White goods in rescue of Japanese electronic manufacturers
Well it goes without saying that where there is a problem there is an opportunity. Now days where ever we turn our head the term of “Economic Down turn” can not be avoided. Well one of the success stories for Japanese consumer electronics manufacturers has been in growing sales in white goods which have been largely driven by impressive demand from overseas market especially from emerging markets. One of the reasons that are contributing to this success despite the economic slowdown has been that price and functionality level have increased. In year 2007 the price of common white goods such as refrigerators, washing machines and rice cookers were higher than they have been in the past three years according to JEMA. It is expected that the sales for room air conditioning, refrigerators and washing machine will expand through the year 2010 where the increase in sale for these items in emerging market such as Brazil, Russia, India and China will be at 5, 12 and 17% respectively. Most of these sales are targeted at wealthy consumers in other Asian markets which will mount to be twice the size of the entire Japanese white good market by 2012. The major contributing factor for Japanese manufacturer in keeping the high price level is due to more investment for research and development in white goods and holding more IP and Patents related technologies than western competitors. One of the companies that have been successful in taking advantage of this opportunity is Panasonic who is enjoying a brisk sale of its white goods in China and South East Asia. The Panasonic’s plan is to market its white goods such as washing machines and refrigerators in Europe from March of this year plus the further consideration of their sales into Russian and Middle Eastern home appliance markets. One of the key in future success in sale of white goods both in domestic market as well as overseas market which has been overlooked is development of products that will be powered by “Direct Current” the type that is generated by photovoltaic systems. The current home appliances run on alternating current electricity. The companies that are in for front of making such development are Panasonic and Sharp. The success in white good market couldn’t have come at a better time where the consumer electronic manufacturers see a long road ahead in recovery in sales for such items as LCD panel TVs and digital cameras.