LIXIL Empowers Asia Pacific’s Water Technology Revolution
Satoshi Konagai, Leader of LIXIL Water Technologies in the APAC region, shares insights regarding LIXIL’s strategic approach to delivering diverse yet consumer-centric designs that captivate while paving the way for future innovation.
The Asia Pacific region holds significant importance in the realm of water technology, especially in post-pandemic times when hygiene and cleanliness at home are increasingly valued. LIXIL, a leading company in this sector, recognises the region’s demand for innovative bathroom and kitchen solutions that fill various needs. Here’s how the brand is spearheading the development of its water technology business in the Asian Pacific region by focusing on delivering high-quality products that are not only functional but also aesthetically pleasing. Discover how LIXIL’s unwavering focus drives its design prowess and fuels a transformative wave in the world of water technology.
Q: What is the role of LIXIL’s water technology business in the company’s overall mission, and why is the Asia Pacific region significant to this?
A: LIXIL is a purpose-driven company that is committed to making better homes a reality for everyone, everywhere. We make pioneering water and housing products and solutions that solve everyday, real-life challenges that touch the lives of over one billion people across the world. Our water technology business makes up about 60 percent of LIXIL’s nearly US$12 billion global revenue. Consumers trust in our brands and solutions to create better homes, bathrooms and kitchens. Through our focus on consumer-centric design, quality and innovation, we have developed numerous industry-leading products and technologies that deliver an exceptional consumer experience with superior hygiene and comfort.
Q: How important is the APAC region to LIXIL’s water technology business, and what unique challenges and opportunities does it present?
A: LIXIL has a presence across the Asia Pacific region, which is an important market for us. The solid regional fundamentals with thriving economies, growing consumer spending and rapid urbanisation is driving demand for bathroom and kitchen solutions that suit local preferences and lifestyles. LIXIL meets these diverse consumer needs through a multi-brand, multi-category portfolio approach with our power brands, American Standard, GROHE and INAX.
For example, our American Standard brand appeals to first-time homeowners, young families and growing households looking for dependable, well-designed products. With complete bathroom solutions in modern aesthetics, our designer and architect business partners can plan in confidence for their projects.
On the other hand, we note a growing trend for personal wellness – physical and mental –which has become much more important after the pandemic. Consumers are increasingly looking to transform their bathrooms from a functional area into relaxation or wellness spaces, where they can retreat to relax, rejuvenate or recharge from their busy lives.
To meet this need, we have developed the GROHE SPA sub-brand, as a premium solution that transforms the bathroom into an oasis of well-being. With modular configurations and personalised shower settings, GROHE SPA offers consumers unique flexibility and freedom to create their own showering experience. This new water experience encompasses all the senses: from calming sounds with different water volumes and spray types, to visual beauty with carefully selected colours and finishes, providing unique tactile experiences with different materials, activating their sense of smell with relaxing and healing scents of essential oils.
By engaging all five senses, GROHE SPA products promote holistic well-being and enable consumers to create their own personalised home oasis for relaxation and rejuvenation. We plan to officially launch GROHE SPA in the region towards end-2023.
Q: How has the COVID-19 pandemic impacted the demand for water technology products and services in APAC? How is LIXIL adapting to meet these changing needs?
A: The pandemic has had a mixed impact on the demand for bathroom and kitchen products and services in the Asia Pacific region. While the pandemic has led to a temporary slowdown in some sectors, such as property development and hospitality, it has also led to an increased demand for products that prioritise hygiene and safety at critical touchpoints in the home, office and in public.
LIXIL has responded by developing new products and technologies that focus on hygiene and safety such as touchless faucets and soap dispensers, as well as smart toilets with automatic cleaning, disinfection functions and anti-bacterial technologies.
For example, to ensure hygiene and sanitation in public places, our American Standard HygieneCleanTM system includes innovations such Double VortexTM flushing design for efficient flushing while conserving water, Aqua CeramicTM anti-stain technology and ComfortCleanTM antibacterial technology.
Q: Can you discuss any new products or technologies that LIXIL is currently developing or plans to release in the near future?
A: In our consumer-centric observation and research, we note that the bathroom and kitchen industry in the region is recovering, driven not only by economic recovery but also by consumer needs, which are shifting along three macro trends:
The first trend is around health and well-being, where consumers are spending more time at home. More attention to physical and mental health and well-being. They increasingly view the bathroom as a spa or wellness area. Secondly, sustainability has become a key word for our industry, especially for the hospitality segment. Consumers are demanding brands and products that help the planet without compromising the customer experience. Finally, we observe that rapid urbanisation is placing pressure on transforming the one-function room into a multi-functional living space. This creates an urgent need to reimagine and plan innovative solutions for better homes.
These macro trends are influencing consumers to seek out fittings and fixtures that act as smart, intuitive helpers that simplify everyday routines – as the borders of the bathroom and bedroom, as well as the kitchen and living room, are dissolving. We have the responsibility to offer bathroom solutions with our industry partners that address these macro trends that influence consumer needs and contribute to improving property value.
In addition to the GROHE Spa regional launch, we also have an active pipeline of new products for 2023, including the new American Standard LOVEN collection, which is a complete bathroom solution designed with full-sized features in a compact footprint. It is very suitable for urban apartments and condominiums.
Q: How does LIXIL ensure that its products are both high-quality and affordable for APAC consumers?
A: The LIXIL brand portfolio includes American Standard, GROHE and INAX with a range of products and solutions from entry-level to luxury offerings. We strive to make our products and solutions accessible to as many consumers as possible
Drawing on our Japanese heritage, we practise the Japanese manufacturing principle of Monozukuri – this focuses on manufacturing excellence and quality. We have also invested in a global manufacturing network and a resilient supply chain, including plants located in Asia Pacific.
This setup helps us respond effectively to changes in consumer demand, provide dependable aftersales support and spare parts availability. These important investments are to provide consumers and our industry partners with the assurance of high-quality products and solutions that are durable, dependable and contribute to improving property value.
Q: How important is collaboration with others in the water technology space? How does LIXIL approach partnerships and collaborations?
A: Partnerships and collaborations are important ways for LIXIL and our partners to address industry-wide and increasingly global issues around hygiene, sanitation and clean water.
In March this year, we updated our environmental strategy that outlines how LIXIL will tackle key environmental issues – climate change mitigation and adaptation, water sustainability, and contributing to the realisation of a circular economy.
With the updated Environment Strategy, we want to reduce our CO2 targets by evaluating our total emissions, including Scope 1, 2, and 3, protect water – one of the most precious resources – and focus on circular solutions that can have a positive impact on our planet; aiming at waste reduction from our facilities, resource efficiency, circularity throughout our products along the value chain.
We see like-minded industry partners, governments and NGOs pursuing some or all of the same goals. This creates mutual understanding and fertile ground for partnerships and collaborations to happen with different stakeholders.
A recent example is where LIXIL, together with many other government organisations, manufacturers, and civil society partners such as World Health Organization and the International Water Association, founded “A Global Pledge to Protect Drinking Water from Lead” at the UN 2023 Water Conference. In this movement, LIXIL works collaboratively with our partners to protect public health and safety and reduce lead exposure from drinking water and achieve lead-free drinking water by 2040.
In addition to addressing social and environmental issues, we also collaborate with other brands to improve the design of products for our customers. GROHE SPA recently partnered with Caesarstone, a global company known for producing high-end engineered surfaces, to create faucet handles with their durable quartz designs, offering a curated range of customised options for architects and designers. The Atrio and Allure Brilliant Private Collections can be paired with Caesarstone countertops for a cohesive bathroom design.
Q: What is LIXIL’s vision for the future of water technology, and how does your team plan to stay at the forefront of innovation in this space?
A: As the three macro trends continue to impact our industry, we will need to develop new solutions backed by innovations to address issues that impact end-consumers and our industry partners. We continue to focus on being consumer-centric to better meet consumers’ diverse needs.
We consciously embed consumer-centric thinking in our research, design and manufacturing processes to meet the diverse needs of consumers across all markets. Applying this approach throughout our business creates relevant, purpose-driven products and we are excited to develop solutions that improve the quality of life and solve real-life challenges faced by consumers in their daily lives.
About Satoshi Konagai
Satoshi Konagai is the Leader for LIXIL Water Technology (LWT) Asia Pacific. He is responsible for leading, developing, and accelerating LIXIL’s water technology business across Asia Pacific, a region poised as LIXIL’s future growth engine.
Satoshi joined LIXIL in 2016 where he was instrumental in establishing Asia Regional Logistics, and developing warehouse functions to build the foundation of operations in the company. He also led end-to-end supply chain initiatives such as manufacturing relocation and synergy creation value chain development. Apart from this, he also supported the Asia CEO to drive strategic initiatives across markets.
Satoshi has skilfully unleashed synergies in LIXIL by removing structural barriers and bringing together businesses and people around a common purpose to further accelerate LIXIL’s growth. He has worked with over 200 members across regions to establish synergy functions and also streamlined operations under Monozukuri.
With over two decades of consulting and management experience in multinational organisations, Satoshi held senior positions at BOSTON CONSULTING GROUP (BCG) and UBS Securities Japan, Investment Banking Division. He has a master’s degree from IMD Business School and a bachelor’s degree from Keio University.
