Large Appliances market in Japan is shrinking in terms of volume and is expected to shrink further in the coming years. Some of the major large appliances in Japan have registered negative or stagnant outlook about sales in Japan in terms of volume. High rate of product innovation, their demand and consumer’s willingness to pay for a premium will drive the large appliances market in Japan in terms of value. Large appliances market in Japan is still dominated by domestic brands which have refrained from price war as on September 2016. However, many Chinese and Korean firms are targeting the Japanese market owing to its potential to sell high end technologically advanced products which have higher profit margin.
Growth in demand will be mainly from replacement of old products. As demand in residential real estate picks up, demand for large appliances will also increase simultaneously. Improvement in quality, energy saving appliances, smart home technology and changing consumer preferences will drive the sale in future.
According to Research Analyst at Ken Research, “People willingness to pay the premium for high end products will help to drive the market. New products with value added features or new technology can be sold at higher operating margin. Continuous innovation is necessary to keep margins high and retain brand loyalty”.