Home Laundry Appliances in Japan

2020 IMPACT

Government cash helps sales to pick up in the second half of the year

Home laundry appliances saw a strong retail volume decline in 2020, after a solid increase in 2019. However, this performance could have been worse.

The share of automatic washer dryers continues to rise

Automatic washer dryers saw a better performance than automatic washing machines for the last few years of the review period, and this continued in 2020, although in this year it saw a slower retail volume decline. Due to increasingly busy lives, more consumers appreciated the option to dry their clothes in the same appliance.

Major brands focus on washer dryers to add value

Hitachi Appliances continued to lead home laundry appliances in retail volume terms in 2020, followed by Panasonic Corp. These players have long competed in the category, and both are committed to adapting their offers to meet changing consumer lifestyles and generating value through innovation; for instance, both now offer auto-dosing and connectivity in their flagship washer dryers.

Stain removal with sonic technology

Aqua from Haier Aqua Sales focuses on mid-priced models targeting professional single-person households. At the end of the review period the brand introduced automatic washing machines with an ultrasonic device embedded in the machine.

RECOVERY AND OPPORTUNITIES

Sales will fail to reach their pre-COVID-19 level in the forecast period

Home laundry appliances is expected to see a rebound to retail volume growth in 2021, due to the release of pent-up demand after a difficult year in 2020 due to COVID-19. However, sales are not expected to return to the level seen in 2019 in this year, and from 2022 onwards slight sales declines are forecast, meaning no return to the pre-COVID-19 level of sales at any point in the forecast period.

Demand for convenience will reduce demand for semi-automatic washing machines

Semi-automatic washing machines are seen as old-fashioned, and do not meet the consumer demand for convenience, as consumers have to be more involved in the washing process. Retail volume sales are therefore expected to decline strongly in the forecast period.

Share of front-loading washer dryers set to increase due to demand for convenience

Within automatic washer dryers, the share of front-loading products, also known as “drum type” in Japan, is expected to increase. Generally speaking, the “drum type” format is better than the top-loading format at fully drying the laundry within the machine.