Home Laundry Appliances in Japan

PROSPECTS

Premiumisation continues to drive home laundry appliances in Japan

In Japan, the possession rate of home laundry appliances is approaching 100% and, with the number of households declining, manufacturers are focusing on product development that justifies higher unit prices, most notably machines capable of dealing with large wash-loads.

The basic benefits of home laundry appliances are still relevant

Japanese consumers consider the basic benefits, the hygiene of their garments, to be the most important factor when choosing home laundry appliances. This encourages manufacturers to offer features such as warm-water washing, bubble washing and auto-cleaning, especially for premium washer dryers.

Connected laundry appliances present an opportunity

Panasonic launched connected washer dryers with an auto-dosing system in Japan in 2017. Since then, other domestic manufacturers, including Hitachi and Sharp, have followed.

COMPETITIVE LANDSCAPE

Hitachi maintains share growth

Hitachi remained the leading player in home laundry appliances in 2018, slightly increasing its volume share during the year. The company has a long-established reputation for producing high-quality home laundry appliances, generating strong brand loyalty amongst Japanese consumers.

Chinese manufacturers expand presence

Home laundry appliances in Japan had been dominated by domestic manufacturers but recent 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 companies initially showed sales declines under Chinese ownership.

Domestic leaders may be under threat

At the global brand owner level, Hitachi and Panasonic, are the only domestic companies responsible for a more than negligible share of home laundry appliances volumes in Japan. While these players lead the category, the competitive environment might dramatically change should Chinese manufacturers such as Haier and Toshiba, using Midea’s technology, start offering premium models that are readily available in their homeland.

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