According to "Nihon Keizai Shimbun" reported on March 30th, Hitachi Ltd. has begun to discuss the commissioning of white goods production to the outside. Hitachi's white goods were almost all produced in Japan's domestic factories, but future low-priced products will be transferred to OEMs from overseas companies. In addition, the subsidiary responsible for production and sales will also be merged. Hitachi’s white goods business previously focused on the Japanese market. To accelerate the expansion of overseas markets, it will increase cost competitiveness through production outsourcing. Electronic product foundry services in the field of household appliances (appliance for home appliances, etc.) have expanded to white goods.
Hitachi is involved in the white goods business of washing machines, refrigerators, and vacuum cleaners. Sales for fiscal year 2017 (as of March 2018) are expected to be approximately 550 billion yen. Hitachi’s white goods have been manufactured almost entirely in Japanese factories. The future supports the Internet of Things. (IoT) high-performance products will continue to be produced in Japan, low prices Product will be commissioned overseas OEM. First select partners in China and India.
High-performance products produced in domestic factories in Japan will be exported to Asia and other places, and will continue to increase the value of Hitachi’s local brands. On the other hand, the most demanding low-priced products in the Asian market will be manufactured using OEMs against local companies.
Aware of overseas markets, Hitachi will also use external talents in product design. Designers such as Naoto Fukasawa who will be used as 'Mujiki' will be designed. Shenze will be responsible for designing air purifiers launched in China in 2019.
As part of its expansion into overseas markets, Hitachi will merge its subsidiary Hitachi Appliances (AP) and its sales subsidiary, Hitachi Consumer Marketing (CM), by April 2019. It will promote the integration of production and sales. Different consumer needs in different countries are reflected in the planning and development of new products. Most of Hitachi Consumer Marketing's employees will be transferred to Hitachi Electric and will be responsible for planning and marketing teams in different markets.
It is expected that the president of Hitachi Consumer Marketing will be responsible for the domestic business in Japan, and Kobayashi Kobayashi will be responsible for overseas business. The top leader of the new company is expected to be headed by Hitachi Electric's president, Toru Yoshiaki.
By adjusting the production and sales system, Hitachi plans to raise its overseas sales share from the current 20% to 40% by 2021.
In the highly competitive Asian market, Hitachi is committed to lowering costs through OEM. On the other hand, in the mature markets of Japan, it strives to win competition through high value-added products and services.
Hitachi's white goods products launched before 2021 will fully support the Internet of Things. For example, a service will be discussed, that is, on the day that people are in trouble with laundry, press the button on the washing machine to call home cleaning personnel at home. Hitachi 2017 A sweeping robot connected to artificial intelligence (AI) speakers was introduced in the year. It will increase profit margins to over 5% through the Internet of Things strategy.