Daikin Draws on Japanese Sales Tactics in Its Bid to Reclaim the U.S. Market

In recent years, Daikin Industries has faced significant challenges in expanding its presence in the U.S. market. Its early transition to the low-carbon R32 refrigerant led to a shortage of legacy R410A models, resulting in the loss of approximately 8,000 distributors during the transition period and a noticeable erosion of market share to competitors. However, instead of relying solely on pricing strategies or technological advantages, Daikin has chosen to revive Japan’s long-standing and proven “door-to-door sales” approach. Sales representatives are proactively visiting distributors, collecting feedback, and promptly relaying it to senior management — rebuilding trust through close, personal interaction.

Though this approach may seem traditional, it embodies a quintessential spirit of Japanese manufacturing — the belief that diligence and persistence can overcome structural disadvantages. For Daikin, now under pressure in the highly competitive U.S. market, this represents not only a strategic pivot but also a critical test of whether Japan’s relationship-driven business philosophy can succeed on a global stage.

Deep Roots of Daikin’s Face-to-Face Sales Model

To understand why Daikin regards “proactive in-person engagement” as the key to regaining market ground, one must revisit the company’s history in Japan. In the 1970s, Daikin was still a latecomer in the air conditioning market, lacking the robust distribution networks of industry giants like Panasonic and Mitsubishi Electric. To survive, Daikin had to build its own channels from the ground up — dispatching sales representatives to personally visit potential partners, not only traditional appliance retailers but even gas stations and construction material suppliers.

More importantly, Daikin did not simply place its products on shelves. It offered training, installation support, and even assisted retailers in conducting promotional activities. This bottom-up, relationship-focused model gradually earned market trust and transformed Daikin from a follower into a market leader in Japan. Today, Daikin seeks to replicate that same strategy in the United States, hoping to recreate the success it once achieved at home.

A Dual-Track Approach: Integrating Online and Offline Strategies

Beyond its Japanese experience, Daikin’s operations in China also provide valuable insight. Despite a roughly 7% decline in air conditioner sales caused by the country’s sluggish real estate market, Daikin has maintained an operating profit margin exceeding 20% through agile digital marketing and live-stream e-commerce initiatives. This demonstrates that Daikin’s strength lies not only in manufacturing but also in its ability to combine “channel cultivation” with “consumer engagement” as core competitive advantages. In China, Daikin’s sales representatives leverage digital platforms to conduct live product demonstrations while offering hands-on experiences in showrooms and dealerships — creating a seamless “dual-track” synergy between online visibility and offline connection.

If applied to the U.S. market, this model could strengthen dealer loyalty through face-to-face engagement while expanding consumer outreach through digital marketing, forming a mutually reinforcing strategy. For Japanese industry observers, Daikin’s experiment represents a hybrid of tradition and innovation — combining Japan’s relationship-oriented business culture with modern digital tools to build a stronger competitive barrier.

Cultural Gaps and Competitive Pressures in the U.S. Market

Daikin’s challenge in the U.S. extends beyond the shift in refrigerant standards. The greater difficulty lies in adapting to a fundamentally different business culture. American distributors are accustomed to a more “reactive” sales model — waiting for customers to approach — whereas Japan’s approach emphasizes proactive engagement. Implementing a “face-to-face” sales model in such an environment could encounter cultural friction with local dealers.

Furthermore, major U.S. competitors such as Carrier and Lennox are aggressively promoting R454B refrigerant systems in hopes of shaping the new industry standard. For Daikin, the dual challenge lies in rebuilding its dealer network while also positioning itself advantageously in the evolving refrigerant landscape. If Daikin can successfully blend Japanese-style relationship management with American market dynamics, it could turn this current setback into a strategic opportunity.

Can Daikin Regain Its Leadership Position?

Daikin’s strategy embodies the enduring philosophy of Japanese manufacturing — steady effort, sincerity, and long-term trust-building. What may appear to be an old-fashioned “door-to-door” approach in fact reveals deep resilience and adaptability. Whether this strategy succeeds in the U.S. will determine not only Daikin’s ability to reclaim its leadership position but also whether Japan’s business model can transcend cultural boundaries.

Should the effort prove successful, Daikin could reshape the competitive landscape of the U.S. air conditioning market — reaffirming the enduring global value of Japan’s distinctive strengths: its genba power (on-site capability) and kaizen spirit (continuous improvement).

The above insights are based on "Daikin Draws on Japanese Sales Tactics in Its Bid to Reclaim the U.S. Market”, published on https://finance.technews.tw/2025/10/13/daikin/