Home Audio and Cinema in Japan

2021 DEVELOPMENTS

Shift towards wireless speakers to detriment of traditional home audio products

It is understandable that demand for a number of home audio and cinema products is declining in Japan when the population is decreasing. However, another negative factor in declining demand is the prevalent use of smartphones.

Smart speakers, another innovation to exacerbate declining trend of audio separates

Another accelerator to drive the declining growth trajectory of audio separates has been the emergence of smart speakers led by Google and Amazon. Now consumers do not even need to connect smartphones to speakers, even wirelessly.

Sound bars the only exception

Home cinema and speaker systems remains the only positive performer within home audio and cinema in Japan, driven mainly by soundbars. These are speakers that usually connect to televisions enabling consumers to enjoy a better quality sound experience.

PROSPECTS AND OPPORTUNITIES

Onkyo’s ongoing sales decline and loss of share results in agreement to sell home audio business

Onkyo & Pioneer Corp (Onkyo Home Entertainment Corp), the company that locally represents Onkyo and Pioneer brands in home audio in Japan, exited the Tokyo Stock Exchange in 2021 because the company had negative net worth for two consecutive years. Onkyo originally agreed with Sound United to sell its home audio business in 2019 but the deal was cancelled.

Analogue attracts new consumers searching for different experience

The analogue side of audio is reversing its outdated image due to the increasing trend for vinyl records and turntables, driven not only by nostalgia amongst older consumers but also younger generations, especially digital native Japanese consumers. The latter have grown up in the digital era and have rarely been exposed to music in formats other than digital whether through a smartphone, a laptop, or the cloud.

Boom of soundbars likely to end as television players improve sound quality

Following the dynamic performance of home cinema and speaker systems in Japan towards the end of the review period, the category is predicted to record declines throughout the forecast period. Television manufacturers have become well aware of the trend for soundbars and many of them have started to invest in incorporating better speakers inside the television chassis in an effort to improve sound quality.