Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Large kitchen appliances; Small electrical appliances
Executive summary
EXECUTIVE SUMMARY
Overall domestic electrical appliances market continues to suffer
Overall volume sales of domestic electrical appliances decreased over the
review period due to limited demand for products including large kitchen
appliances, microwave ovens and small kitchen appliances. The low replacement
rates of domestic appliances and the increasing popularity of second hand
domestic electrical appliances all collaborated to this decline. Some products
did see growth, particularly freestanding units, but still-low sales of such
products did not result in a positive performance for the market as a whole.
2005 growth in refrigeration appliances buoyed by freestanding formats
The number of refrigeration appliances delivered to households in 2005
demonstrated a relative increase over the review period, courtesy of Japanese
consumers' preference for freestanding units, which successfully gained the
approval of eager consumers. Freestanding refrigeration units, apart from
being cheaper than built-in appliances, offer flexibility with regards to
placement within the home, especially among single households in the country.
In value terms, refrigeration appliances declined in 2005, and over the review
period as a whole. The most significant factor preventing value growth of
refrigeration appliances was declining prices, as manufacturers were more
particularly drawn to increasing volume sales.
Convenience drives demand in automatic washer dryers
Consumers' increasing demand for products offering added convenience drove the
performance of automatic washer dryers over the review period. The increasing
number of older people and the number of single-person households represented
the main engines of growth. As a result, sales of these products saw some
slight progress in 2005, with an increase of just over 1% in volume terms,
while in current value terms they declined by a similar amount. This disparity
in performance was due to aggressive price cutting campaigns by retailers.
Japanese women turn to dishwashers
With an increasing number of working women in Japan, automatic dishwashers are
attractive as they allow maximisation of leisure time. As a result these units
are increasingly viewed as a necessity rather than a luxury, and thus saw
volume growth of just over 3% in 2005. The decline in value growth however was
a direct impact of falling unit prices as competition heats up.
Coffee machines -- not a priority small cooking appliance
The increasing number of single households, the number of working couples, as
well as the popularity of vending machines and convenience stores where canned
coffee is easily available, all contributed to the low penetration of coffee
machines in Japanese households. The growing popularity of coffee shops also
contributed to the weak performance. In 2005, retail sales of coffee machines
declined slightly in both volume and value terms, continuing the performance
seen over the review period as a whole.
Automatic washer dryers to see continued demand due to space limitations
Over the forecast period home laundry appliances are expected to enjoy growth
due to increasing demand for automatic washing machines. The declining amount
of space in the average Japanese household will result in sustained demand for
freestanding washing machines which also offer drying functions. In the next
five years, many companies would be planning to increase off-shore production
outside the country, such as Toshiba Co Ltd, in order to appeal to consumers
with low priced but high quality and dependable laundry appliances. Key
players such as Matsushita will also continue to develop competitive products
for global markets, focusing primarily on China, while other key players will
also market unique products that match consumer lifestyles in respective
regions.
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