SAEDNEWS: The founder of Panasonic, Konosuke Matsushita, began his career in the electronics industry in the sales department of Hitachi. In 1918, he established the Matsushita Electric Works factory to manufacture electrical accessories. In this text, we aim to introduce the history and first products of this brand.
According to Saed News’ Success World Service, Panasonic is one of the longest-standing brands in the global electronics industry. This Japanese brand has been active in this sector for over a century. Panasonic Corporation is an international company with Japanese roots that has long been involved in the global electronics market. Until 2008, the company operated under the name Matsushita Electric Industrial and marketed its products under the Panasonic brand and several other brands. On January 10, 2008, the company announced that its official name would also change to Panasonic Corporation. Ultimately, on October 1 of the same year, the company’s name was officially changed to Panasonic.
Throughout its hundred-year history, Panasonic has covered multiple brands and eventually unified all its products under the Panasonic name. The company’s product range, like that of its Japanese competitors such as Sony and Hitachi, is extensive, spanning from small electronic components such as semiconductors to household appliances and aviation entertainment equipment.
Panasonic was founded by Konosuke Matsushita, who made his family name internationally recognized through the company. Often referred to in some media as the "God of Management," Matsushita led the company from its establishment in 1918 until 1961 as its president. In 1961, he handed management over to his son-in-law and continued as an advisor until 1971. Konosuke Matsushita passed away from lung cancer in 1989.
Currently, Panasonic is managed by Kazuhiro Tsuga, with Masayuki Matsushita, a member of the Matsushita family, serving as vice chairman. According to the most recent report, the company’s revenue in 2017 was approximately $70 billion.
Konosuke Matsushita entered the workforce at the age of nine due to Japan’s difficult economic conditions at the beginning of the 20th century and his family’s financial situation. While working in a bicycle shop, he continued his education and studies. His employer noticed Matsushita’s strong interest in business from an early age. After cars and motorcycles were introduced in Japan, he decided to change his profession.
At age 15, Matsushita joined the Osaka Electric Lighting Company. He quickly advanced due to his dedication and, by the age of 22, became a company inspector. Constantly generating new ideas, he designed a lamp socket with claimed improved functionality. However, his employer rejected the development of the product, prompting Matsushita to leave and pursue his vision.
In 1917, Matsushita, together with his wife and brother-in-law, established a small workshop and store in Osaka. Early production of lamp sockets was initially rejected by the market, and the company faced financial challenges. Over time, however, Matsushita gained credibility in the electrical industry and secured a large production order for insulating plates from a major Japanese factory. With the support of his colleagues, he fulfilled this order and gathered the resources necessary for mass production of his ideas. Matsushita officially founded his company in 1918 with just three employees.
The company, officially known today as Panasonic, was originally established on March 17, 1918, under the name Matsushita Electric Housewares Manufacturing Works. Its initial mission was to produce equipment for other factories while also innovating new electrical products. From the very first year, with only three employees, Matsushita sought to expand product variety. By the end of 1918, the company had grown to 20 employees. Its first notable product was a twin lamp socket and an optimized single socket designed by Matsushita himself.
Despite Japan’s economic recession, Matsushita continued to expand. In 1920, he designed a logo for the company and gradually moved toward establishing a recognizable brand. He rented an office in Tokyo to expand operations to other cities. Rapidly increasing demand for Matsushita products led him to rent neighboring homes and a 230-square-meter plot to expand production facilities.
By 1922, the company had 50 employees, and by 1926 it had become an independent company with its own factory. One of its revolutionary early products was a battery-powered bicycle lamp, which quickly achieved strong sales.
One of the first brands under Matsushita was National, chosen as a name for its “national” significance. Products like electric irons and foot warmers increased Matsushita’s presence in the market. His management and communication methods during the company’s early years set an example still relevant to modern business practices. During economic crises, Matsushita maintained employee trust, avoided layoffs where possible, and prioritized quality products that retained public confidence.
In the 1940s, Matsushita focused on affordable, high-quality radios, contributing to the growth of Japan’s radio industry. By the 1950s, he began exploring international markets, visiting the U.S. in 1951 and Europe to study global competition. Panasonic’s first significant international collaboration was with Philips, facilitating shared technical and managerial expertise.
Post-World War II, Panasonic introduced televisions, refrigerators, audio recorders, rice cookers, and air conditioning systems under the National brand, targeting the household appliances market. By the 1970s, Matsushita aimed to expand Panasonic into global markets, establishing subsidiaries in the U.S., Thailand, Pakistan, Vietnam, Uruguay, and eventually Mexico, Puerto Rico, Costa Rica, Peru, Tanzania, the Philippines, and Australia.
By the 1980s, Panasonic diversified into modern electronics, producing VCRs, radios, CD players, camcorders, and later, DVD players and mobile phones. The company’s first notebook computer launched in 1990, and its first mobile phone, the Mova P, was released in 1991. Strategic international collaborations, such as the 1987 partnership in China for CRT television production, further solidified Panasonic’s global presence.
Entering the 21st century, Panasonic integrated multiple subsidiaries and unified its brands, officially adopting the Panasonic name in 2008. While the company has faced challenges, including workforce reductions (such as 40,000 layoffs in 2012), it has continued to pursue innovation, including modern aviation entertainment, alert systems, and collaborations with companies like Tesla to produce automotive batteries.
Panasonic now employs approximately 260,000 people worldwide. Its main divisions include home appliances, automotive smart systems, aviation entertainment, communication technologies, electronics, air conditioning systems, and the major subsidiary Sanyo.
