Shenzhen company teams up with Panasonic to boost global presence

Skyworth Group’s takeover of part of Panasonic’s TV business will facilitate its entry into high-end international markets, although industry insiders said that uncertainties persist over its ability to compete with established global industry leaders that already have a strong presence there.

The Chinese home appliance manufacturer announced this week that it will take over Japanese electronics giant Panasonic’s TV business in North America and Europe from April.

Based in Shenzhen, Guangdong province, Skyworth said it has forged a strategic partnership with Panasonic, under which it will handle the sales, marketing and logistics of the latter’s TV business in these markets.

READ MORE: China unveils 2026 subsidy scheme for home appliance trade-ins

Skyworth plans to leverage its core strengths in manufacturing, research and development, operations and international sales. Meanwhile, Panasonic will focus on audiovisual R&D — an area where it has long excelled — and continue to provide high-quality products and services. The two companies will also collaborate on the development of high-end organic light-emitting diode television models.

Panasonic retains management of its TV business in its home market and said that it will explore appropriate business models for other markets.

The partnership aligns with both companies’ commitments to technological innovation, quality and globalization, marking a key step in industrial transformation and the enhancement of global core competitiveness, said Zhang Hongjun, president of Shenzhen Chuangwei-RGB Electronics Co Ltd, Skyworth Group’s TV business subsidiary.

The deal signifies a milestone in Skyworth Group’s globalization push. The company previously acquired German electronics maker Metz and Austrian consumer electronics firm Strong, strengthening its presence in Europe.

Overseas markets have become a key driver of Skyworth’s growth. According to its 2025 interim results, the group’s overseas operating revenue reached 8.05 billion yuan ($1,176 million), a year-on-year increase of 7.1 percent.

Skyworth’s partnership with Panasonic followed a memorandum of understanding signed last month between Chinese home appliance maker TCL Electronics Holdings Ltd and Tokyo-based Sony Corp. Under the agreement, the two companies will establish a joint venture in which TCL will hold a 51 percent stake and Sony 49 percent. The new entity will take over Sony’s home entertainment business.

In 2017, Japan’s Toshiba sold its TV unit to Chinese home appliance manufacturer Hisense.

“Japanese firms’ withdrawal from the TV business reflects the loss of core technological advantages, as their slow product updates fail to meet the demands of the fast-changing consumer market,” said Liang Zhenpeng, an independent consumer electronics analyst.

Skyworth’s international market share remains relatively small compared with South Korean giants Samsung and LG. “Acquiring Panasonic’s TV business will not only drive Skyworth’s own growth but also help it better tap into the high-end markets in the United States and Europe,” Liang added.

ALSO READ: TCL to take controlling stake in Sony's TV, audio business

He said that Skyworth’s key strengths lie in manufacturing cost control and supply chain management, but the company faces major challenges in efficiently operating the Panasonic brand overseas, and competing against global giants that enjoy a firm foothold in the market.

Dong Min, secretary-general of the China Video Industry Association, said the global TV market is evolving into a new landscape led by Chinese and South Korean companies.

Establishing partnerships with international industry players with prominent brands and technological strengths is an effective way for Chinese TV enterprises to expand their overseas market share, Dong added.

Contact the writers at sally@chinadailyhk.com