A Company Name Carries the Weight of a Family Name

Matsushita Electric Industrial Co., Ltd., a leading Japanese home appliance manufacturer, will change its company name to "Panasonic" starting this October (2008). It has been 90 years since the late Konosuke Matsushita, still revered as the "God of Management," founded Matsushita Electric Appliance Manufacturing Works. The founder's name, "Matsushita," which has been used for so long, will disappear from the company name. The current management team has declared their unified commitment to building an even stronger brand presence in the global market under the name Panasonic.

The Weight and Lightness of a Company Name

Many people likely feel a sense of unease about the disappearance of the "Matsushita" name. The company name, which has endured for nearly a century since its founding, is deeply ingrained in the minds of consumers. I believe it's more than just that. A company name can be seen as akin to a person's given and family names. Many companies that have continued for 100 or 200 years are still in existence, with labor and management working together to protect their "noren" (business heritage). Changing one's name is unthinkable unless there are compelling circumstances, and I believe the same applies to company names. It is only natural for some to question the casualness of changing a company name.

Matsushita was founded in 1918. Founder Konosuke Matsushita once delivered a "Founder's Address" to all employees. Its main message was: "The purpose of production is to improve and enrich daily life by making daily necessities abundant and accessible. This is our company's mission." His philosophy was to liberate housewives from domestic labor; there was no mention of making money or increasing sales. Many people likely resonate with this founding philosophy.

What About Toyota?

This is one reason why I feel a slight unease about the name change. To digress slightly, this spring (2008), I had the opportunity to hear from Mr. Katsuaki Watanabe, President of Toyota Motor Corporation, the world's number one automaker, at the Japan National Press Club. We asked him to write down his management philosophy. It read: "Diligence, Steadfastness, Improvement." A ripple of surprise went through the reporters inside and outside the venue. For Toyota, a leader in the international arena, the fact that its management philosophy was so Eastern, so Japanese, seemed to evoke a sense of fresh perspective along with a degree of astonishment.

There must be a certain philosophy and principles behind Matsushita's name change. I sincerely hope for its further development, carrying on the founder's intentions. I have one more thing to add. In neighboring China, the company name "Matsushita Electric" will exceptionally continue to be used. This is reportedly because the name "Matsushita" is deeply familiar to consumers. Another reason is the risk of counterfeit products appearing if "Matsushita" disappears. It's a name that has also been familiar in Japan for a long time...