A Shift from the Selling-Goods to the Selling-Experiences in a Production Goods Company:

New Challenges for Daikin Technology

Abstract

The outstanding ability of the Daikin Industries Ltd. to develop new products has helped it to overcome successive crises. The company recently set out to shift from a product-oriented to a customer-oriented approach, and it has derived substantial benefits from the change. One example is what the company calls AaaS – the Air-conditioning facility subscription service. This involves the constant supply of fresh air, ranging from the installation of an air-conditioning facility to the provision of operational plans, maintenance or after-sales service for a monthly fee. The company, as part of its focus on potential consumer needs, redirects its attention from the traditional “selling-materials policy” to a “selling-experience policy”. The aim of AaaS is not just to benefit users by optimizing air-conditioning, but also to save them money. With the heightened commoditization in recent years, it has become challenging for companies to sustain their competitive advantage simply through the quality or functionality of their products. The AaaS case of the Daikin suggests that companies can provide users with new values without changing the lineup of products by shifting from product-oriented to customer-oriented service.