Dyson’s moves in Japan market pick up headlines

Japan news July 2015

“The Japanese market for vacuum cleaners is heating up”, the Nikkei Marketing Journal (17 June) reports, noting the 2014 year-on-year sales growth of 6% for a total of 9.31mn units. Then, the market benefited from a sales rush for home appliances ahead of the consumption tax rate increase from 5% to 8%.

Under the front page headline, “The suction techniques of Dyson fans”, the article features a photograph of the firm’s founder Sir James Dyson CBE and an example of how in-store sales staff explain the virtues of the vacuum cleaners’ proprietary technology to prospective customers.

The firm attributes some of its recent product introductions to the results of surveys designed to uncover latent customers. These include the DC74 Fluffy cordless cleaner with a larger suction head, enabling it to pick up bigger particles; the Pure Cool air circulator fan with a built-in air cleaning function; and the V6 Mattress that filters out exhaust odour.

Although Electrolux cleaners from Sweden and robot vacuum cleaners from the US are selling well, the undisputed top foreign brand is Dyson from the UK. Dyson’s total sales in fiscal 2013 reached ¥230mn, while last year, it achieved the position of number one in sales on a value basis, accounting for about 24% of the vacuum cleaner market’s total turnover.

On a unit basis, however, the firm’s market share hovers between second and third place, at around 13%. Dyson’s sales boosting strategy will reduce model prices to below ¥50,000 by means of direct sales and factory outlet sales.

The firm’s success in Japan is said to be serving as a springboard to other Asian markets. It has also inspired more foreign firms to enter Japan’s home appliance market.

Leading the pack is Raycop, a South Korean brand featuring a compact hand-held vacuum that claims to remove 93.5% of dust mites from bedding and linen. Designed by Lee Sungjin, a Korean physician, its anti-allergy and anti-bacteria function appeals to apartment residents, who may be reluctant to air their bedding on the veranda.

With more than 3mn units sold in Japan, the firm transferred its corporate headquarters to Tokyo’s Minato Ward in 2013. Raycop prices range from ¥20,000 to ¥45,000.