Value Proposition canvas- Customer needs and pains
Home Appliance Use among Middle-Income Consumers in CLMV Countries
1. Home Appliance Use among
Middle-Income Consumers
in CLMV Countries
How Thai OEMs can shift to ODMs by learning from the home appliance
experience of consumers in Cambodia, Laos, Myanmar, and Vietnam.
Words by Sawyer J. Lahr, Adisorn Supawatanakul
Disclaimer: All photos and quotes are derived from fieldwork or submitted by
participants. All quotations are verbatim - word-for-word.
2. Project Scope
As a result of a publicly funded design research study conducted by Teak Research founder Adisorn
Supawatanakul in partnership with Chokeanand Bussracumpakorn and commissioned by The
Electrical Institute of Thailand, the study identified four cues of product quality for middle-income
CLMV consumers when making product purchase decisions as well as four emerging roles of home
appliances, both of which can be used to help shift OEM (Original Equipment Manufacturers) in
Thailand to become more like ODM (Original Design Manufacturers) through human-centered design
or design based on consumers values, beliefs, and behaviors.
Private & Confidential | Mulberry Grove CBD | 2
3. I know that appliances are wasteful and consume a lot of
electricity, but for convenience sake, I have them. Nowadays,
society has progressed a lot. If you don’t have it, you’re behind
the times - Mona (Laos).
“
As CLMV countries progress toward further economic and
infrastructural development, the poor regulation of product quality and
imports, lack of consumer protections, and weak utility infrastructure
combine to make electrical appliances very much a necessary evil.
Home Appliance Use among Middle-Income Consumers in CLMV Countries
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4. While appliance use CLMV countries remains more or less a necessary
evil, electrically-powered home appliances do improve quality of life by
fulfilling four major roles in consumers everyday lives: infrastructural,
time-saving, well-being, and recreation.
Home Appliance Use among Middle-Income Consumers in CLMV Countries
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surge-protected
outlets,
built-in backup
battery
Infrastructural
rice-cookers,
blow dryers,
clothing irons,
electric stoves
Time-saving
fans, air coolers,
air conditioners,
refrigerators,
freezers, and
water heaters,
Well-being
televisions,
stereos, karaoke
machines, hot
plates, and
convection ovens
Recreational
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5. “ Based on the label, I should get the energy efficiency advertised, but the
electricity here is not stable. Whenever the electrical current is weak, the air
conditioner just eats electricity” - Prak (Cambodia)
“
Home Appliance Use among Middle-Income Consumers in CLMV Countries
New infrastructural equipment designs could focus on how to help
stabilize the unstable electrical current in countries. We might consider
how a new infrastructural might store electricity safely so that
consumers can continue using their appliances as normal.
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6. If my shirt isn’t ironed, I can’t leave the house. Nowadays people iron their
shirts. If I don’t use the shirt right away, I don’t iron it because when I’m about to
wear it, I have to iron it again. - Kita (Laos)“
Home Appliance Use among Middle-Income Consumers in CLMV Countries
New time-saving appliance designs could focus on how to help
consumers save time in more ways. For example, rice cookers don’t
require monitoring and, therefore, can be run in the background while
people do other activities like watch T.V.
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7. “ When I turn on the air conditioning, I also turn on the fan to help
the room cool faster. Once the temperatures is okay, I turn off the
fan. I didn’t install air conditioning in the living room because it’s too
big and has too many places for the air to escape.” - Song (Cambodia)
“
Home Appliance Use among Middle-Income Consumers in CLMV Countries
New well-being appliance designs could focus on how to more
efficiently manage temperature or heat absorption. For example, air
coolers could be designed with dual functionality; a humidifying air
cooler which can absorb humidity and decrease temperature.
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8. Home Appliance Use among Middle-Income Consumers in CLMV Countries
New recreational appliance designs could focus on better integrating
their use with their function. For example, televisions, stereos, and
karaoke machines could be designed to be more mobile so that they
can be used anywhere in the house close to other activities.
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Right now, I’m working a lot. I don’t have a lot of time. After
work, I get home and want to take a break and watch T.V. I don’t
want to waste time doing this and that. - Nga (Vietnam)
“
9. In summary, our findings suggest that OEM businesses should design
new home appliance products by asking themselves, how might we
design products that support quality of life in the home?
Home Appliance Use among Middle-Income Consumers in CLMV Countries
1.
Design infrastructural
equipment such as
surge-protectors to focus
on how to help stabilize
the unstable electrical
current in CLMV countries
2.
Design time-saving
appliances to focus on
how to help consumers
save time in more ways
and enables users to set it
and forget so they can
enjoy more leisure time
3.
Design well-being
appliances to more
efficiently manage
temperature or heat
absorption in the home
rather than just cool and
circulate air.
4.
Design recreational
appliances to better
integrate their use with
their function by offering
new features or products
that support in-home
recreational activities.
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10. With a new KPI based on what CLMV consumers value in their
appliances, Thai OEMs might also work in partnership with the
governments of Cambodia, Laos, and Myanmar to improve electrical
utility infrastructure in major cities where it is the weakest.
Home Appliance Use among Middle-Income Consumers in CLMV Countries
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Editor's Notes
home appliance consumers in CLMV countries (Cambodia, Laos, Myanmar, and Vietnam) seek a better quality of life by adopting modern appliances as their societies progress toward further economic and infrastructural development. the home appliance industry in these CLMV countries is reaching a point of saturation in that the sheer number of brands both legitimate and counterfeit, imported and domestically produced have made decision-making for consumers more difficult.
New infrastructural equipment designs could focus on how to help stabilize the unstable electrical current in countries like Cambodia, Laos, and Myanmar where these unstable currents can cause electrical shock or appliances to break. Engineers and designers might consider how a new infrastructural wall-fitting might store electricity safely in small quantities in case of drops in electrical current or power outages so that consumers could continue using their appliances as normal until power returns or electrical currents return to normal. While there are products such as air coolers that have backup batteries, OEMs might consider how to generate electricity in the home using the infrastructure of the home in order to power appliances that currently rely on municipal sources.
“If my shirt isn’t ironed, I can’t leave the house. Nowadays people iron their shirts. If I don’t use the shirt right away, I don’t iron it because when I’m about to wear it, I have to iron it again.” - Kita (Laos)
New time-saving appliance designs could focus on how to help consumers save time in more ways or do more in the time they are using the appliance. For example, rice cookers don’t require monitoring and therefore, can be run in the background while people do other activities like watch T.V. OEM engineers and designers might consider how rice cookers could be indicate more accurately the time it takes to cook various types of rice based on the variety (white, brown, red, purple). One might design a countdown to the time of completion so people can better plan their meal preparation or how long of a T.V. show they can watch. The excess heat from steam might be captured in some way to use to steam another food like fish in a tray designed to stack on top and attach to the top of the rice cooker.
“When I turn on the air conditioning, I also turn on the fan to help the room cool faster. Once the temperatures is okay, I turn off the fan. I didn’t install air conditioning in the living room because it’s too big and has too many places for the air to escape.” - Song (Cambodia)
New well-being appliance designs could focus on how to more efficiently manage temperature or heat absorption in the home considering the subtropical climate. For example, air coolers could be designed with the dual function of a humidifier so as to absorb humidity from the air which has the effect of decreasing temperature. The water drawn from the humid air could be recirculated into a refrigerating chamber where the water could be cooled. Or instead of refrigerating the recirculated water, the water might be cooled by an intake vent that pulls outside air across the water to cool it. To reduce energy consumption, refrigerators and freezers might act as a room cooler by periodically releasing a burst of cool air into the room without lowering the temperature of the freezer or refrigerator and therefore cooling down the room to offset the heat created by the powering of the freezer unit.
“Right now, I’m working a lot. I don’t have a lot of time. After work, I get home and want to take a break and watch T.V.. I don’t want to waste time doing this and that. Having home appliances saves me a lot of time.” - Nga (Vietnam)
New recreation appliance designs could focus on changing the interaction with the various appliances or better integrating their use with their function. For example, televisions, stereos, and karaoke machines could be designed to be more mobile so that they can be used anywhere in the house wherever the activity is happening in order allow people to multi-task. One might experiment with battery-power (rechargeable or non-rechargeable), bluetooth technology, and wireless connectivity between devices with or without wireless internet. A hot pot used for entertaining family and friends for dinner might be designed as a more interactive and engaging cooking surface where more than one pot could be heated at the same time or other food could be cooking concurrently. The hot pot might be designed to have removable compartments that fold out to hold veggies and meat or broil another item of meat below the hot pot burner at the same time the pot is boiling.
“When I last moved, I had to give special attention to buying appliances for my kitchen first because it’s something that is necessary. It took over a year until I had everything. Next year, I think I will will upgrade my refrigerator. I want one that’s a little more up-to-date. If I had the money, I would’ve upgraded right away, but, before, I really didn’t have the money” - Nga & Bien (Vietnam)