The revised part-time work law comes into effect on
In response to the work law change, a Japanese woman said: “Well, we still see the ‘glass ceiling’ above; the ceiling is just cleaned up, but it is confirmed that the ceiling is there. We know that the change in law cannot remove it.”
April 01 2008 | Uncategorized | No Comments »
Being an entrepreneur is very tough. Living in Japan is not easy for foreigners. But, I met several foreign entrepreneurs who open the door of the Japanese market and bring in new products and services, which Japanese have never thought of.
How do they do that?
That’s what I was trying to figure out in my dissertation research.
I wrote a paper, titled “Foreign entrepreneurship in Japan - attitudes and characteristics of entrepreneurs and their firms” for my MBA dissertation last year. It investigated foreign entrepreneurship in Japan in light of: characteristics and attitudes of lead entrepreneurs, characteristics and behaviours of newly created firms (organizations), and the perceived business environments that surround the lead entrepreneurs and the new
firms.
Conclusion - Foreign entrepreneurs in Japan hold a unique position for economic activities in Japan. Foreign entrepreneurs play a role from a global perspective in connecting the Japanese market to markets outside Japan. Like entrepreneurs in general, foreign entrepreneurs are predisposed to entrepreneurship. At the same time, they have to be flexible in adapting their behaviours and attitudes to the Japanese business environment while coping with changes in the business environment in Japan.
There are issues, but…
One main issue for foreign entrepreneurs looking for growth in their businesses is dealing with the risk averse nature of Japanese society. In particular, foreign entrepreneurs encounter risk-averse events in business relationships with Japanese corporations, as well as when hiring Japanese employees.
However, being a “foreigner” is still an advantage for foreign entrepreneurs doing business in Japan, as it gives them an excuse to break Japanese business customs. New business approaches as such can be the stimulus of the Japanese economy in promoting the innovation and creation of new businesses in Japan, as well as expanding them to become one key force of the global economy.
Lastly, I thank all of the entrepreneurs who participated in my interviews and online surveys. Now, I can graduate from school 
For further information about the research, please contact me (Noriko) at info@jdr-japan.com.
March 28 2008 | Uncategorized and Weekly Articles | No Comments »
“Yen daka” (yen appreciation) is now a common word flowing around Japanese websites, newspapers and TV programs. The US dollar/yen exchange rate was 95 yen on March 17, falling below 100 yen for the first time since 1995. This has resulted in certain booms in the Japanese market:
The high value of yen to US dollars has encouraged Japanese customers to buy foreign currencies. Sources say that there has been an increase in customers opening bank accounts to start foreign currency transactions. The customers want to buy a large number of US dollars while the value of the dollar is low. This has helped the business of Japanese financial institutions a little, which has been severely hit by subprime-related losses.
Thanks to yen appreciation, the number of Japanese travelling overseas has increased, especially the number visiting the United States. Importantly, the high value of the yen has helped travel agencies to recover the losses they have experienced due to high oil prices, which had reduced the number of travellers overseas. HIS, a Japanese travel agency, cheerfully says on its advertisement for overseas travel services: “Now, take this chance! Take advantage of the high value of the yen.”
The high value of the yen also helps retailers to attract customers wanting imported goods. “Bargain sales of imported goods!” is the catchphrase for supermarkets, such as ItoYokado, to advertise fruit and vegetables from the USA, with low prices being offered on the web, in newspapers and on flyers to get the customer’s attention.
But…
It is not all good news; there is some bad news also. The yen appreciation hurts Japanese exporters, while it benefits Japanese consumers buying imports at a lower cost. Japanese stock prices continue to fall due to the loss in foreign investors, and Japanese politics are uncertain. The high value of the yen has cheered up the Japanese economy a little bit for now: but just for now.
March 28 2008 | Economy and Weekly Articles | No Comments »
“Market research? I don’t know it well…” This is the usual reaction I receive from Japanese when talking with them about market research services. I continue to say: “Well, market research services include online satisfaction surveys…” “Oh, surveys? Uh… I see. Collecting opinions from people, right? We already do it.”
It does not seem that Japanese companies actively use or purchase market research services. For instance, market research sales in China in 2006 increased by 17.8% from the previous year, and in Hong Kong by 12.2%, while the market research sales in Japan increased by only 4.3% in 2006 (Source: ESOMAR Global Market Research 2007).
This can make us wonder: without using market research services, how do Japanese companies understand their customers’ needs and create innovative products?
Here is what I found out from Japanese companies that do not use market research services:
Doing research while selling products/services: Japanese companies collect information about the market, competitors, and their customers as part of sales activities. One Japanese sales consultant said that having a good relationship with distributors and customers is crucial for doing business in Japan, because through this they can get the latest market information from them. He also said that good sales representatives should be excellent listeners so as to understand the needs of their customers in order to offer them the best proposals.
Using own senses to make products: Like artisans who create traditional Japanese art, Japanese engineers are inclined towards using their own senses to develop new products. For example, a cosmetic product development expert creates a skin moisturizer that leaves skin silky smooth by checking the product texture on his own skin. His own senses of feeling, seeing and smelling, not the consumers, are his tools to develop products that delight his consumers.
These findings do not sound like good news for market researchers in Japan. However, they are not just bad news. There seems to be several drawbacks to their approach:
“We cannot rely just on our own senses anymore”, one senior executive of a Japanese manufacturer said. “We have to listen to the voice of our customers.” Yes, indeed. We need to take the voice of customers to top management, not just to sales representatives and product designers.
March 21 2008 | Research and Weekly Articles | 2 Comments »
Japanese consumer confidence has continued to fall. In January 2008 the consumer confidence index was 37.5 points, 0.5 points down from the previous month and 10.6 points down from the previous year. In addition to the overall index, other confidence index figures are down, including overall livelihood and income growth. Indeed, Japanese consumers have really lost confidence.
1. Worry about losing investors
One thing that makes the Japanese worry is the performance of the Japanese stock market. Since the summer of 2007, Japanese stock prices have continued to fall. The average stock price was around 12,500 yen last week, whereas the price was around 17,500 yen in July last year. Japanese economists worry that investors may no longer see the Japanese financial market as attractive as other markets such as China and the South East Asian countries.
2. Worry about few entrepreneurial activities
There is not much in the way of entrepreneurial activity that could revitalize the Japanese economy. According to the Global Entrepreneurship Monitor’s (GEM) 2006 results, early-stage entrepreneurial activity in Japan was 2.9%, the second lowest rate among the 42 countries surveyed. This rate is much lower than that of China (16.2%) and the United States (10.0%). This should make us worry that there are fewer business seeds being sown in the Japanese economy.
3. Worry about educational performance
Another worry is the decline in educational performance of Japanese students. According to the OECD International Student Assessment (PISA) survey of 2006, Japan saw a decline in reading performance between PISA 2000 and PISA 2006. Furthermore, Japan received the lowest score in self-efficacy; a score related to students’ belief in whether they can handle tasks effectively and overcome difficulties.
“We should do something …”
The Japanese government feels a sense of urgency to fix these economic and educational issues. To promote new business, the government offers promotion programs for current and prospective entrepreneurs such as new partnership activities and coordination of market development activities. For education, the Ministry of Education, Culture, Sports, Science and Technology is reviewing current educational guidelines to improve the scientific literacy and reading performance of students.
It should be mentioned that Japan should not worry too much about these issues. Japan is still the second largest economy in the world by real GDP. The literacy rate in Japan amounts to 99% of the total population CIA the World Factbook). However, it is true that the Japanese economy is not as booming as it was in the 70s and 80s, and Japanese students do not necessarily excel over students of other countries in any academic subject. It may be, therefore, only a matter of time before the Japanese begin to really worry about these issues.
March 14 2008 | Culture and Economy and Weekly Articles | No Comments »
Last time I wrote an article about the increase in the working poor in
So, who are ‘fuyuu sou’ (high net worth individuals) in
Definition of HNW Individuals in
In general, high net worth (HNW) individuals in
Key Findings about HNW Individuals
1. Various HNW individuals
Although HNW individuals can be described as a segment in
2. Financially literate
High net worth individuals are usually financially literate. In a 2006 public opinion survey on household financial assets and liabilities, individuals with a high income are more aware of financial information, such as the deposit insurance system (Source: 2006, The Central Council for Financial Services Information). Similarly, a 2006 questionnaire about mutual funds, undertaken by the Investment Trusts Association, indicates that individuals with a high income are aware of, and interested in a wide range of financial products, such as stocks and mutual funds.
3. Ordinary appearance
Not all HNW individuals look ‘rich’. When I attended an interview for research into HNW individuals, a couple of gentlemen showed up wearing shabby clothes and a holding used paper bags in their hands. I could not tell whether they were HNW individuals or not until their identities were confirmed. However, this may be obvious because the less you use your money, the more you can save.
These findings suggest that there are many things companies can learn about HNW individuals when trying to sell them products and services. 
Although they have the common characteristic of possessing high net worth, their lifestyles, attitudes and needs can be very different. Furthermore, HNW individuals seem to be wise enough not to waste money on unworthy products or services.
March 07 2008 | Economy and Weekly Articles | 1 Comment »
“I don’t know what I can trust for our food.” This is how a Japanese woman on the street responded to an interviewer on a television program regarding several food safety issues in Japan.
Recent Chinese-manufactured Gyoza (dumpling) incidents have made consumers investigate where their food is
manufactured and has made them more careful when they buy. When they pick up a package of frozen food at the supermarket, they look at the background information on the package, and put it back when it says ‘made in China’.
Looking at Food Labels with Doubts
Such careful examination of background information on food packaging might not always guarantee food safety. Background information on food packaging may be fraudulent and the food may contain ingredients different from those shown on the label. The expiry date on the food may also be incorrect. People still remember the fraudulent actions of Japanese food manufacturers and restaurants such as Fujiya and Semba Kiccho, which were uncovered last year. Due to these incidents of fraud, Japanese consumers have started to look at the background information on food packaging with suspicion.
Increase in the Number of Complaints
Naturally, the number of consumer complaints about products and services has been on the increase. The Consumer Affairs Centre of Japan received over 8,000 complaints in 2006, about 2.5 times more than in 2002 (Source: 2007, Consumer Affairs Centre of Japan website). “Don’t complain. Don’t make waves.” These saying do not seem to be popular in
Forgotten Total Quality Philosophy
These recent incidents make us wonder – wasn’t it Japanese companies from the 1950s to the 1990s that developed and practiced various quality control approaches such as Kaizen, QC circle, and fishbone diagram? Consumers used to trust manufactures to provide quality products and services without holding any doubts; but not now. This may be the right time, therefore, for Japanese companies to revisit past practices to win back consumer trust.
March 01 2008 | Clothing, Food and Housing | No Comments »
