Sanyo was once a very popular and iconic brand in the mass segment, standing almost on a par with Sony and Sharp. It seemed to produce everything from music players, tape recorders and televisions to batteries and solar panels. But why did the brand suddenly disappear? How was the company able to grow from a small factory into a technological giant and why did it collapse, informs Ukr.Media.
How did it all start?
Sanyo's story began in the shadow of Matsushita Electric, the company that would later become Panasonic. It was founded by Konosuke Matsushita, an engineer and businessman who had become famous in the 1920s for his bicycle lights. These lights, reliable and durable, were sold in millions around the world. By 1947, Matsushita Electric had survived the war and remained a major player in home appliances. It is said that the American authorities, fearing its influence, suggested that Konosuke split the company, but perhaps he himself decided to give the new brand a chance.
This is how Sanyo was born – its name translates as “Three Oceans”, a symbol of the dream of global expansion. Toshio Iue, Konosuke's brother-in-law, became the head: his sister Mumeno had been Matsushita's wife since 1915, and Toshio himself had been working in the family workshop since the age of 14, since 1917. Later, he married Konosuke's younger sister, further tying himself to Matsushita. In 1947, Konosuke transferred the factory in Osaka to him, and Sanyo began its journey with the same lanterns. By 1949, it was sending 100,000 sets abroad a year, and on April 1, 1950, it became SANYO Electric Co., Ltd.
In 1952, Sanyo went further: Japan's first plastic radio and an activator-type washing machine brought it its name.
While Americans were getting used to these new products, the Japanese were just discovering the convenience of electronics. By the mid-1950s, Sanyo had flooded the market with televisions, irons, fans, vacuum cleaners, stereos, and exports to the United States—via disassembled radios—had become its calling card.
The rise of Sanyo
Sanyo flourished in the 1960s. The economic recovery after the Korean War gave the company a boost. In 1961, a factory opened in Hong Kong, and in 1962, Cadnica nickel-cadmium batteries appeared – the basis for razors and players.
In the US, Sanyo equipment was even released under the RCA brand, and the MR-100 tape recorder became one of the most popular in the world in the mid-1960s.
At the same time, the company practically did not release its own innovative products. It refined other people's popular technologies, refined them, eliminated shortcomings, and quickly released them to the market.
By the 1970s, after Toshio's death, his brother Kaoru Iue had taken over. He planned to divide production into three parts: for Japan, for export and overseas, with a vision of 100 factories. In 1975, Sanyo bought Fisher Corporation, the American Hi-Fi star, and restored it to its former glory – the Fisher PH-492 radio was proof of this.
And in 1979, the Sanyo M9998 with powerful bass and the M9996 conquered many countries, including the USSR.
At the same time, watches with calculators and radios were released, selling in millions of copies.
By the 1980s, Sanyo had reached its peak: it had become one of the most successful companies of its time. Its radios were sold by the millions every year, and almost every new model became a bestseller.
Profits were in the billions of dollars, and experiments with new products did not stop. Not everything worked out: for example, in the fight for the VCR market, Sanyo created its own V-Cord format. The first version recorded up to 60 minutes of video on a cassette, the second – up to 120 minutes. But the format could not compete with VHS, remaining only an interesting attempt.
The first crises
But in 1986, things took a turn for the worse. Kaoru left over a scandal: faulty Sanyo kerosene heaters led to casualties, and he took the blame. He was replaced by Satoshi Iue's son.
But in 1991, Japan's economic bubble burst. The yen soared, demand fell, and exports became expensive. In 1992, Sanyo went into the red for the first time, cutting back on audio-video production and laying off thousands of employees. It shifted all its attention to batteries, semiconductors, and solar panels. By the way, Sanyo's solar panels made a breakthrough: a plane powered by them crossed America—the first such flight in history.
The company also tried to enter a new direction – digital cameras – the VPC-G1 model in 1995 helped to capture 30% of the “soapbox” market. In addition, the company was engaged in projectors and even began producing phones. However, this division was later sold to Kyocera.
Final collapse
Sanyo seemed to have gotten off to a good start in the 2000s. In 2002, it launched a $30 million solar power plant in Gifu Prefecture, Japan, one of the largest in the world, symbolizing its success in green energy. The company also supplied batteries for hybrid cars from Honda, Ford, and other brands, remaining a leader in that niche.
And then came 2004—the earthquake in Japan hit Sanyo's factories. Losses mounted, debts piled up.
Competition from other Japanese and Korean manufacturers, a lack of innovation in certain key areas, and perhaps not always effective management also played a role in Sanyo's decline.
The company began selling off parts of itself to survive. In 2007, their mobile division was caught in a scandal: it was revealed that they had been hiding losses and falsifying reports. The president of the division fled, and in 2008 it was sold to Kyocera. But even that didn't save it.
What's up with Sanyo?
Today, Sanyo is no longer the independent company it was in its heyday. After financial difficulties caused by crises and poor management decisions, in December 2009, Panasonic acquired 50.19% of Sanyo's shares for $4.6 billion. By April 2, 2012, the takeover process was completed, and Sanyo ceased to exist as an independent corporation. Its assets were divided: home appliances went to the Chinese company Haier, semiconductors to ON Semiconductor, and the brand and technology partly remained with Panasonic.
The Sanyo name is now preserved only as a trademark used for certain products. Panasonic uses the brand for low-cost TVs in India: since 2016, LED models have been produced there, and since 2019, the Kaizen series with Android TV. In the US, Funai makes simple TVs for the Walmart network – nothing outstanding. Haier uses the Sanyo brand for refrigerators and washing machines in Southeast Asia, especially in Japan and China, but these products do not enter global markets, including Europe – Haier's own brand dominates there. Sanyo technologies have also found a continuation, for example, Cadnica batteries have become popular Panasonic Eneloop. However, the former greatness is gone.
