[Jeon Youngsoo's Population Prism] Boom-up of Housekeeping Services Embracing Single Households and Dual-Income Families

Living alone is difficult. Independent self-sufficiency, where you arrange everything by yourself, is even more so. It is impossible unless you are a natural person like those on TV. It is typical of a connected society. Division of labor models dominate both work and life. Since you cannot do everything alone, systems of reliance and delegation become established. The Fourth Industrial Revolution, armed with innovative technologies, further accelerates the division of labor structure in production and consumption. The enhanced efficiency of division of labor is deeply and broadly reflected across all aspects of life. Single-person households certainly feel this. It is hard to even expect family roles, and it is impossible to do everything alone. Borrowing others’ help is natural. Except for a few things done well, most things must be bought or entrusted. The hyper-division society triggered by reduced and changed population dynamics has begun.

Family Dissolution Triggered by Population Changes
Single and Two-Person Households with Dual-Income Realities
Emergence of Delegation Needs in a Division of Labor Society

The core is the demand for delegation. It is the emergence of delegation needs born from a division of labor society. In all aspects of life, inconvenient, unsatisfactory, and anxiety-inducing points that are difficult to resolve alone are expanding. Family dissolution driven by population changes supports this. Considering the trend of splitting from four-person households into single and two-person households and the reality of dual-income employment, the demand for delegation inevitably grows. The purchasing power shifts from family-centered integral consumption to single-generation differential consumption. Single-person households are already the mainstream. In 2018, single-person households surged to 5.85 million households (2.22 million in 2000). Their economic power is better than expected. In 2015, 34% of single-person households lived in their own homes. The proportion of single-person households using four or more rooms increased from 12.2% in 2000 to 31.1% in 2015. This is proof of economic power. This completes the concept of 'differential consumption = delegation market.' Differential consumption by single-person households means externalizing and marketizing the resolution of needs. Given the inevitable expansion of women’s economic activities, government policies are also favorable toward deregulating the delegation market. The outlook for the delegation market is thus bright.

Let’s look at Japan, where differential consumption driven by population changes was confirmed early. The core demand in the delegation market is summarized as household chores. It is common for mothers to work dual incomes, and the elderly population, who find it difficult to maintain daily life due to physical limitations, are potential customers. Household chore delegation has repeatedly flourished and grown to a considerable scale. In TV dramas, housekeepers and butlers appear as main characters. Although the current user experience rate is around ±20%, considering women’s roles and income increases, further growth is expected. In 2017, the household chore delegation service market size increased by 3.1% from the previous year to about 90.6 billion yen (Yano Research Institute). It is steadily growing. The number of businesses (registered cases) increased from 205 in 2006 to 629 in 2014. If it grows this much, the market size is expected to reach about 600 billion yen (Ministry of Economy, Trade and Industry). The main backgrounds for market expansion are △dual-income families △elderly △single-person households △changes in awareness. There is also government support: △labor reduction due to population changes △increased expectations for women’s activities △institutional reforms for women’s advancement △abolition of household chore delegation regulations.

Household chore delegation is divided into services and products. Services are provided by professional and specialized personnel supplying household work. There are also products equipped with household chore delegation functions. These include electronic products emphasizing functionality such as cooking, cleaning, and dishwashing, as well as processed foods like meals and dining out. Product launches embodying actual delegation effects are booming. Robot vacuum cleaners, microwaves, functional washing machines, along with dining out, supermarket side dishes, frozen and processed foods are indispensable essentials. They complete the delegation industry by lowering price resistance while emphasizing high practicality. Intermediate and processed foods linked with delivery services for ingredients and meals are similar. Trends change. Previously, indirect delegation support through specialized products was more common than direct labor employment delegation. This was because household chore delegation involving people was unfamiliar. In the future, the trend will shift from 'products → people.' Whether it is an automatic cleaner with one button or a wrinkle-removing dryer, there are considerable functional limits. The human touch, which machines find hard to replicate, will be emphasized.

Professor Jeon Young-su, Graduate School of International Studies, Hanyang University

The scope is expanding. Regular fixed demand has increased beyond special uses like year-end cleaning. From cleaning bathtubs and windows to everyday household requests for working women, to gifts for weddings, childbirth, and elderly parents, usage is broadening. Satisfaction is high. The touch of specialized know-how with dedicated equipment is certainly more efficient. In other words, it is interpreted as a demand for high-quality household needs rather than simple delegation. The government also focuses on 'life support service industry,' a comprehensive definition covering delegation services such as food, laundry, cleaning, and shopping. It includes full or partial delegation services, individual services specialized in specific tasks, and even food and daily necessities delivery services. Supply is diversifying. The emergence of male staff breaking the 'housework = women' stereotype is an example. Many household chores require male strength, such as moving furniture and disposing of large garbage, and there is subtle discomfort related to household matters that female staff do not want to show. Thanks to this, the lineup is segmented to enable diverse services according to preferences. Customized services by price, gender, and item are emerging.

Delegation Market Highlighted Across Life
Including Food, Laundry, Cleaning, Shopping
Increasing Regular Fixed Demand

Confirmation of new customers means the emergence of a new market. According to a survey by a dual-income specialized magazine (Nikkei Dual), the cost of using household chore delegation services rose from 3.2% in 2012 to 62.7% in 2016. Despite price burdens and reluctance to have strangers visit, it grew significantly. The increase in dual-income and single-person households and the entry of new competitors leading to price reductions worked. Popular services are cleaning (50%), cooking (36%), dishwashing (34%), and laundry (32%). Reasons for use include household burden (21%), absence due to hospitalization (9%), childbirth (9%), and lack of time (9%) (PERSOL, 2016). High satisfaction but low usage remains a limitation due to price burden and psychological resistance. Opportunities focus on subsequent generations with many new customers. The willingness to use is higher among younger people: 22.3% in their 20s, 25.9% in their 30s, 26.8% in their 40s, while 20.0% in their 60s is lower. A common point is that the response for using specialized products (48.7%) is higher than for hiring personnel services (24.1%). This means product-type household chore delegation is still preferred over human services (Asahi University Marketing Research Institute, 2018).

Competition is fierce. The top company, Duskin (ダスキン), with sales around 20 billion yen, aggressively targets the market by emphasizing the wide range of services (Merry Maid). Various delegation tasks across life, from cleaning to laundry, cooking, and shopping, are requested. The second-ranked Hasegawa Kosan (長谷川興産) focuses on expanding franchise stores for cleaning delegation. It offers various additional services to be No.1 in cleaning specialization. In 2016, it was acquired by a UK private equity fund and started IPO preparations. Casy, ranked No.1 in household chore delegation services in 2019 (Nikkei Dual), emerged with the lowest price. Despite a low price of 2,365 yen per hour, it captured customer expectations with high service quality. Market entry from other industries is also observed. Logistics company Senko entered the market in 2017 by acquiring a mid-sized company (Ienonaka Company) through M&A. Real estate developer Property Agent and staffing company Persuna also launched related services (Kurashinity).

This content was produced with the assistance of AI translation services.