Home Improvement in Japan

PROSPECTS

Natural disasters influence the market in 2018

Natural disasters exerted a significant influence on demand in home improvement in Japan in 2018. Amongst the several extreme natural events seen in the year were an earthquake in Hokkaido that led to a large-scale blackout, heavy rain in the west of the country that flooded rivers and caused landslides, and a typhoon that damaged Kansai International Airport.

Continued growth in power tools

Power tools saw ongoing growth in 2018 and is expected to continue to see sales rise over the forecast period. Demand is rising amongst non-professionals as DIY becomes increasingly popular in the market.

Contrasting outlooks across categories

Home improvement is expected to see contrasting performances across categories over the forecast period. While categories such as carpet, floor tiles and hand tools are set to register decline between 2018 and 2023, others, including cordless drills, decorative paint and wallpaper, are expected to see ongoing growth.

COMPETITIVE LANDSCAPE

Toto and LIXIL remain the top players in bathroom and sanitaryware

Toto Ltd and LIXIL Group Corp remained the two largest players in bathroom and sanitaryware in 2018. These companies have built strong brands with high levels of consumer recognition and trust.

Shift in competitive landscape in power tools

Having left Hitachi Group, Hitachi Koki Co Ltd changed its company name to Koki Holdings Co Ltd and its brand name to HiKOKI in 2018. Letting go of its power tools business forms part of Hitachi’s strategy of focusing on a narrower range of core businesses.

Further merger and acquisition in home improvement and gardening retailers

Home improvement and gardening retailers, Daiyu LIC Holdings Co Ltd and Valor Holdings, have merged their home centre businesses. The aim of these players, which have outlets in different areas of Japan, is to increase buying power, bolster product development resources and enhance the efficiency of operations in areas such as warehouse management and logistics.

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