a value in the touch and feel experience the customer has available in a store.”