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INTERVIEW-UPDATE 1-Panasonic Europe upbeat on TV, fridge sales

Published: 03 Sep 2009 16:38:09 PST

* Panasonic's head of Europe says sees growth in next 6 mths

* Crisis could be long but sees signs of positive cycle

* Says business in Europe grew in August year-on-year (Adds more comments, background)

BERLIN, Sep 3 - Panasonic is betting its flat-panel TVs and household appliances will get European consumers to open their wallets, on the back of brisk demand in August and promising retail orders for September.

"The summer was good for us," Laurent Abadie, Chief Executive of Panasonic Europe, told Reuters in an interview on Thursday at the IFA consumer electronics trade fair in Berlin.

"In August, for example, we grew above expectations, more than in the previous year," he said, adding that the industry was benefitting from people spending less money on activities outside the home.

"I think this crisis could be quite long but we see signs of a positive cycle (beginning) ... we have a good response from retailers for September orders," Abadie said.

One of the main drivers for growth in Europe are flat-panel TVs and Abadie said he believed sports events like the Winter Olympic Games next year and the Soccer World Cup would tempt consumers to buy new television sets.

"We have to be cautious but we are planning on growth in the coming six months," Abadie said.

Panasonic aims to sell 15.5 million television units worldwide this year, compared with 10 million last year.

Like rival Sony, Panasonic announced in Berlin it also planned to launch 3D TV technology next year and, like its competitor, declined to give a definite date.

Sony Europe head Fujio Nishida did not share Abadie's optimism. He told reporters that in his opinion western Europe would not see a recovery until this time next year, and Eastern Europe even later.

Abadie only said: "We will be the first company to introduce 3D." Both companies kept quiet on pricing.

Customers were looking mainly for design, screen size and picture quality in TV's. Energy efficiency was less important, Abadie said.

That was different for household goods.

Panasonic, well-established as a "white goods" maker in Asia, introduced household appliances in Europe this year, hoping environmentally-conscious European consumers will pay a premium for low water and energy consumption.

Sales for Panasonic white goods in Europe were "incredible", Abadie said. Panasonic's energy efficient refrigerators were doing especially well, with sales 2-3 times above expectations, Abadie added.

Panasonic already sells home appliances such as air conditioners, vacuum cleaners and microwave ovens in Europe, but its new products are aimed squarely at long-established European appliance makers such as Bosch and Siemens as well as Electrolux .


Source: Reuters

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