Japan Consumer Appliances Market

The March earthquake and subsequent shutdown of the nuclear power plant in Fukushima completely transformed the consumer mindset regarding energy use. Following the disaster the Japanese Government officially set the target of a 15% reduction in electricity consumption nationwide, and advertised the reduction of 50% in household electricity use by switching from air conditioners to fans. As a result sales volume of fans surged thereafter as consumers rushed to stores, with fans achieving the highest sales volume in 10 years.

Economic contraction encourages home dining and laundry

The continued economic downturn has put downwards pressure on consumer spending, with people spending an increasing amount of time at home. A trend of ‘uchishoku’ – home-cooked meals – continued to dominate the Japan consumer appliances market, and sales of premium food preparation and cooking appliances both increased in volume. The world’s first auto-rice mill breadmaker, Gopan, also became a huge hit, with home bakery another trend observed in 2011. In addition to home cooking, consumers are increasingly taking care of fashion items at home, and premium irons with a unique symmetrical base shape proved popular.

Increase in pollen allergy and multiple chemical sensitivity among consumers

Although the exact number of Japanese who are allergic to pollen is not known, the Ministry of Health, Labour and Welfare cites research suggesting that approximately 29% of Japan’s population suffers from pollen allergy, with recognised symptoms including a runny nose and watery eyes. The population with pollen allergy is concentrated in urban areas, but the number has been rising, with indoor air quality a major concern among consumers. Air purifiers and humidifiers experienced a spike in sales volume as the news forecasts estimated pollen levels in 2011 to be five to 10 times the 2010 level. In order to maintain clean room air quality, ultra-fine filters are often used in premium vacuum cleaners to reduce dust emissions from the machine. Vacuum cleaners with high levels of filtration limit the release of dust, pollen, mould, bacteria and other particles back into the air.

Demand for larger appliances increases among family households

Larger fridge-freezers over 400 litres are growing rapidly in the refrigeration appliances environment. As more women stay longer in the workforce, family households are storing large quantities of food in refrigeration appliances to avoid frequent trips to grocery stores. Additionally, increasing awareness of cleanliness and health concerns have led to consumers placing items that do not require refrigeration into such units, including rice and flour. Larger laundry machines are also popular among family households. Furthermore, the continued economic downturn has put downward pressure on professional cleaning services, with an increasing propensity among consumers to clean fabric items at home, including thick winter jackets and large blankets.

Electrical goods retailers continue to show strong presence

Although the Eco-point system ended on March 2011, the Tohoku earthquake and the power shortage continued to spur demand for energy-efficient consumer appliances in 2011. The majority of consumer appliance sales are made through electrical goods retailer multiples, and they have benefited the most from the strong-performing consumer appliances market as a whole. Major electrical goods multiples reported sales increases, and further concentration of the industry was also observed. The share of multiple electrical goods retailers has increased over the past 10 years, with their competitive positioning and customer service appealing widely to consumers.