TOKYO, Sep 23 (News On Japan) –
Is top quality a curse? Reports in South Korea that Hitachi is contemplating promoting its white items enterprise have drawn consideration, elevating questions on the way forward for Japanese home equipment.
Hitachi is reportedly weighing the sale of its dwelling equipment division, which incorporates fridges, washing machines, and microwave ovens. The enterprise is operated by Hitachi Global Life Solutions, and the transfer is a part of broader structural reforms aimed toward concentrating assets on higher-margin infrastructure sectors corresponding to energy programs and railways.
According to South Korean day by day Maeil Business Newspaper, corporations together with Samsung Electronics and LG Electronics have expressed curiosity in buying the division. Both Korean corporations, well known for televisions and digital home equipment, are additionally increasing aggressively in white items.
Hitachi’s home equipment gross sales have been overshadowed by international rivals in recent times. The firm’s equipment unit posted gross sales of about 360 billion yen within the fiscal 12 months ending March 2025, lower than 4 p.c of the Hitachi group’s total income of 9.78 trillion yen. For shoppers, home equipment have lengthy served as an necessary level of name recognition, however for the corporate as an entire, the division has develop into comparatively small.
One paradox is that Japan’s energy in producing sturdy, high-quality home equipment has additionally restricted alternative demand. Washing machines and fridges usually final 10 to fifteen years, that means fewer alternatives for repeat purchases. Unlike subscription-based providers, white items are usually bought as soon as, producing little recurring income.
Hitachi has been shifting focus towards digital providers beneath its Lumada model, which may generate secure, ongoing earnings, in contrast to one-off equipment gross sales. In 2020, Hitachi had already transferred 60 p.c of its abroad equipment enterprise to Turkish producer Arçelik, signaling a gradual withdrawal from the sector.
Competitive pressures have additionally eroded Japan’s place. Chinese gamers corresponding to Haier and Midea have expanded by way of acquisitions, gaining market share with low-priced merchandise. Domestically, Hitachi and Panasonic tried to keep up competitiveness by introducing a system that permits producers to set fastened retail costs, making certain secure margins for each makers and retailers. While helpful in concept, the coverage has been tough to speak to shoppers accustomed to bargaining for reductions.
The broader problem is that additional useful differentiation in home equipment has develop into restricted. With most merchandise already extremely superior—washing machines now even automate detergent use—producers wrestle to supply options that justify premium pricing.
Source: Kyodo