The television market is going through a phase of profound reconfiguration. Pressure on prices, Chinese industrial domination, concentration of LCD panel production capacity, and the rise of new players are reshaping the global balance. Against this tense backdrop, Panasonic has announced a strategic partnership with Shenzhen Skyworth Display Technology Co Ltd. Does this alliance mark a pragmatic adaptation to a new industrial reality or the sign of a lasting shift for Japanese brands?
A TV market under pressure and dominated by China
Competition in the TV market is reaching a fever pitch. Chinese manufacturers now occupy a central position in global LCD panel production. The partnership between Sony and TCL is an example of this structural evolution.
TCL has consolidated its industrial hold by acquiring major LCD assets, and now controls almost 23% of the world’s production of large LCD panels, while Chinese players account for over 70% of the global market. This concentration gives Chinese groups decisive strategic leverage: control of volumes, optimization of costs and acceleration of production cycles.
In this context, Japanese brands have to adapt their model to remain competitive with integrated industrial structures capable of large-scale production.
Panasonic faces its own challenges
Panasonic is going through a phase of strategic adjustment. The brand still has a strong image in the premium segment, thanks in particular to its expertise in video processing and faithful content reproduction. However, its high price positioning and the late introduction of certain models, often launched after competitors’ prices have already fallen, limit its commercial impact. This time lag reduces competitiveness in a market where timing and aggressive pricing play a central role.
In this environment, maintaining totally autonomous development represents an industrial and financial challenge.
An industrial partnership for greater agility
The agreement with Shenzhen Skyworth Display Technology Co Ltd is part of this process of adaptation. The Chinese partner is one of the world’s top five television brands, and has extensive development, production and industrialization capabilities.
According to Akira Toyoshima, CEO of Panasonic Entertainment & Communication:
“This new operating model will combine Panasonic’s historical technological excellence in audiovisual processing, quality and service with the industrial strength and large-scale production speed of Shenzhen Skyworth Display Technology Co Ltd, to offer a particularly competitive value proposition to consumers.”
Specifically, Skyworth will manage sales, marketing and logistics in the areas concerned, while Panasonic will contribute its expertise and co-develop high-end OLED models. Panasonic will also continue to provide after-sales service in Europe, even after April 2026.
This scheme is reminiscent of the one set up between Sony and TCL, where the aim is to combine Japanese technological expertise with Chinese industrial power. The strategy is based on better control of costs and time-to-market.
A strategic repositioning with far-reaching implications
This merger comes at a pivotal time for the TV industry. The ability to control production volumes, reduce time-to-market and rapidly adjust prices is crucial to commercial success.
The collaboration with Skyworth could enable Panasonic to accelerate the launch of its new ranges, notably in OLED, and optimize its price positioning. It also raises questions about the evolution of the industrial model of historic brands in the face of the rise of Chinese players.
Summary
The partnership between Panasonic and Shenzhen Skyworth Display Technology Co Ltd reflects a strategic adaptation to a market dominated by Chinese industrial power and intense competition. Panasonic retains its expertise in image processing and product development, while Skyworth contributes its production capacity and logistics expertise.
This new organization could improve the brand’s commercial responsiveness in Europe and boost its competitiveness. It remains to be seen whether this cooperation will enable Panasonic to sustainably consolidate its premium positioning while adapting to current economic demands. The balance between technological excellence, cost control and brand image will determine the company’s future trajectory.
