Reasons Why Nitori Appliances Are Gaining Global Attention: The Impact of "Just Right" Pricing and Total Coordination Strategy

1. Introduction: How a Furniture Store Became a Key Player in the Home Appliance Market

Nitori, known for its slogan "Oh, more than just a price," has been dealing with small home appliances since the 2000s. However, from 2023 onwards, it made a significant shift towards large white goods such as refrigerators, washing machines, and televisions.

In June 2025, a "drum-type washer-dryer for 99,900 yen" was featured on news programs, and its cost performance became a hot topic on social media. Washing machine sales reached 200% of the previous year, making the home appliance business a new growth engine for the company.newsdig.tbs.co.jp

2. Behind the Price Disruption: Pursuing "Just Enough"

2-1. Up to 40% Cheaper Than the Market Price

The typical price range for a 10 kg class drum-type washer is 170,000 to 180,000 yen, but Nitori achieved a price below 100,000 yen. The biggest factor is "narrowing down functions." Essential comfort features like automatic cleaning of the drying filter and hot water washing were retained, while additional features like smartphone connectivity were minimized to reduce costs.newsdig.tbs.co.jpnewsdig.tbs.co.jp

2-2. Reducing Costs and SG&A through Vertical Integration

Nitori manages planning, ODM ordering, transportation, store sales, and e-commerce within its group. By chartering its own ships and utilizing large logistics centers at seven domestic locations, it keeps transportation costs and inventory risks low. This eliminates "multiple margins" across manufacturers and retailers, resulting in exceptional price competitiveness.nitorihd.co.jp

3. Shopping Experience Enhanced by Total Coordination Proposals

Customers can compare home appliances in the same sales area after choosing furniture, bedding, and curtains—this is a significant advantage for foreigners looking to make a "one-stop purchase" when moving. On the app, users can place a sofa and refrigerator in the same 3D AR space to instantly check if the colors and textures match. Nitori leverages its strengths as a furniture store to enhance the digital experience, setting it apart from competitors.nitorihd.co.jp

4. Five-Year Warranty and After-Support: Assurance Beyond Cost

Large home appliances come with a standard five-year warranty (for items over 49,900 yen) at no extra charge. Additionally, a paid extension for up to 10 years is available. To address concerns from foreign residents about requesting repairs in Japanese, a multilingual chatbot on LINE has been introduced, supporting seven languages including English, Chinese, and Vietnamese.

By balancing low prices with high-quality support, Nitori fosters brand loyalty that goes beyond mere price appeal.toyokeizai.net

5. Proven Success in Overseas Stores: "Japanese Rationality" Gaining Support in Asia

As of 2025, Nitori operates 151 stores across six regions in Asia, with about 30% officially introducing home appliances. In South Korea and Vietnam, there are reports of home appliance sales areas outperforming furniture in terms of sales per square meter. In regional cities, factors like the "Japanese brand," "five-year warranty," and "same-day delivery" differentiate Nitori from local chains, also capturing the "shopping spree" needs of tourists. Some stores have implemented a scheme for tax-free shipping with Japanese yen payments, catering to customers who find it difficult to visit Japan.nitori.co.jp

6. Breakdown of Doubling Washing Machine Sales: Customer Segment Analysis

• Single Individuals (20s-30s): Demand for replacements is active, centered on models with 6 kg washing and 3 kg drying capacities. The subscription-based "Try Nitori Home Appliances" for 1,500 yen per month is also popular.
  
  

• Families (Households with Children): The 10–12 kg class is the mainstay. Hot water washing and automatic dust removal appeal to working couples, increasing the average customer spend by +18%.
  
  

• Foreign Residents and International Students: The decisive factors are LINE multilingual support and English manuals included. The rental extension plan with a "resale guarantee" is well-received even for short-term stays.
  
  

By optimizing promotions for each segment, the washing machine category alone maintains a double-digit operating profit margin.newsdig.tbs.co.jp

7. Competitor Follow-Up and Changes in Market Structure

Yamada HD and Aeon's private label appliances have entered similar price ranges, intensifying competition. However, competitors with integrated operations of furniture, appliances, and logistics are rare. E-commerce platforms are also moving to shorten private label supply chains to follow the "Nitori model," gradually freeing consumers from the fixed notion that "high functionality equals high price."

Nitori is leading this trend, redefining the "Price × Usefulness × Affordability" (PUA) in the home appliance market.toyokeizai.net

8. Challenges: Responding to Technological Innovation and Environmental Regulations

Behind achieving low prices,

① Lack of development capabilities for cutting-edge features like AI control and IoT connectivity
② Overseas adaptation costs for regulations like the European RoHS and new refrigerant regulations
③ Increased processing burden due to revisions in the Home Appliance Recycling Law

These three points pose future risks. Nitori plans to open R&D centers in Shenzhen, China, and Fukuoka in fiscal 2026 to advance joint development of proprietary SoCs and energy-saving algorithms.nitorihd.co.jp

9. Future Outlook: Towards a "Trinity" of Furniture, Home Appliances, and Housing

In its medium-term management plan, Nitori Holdings aims for sales of 3 trillion yen by 2032, with the "Living Space Solution Business" at its core. The company envisions a circular model that integrates IoT appliances, furniture, and home renovations into a single app, incorporating subscriptions and resale. With global expansion, including the foreign market, Nitori aims for a network of 1,500 stores in 100 countries under the banner of "Japanese Reasonable Quality."

10. Conclusion

The key to Nitori's success in home appliances lies not only in being "cheaper than anywhere else" but also in its unique perspective on "the whole living experience" made possible by being a furniture store, and the optimization of costs and support through vertical integration. For price-sensitive foreign residents in Japan and consumers in emerging markets, Nitori embodies the brand of "just enough without waste" Japanese rationality.

By offering a comprehensive range of furniture and appliances with robust after-service, Nitori's model holds the potential to set new standards in the global home appliance market.

List of Reference Articles

1. TBS NEWS DIG "Washing Machine Sales Double: Is It the 'Just Right' Price?" (2025-06-26) newsdig.tbs.co.jp

2. TBS Television N Sta Video "Full-Scale Entry into Large Home Appliances, Washing Machine Sales Double" (2025-06-26) newsdig.tbs.co.jp

3. Toyo Keizai Online "The Deep Reasons Why Nitori, a Furniture Store, Sells Drum-Type Washer-Dryers" (2025-06-13) toyokeizai.net

4. Nitori Holdings Integrated Report 2024 "Vertical Integration Supply Chain and Expansion of Home Appliances" nitorihd.co.jp

5. Nitori Global News "Announcement of 5th Store Opening in Korea" (2025-06-16) nitori.co.jp