Table of Contents
Consumer Electronics in Japan - Industry Overview
EXECUTIVE SUMMARY
2010 sees recovery from the economic downturn
New technology and innovative product developments spur growth
The switch from analogue to digital broadcasting fuels purchases
Internet retailing continues to gain a greater following
Future performance depends on the impact of the 2011 tsunami and nuclear crisis
KEY TRENDS AND DEVELOPMENTS
Japanese consumers welcome global consumer electronics in 2010
The switch from analogue to digital broadcasting fuels purchases
Online social connections shape consumer electronics in 2010
Internet retailing grows, as it attracts price-sensitive consumers
Specialist retailers
Summary 1 Leading Specialist Retailers 2011
MARKET DATA
Table 1 Sales of Consumer Electronics by Category: Volume 2005-2010
Table 2 Sales of Consumer Electronics by Category: Value 2005-2010
Table 3 Sales of Consumer Electronics by Category: % Volume Growth 2005-2010
Table 4 Sales of Consumer Electronics by Category: % Value Growth 2005-2010
Table 5 Consumer Electronics Company Shares 2006-2010
Table 6 Consumer Electronics Brand Shares 2007-2010
Table 7 Sales of Consumer Electronics by Distribution Format 2005-2010
Table 8 Forecast Sales of Consumer Electronics by Category: Volume 2010-2015
Table 9 Forecast Sales of Consumer Electronics by Category: Value 2010-2015
Table 10 Forecast Sales of Consumer Electronics by Category: % Volume Growth 2010-2015
Table 11 Forecast Sales of Consumer Electronics by Category: % Value Growth 2010-2015
DEFINITIONS
Summary 2 Research Sources
Consumer Electronics in Japan - Company Profiles
Edion Corp in Consumer Electronics (Japan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
INTERNET STRATEGY
PRIVATE LABEL
Summary 5 Edion Corp: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 6 Edion Corp: Competitive Position 2011
Sharp Corp in Consumer Electronics (Japan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 9 Sharp Corp: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 10 Sharp Corp: Competitive Position 2010
Toshiba Corp in Consumer Electronics (Japan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 13 Toshiba Corp: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 14 Toshiba Corp: Competitive Position 2010
Yamada Denki Co Ltd in Consumer Electronics (Japan)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Chart 1 Yamada Denki Co Ltd: Labi in Tokyo
INTERNET STRATEGY
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 17 Yamada Denki Co Ltd: Competitive Position 2011
Camcorders in Japan - Category Analysis
HEADLINES
TRENDS
Camcorders expanded rapidly in 2010, seeing 18% current value growth to reach ¥88.1 billion. In volume terms it grew an astounding 22% in 2010. Affordable and easy-to-use camcorders were popular amongst families, encouraging them to capture videos rather than just photographs of their children. Capturing children in action at school sports events is very common. In addition, camcorders were increasingly popular amongst consumers who enjoy taking short videos to post on online media sites such as YouTube, and on their blogs.
COMPETITIVE LANDSCAPE
Sony Corp led camcorders with a 43% volume share in 2010. Apart from a long-standing well-established reputation in camcorders, Sony Corp also met the needs of different camcorder users by offering a wide variety of models with varying functionalities. In 2010 it fell by seven percentage points from a 50% volume share in 2009 to 43%. This was because of the intensified competition from other manufacturers, such as Victor Co of Japan.
PROSPECTS
HD camcorders is expected to see a strong volume CAGR of 10% in the forecast period, reaching 2.7 million units by 2015. This growth will continue to be spurred by consumers trading-up from digital camcorders to HD camcorders. Digital camcorders is predicted to see a negative volume CAGR of 58%, falling to under 2,000 units in 2015.
CATEGORY DATA
Table 12 Sales of Camcorders by Category: Volume 2005-2010
Table 13 Sales of Camcorders by Category: Value 2005-2010
Table 14 Sales of Camcorders by Category: % Volume Growth 2005-2010
Table 15 Sales of Camcorders by Category: % Value Growth 2005-2010
Table 16 Camcorders Company Shares 2006-2010
Table 17 Camcorders Brand Shares 2007-2010
Table 18 Sales of Camcorders by Distribution Format 2005-2010
Table 19 Forecast Sales of Camcorders by Category: Volume 2010-2015
Table 20 Forecast Sales of Camcorders by Category: Value 2010-2015
Table 21 Forecast Sales of Camcorders by Category: % Volume Growth 2010-2015
Table 22 Forecast Sales of Camcorders by Category: % Value Growth 2010-2015
Cameras in Japan - Category Analysis
HEADLINES
TRENDS
Digital cameras with single lens reflex helped to drive positive volume growth in 2010, with volume sales of digital cameras increasing by 6%. However, as prices became very competitive, the value performance of digital cameras was adversely impacted, with a current value decline of 2% in 2010.
COMPETITIVE LANDSCAPE
Canon Marketing Japan dominated cameras with a 25% volume share in 2010. Apart from a strong brand reputation, it also has an especially broad range of products catering to all users, from beginners to professionals. To enhance brand loyalty, Canon publishes the Canon photo circle magazine, and also has 86 Canon photo clubs within Japan. This helps to engage Canon camera users and create a bond with them.
PROSPECTS
A potential threat to sales of digital cameras could be stagnation. If the new functionalities are not innovative enough to encourage consumers to replace their existing cameras, the replacement cycle could be further prolonged. In 2010 the replacement cycle of cameras stood at 20 months; an increase from 18 months in 2009. An increased replacement cycle will adversely dampen the volume demand for cameras over the forecast period. Therefore, a negative volume CAGR of 2% is anticipated for digital cameras over the forecast period 2010-2015.
CATEGORY DATA
Table 23 Sales of Cameras by Category: Volume 2005-2010
Table 24 Sales of Cameras by Category: Value 2005-2010
Table 25 Sales of Cameras by Category: % Volume Growth 2005-2010
Table 26 Sales of Cameras by Category: % Value Growth 2005-2010
Table 27 Cameras Company Shares 2006-2010
Table 28 Cameras Brand Shares 2007-2010
Table 29 Sales of Cameras by Distribution Format 2005-2010
Table 30 Forecast Sales of Cameras by Category: Volume 2010-2015
Table 31 Forecast Sales of Cameras by Category: Value 2010-2015
Table 32 Forecast Sales of Cameras by Category: % Volume Growth 2010-2015
Table 33 Forecast Sales of Cameras by Category: % Value Growth 2010-2015
Computers and Peripherals in Japan - Category Analysis
HEADLINES
TRENDS
In October 2009 Microsoft released Windows 7 in Japan, which encouraged more consumers to purchase desktops and laptops in 2010. This strong demand was also influenced by attractive lower retail selling prices, due to the high appreciation of the Japanese yen. Further encouraged by good sales of the more premium digital terrestrial-enabled models, desktops and laptops enjoyed healthy current value growth of 12% and 6% respectively in 2010.
COMPETITIVE LANDSCAPE
NEC Corp led computers and peripherals with 14% volume share in 2010, reflecting a slight improvement over its 2009 performance. NEC LaVie aided in sustaining NEC Corp’s leading position despite the competition, via the launch of desktop and laptop models running on the new operating system Windows 7, alongside innovative and first-of-its-kind features such as wireless digital TV tuner. A wireless digital TV tuner enables users to stream and view protected digital TV broadcasts wirelessly, as opposed to needing to connect via cables.
PROSPECTS
Over the forecast period computers and peripherals is expected to see a positive volume CAGR of 4%, reaching sales of 25 million units in 2015. The portability and compactness of tablets and other portable computers is expected to encourage strong sales over the forecast period. Therefore, an increase is anticipated over the forecast period 2010-2015.
CATEGORY DATA
Table 34 Sales of Computers and Peripherals by Category: Volume 2005-2010
Table 35 Sales of Computers and Peripherals by Category: Value 2005-2010
Table 36 Sales of Computers and Peripherals by Category: % Volume Growth 2005-2010
Table 37 Sales of Computers and Peripherals by Category: % Value Growth 2005-2010
Table 38 Computers and Peripherals Company Shares 2006-2010
Table 39 Computers and Peripherals Brand Shares 2007-2010
Table 40 Sales of Computers and Peripherals by Distribution Format 2005-2010
Table 41 Forecast Sales of Computers and Peripherals by Category: Volume 2010-2015
Table 42 Forecast Sales of Computers and Peripherals by Category: Value 2010-2015
Table 43 Forecast Sales of Computers and Peripherals by Category: % Volume Growth 2010-2015
Table 44 Forecast Sales of Computers and Peripherals by Category: % Value Growth 2010-2015
Home Audio and Cinema in Japan - Category Analysis
HEADLINES
TRENDS
Despite slight economic recovery, sales of home audio and cinema products remained in decline in 2010. Volume sales decreased by 9%, reflecting a weaker decline than the 11% volume decline in 2009. In July 2011, Japan will complete the switch from analogue to digital broadcasting. This helped to improve sales of digital TVs, as well as home cinema and speaker systems , which enjoyed volume growth of 3% in 2010.
COMPETITIVE LANDSCAPE
Sony Corp maintained its volume share in home audio and cinema, leading with 16% in 2010. Apart from offering a well-trusted high-quality brand amongst local consumers, Sony Corp has a wide portfolio of products within home audio and cinema, ranging from digital media player docks to home cinema and speaker systems. As it also sells complementary products, such as digital TVs and portable MP3 players, it benefits when consumers decide to purchase their consumer electronics needs from Sony.
PROSPECTS
Home audio and cinema is anticipated to see a negative volume CAGR of 4% and a negative constant value CAGR of 2% over the forecast period. The economic climate in Japan is expected to remain gloomy due to the global economic slowdown and impact of the tsunami and nuclear crisis which occurred in 2011. As consumers become more wary of their expenditure, sales of home audio and cinema products will increasingly be perceived as luxuries rather than essentials, limiting sales to more affluent consumers. Therefore, negative growth is forecast.
CATEGORY DATA
Table 45 Sales of Home Audio and Cinema by Category: Volume 2005-2010
Table 46 Sales of Home Audio and Cinema by Category: Value 2005-2010
Table 47 Sales of Home Audio and Cinema by Category: % Volume Growth 2005-2010
Table 48 Sales of Home Audio and Cinema by Category: % Value Growth 2005-2010
Table 49 Home Audio and Cinema Company Shares 2006-2010
Table 50 Home Audio and Cinema Brand Shares 2007-2010
Table 51 Sales of Home Audio and Cinema by Distribution Format 2005-2010
Table 52 Forecast Sales of Home Audio and Cinema by Category: Volume 2010-2015
Table 53 Forecast Sales of Home Audio and Cinema by Category: Value 2010-2015
Table 54 Forecast Sales of Home Audio and Cinema by Category: % Volume Growth 2010-2015
Table 55 Forecast Sales of Home Audio and Cinema by Category: % Value Growth 2010-2015
In-Car Entertainment in Japan - Category Analysis
HEADLINES
TRENDS
In 2010 in-car entertainment recovered slightly from the global economic recession in 2008 and 2009. In-car entertainment increased by 1% in current value terms to reach ¥309.9 billion in 2010. This was supported by the good performances of in-dash video players and in-car navigation. Positive current value growth of 13% and 4% were enjoyed by these categories respectively in 2010.
COMPETITIVE LANDSCAPE
Alpine Electronics led in-car entertainment in 2010, with a 19% volume share. At the end of 2009 it introduced the model X08 Premium, which boosted its sales in in-car navigation. In 2010 it gained half a percentage point over 2009 in in-car navigation, to reach a 15% volume share, maintaining its lead.
PROSPECTS
A negative constant value CAGR of 10% is predicted for in-car entertainment in the forecast period. This is mainly due to a weak forecast for new car sales over the same period. Sales of cars are unlikely to recover from the persistent slowdown in the global economy and the tsunami and nuclear crisis which occurred in Japan in March 2011. Wary of big ticket items, car purchases are likely to be placed on hold by many, especially the younger generation. With an expected decline in sales of new cars, in-car entertainment will thus take a direct hit, and is expected to see a negative performance over the forecast period.
CATEGORY DATA
Table 56 Sales of In-car Entertainment by Category: Volume 2005-2010
Table 57 Sales of In-car Entertainment by Category: Value 2005-2010
Table 58 Sales of In-car Entertainment by Category: % Volume Growth 2005-2010
Table 59 Sales of In-car Entertainment by Category: % Value Growth 2005-2010
Table 60 In-car Entertainment Company Shares 2006-2010
Table 61 In-car Entertainment Brand Shares 2007-2010
Table 62 Sales of In-car Entertainment by Distribution Format 2005-2010
Table 63 Forecast Sales of In-car Entertainment by Category: Volume 2010-2015
Table 64 Forecast Sales of In-car Entertainment by Category: Value 2010-2015
Table 65 Forecast Sales of In-car Entertainment by Category: % Volume Growth 2010-2015
Table 66 Forecast Sales of In-car Entertainment by Category: % Value Growth 2010-2015
Mobile Phones in Japan - Category Analysis
HEADLINES
TRENDS
In 2010 mobile phones declined by 19% in current value terms to reach ¥554.5 billion. The pessimistic economic situation led the replacement cycle of mobile phones to increase to 46 months in 2010. This meant that consumers changed their mobile phones less frequently, thus leading to a decline in the performance of mobile phones. In addition, as the competition increased, with more domestic manufacturers focusing on smartphones, the price competition became aggressive, and pushed price points downwards, further denting the value growth of mobile phones in 2010. Despite intensive price competition in both feature phones and smartphones, overall unit price of mobile phones increased in 2010. This is because more consumers upgraded from feature phones to the more expensive and advanced smartphones.
COMPETITIVE LANDSCAPE
Sharp Corp led mobile phones with a 25% volume share in 2010. It led feature phones with a 27% volume share by offering a wide range of models. In addition, due to the introduction of the Sharp Galapagos, Sharp Corp enjoyed a rapid increase in sales of smartphones, moving from a 2% volume share in 2009 to 8% in 2010. Its mobile phone sales were also encouraged by its availability across different service providers.
PROSPECTS
Smartphones is expected to see a positive performance in the coming years, with a volume CAGR of 25%. The environment is expected to start showing recovery due to potential new mobile technologies, as mobile phones have become an important means of communication for Japanese consumers. Major domestic companies also started to reduce its use of power consumption during manufacturing to cut costs and strengthen the competition. Sharp, Panasonic, Fujitsu and NEC decided to standardise the software platform for next generation feature phones for NTT Docomo. A common platform, enabling video and music replay, is expected to be launched at the end of March 2012.
CATEGORY DATA
Table 67 Sales of Smartphones by Operating System 2008-2010
Table 68 Sales of Mobile Phones by Type of Contract 2005-2010
Table 69 Sales of Mobile Phones: Volume 2005-2010
Table 70 Sales of Mobile Phones: Value 2005-2010
Table 71 Sales of Mobile Phones: % Volume Growth 2005-2010
Table 72 Sales of Mobile Phones: % Value Growth 2005-2010
Table 73 Mobile Phones Company Shares 2006-2010
Table 74 Mobile Phones Brand Shares 2007-2010
Table 75 Sales of Mobile Phones by Distribution Format 2005-2010
Table 76 Forecast Sales of Mobile Phones: Volume 2010-2015
Table 77 Forecast Sales of Mobile Phones: Value 2010-2015
Table 78 Forecast Sales of Mobile Phones: % Volume Growth 2010-2015
Table 79 Forecast Sales of Mobile Phones: % Value Growth 2010-2015
Portable Media Players in Japan - Category Analysis
HEADLINES
TRENDS
Portable media players faced an increased threat from smartphones in 2010. Portable MP3 players and portable multimedia players were increasingly replaced by smartphones such as the iPhone, which easily plays both audio and video files. Due to the threat from other consumer electronics devices, portable media players declined by 6% in current value terms to reach ¥148.8 billion in 2010.
COMPETITIVE LANDSCAPE
Sony Corp maintained its leading position in portable media players with a 24% volume share in 2010. It gained three percentage points over its 21% volume share in 2009. This was because Sony successfully launched updated models of its Sony Walkman E Series and Sony Walkman S Series, offering consumers improved audio quality at competitive prices.
PROSPECTS
Progressing into the forecast period, intensified competition from other consumer electronics devices is likely to dampen sales of portable media players. Portable MP3 players and portable multimedia players are expected to be increasingly replaced by smartphones such as the iPhone, which easily play both audio and video files. Similarly, consumers may opt to purchase tablets such as the iPad rather than e-readers. Therefore, a negative volume CAGR of 10% is anticipated in the forecast period.
CATEGORY DATA
Table 80 Sales of Portable Media Players by Category: Volume 2005-2010
Table 81 Sales of Portable Media Players by Category: Value 2005-2010
Table 82 Sales of Portable Media Players by Category: % Volume Growth 2005-2010
Table 83 Sales of Portable Media Players by Category: % Value Growth 2005-2010
Table 84 Portable Media Players Company Shares 2006-2010
Table 85 Portable Media Players Brand Shares 2007-2010
Table 86 Sales of Portable Media Players by Distribution Format 2005-2010
Table 87 Forecast Sales of Portable Media Players by Category: Volume 2010-2015
Table 88 Forecast Sales of Portable Media Players by Category: Value 2010-2015
Table 89 Forecast Sales of Portable Media Players by Category: % Volume Growth 2010-2015
Table 90 Forecast Sales of Portable Media Players by Category: % Value Growth 2010-2015
Televisions and Projectors in Japan - Category Analysis
HEADLINES
TRENDS
Replacement demand, stimulated by changes to the eco-points system implemented by the Japanese government and the planned transfer to digital terrestrial broadcasting in July 2011 fuelled volume sales of televisions in 2010. The eco-points system was a government programme which started in May 2009 aimed at promoting the use of energy-efficient consumer electronics, as well as stimulating purchases, by allowing consumers who buy government-designated refrigerators, televisions and air conditioners – which are defined as good for the environment – to apply for points which could be used to buy other goods and services. November 2010 marked the biggest sales, due to the replacement of the main television in the living room, as the number of points was halved from December 2010.
COMPETITIVE LANDSCAPE
Sharp Aquos led LCD TVs with a significant 42% volume share in 2010. Apart from LCD TVs, it also held a strong presence in TV combis, in which it ranked third with a 16% volume share. Its wide range of televisions, alongside its active marketing campaigns, boosted Sharp as a top-of-mind brand amongst consumers. These factors helped Sharp Corp to maintain its leading position of a 40% volume share in televisions in 2010.
PROSPECTS
In LCD TVs, LED TVs is anticipated to become mainstream during the forecast period, especially after 2011, as all manufacturers introduced models with LED backlight during 2010, and retail prices are decreasing, therefore becoming affordable to the majority of consumers.
CATEGORY DATA
Table 91 Sales of Televisions and Projectors by Category: Volume 2005-2010
Table 92 Sales of Televisions and Projectors by Category: Value 2005-2010
Table 93 Sales of Televisions and Projectors by Category: % Volume Growth 2005-2010
Table 94 Sales of Televisions and Projectors by Category: % Value Growth 2005-2010
Table 95 Sales of LCD TVs by Type 2009-2010
Table 96 Sales of OLED TVs by Type 2009-2010
Table 97 Sales of Plasma TVs by Type 2009-2010
Table 98 Televisions and Projectors Company Shares 2006-2010
Table 99 Televisions and Projectors Brand Shares 2007-2010
Table 100 Sales of Televisions and Projectors by Distribution Format 2005-2010
Table 101 Forecast Sales of Televisions and Projectors by Category: Volume 2010-2015
Table 102 Forecast Sales of Televisions and Projectors by Category: Value 2010-2015
Table 103 Forecast Sales of Televisions and Projectors by Category: % Volume Growth 2010-2015
Table 104 Forecast Sales of Televisions and Projectors by Category: % Value Growth 2010-2015
Video Players in Japan - Category Analysis
HEADLINES
TRENDS
BD players saw the highest current value growth of 125% in 2010. This was driven by good sales of flat-screen TVs, boosted by the government’s eco-points system, and by the complete shift to digital terrestrial broadcasting in July 2011. In general, in Japan players do not play a major role; recorders prevail in the market.
COMPETITIVE LANDSCAPE
Sony Corp led video players with a 41% volume share in 2010. Actively promoting its products with the tagline “Easy to start, easy to use”, alongside the introduction of new products, it grew by three percentage points compared with 2009 to achieve a 41% volume share in 2010. Its four new models included mid-priced products, as well as improved remote control functionalities which enhanced the ease of use.
PROSPECTS
Over the forecast period BD players is anticipated to enjoy a healthy volume CAGR of 19%, as more consumers trade-up from DVD players and combi players. This will be encouraged by Japan’s shift from analogue to digital broadcasting, moving the entire country to higher-quality broadcasting. As people become more accustomed to digital broadcasting, more consumers are expected to demand a higher quality of video viewing, thus opting to trade-up to the superior BD players. This shift away from analogue broadcasting also indicates that video players and recorders built for analogue broadcasting will become obsolete, and will be phased out over the forecast period.
CATEGORY DATA
Table 105 Forecast Sales of BD Players Network Connectivity 2010-2015
Table 106 Sales of Video Players by Category: Volume 2005-2010
Table 107 Sales of Video Players by Category: Value 2005-2010
Table 108 Sales of Video Players by Category: % Volume Growth 2005-2010
Table 109 Sales of Video Players by Category: % Value Growth 2005-2010
Table 110 Video Players Company Shares 2006-2010
Table 111 Video Players Brand Shares 2007-2010
Table 112 Sales of Video Players by Distribution Format 2005-2010
Table 113 Forecast Sales of Video Players by Category: Volume 2010-2015
Table 114 Forecast Sales of Video Players by Category: Value 2010-2015
Table 115 Forecast Sales of Video Players by Category: % Volume Growth 2010-2015
Table 116 Forecast Sales of Video Players by Category: % Value Growth 2010-2015