Home Laundry Appliances in Japan

PROSPECTS

Convenience driving demand for larger capacities and automatic washer dryers

The possession rate of home laundry appliances is approaching 100% of households in Japan, leaving little room for volume growth (though there is some room for expansion in the fact that the number of households is, in fact, rising despite a contracting population, as the average household size shrinks). As a result, manufacturers are increasingly focusing on the generation of value through upmarket product development.

Gradual increase in interest in connectivity

Connectivity has not gained the recognition and popularity in Japan that it has in nearby countries such as China and South Korea. This results from both consumer conservatism and manufacturers’ reluctance to offer connectivity across their product ranges in the Japanese market.

Auto-dosing becomes an important feature

Panasonic launched connected washer dryers with an auto-dosing system in Japan in 2017, with other domestic manufacturers, including Hitachi and Sharp, following soon afterwards. Auto-dosing has become an increasingly important feature in home laundry appliances, targeting the demand for convenience by ensuring the use of an appropriate amount of detergent without the consumer needing to measure it out.

COMPETITIVE LANDSCAPE

Leaders focus on smart development

Category leader, Hitachi, and, second-placed, Panasonic, have long competed in home laundry appliances. Both companies are committed to adapting their offers to changing consumer lifestyles and generating value through innovation, with both now offering auto-dosing and connectivity in their flagship washer dryers.

Chinese companies’ expansion has changed competitive landscape

Home laundry appliances in Japan had been dominated by domestic manufacturers but acquisitions by Chinese companies and the favourable performance of Haier have changed the competitive landscape. Midea’s acquisition of Toshiba’s appliance company and Hon Hai Precision Industry’s takeover of Sharp were seen as a loss of “Japanese identity” by some Japanese consumers, and the two brands have worked to become more competitive by utilising their owner companies’ production capabilities and expertise.

LG product may need to focus on homeowners

Launched at the end of the review period, LG Twin Wash offers a dual drum feature that enables different garments to be washed at the same time. Reducing the time it takes to complete the laundry, this feature targets busy consumers.

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