These
days when customers walk into electronics
outlets, the first question they ask from
helpdesk is how much electricity the
refrigerator, washing machine or laptop computer
they are contemplating buying consumes.
"Energy savings were not exactly a hot topic
among customers last year," said Kim Dong-han at
South Korean electronics retailer Hi-Mart. "But
this year, nine out of ten people ask point
blank whether a product will help them save
money."
With oil at around $145 a barrel and electricity
costs jumping, consumers are becoming
preoccupied with keeping down their power bills.
Electronics makers that develop energy efficient
product lines and market them effectively to
customers may get an edge in a gloomy global
economy, firms said.
"Going green is not only eco-friendly but
crucial for business," said Kim Jik-soo, a
spokesman at LG Electronics Inc. "This goes
beyond just products, extending throughout the
development and manufacturing process."
From washing machines that use steam instead of
hot water, to refrigerators that use low energy
compressors, to low power computer screens,
electronics companies are furiously developing
energy efficient products and heavily promoting
lines already on the market that use less
electricity than competitors' brands.
"My electricity bill more than doubles in the
summer as we turn on the air conditioner," said
Park Yu-jin, 32, a housewife in Seoul with two
children. "I also have to do lots of laundry for
the children. The bill now easily tops 170,000
won ($162) a month," she said.
Homemakers such as Park are increasingly buying
front-load washing machines, which use gravity
to move water instead of agitators as in top
loaders.
And now, newfangled washers from LG Electronics
Inc and Whirlpool Corporation offer an option to
use steam instead of hot water, cutting water
and power use by more than 70 per cent compared
with some top-load models.
"We will gradually shift to front loaders and
the steam technology will become more
mainstream," said LG spokesman Kim.
LG expects four out of ten frontload washers it
sells in North America to use steam technology
by the end of this year, compared with two out
of ten currently.
Their biggest appliance plant in South Korea
makes mostly front loaders, while recently built
plants such as one in Russia have stopped
manufacturing top loaders altogether.
USING LESS POWER
Among refrigerators, which consume 30 per cent
of overall power in a typical home, traditional
compressors are giving way to linear compressors
that use up to 40 per cent less power and make
less noise.
In the computing industry, power-saving has long
been a key priority as bigger and hungrier
gadgets challenge battery life.
PC manufacturers from Apple Inc to the Lenovo
Group are replacing screens lit by conventional
cold cathode fluorescent lamps (CCFLs) with
light emitting diode (LED) displays.
"LED saves up to 40 percent of the power used in
traditional backlights," said Jeff Kim, an
analyst at Hyundai Securities. "Next year they
will be commonly found in notebook screens, and
will be increasingly used in TV panels from
2010."
Market researcher DisplaySearch expects
LED-backlit displays to account for 50 per cent
of notebook panels in 2010, up from 12 per cent
this year. By 2015, all laptop displays will use
LEDs, generating sales of $6 billion (Dh22bn).
LED is also set to claim traditional
incandescent lamps in buildings and on streets.
Samsung Electro-Mechanics Co recently replaced
lighting in the South Korean parliament building
with new LED products and reported LED consumed
just one sixth the power of incandescent bulbs.
HIGHER PRICE TAG
But too often, these energy-efficient products
carry a hefty price premium to reflect the cost
of developing new technologies, which hampers
faster adoption.
For instance, Whirlpool's washing machines with
steam feature are sold at $1,300-$1,500,
compared with a traditional machine priced at
$700.
Still, manufacturers argue that the lifetime
savings from green products could amount to the
price of the appliance itself.
"You could buy another 32-inch LCD TV within
three years with the money saved on electricity
from our 52-inch power-saving TV," said LG's
Kim, referring to a new TV model with a sensor
that adjusts brightness to match surrounding
light levels.
Sometimes a little incentive helps.
Japanese electronics retailer Bic Camera Inc is
running a campaign in which buyers of
eco-friendly products get extra credit points
that can be used for future purchases.
"That's a little nudge to help people buy
products that are more efficient, even if they
are slightly more expensive," said Naoko Ito, a
Bic Camera spokeswoman. "Consumer interest is
high."
A US survey by Forrester Research last year
found that green consumers, who agree to pay
extra for electronics that use less energy or
come from an environmentally friendly
manufacturer, are more brand-loyal than average
consumers.
"More than 25 million US adults fall into this
segment, enough for even the largest consumer
electronics marketers to target," Forrester
analyst Christopher Mines said. "Green-targeted
PCs and other electronics will evolve as part of
the consumer electronics industry's move to go
beyond 'beige box' design," he said.
A green-technology product that establishes new
benchmarks and appeals to concerned consumers
"will have an iconic market presence if done
right," Mines said.
