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FEATURED ARTICLES Smart Life Solutions for People Everywhere Development of Products that Meet Individual Needs Hitachi Global Life Solutions, Inc. has adopted a new corporate slogan based on a mes- sage of 360-degrees of happiness that expresses the aim of delivering new value through a genuinely close relationship with customers. On this basis, it is rolling out new products in Japan that seek to enhance customers’ quality of life by: (1) developing connected home appliances that utilize digital technology, (2) coming up with unique functions in response to customer feedback, and (3) working to generate “design value” that brightens people’s daily lives. Outside Japan, the company is taking a global perspective to product development through collaboration with the Global Product Development Center in Thailand. This article describes the work done to date. Tomohiro Soma Hiroyasu Tamagawa Koji Shirakawa Yukihiro Endo Yusuke Ueno Noriyuki Jinno design their daily lives” as its new concept for future Hitachi home appliances (see Figure 1). 1. Introduction A look at the social landscape of Japan shows how lifestyles are evolving as the structure of soci- Hitachi Global Life Solutions, Inc. (Hitachi GLS) ety undergoes major changes. Once the norm, the has adopted “working closely with customers to number of stay-at-home housewives is now declining. Figure 1 — New 360-degrees of Happiness Corporate Slogan Corporate slogan Hitachi Global Life Solutions has come up Expresses aim of becoming a company with a new corporate slogan of working that delivers new value through a genuinely close relationship with closely with customers to design their daily customers lives. New concept for Hitachi home appliances New concept for future of Hitachi Working closely with home appliances customers to design their daily lives New advertising message Intended for widespread use in television, online, catalog, and in-store POP advertising POP: point of purchase 52. Figure 2 — Social Landscape in Japan The structure of society is undergoing major changes, with an increasing elderly population and an increasing number of dual-income and single- or two-person households. Dual-income families Active seniors Single- or two-person households (time-poor, division of housework duties) (concerned about deteriorating health) (concerned about quality, life fulfillment) Changing numbers of stay-at-home Percentage of single- or Elderly population trend housewives and dual-income families two-person households Households (×10,000) (×10,000) (%) (%) 1,300 4,000 40 100 Households with stay-at-home housewife 90 1,200 Dual-income households Elderly population (65 and older) 80 1,100 3,000 30 70 Percentage of total population 60 1,000 2,000 20 50 900 40 800 30 1,000 10 20 700 10 600 0 0 0 1980 1985 1990 1995 2000 20052010 2015 1950 1960 1970 1980 1990 2000 2010 2020 1980 1985 1990 19952000 2005 20102015 2020 2025 (year) Forecasted (year) Forecasted (year) Source: Cabinet Office 2016 White Paper on Source: Statistics Bureau, Ministry of Internal Affairs Source: National Institute of Population and Social Gender Equality and Communications (2018) Security Research (2018) Accompanying this decline is a rise in the number of of life by: (1) utilizing digital technology to develop dual-income households where housework needs to connected home appliances that can be made more be split between both partners. Moreover, the popula- convenient by post-sale software updating, (2) com- tion of elderly (65 years and older) is also increasing ing up with unique functions in response to customer with an increasing number of “active seniors” who feedback, and (3) working to generate “design value” remain physically fi t while also harboring concerns that brightens people’s daily lives. about deteriorating health. Also increasing are the number of single- or two-person households, a cohort 2. Development of Connected characterized by a desire for quality and life fulfi llment. Appliances that Utilize Digital Technology As the lifestyles of these groups become increasingly diverse, what people want from home appliances is Hitachi is enhancing ease-of-use for customers by also changing rapidly (see Figure 2). developing dedicated smartphone apps for each What is meant by products that meet individual of the connected appliances it currently has under needs given this growing lifestyle diversity? Th e answer development. Th ese apps can be used for things like to this question lies in feedback from customers. Th is controlling the appliance, checking its operation, and includes the activities of the Lifestyle Research Center, accessing support functions. Further improvements in which conducts surveys of how people actually live, usability are also provided by the post-sale updating tests products for ease-of-use, and researches customer of software, including the addition of new functions needs; the establishment of the Voice of Customer such as compatibility with smart speakers. Whereas (VoC) Center to identify the dissatisfactions of prod- the capabilities of past whiteware have been limited to uct users and potential improvements; and engaging what they are capable of at the time of purchase, con- in joint research with universities and other external nected appliances are designed for ongoing improve- partners. Hitachi listens to what individual consum- ments delivered by connecting to the Internet and ers have to say and incorporates what it learns into updating their software. In this way, Hitachi is devel- products and services. oping appliances that are “software-defi ned,” meaning Th e product development undertaken by means that they can evolve along with their users’ lifestyles. of these activities seek to enhance customers’ quality Hitachi is also working with its partners to deliver Hitachi Review Vol. 69, No. 1 52–53 53. Figure 3 — Connected Home Appliances that Support Upgrading via Internet Appliances that can be made even more useful These appliances can be made even more useful by downloading new software by updating their soft ware. Step 1 Deliver greater benefits for customers via smartphone connection Step 2 Add features or make appliances easier to use by downloading new software Step 3 Deliver new services using connected appliances as a user interface Step 1 Step 2 Step 3 Smartphone integration New features or Provision of Compatibility with improved usability new services with smart speakers provided via software external partners Upgradable appliances new services that use connected appliances to inter- face with the customer (see Figure 3). 3. Unique Functions Inspired Hitachi released the HT-L350KTWF induction by Customer Feedback cooktop and the RV-EX20 robotic vacuum cleaner in February 2018. Addressing a common concern As lifestyles become increasingly diverse, so too do the for customers, the induction cooktop comes with features sought in home appliances. Th is in turn calls an easy-to-use function for looking up recipes on a for manufacturers to come up with unique functions smartphone that is able to download instructions to in response to what customers are asking for. Th is sec- the cooktop to specify the cooking time and other tion describes such features developed for refrigerators, settings automatically. Similarly, a smartphone can be cordless handstick vacuum cleaners, washers, and air used to control the robotic vacuum cleaner remotely conditioners. and to program its operation and check its past activ- ity. Post-sale software updates have also made the 3. 1 vacuum cleaner easier to use, including the addition Selectable Zone Refrigerator of new operating modes and voice-activation through A survey that asked refrigerator users about appli- interoperation with smart speakers (see Figure 4). Th e ance capacity and layout found that households with range of connected appliances is being progressively elementary- or junior-high-school-aged children had expanded to include washing machines, refrigerators, large freezer compartments whereas the elderly kept and microwave ovens. large amounts of vegetables (see Figure 5). Th at the sorts of food families want to keep in the refrigerator Figure 4 — Induction Cooktop and Robotic Vacuum Cleaner These appliances can be controlled from special- purpose smartphone apps. 54. FEATURED ARTICLES Figure 5 — Market Research on Refrigerator Capacity and Layout Survey results indicate how freezer and vegetable compartment capacities diff er depending on age and family structure. Freezer and vegetable compartment size Preferred layout prior to purchase Freezer Vegetable (No. of households surveyed) compartment Freezer No strong Vegetables 80%+ 50 – 70% 10 – 40% Other 80%+ 50 – 70% 10 – 40% Other in center opinion in center Other Households with couple only or 312 34% 42% 22% 55% 20% 42% 37% with infants Younger households or Households with children of 55% 36% 30% 58% 24% 35% 40% households elementary school age 136 with children Households with children of 258 52% 42% 36% 57% 21% 35% 43% junior high or older ages 60s Households with single person 275 53% 38% 42% 52% 21% 30% 47% Households or couple with elderly 70s or older Households with single person 114 46% 44% 56% 38% 15% 40% 41% or couple Large capacity a common Capacity requirement varies Preferences differ from actual requirement across all households with age *As of March 2018, based on a survey of 1,095 households by Hitachi Global Life Solutions, Inc. (Hitachi GLS) change as they grow, with diff erences in freezer and conveniently located upper drawer for this purpose vegetable compartment capacities between house- (see Figure 6). holds with diff erent ages or family structures, neces- sitated the idea of an appliance with adjustable sizes 3. 2 for these compartments. Lightweight Cordless Handstick Vacuum Cleaner Th e Selectable Zone refrigerator went on sale in Societal factors such as the increasing number of dual- February 2019 featuring two drawers in the lower income households are behind expanding demand part of the appliance that could be set as either freezer, for cordless handstick vacuum cleaners that are ready chiller, or vegetable compartments as needed.