Start-up manufacturers are making their mark in the nation's electric appliance sector, creating unique, functional products that are challenging major established makers such as Panasonic Corp. and Sharp Corp.
One such product is The Toaster, launched in 2015 by Balmuda Inc., a start-up manufacturer in Musashino, Tokyo. This new type of toaster bakes bread using steam, which keeps the surface of the bread moist while preserving the original soft texture of the ingredients.
Although The Toaster costs 23,500, yen excluding tax, several times more than normal toasters, it sold a record number of units between April and June 2020.
While major manufacturers tend to offer a variety of models for a single kind of appliance, Balmuda offers only one of each kind, aiming to appeal to consumers through a simple and clear sales approach.
"The products are a good match for department store customers, who have become more particular about their lifestyles," said an official of the Hankyu Umeda Main Store in Osaka. The department store has a Balmuda shop.
The company has been performing well and was listed on the Tokyo Stock Exchange's Mothers market in December 2020. An expert said, "Consumers may have supported the start-up's message that it is unbeatable, especially in this field."
According to the Japan Electrical Manufacturers' Association, the total value of household electric appliances, such as cooking appliances, refrigerators and washing machines, shipped in Japan peaked at 2.676 trillion yen in 1991 and then declined, shrinking to 1.965 trillion yen in 2009. However, volume has been on a recovery trend since 2010. It reached 2.536 trillion yen in 2020, the third-highest level ever, boosted by "nesting consumption" due to the novel coronavirus crisis.
It had been believed that the market for domestic electric appliances was no longer viable. In spite of this, a flurry of young companies entering the sector in the last decade has changed the situation.
Sendai-based Iris Ohyama Inc., one of these companies, produces appliances with minimal functions at prices 30% lower than those of the major manufacturers. Iris Ohyama is highly regarded for its product planning capabilities. It has a 70% share of the market for small futon dryers, which get high ratings for their ease of use.
"The major companies' products are multifunctional but expensive. There are few affordable products with ideas, so there are a lot of opportunities for us," said an official in charge of product development at Iris Ohyama.
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