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Thursday, October 04, 2001
Matsushita: DVD player production to China


To strengthen price competitiveness, Matsushita Electric is planning to move its DVD (digital video disc) player manufacturing facilities to China.

At the moment all of Matsushita’s low-end DVD players are being produced at factories in Kadoma and Fukujima. The going price for a DVD player is dropping fast in Japan – some models can be bought for as little as 10,000 yen. With competition intensifying, Matsushita has decided to transfer DVD player production to its joint venture in Dalien – China Hualu Matsushita AVC (CHMAVC). Established in 1994, CHMAVC produces 50,000 DVD players a month, most of which are sent to customers in North America.

In fiscal year 2000 (Apr. 2000 – Mar. 2001), Japan’s domestic market created demand for 950,000 DVD players with Matsushita taking 25% of the market. In fiscal year 2001 domestic demand is expected to climb to 1.78 million units. With low-cost models imported from China, Matsushita hopes to keep all of its current market share.


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