Kōnosuke Matsushita

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Lore & Background

In 1917, Matsushita left Osaka Electric Light Company to establish his own company in the basement of his tenement. With his wife, his brother-in-law Toshio Iue, and several assistants, he began producing product samples. Most assistants left, leaving only his wife and Iue, who played a key role as a salesman and manager. The early years were difficult: he once pawned his wife's kimono when short on money. The company faced near bankruptcy until an unexpected order for a thousand insulator plates for electric fans saved it. Matsushita later developed a more efficient battery-powered bicycle lamp, personally marketing it to retail bicycle shops. In 1929, he set up a new structure with a parent company and divisions specializing in particular products, with national sales departments and regional offices coordinating sales and manufacturing. During the US occupation after World War II, Matsushita was in danger of being removed as president but was saved by a petition signed by 15,000 employees. In 1947, he lent his brother-in-law Toshio an underused plant to manufacture bicycle lamps, a business that became Sanyo Electric. From 1950 to 1973, his company became one of the world's largest manufacturers of electrical goods. He stepped down as President in 1961, succeeded by his son-in-law Masaharu Matsushita. He remained active until complete retirement in 1973. Since 1954, he gained a significant shareholding in JVC, still retaining a 50% share today. In retirement, he wrote 44 published books; one, 'Developing A Road To Peace And Happiness Through Prosperity', sold over four million copies. In 1979, at age 84, he founded the Matsushita Institute of Government and Management. He died from pneumonia on 27 April 1989 at age 94, with personal assets of US$3 billion and leaving a company with US$42 billion in revenue.

Reader's Guide

Kōnosuke Matsushita's significance lies in founding Panasonic, which grew into the largest Japanese consumer electronics company. His management philosophy earned him the title 'God of Management' in Japan. He pioneered a decentralized corporate structure in 1929, with divisions for key products and regional offices coordinating sales and manufacturing. His survival of the post-war zaibatsu dissolution, aided by a 15,000-employee petition, underscores his leadership's loyalty. In retirement, he authored 44 books, including one selling over four million copies, and established an institute to train future politicians and businessmen. His legacy includes a company with US$42 billion in revenue at his death and personal assets of US$3 billion. He also held a significant shareholding in JVC from 1954. His honors include the Grand Cordon of the Order of the Paulownia Flowers (1987) and posthumous recognition with the China Reform Friendship Medal (2018). His grandsons Masayuki Matsushita (current vice-chairman of Panasonic) and Hiro Matsushita (former Champ Car driver and owner of Swift Engineering) continue in business and aerospace.

Did You Know?

• Matsushita once pawned his wife's kimono when he found himself short on money during the early years of his company.
• He was saved from being removed as president after World War II by a petition signed by 15,000 employees.
• In 1947, he lent his brother-in-law Toshio Iue an underused plant to manufacture bicycle lamps, which became Sanyo Electric.
• One of his books, 'Developing A Road To Peace And Happiness Through Prosperity', sold over four million copies.
• He was awarded the China Reform Friendship Medal posthumously on 18 December 2018.