Osaka – Monday, March 27, 2010
In part 1, answer to question about saving that went on air in a recent TV programme in Japan was introduced, from which discussion on saving and income of Japanese people was developed throughout the article.
In this article, answers to question about divorce that went on air in the same TV programme is introduced, from which discussion on marriage then divorce of Japanese people is to be developed.
1. What was the question asked to Japanese people about divorce and what was their answer?
The questions asked was to find out how many of them are divorced, and surprising 34% answered that they are. This result was extremely shocking to MCs and guests of the TV programme as well as the author because Japanese people are well known for low divorce rate.
2. How attitudes and behaviours of Japanese people regarding marriage have been changing?
First of all, the author would like to discuss how attitudes and behaviours of Japanese people regarding marriage have been changing in this article before discussing those of divorce.
1) There used to be a stereotype concept of marriage.
With stereotype concept of how people lead their lives, there used to be a stereotype concept of marriage in Japan. Majority of Japanese people used to get married in twenties, then males devoted 100% to work until retirement and females became full-time housewives to look after the family. It was quite natural for a couple to have children quite soon after their marriage. They would plan to buy a house (often callen “my-home”), which is a dream and a lifelong task in Japan with extremely expensive real estates. With such a stereotype life plan, it is quite natural that there used to be a stereotype concept of marriage in Japan.
2) Nowadays Japanese people have tendency to marry later than so many decades ago, and marriage is diversifying.
About 40 years ago average age of people getting married was 27 for males and 24 for females, but most people tend to marry later than that today. People used to be very uneasy unless they get married before reaching the age of 30 but today single person in 30s is quite common. Only a decade or so ago, females remaining single in 30s and over used to be called “makeinu” meaning “loser” but such a phrase is now rarely used.
It is interesting to note that there are some extremely young couples (people getting married very young) yet there are some elder couples and couples of huge age gap as well. Such couples have appeared in TV programmes and the author knows in person a few such people.
A few years ago there was a popular TV programme about a romance of a 40 year old female and young male in 20s, and indeed although such a couple is minority there are such couples today. From the TV programme, “ara－for“, abbreviation of “around 40” became a popular phrase then.
Also, it was explicitly mentioned in a recent TV programme that couples of male in 40s and female in later 20s are emerging, although in many cases parents (especially father) of the bride are against and disapprove. According to the TV programme, this trend is because males in 30s, who are usually considered of good age balance with females in late 20s, are reactive (often called “soushokukei” literally “herbivory type”) and do not draw interest of females, whereas males in 40s draw interest of females because they are not reactive, can entertain females, and so forth. Other possible reason not mentioned in the TV programme is that some recent males in 40s are young externally (in appearance) and internally (keeping up with trends etc.). The fact that a big age gap couples (male or female much older) of TV starts are often introduced and this also might be influencing attitudes and behaviours of new generation Japanese people about age gap couple, making them think age gap is not a big problem anymore.
3. Why people tend to marry later in life today?
There are some factors for this including financial and social.
People who are financially independent are quite comfortable being single and rich. This is prominent for those living with parents (i.e. no need to worry about housing), for females in particular, who can use all their income for their personal expenditure. Hence, there is a phrase “dokushin-kizoku”, literally “aristocratic bachelor”, which has been used for a long time now. And unlike the old days, the Japanese society accepts such people.
It is interesting to note that some males decide not to get married young because of low income; they feel they cannot feed his prospect family with his income. With this reason, some people explicitly say that they prefer their prospect wife to continue working after marriage instead of becoming a full-time housewife.
As for the female side, many people now in 30s and 40s preferred to keep on working after marriage (at least until they give birth to a baby) but according to a recent online article, to the author’s surprise, quite a few females in early 20s, even highly-educated, dream of becoming full-time housewives early as possible. This indicates that such young females do not want to challenge work life balance and/or unleash their potential to build successful career, from how they see older women. This implies that Japan is still behind diversity.
In the next article, how attitudes and behaviours of Japanese people regarding divorce have been changing will be discussed.
2010年3月21日日曜日
How Are Attitudes and Behaviours of Japanese Changing? (Part 1)
Osaka – Sunday, March 21, 2010
From a TV programme that went on air in the evening of Saturday, March 13, 2010, Japanese people today seem to be changing from what they used to be and/or the stereotype that many people around the globe have on them. The TV programme staff had implemented survey to Japanese people on various topics and the answers were introduced in the programme. Although some results (answers) were as anticipated, some were surprising to the MCS and guests of the programme, and to the author.
From the answers to the questions, the author would like to try to give insight of how attitude and behaviour of Japanese people have been changing, together with background, in this article and upcoming articles. In this article she focuses on income and personal financing aspects.
1. How Japanese people are changing in general?
At least from the answers to the questions, though they do not necessarily cover all aspects of people’s attitudes and behavior, it is prominent that mindset, attitudes and behaviours of Japanese people have been changing. This is in line with the recent Mckinsey Quarterly March 2010 article “The New Japanese Consumer” by Salsberg (2010), in which the conclusion was that Japanese consumers are becoming more like western counterparts. In general, Japanese society and attitudes and behaviours of Japanese people are becoming westernized.
2. What was the question asked to Japanese people about savings and income, and how did they answer?
The question asked was “do you/your household have saving?” The result was that only 3% answered that they do have saving. This was a shock to MC and guests of the TV programme because Japan used to be famous for its high saving rate; as mentioned in the TV programme saving rate used to be as high as 25% a few decades ago.
3. What are the reasons for drastic drop in saving rate?
This was not discussed in the TV programme but the author would say the primary reason is drastic drop in saving rate. This has changed mindset, attitudes and behaviour of Japanese people.
1) Income of Japanese in general stopped increasing and employment are no longer guaranteed after the bubble economy.
The primary reason for sharp drop in saving rate is the fact that income of majority of Japanese people stopped increasing after the burst of bubble economy. In high-growth period (1955 – 1969), stable-growth period (1970 – 1985) and bubble economy (1986 – 1992), their income constantly increased with constant economic growth. Seniority system and lifetime employment also guaranteed their employment and constant income increase.
During these periods they could plan their personal financial with relative ease and buying houses and cars with loans (including paying much money back by bonus) was not a problem. This is one reason why Japanese people used to (could) prefer high-end department stores and pricier regional supermarkets, and willing to pay prices for quality products, as mentioned in McKinsey’s article mentioned above.
However, with the burst of the bubble economy, their income increase and employment are no longer guaranteed. Unemployment rate started to soar. With restructuring, people in 50s, then 40s, and recently in 30s are losing their job. New graduates have difficulty in getting a job; they graduate in March and start working in April but 20% of new graduates who should start working this April still have not found a job.
2) Decrease in income has effect on the society.
It has been pointed out for some years (and in the TV programme) that increasing people has less than 3 million yen income per year, when “3 million yen income per year” is said to be the bottom line of making a decent living. It is officially regarded that people below this level income is of poverty.
People categorized in this poverty zone include those with skills, competencies and motivation and working hard, long hours, not only who are unemployed. “Working poor” was coined to describe such people. Indeed, to the author’s surprise, there are some people reported in news who die from hunger, in developed country of Japan that is supporting financially to other countries as ODA etc.! Such people, although are of poverty zone, feel guilty of benefitting from welfare aid and do not ask for the aid. It is with this situation that, a well known Japanese economist wrote a book on “How to live by 3 million yen income per year” a few years ago.
3) Decrease in income also has been changing mindset, attitudes and behaviours of Japanese people.
Japanese people used to have strong sense of “belonging to middle class”, but after the bubble economy bursted and especially from Koizumi administration period when bipolarization became so prominent, many Japanese people started to emphasize that there are winners and losers. While there are exceptional “riches” including those who made much money by IT business etc., many of ex-middle classes are falling to the poverty zone.
Under such a circumstances, people, including those who used to be described as “money spenders”, became rather steady, hunting for value, as mentioned in McKinsey’s survey result mentioned above, and came to be strategic in personal financing and saving for all ages (and career building). People in 30s and 40s who were brought up in economic growth and bubble economy were often described as “spend and enjoy today, tomorrow should be OK” compared to older generation described as “limit spending today and save for tomorrow”. But with less income, people in 30s and 40s started to change their attitude about spending. And people in 20s, born after the burst of bubble economy, are “be steady today because you never know about tomorrow”. Therefore, in general they are extremely steady in money spending and strategic in their life plan and personal financing including saving.
However, the TV programme indicates that negative effect of decrease in income and unstable employment seem to be greater than such positive effect to increase saving. This led to drop in saving rate, which seems westernization on the surface.
The topic of the upcoming articles is marriage and divorce, from the same TV programme.
References:-
Salsberg, Brian (2010), The New Japanese Consumer McKinsey Quarterly
https://www.mckinseyquarterly.com/Retail_Consumer_Goods/Strategy_Analysis/The_new_Japanese_consumer_2548
From a TV programme that went on air in the evening of Saturday, March 13, 2010, Japanese people today seem to be changing from what they used to be and/or the stereotype that many people around the globe have on them. The TV programme staff had implemented survey to Japanese people on various topics and the answers were introduced in the programme. Although some results (answers) were as anticipated, some were surprising to the MCS and guests of the programme, and to the author.
From the answers to the questions, the author would like to try to give insight of how attitude and behaviour of Japanese people have been changing, together with background, in this article and upcoming articles. In this article she focuses on income and personal financing aspects.
1. How Japanese people are changing in general?
At least from the answers to the questions, though they do not necessarily cover all aspects of people’s attitudes and behavior, it is prominent that mindset, attitudes and behaviours of Japanese people have been changing. This is in line with the recent Mckinsey Quarterly March 2010 article “The New Japanese Consumer” by Salsberg (2010), in which the conclusion was that Japanese consumers are becoming more like western counterparts. In general, Japanese society and attitudes and behaviours of Japanese people are becoming westernized.
2. What was the question asked to Japanese people about savings and income, and how did they answer?
The question asked was “do you/your household have saving?” The result was that only 3% answered that they do have saving. This was a shock to MC and guests of the TV programme because Japan used to be famous for its high saving rate; as mentioned in the TV programme saving rate used to be as high as 25% a few decades ago.
3. What are the reasons for drastic drop in saving rate?
This was not discussed in the TV programme but the author would say the primary reason is drastic drop in saving rate. This has changed mindset, attitudes and behaviour of Japanese people.
1) Income of Japanese in general stopped increasing and employment are no longer guaranteed after the bubble economy.
The primary reason for sharp drop in saving rate is the fact that income of majority of Japanese people stopped increasing after the burst of bubble economy. In high-growth period (1955 – 1969), stable-growth period (1970 – 1985) and bubble economy (1986 – 1992), their income constantly increased with constant economic growth. Seniority system and lifetime employment also guaranteed their employment and constant income increase.
During these periods they could plan their personal financial with relative ease and buying houses and cars with loans (including paying much money back by bonus) was not a problem. This is one reason why Japanese people used to (could) prefer high-end department stores and pricier regional supermarkets, and willing to pay prices for quality products, as mentioned in McKinsey’s article mentioned above.
However, with the burst of the bubble economy, their income increase and employment are no longer guaranteed. Unemployment rate started to soar. With restructuring, people in 50s, then 40s, and recently in 30s are losing their job. New graduates have difficulty in getting a job; they graduate in March and start working in April but 20% of new graduates who should start working this April still have not found a job.
2) Decrease in income has effect on the society.
It has been pointed out for some years (and in the TV programme) that increasing people has less than 3 million yen income per year, when “3 million yen income per year” is said to be the bottom line of making a decent living. It is officially regarded that people below this level income is of poverty.
People categorized in this poverty zone include those with skills, competencies and motivation and working hard, long hours, not only who are unemployed. “Working poor” was coined to describe such people. Indeed, to the author’s surprise, there are some people reported in news who die from hunger, in developed country of Japan that is supporting financially to other countries as ODA etc.! Such people, although are of poverty zone, feel guilty of benefitting from welfare aid and do not ask for the aid. It is with this situation that, a well known Japanese economist wrote a book on “How to live by 3 million yen income per year” a few years ago.
3) Decrease in income also has been changing mindset, attitudes and behaviours of Japanese people.
Japanese people used to have strong sense of “belonging to middle class”, but after the bubble economy bursted and especially from Koizumi administration period when bipolarization became so prominent, many Japanese people started to emphasize that there are winners and losers. While there are exceptional “riches” including those who made much money by IT business etc., many of ex-middle classes are falling to the poverty zone.
Under such a circumstances, people, including those who used to be described as “money spenders”, became rather steady, hunting for value, as mentioned in McKinsey’s survey result mentioned above, and came to be strategic in personal financing and saving for all ages (and career building). People in 30s and 40s who were brought up in economic growth and bubble economy were often described as “spend and enjoy today, tomorrow should be OK” compared to older generation described as “limit spending today and save for tomorrow”. But with less income, people in 30s and 40s started to change their attitude about spending. And people in 20s, born after the burst of bubble economy, are “be steady today because you never know about tomorrow”. Therefore, in general they are extremely steady in money spending and strategic in their life plan and personal financing including saving.
However, the TV programme indicates that negative effect of decrease in income and unstable employment seem to be greater than such positive effect to increase saving. This led to drop in saving rate, which seems westernization on the surface.
The topic of the upcoming articles is marriage and divorce, from the same TV programme.
References:-
Salsberg, Brian (2010), The New Japanese Consumer McKinsey Quarterly
https://www.mckinseyquarterly.com/Retail_Consumer_Goods/Strategy_Analysis/The_new_Japanese_consumer_2548
2010年3月20日土曜日
What Does the Recent Washington Convention Voting Mean?
Osaka – Saturday, March 20, 2010
Nikkei, Japanese newspaper specialized in business/economy, reported on March 19, 2010, that Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulating the international trade in wildlife and animals disapproved trade of bluefin tuna from the Pacific Ocean and the Mediterranean Sea in the meeting held on March 18 in Doha, capital of Katar. This was because developing countries opposed to the proposal of strengthening regulation of international trade, initiated by western developed countries, and therefore the proposal could not win more than 2/3 votes. If the voting result isl officially be approved in the general meeting to be held on March 24 and 25, Japan will be able to continue fishery and import bluefin tuna, a primary fish used in sushi and sashimi, one of the main cuisine that symbolize Japanese food.
1. What was discussed by the Washington Convention Committee members?
Revision of CITES appendix that lists wildlife and animals being banned/regulated in international trade was discussed. Monaco, that proposed immediate banning of export/import of bluefin tuna, emphasized that “with decrease of over 80% of reserves, bluefin tuna is in the crisis of certain destruction”. EU officially submitted the proposal with moratorium, to which other developing countries such as the U.S. supported.
On the other hand, Japan opposed to proposal, advocating “it is important to recover resources while continuing fishery”, to which countries such as Canada, Chile, Korea, Indonesia, Tunisia, Senegal supported. Libya also expressed that it disagrees with the proposal then requested voting.
2. What was the result of the vote?
Both proposals of EU and Monaco were disapproved because they could not win more than 2/3 votes as below.
EU proposal: 42 in favour and 72 opposed
Monaco proposal: 20 in favour and 68 opposed
3. What are the upcoming steps?
Usually voting result of the committee is approved at the general assembly. However, it is possible to repeat the discussion if more than 1/3 participants supports it, and the result of the original vote can be changed if over 2/3 vote as in favour to the revote.
Upcoming Steps of Washington Convention Assenbly
(Source: Nikkei, edited and translated by the author)
General Assembly
↓ ↓
1/3+ Support >> Discussion Restart Proposal Disapproval Officially
↓
Voting at the General Assembly
↓ ↓
1/3+ Against 2/3+ In Favour
↓ ↓
Trade Banning Proposal Disapproved Trade Banning Proposal Approved
4. What is the background of the voting result?
There are mainly 2 points.
1) The proposal did not meet needs of fishery countries of Asia and North Africa etc.
The proposal simply did not meet needs of countries of Asia and North Africa etc. whose fishery plays an important role in their economy and/or food culture. For this reason, such countries disagreed to the proposal; to them the proposal was excessive environmental preservation.
2) Conservation protection measure of ICCAT was evaluated.
ICCAT (International Commission for the Conservation of Tunas) has already proposed resource conservation measure by limiting amount of fishery, and it was highly evaluated. With this measure, majority of the voters believed that banning of bluefish tuna international trade is not necessary and therefore disagreed to the proposal.
5. What is the possible impact if the proposal had won over 2/3 votes and approved?
Approval of the proposal of banning bluefin tuna international trade would have negative effect on fishery and food culture of Japan and others. Bluefin tuna is the main fish used in sushi and sashimi (raw fish dish), both of which symbolize Japanese traditional cuisine. For this reason, banning of the international trade would have such a big effect on both fishery and food culture of Japan. Also, it would have negative effect on countries exporting bluefin tuna and relying on bluefin tuna business; there had been TV programme in which how countries (business owners) make their living by fishery and export of bluefin tuna and how the banning of the international trade would negatively impact on their business and economy were introduced. Banning of the international trade would also have negative effect on countries that now (started to) enjoy bluefin tuna including China.
In addition, the possible effect of approval of the proposal is unlikely to be limited to banning of bluefin tuna international trade. Japan was extremely worried that if the proposal was approved, the items listed in CITES appendix would increase, expanding to such items as cod fish and herring as well, all of which are major cuisine with tradition in Japan. For example, herring is used in a Kyoto traditional cuisine called “nishin-soba”, and its egg i.e. herring roe and is vital in Japanese New Year Cuisine called “osechi” in Japanese, because it symbolizes a wish to be gifted with children, and is enjoyed along with other Japanese traditional food that symbolizes variety of wish.
6. What are the upcoming challenges and issues of Japan?
Although the proposal was disapproved, Japan still cannot be easy; it needs to be responsible for resource management while preserving its food culture. For this reason, Japanese government intends to be proactive in resource management (planning, execution and PR to the international community) and evade from the similar proposal to be submitted to Washington Convention again.
7. What does this incident tell us? What is the lesson from this incident?
The author strongly feels that some lessons are learned from this incident.
1) This incident is a diversity issue, and we all need to respect one another.
To the author, the essence of this is philosophy of diversity. Countries should not inflict their value to others, disregarding standpoint, situation (economic, social etc.) and manners and customers of their counterpart. They also should take into account what may influence the decision/proposal of the issue. Proposal was made by countries that do not eat bluefin tuna and/or are not involved in bluefin tuna fishery and trade, when ICCAT had already started to take measures for its conservation. The author wonder how would they react if similar proposal was submitted to Washington Convention for items such as beef, pork, mutton and turkey that has taken root in their industry/economy, food culture, and manners and customs, especially when countermeasure has already been/about to be taken.
We all need to respect others and their standpoint, manners and customers and so forth. There is no right or wrong, what is superior or inferior. They are just different.
2) International community need to collaborate for co-prosperity.
Although it is a difficult to balance two or more different issues such as global resource conservation/environmental preservation and prosperity (economy, society, food culture etc.), we all need to challenge it, for our sustainability and co-prosperity. This requires collaboration of the international community based on diversity philosophy and pursing an optimum solution including compromising. International collaboration is inevitable because all countries are globally connected and almost every aspect of each countries/regions is interrelated.
Nikkei, Japanese newspaper specialized in business/economy, reported on March 19, 2010, that Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulating the international trade in wildlife and animals disapproved trade of bluefin tuna from the Pacific Ocean and the Mediterranean Sea in the meeting held on March 18 in Doha, capital of Katar. This was because developing countries opposed to the proposal of strengthening regulation of international trade, initiated by western developed countries, and therefore the proposal could not win more than 2/3 votes. If the voting result isl officially be approved in the general meeting to be held on March 24 and 25, Japan will be able to continue fishery and import bluefin tuna, a primary fish used in sushi and sashimi, one of the main cuisine that symbolize Japanese food.
1. What was discussed by the Washington Convention Committee members?
Revision of CITES appendix that lists wildlife and animals being banned/regulated in international trade was discussed. Monaco, that proposed immediate banning of export/import of bluefin tuna, emphasized that “with decrease of over 80% of reserves, bluefin tuna is in the crisis of certain destruction”. EU officially submitted the proposal with moratorium, to which other developing countries such as the U.S. supported.
On the other hand, Japan opposed to proposal, advocating “it is important to recover resources while continuing fishery”, to which countries such as Canada, Chile, Korea, Indonesia, Tunisia, Senegal supported. Libya also expressed that it disagrees with the proposal then requested voting.
2. What was the result of the vote?
Both proposals of EU and Monaco were disapproved because they could not win more than 2/3 votes as below.
EU proposal: 42 in favour and 72 opposed
Monaco proposal: 20 in favour and 68 opposed
3. What are the upcoming steps?
Usually voting result of the committee is approved at the general assembly. However, it is possible to repeat the discussion if more than 1/3 participants supports it, and the result of the original vote can be changed if over 2/3 vote as in favour to the revote.
Upcoming Steps of Washington Convention Assenbly
(Source: Nikkei, edited and translated by the author)
General Assembly
↓ ↓
1/3+ Support >> Discussion Restart Proposal Disapproval Officially
↓
Voting at the General Assembly
↓ ↓
1/3+ Against 2/3+ In Favour
↓ ↓
Trade Banning Proposal Disapproved Trade Banning Proposal Approved
4. What is the background of the voting result?
There are mainly 2 points.
1) The proposal did not meet needs of fishery countries of Asia and North Africa etc.
The proposal simply did not meet needs of countries of Asia and North Africa etc. whose fishery plays an important role in their economy and/or food culture. For this reason, such countries disagreed to the proposal; to them the proposal was excessive environmental preservation.
2) Conservation protection measure of ICCAT was evaluated.
ICCAT (International Commission for the Conservation of Tunas) has already proposed resource conservation measure by limiting amount of fishery, and it was highly evaluated. With this measure, majority of the voters believed that banning of bluefish tuna international trade is not necessary and therefore disagreed to the proposal.
5. What is the possible impact if the proposal had won over 2/3 votes and approved?
Approval of the proposal of banning bluefin tuna international trade would have negative effect on fishery and food culture of Japan and others. Bluefin tuna is the main fish used in sushi and sashimi (raw fish dish), both of which symbolize Japanese traditional cuisine. For this reason, banning of the international trade would have such a big effect on both fishery and food culture of Japan. Also, it would have negative effect on countries exporting bluefin tuna and relying on bluefin tuna business; there had been TV programme in which how countries (business owners) make their living by fishery and export of bluefin tuna and how the banning of the international trade would negatively impact on their business and economy were introduced. Banning of the international trade would also have negative effect on countries that now (started to) enjoy bluefin tuna including China.
In addition, the possible effect of approval of the proposal is unlikely to be limited to banning of bluefin tuna international trade. Japan was extremely worried that if the proposal was approved, the items listed in CITES appendix would increase, expanding to such items as cod fish and herring as well, all of which are major cuisine with tradition in Japan. For example, herring is used in a Kyoto traditional cuisine called “nishin-soba”, and its egg i.e. herring roe and is vital in Japanese New Year Cuisine called “osechi” in Japanese, because it symbolizes a wish to be gifted with children, and is enjoyed along with other Japanese traditional food that symbolizes variety of wish.
6. What are the upcoming challenges and issues of Japan?
Although the proposal was disapproved, Japan still cannot be easy; it needs to be responsible for resource management while preserving its food culture. For this reason, Japanese government intends to be proactive in resource management (planning, execution and PR to the international community) and evade from the similar proposal to be submitted to Washington Convention again.
7. What does this incident tell us? What is the lesson from this incident?
The author strongly feels that some lessons are learned from this incident.
1) This incident is a diversity issue, and we all need to respect one another.
To the author, the essence of this is philosophy of diversity. Countries should not inflict their value to others, disregarding standpoint, situation (economic, social etc.) and manners and customers of their counterpart. They also should take into account what may influence the decision/proposal of the issue. Proposal was made by countries that do not eat bluefin tuna and/or are not involved in bluefin tuna fishery and trade, when ICCAT had already started to take measures for its conservation. The author wonder how would they react if similar proposal was submitted to Washington Convention for items such as beef, pork, mutton and turkey that has taken root in their industry/economy, food culture, and manners and customs, especially when countermeasure has already been/about to be taken.
We all need to respect others and their standpoint, manners and customers and so forth. There is no right or wrong, what is superior or inferior. They are just different.
2) International community need to collaborate for co-prosperity.
Although it is a difficult to balance two or more different issues such as global resource conservation/environmental preservation and prosperity (economy, society, food culture etc.), we all need to challenge it, for our sustainability and co-prosperity. This requires collaboration of the international community based on diversity philosophy and pursing an optimum solution including compromising. International collaboration is inevitable because all countries are globally connected and almost every aspect of each countries/regions is interrelated.
Is Decentralized GW Long Holiday Good?
Osaka – Saturday, March 20, 2010
March 22, Spring Equinox Day, is National Holiday in Japan and therefore today is the start of our extended weekend. The next National Holiday/long holiday is Golden Week Holiday in May. Japanese government is planning to decentralize Golden Week Long Holiday, usually set May 3 – 5 (with April 29 as a National Holiday, weekend and strategic office shut down, some companies make a long holiday of April 29 – May), but most Japanese citizens seem to be against the idea, according to a recent TV news in Japan. In this article, the author would like to explain the objective and overview of the government’s plan and introduce different views of the citizens from different standpoint.
1. What is the objective/background of the plan?
The government came up with the plan as an action plan of the fourth field of focus of the growth strategy, which is tourism and local community, mentioned in the previous article How Japan's Growth Strategy Shoud Be? They believe that this plan would improve tourism to boost the economy, and make Japan a Tourism-Oriented Country.
2. What is the plan?
The plan is to decentralize Golden Week long holiday usually set May 3 (Mon) – 5 (Wed). With weekend, this would make 5 day holiday. They plan to divide Japan into 5 regions, and set GW holiday of each region separately, in different week. For example, GW long holiday for region 1 is May 3 (Mon) – 5 (Wed), region 2 is May 10 (Mon) – 12 (Wed), and so forth.
GW long holiday in good climate is one of the best seasons of the year to going on a vacation and sightseeing, and a result, GW holiday is notorious for crowdedness. With the plan, the government believes that people going to on a vacation and sightseeing will not be concentrated in a particular period but will be dispersed meaning less crowdedness. They believe this would encourage more people to go on holiday and sightseeing on accumulated basis, leading to greater consumer spending in total.
3. How each segment Japanese citizens view the plan?
When the broadcasting company asked 200 citizens whether they are in favour or against the play, only 58 people answered that they are in favour and the remaining 132 answered that they are against the plan.
According to the interviews conducted to major segments, the result was the same. Although sightseeing and accommodation industry segment are mostly in favour, other segments are against the plan.
1) Sightseeing spots and hotels are mostly in favour.
Major and popular sightseeing spots and hotels are in favour. This is because they believe that decentralization of the long holiday meaning less crowdedness would attract more tourists in total and therefore would be a big advantage for their business.
However, minor, less popular sightseeing spots and hotels are against the plan. This is because tourists that would visit them to avoid crowdedness of the popular sightseeing spots and hotels would not need to avoid the crowdedness, so they may well be attracted to popular places and hotels. And therefore, they believe that the plan would have negative impact on their business.
Travel agencies and souvenior shop owners are in favour, for the same reason with major and popular sightseeing spots and hotels.
2) Companies are mostly against.
Companies are mostly against the plan, whether they are operating nationwide or locally.
Companies operating nationwide are strongly against the plan. This is because one branch of a region would be off when all other branches in other regions are operating, and this would cause many problems, especially in logistics and (online) accounting.
Quite a few companies operating locally (exclusively in one region) are also against the plan. This is because the influence they have from the market and business partners operating in other regions of different GW holiday would cause many problems to their operation.
A food company making and supplying lunch to schools insist that they would not be able to obtain necessary ingredients. This means they would not be able to operate smoothly, therefore, they would not be able to meet their customer needs and thus give negative impact on their business.
A fish wholesaler insists that the plan would decrease their business opportunity. This is because its means no business if their market (Tokyo, Osaka etc.) is closed when they are operating.
Other factories are against because decentralized long holiday makes them difficult for them to set their own holiday, i.e. the time to shut their plant down, for the same reason.
3) Households and individuals are mostly against.
Individuals and households are against the plan, excluding a few.
Although a female in 20s are in favour, because sightseeing spots and hotels would not be so crowded, another female is against because she would not be able to go on a holiday, sightseeing or do other things with her parents. This is because her parents and she lives apart in different regions of different GW holiday timing.
A family living together was strongly against the plan for the same reason. Location of the father’s workplace, children’s school and their house happen to be of different timing of the GW holiday so the family would not be able to enjoy holiday together.
4) Education industry is against.
Education industry is against the plan because they feel the plan would have negative effect on children. The representative interviewed did not specify reason in detail; however, he may well be thinking of possible cases such as of the household mentioned above.
4. How does the government view to the reaction of the citizen?
When the broadcasting company reporter briefly explained the above views of the citizens, the government representative replied that the concept of the plan is boosting tourism to make Japan a Tourism-Oriented Country.
The objective and concept is fully understandable and it is indeed one way of boosting the economy; however, it is a question whether this plan really is a good solution to achieve the goal. What do you think?
March 22, Spring Equinox Day, is National Holiday in Japan and therefore today is the start of our extended weekend. The next National Holiday/long holiday is Golden Week Holiday in May. Japanese government is planning to decentralize Golden Week Long Holiday, usually set May 3 – 5 (with April 29 as a National Holiday, weekend and strategic office shut down, some companies make a long holiday of April 29 – May), but most Japanese citizens seem to be against the idea, according to a recent TV news in Japan. In this article, the author would like to explain the objective and overview of the government’s plan and introduce different views of the citizens from different standpoint.
1. What is the objective/background of the plan?
The government came up with the plan as an action plan of the fourth field of focus of the growth strategy, which is tourism and local community, mentioned in the previous article How Japan's Growth Strategy Shoud Be? They believe that this plan would improve tourism to boost the economy, and make Japan a Tourism-Oriented Country.
2. What is the plan?
The plan is to decentralize Golden Week long holiday usually set May 3 (Mon) – 5 (Wed). With weekend, this would make 5 day holiday. They plan to divide Japan into 5 regions, and set GW holiday of each region separately, in different week. For example, GW long holiday for region 1 is May 3 (Mon) – 5 (Wed), region 2 is May 10 (Mon) – 12 (Wed), and so forth.
GW long holiday in good climate is one of the best seasons of the year to going on a vacation and sightseeing, and a result, GW holiday is notorious for crowdedness. With the plan, the government believes that people going to on a vacation and sightseeing will not be concentrated in a particular period but will be dispersed meaning less crowdedness. They believe this would encourage more people to go on holiday and sightseeing on accumulated basis, leading to greater consumer spending in total.
3. How each segment Japanese citizens view the plan?
When the broadcasting company asked 200 citizens whether they are in favour or against the play, only 58 people answered that they are in favour and the remaining 132 answered that they are against the plan.
According to the interviews conducted to major segments, the result was the same. Although sightseeing and accommodation industry segment are mostly in favour, other segments are against the plan.
1) Sightseeing spots and hotels are mostly in favour.
Major and popular sightseeing spots and hotels are in favour. This is because they believe that decentralization of the long holiday meaning less crowdedness would attract more tourists in total and therefore would be a big advantage for their business.
However, minor, less popular sightseeing spots and hotels are against the plan. This is because tourists that would visit them to avoid crowdedness of the popular sightseeing spots and hotels would not need to avoid the crowdedness, so they may well be attracted to popular places and hotels. And therefore, they believe that the plan would have negative impact on their business.
Travel agencies and souvenior shop owners are in favour, for the same reason with major and popular sightseeing spots and hotels.
2) Companies are mostly against.
Companies are mostly against the plan, whether they are operating nationwide or locally.
Companies operating nationwide are strongly against the plan. This is because one branch of a region would be off when all other branches in other regions are operating, and this would cause many problems, especially in logistics and (online) accounting.
Quite a few companies operating locally (exclusively in one region) are also against the plan. This is because the influence they have from the market and business partners operating in other regions of different GW holiday would cause many problems to their operation.
A food company making and supplying lunch to schools insist that they would not be able to obtain necessary ingredients. This means they would not be able to operate smoothly, therefore, they would not be able to meet their customer needs and thus give negative impact on their business.
A fish wholesaler insists that the plan would decrease their business opportunity. This is because its means no business if their market (Tokyo, Osaka etc.) is closed when they are operating.
Other factories are against because decentralized long holiday makes them difficult for them to set their own holiday, i.e. the time to shut their plant down, for the same reason.
3) Households and individuals are mostly against.
Individuals and households are against the plan, excluding a few.
Although a female in 20s are in favour, because sightseeing spots and hotels would not be so crowded, another female is against because she would not be able to go on a holiday, sightseeing or do other things with her parents. This is because her parents and she lives apart in different regions of different GW holiday timing.
A family living together was strongly against the plan for the same reason. Location of the father’s workplace, children’s school and their house happen to be of different timing of the GW holiday so the family would not be able to enjoy holiday together.
4) Education industry is against.
Education industry is against the plan because they feel the plan would have negative effect on children. The representative interviewed did not specify reason in detail; however, he may well be thinking of possible cases such as of the household mentioned above.
4. How does the government view to the reaction of the citizen?
When the broadcasting company reporter briefly explained the above views of the citizens, the government representative replied that the concept of the plan is boosting tourism to make Japan a Tourism-Oriented Country.
The objective and concept is fully understandable and it is indeed one way of boosting the economy; however, it is a question whether this plan really is a good solution to achieve the goal. What do you think?
2010年3月14日日曜日
How IT Supports Tough Job Hunting of Graduates in Japan？
Osaka – Sunday, March 14, 2010
Nikkei, Japanese newspaper specialized in business/economy and politics, reported on Saturday March 13 in its evening newspaper that new graduates are struggling with their job hunting in the tough economy and job market, although the company side and candidate side both are leveraging IT. Taking this opportunity, the author would like to explain the unique system of job hunting of new graduates in Japan, and how IT is supporting recruiting of employers and job hunting of graduates in Japan in the recent competitive recruiting and job hunting in the tough economy and job market.
1. How new graduates in Japan hunt for job?
Job hunting of new graduates in Japan is quite unique. The job hunting flow and its characteristics are as follows.
Job Hunting Flow of New Graduates in Japan: to Graduate in March 2011 and to Start Working in April 2011
(Source: Nikkei, edited, added explanation/steps and translated by the author)
Timing / Action by Employers / Action by Candidates
Oct – Dec 2009 / Start announcing recruiting online and contacting with candidates / Register personal information (name, contact etc.) from the website of companies they are interested in
Jan – Mar 2010 (Now) / Send seminar invitation / Apply for seminars and attend. Contact OB (Old Boys)/OG (Old Girls) to get information: in many cases, this is also part of screening process for arts students.
Apr – Jun 2010 / Perform screening and interviewing / Compose and submit entry sheet (reason for applying etc.). Go through screening process (paper test, interview)
July 2010 / Send offer letter / Decide which company to work for and accept offer.
Aug 2010 – Feb 2011 / Follow-up (internship is rare) / Make sure to graduate!
Mar 2011 / Some employers hold company orientation at the end of March 2011
Graduate
Apr 1, 2011 / Hold company orientation >> Perform education and training / Attend company orientation >> Being educated and trained then start working
1) Candidates start job hunting more than 1 year before graduating and start working.
Candidates (students to graduate in March 2011) have already started job hunting in autumn of 2009 to start working in April 2010. They would have started job hunting April 2010 or later until just after the burst of the bubble economy in 1992. Some people did used to say that even before the burst of the bubble economy, it was not good for students to engaged most of their last year at university job hunting. However, with employment ice age after 1992, students were forced to start taking actions (gathering information etc.) to win the few job openings available, which happened to meet the needs of employers, who want to recruit excellent talent. Thus, job hunting schedule has been moved up.
2) Seminars are held by employers as the starting point of recruiting process.
Employers hold seminars to candidates of new graduates in recruiting, in which they provide basic information about their company and recruiting. These seminars are good opportunity for the candidates to understand their potential employer and contact HR managers and recruiters in person.
In some cases, attending seminar is the requirement to proceed to the next step of submitting entry sheet, i.e. submitting application. For this reason, although many employers say that there is no relationship between attending their seminar and getting the offer, candidates would need to strive to attend seminars.
3) Visiting OB/OG is often a part of screening and interviewing process in recruiting new graduates of arts.
OB/OG visiting is quite common in job hunting by new graduates of arts. This is another good opportunity for candidates to understand their potential employer. For employers, this is a part of screening process for many companies, in which OB/OG are informal interviewers and only the candidates who pass their interview will be able to have official interview with HR managers/recruiters.
OB/OG visiting is not so common for new graduates of sciences. Their job hunting process is a little different in this step. Usually the professor supervising their graduation/master thesis recommends them to their potential employer according to the job opening allocated to the university. This recommendation is really the application.
2. How is IT supporting recruiting and job hunting of new graduates?
Recruiters and job hunters are leveraging IT in their own way, although business and job hunting/recruiting social networking sites such as LinkedIn are not common in Japan; Japanese SNS for such purpose is uncommon.
1) Employers and recruiters are in the trial and error process of leveraging IT.
Although it may not as advanced as western countries, recruiters in Japan are trying to leverage IT to meet the needs of them and the candidates. They have been leveraging their website to provide information about their company/recruiting and services online. Such services include candidates making registration for them to contact and applying to attend seminar for them to send invitation, as well as candidates asking for company brochure and other questions. However, with recent tough job market, all seats were filled only after 15 minutes when they started accepting entry for seminars, thus 90% were not able to attend seminars, according to a survey implemented by a Tokyo based recruiting consulting company this week to 1,240 new graduate job hunters.
In order to overcome such a situation, some companies started to leverage IT in earnest, when some others are upsizing the seminars. For example, Taisei Corporation, a construction giant in Japan, has provided streaming web content of the seminar so that candidates who tried to reserve the seat but could not attend the live offline seminar could get the seminar information online.
2) Candidates are IT-equipped for effective job hunting.
Many candidates today buy multi-function mobile devices (e.g. iPhone) when they start job hunting. This may well use up big portion of their savings but is worthwhile because they can leverage “ubiquitous” of the Internet, taking actions in a timely manner. This implies possible financial and digital dividend in job hunting; i.e. financial status and IT literacy may become important factors in their job hunting.
At least, IT literacy of young people is in general of high standard in Japan and leveraging mobile in job hunting will soon take root. SNS specialized in business and recruiting/job hunting such as LinkedIn is not common in Japan, but Japanese people in general are used to using mobile online services and devices because of the unique IT and online history and background of Japan. This attributes to the mobile online service unique to Japan called I-Mode started in 1997 and soon became quite popular along with mobile phone services. Therefore, with advanced online contents and services for better platform and environment for them, they could leverage IT and evolve their job hunting process.
We will probably see a big evolution in recruiting and job hunting, leveraging IT. And, mobile, a promising trend of social media, is likely to become a KFS (Key Factor for Success) of recruiting and job hunting.
Nikkei, Japanese newspaper specialized in business/economy and politics, reported on Saturday March 13 in its evening newspaper that new graduates are struggling with their job hunting in the tough economy and job market, although the company side and candidate side both are leveraging IT. Taking this opportunity, the author would like to explain the unique system of job hunting of new graduates in Japan, and how IT is supporting recruiting of employers and job hunting of graduates in Japan in the recent competitive recruiting and job hunting in the tough economy and job market.
1. How new graduates in Japan hunt for job?
Job hunting of new graduates in Japan is quite unique. The job hunting flow and its characteristics are as follows.
Job Hunting Flow of New Graduates in Japan: to Graduate in March 2011 and to Start Working in April 2011
(Source: Nikkei, edited, added explanation/steps and translated by the author)
Timing / Action by Employers / Action by Candidates
Oct – Dec 2009 / Start announcing recruiting online and contacting with candidates / Register personal information (name, contact etc.) from the website of companies they are interested in
Jan – Mar 2010 (Now) / Send seminar invitation / Apply for seminars and attend. Contact OB (Old Boys)/OG (Old Girls) to get information: in many cases, this is also part of screening process for arts students.
Apr – Jun 2010 / Perform screening and interviewing / Compose and submit entry sheet (reason for applying etc.). Go through screening process (paper test, interview)
July 2010 / Send offer letter / Decide which company to work for and accept offer.
Aug 2010 – Feb 2011 / Follow-up (internship is rare) / Make sure to graduate!
Mar 2011 / Some employers hold company orientation at the end of March 2011
Graduate
Apr 1, 2011 / Hold company orientation >> Perform education and training / Attend company orientation >> Being educated and trained then start working
1) Candidates start job hunting more than 1 year before graduating and start working.
Candidates (students to graduate in March 2011) have already started job hunting in autumn of 2009 to start working in April 2010. They would have started job hunting April 2010 or later until just after the burst of the bubble economy in 1992. Some people did used to say that even before the burst of the bubble economy, it was not good for students to engaged most of their last year at university job hunting. However, with employment ice age after 1992, students were forced to start taking actions (gathering information etc.) to win the few job openings available, which happened to meet the needs of employers, who want to recruit excellent talent. Thus, job hunting schedule has been moved up.
2) Seminars are held by employers as the starting point of recruiting process.
Employers hold seminars to candidates of new graduates in recruiting, in which they provide basic information about their company and recruiting. These seminars are good opportunity for the candidates to understand their potential employer and contact HR managers and recruiters in person.
In some cases, attending seminar is the requirement to proceed to the next step of submitting entry sheet, i.e. submitting application. For this reason, although many employers say that there is no relationship between attending their seminar and getting the offer, candidates would need to strive to attend seminars.
3) Visiting OB/OG is often a part of screening and interviewing process in recruiting new graduates of arts.
OB/OG visiting is quite common in job hunting by new graduates of arts. This is another good opportunity for candidates to understand their potential employer. For employers, this is a part of screening process for many companies, in which OB/OG are informal interviewers and only the candidates who pass their interview will be able to have official interview with HR managers/recruiters.
OB/OG visiting is not so common for new graduates of sciences. Their job hunting process is a little different in this step. Usually the professor supervising their graduation/master thesis recommends them to their potential employer according to the job opening allocated to the university. This recommendation is really the application.
2. How is IT supporting recruiting and job hunting of new graduates?
Recruiters and job hunters are leveraging IT in their own way, although business and job hunting/recruiting social networking sites such as LinkedIn are not common in Japan; Japanese SNS for such purpose is uncommon.
1) Employers and recruiters are in the trial and error process of leveraging IT.
Although it may not as advanced as western countries, recruiters in Japan are trying to leverage IT to meet the needs of them and the candidates. They have been leveraging their website to provide information about their company/recruiting and services online. Such services include candidates making registration for them to contact and applying to attend seminar for them to send invitation, as well as candidates asking for company brochure and other questions. However, with recent tough job market, all seats were filled only after 15 minutes when they started accepting entry for seminars, thus 90% were not able to attend seminars, according to a survey implemented by a Tokyo based recruiting consulting company this week to 1,240 new graduate job hunters.
In order to overcome such a situation, some companies started to leverage IT in earnest, when some others are upsizing the seminars. For example, Taisei Corporation, a construction giant in Japan, has provided streaming web content of the seminar so that candidates who tried to reserve the seat but could not attend the live offline seminar could get the seminar information online.
2) Candidates are IT-equipped for effective job hunting.
Many candidates today buy multi-function mobile devices (e.g. iPhone) when they start job hunting. This may well use up big portion of their savings but is worthwhile because they can leverage “ubiquitous” of the Internet, taking actions in a timely manner. This implies possible financial and digital dividend in job hunting; i.e. financial status and IT literacy may become important factors in their job hunting.
At least, IT literacy of young people is in general of high standard in Japan and leveraging mobile in job hunting will soon take root. SNS specialized in business and recruiting/job hunting such as LinkedIn is not common in Japan, but Japanese people in general are used to using mobile online services and devices because of the unique IT and online history and background of Japan. This attributes to the mobile online service unique to Japan called I-Mode started in 1997 and soon became quite popular along with mobile phone services. Therefore, with advanced online contents and services for better platform and environment for them, they could leverage IT and evolve their job hunting process.
We will probably see a big evolution in recruiting and job hunting, leveraging IT. And, mobile, a promising trend of social media, is likely to become a KFS (Key Factor for Success) of recruiting and job hunting.
2010年3月13日土曜日
Why Investment Shift from Japan to Overseas?
Osaka – Saturday, March 13, 2010
Following the previous article Why Production Shift from Japan to Overseas? in which electronic component production of Japanese companies shifting from Japan to overseas is explained, how investment of major foreign capital is shifting from Japan to emerging countries is explained in this article.
Lately major foreign capital companies have been withdrawing from Japan business (production and sales) one after the other. According to balance of payments statistics, direct investment to Japan for 2009 has decreased by 55.7% vs. 2008. This is because major foreign capitals have been prominently shifting their investment destination from Japan to other countries, especially to emerging countries. Japan may well need to review and improve investment environment such as decreasing corporate tax and de-regulation.
1. How is investment from major foreign capitals shifting from Japan to overseas (emerging countries)?
According to Nikkei’s article issued on March 10, major foreign capitals such as Michelin, a tyre manufacturer giant based in France, Hyundai, automobile giant based in Korea, and fuel cell system giant based in Canada are withdrawing from Japan. They have been increasing their investment in emerging countries, and therefore this means they are shifting their investment destination from Japan to emerging countries, with the objective of making the most of rapidly growing demand of emerging market.
Major Foreign Capitals That Have Downsized / Withdrawn from Business in Japan
(Source: Nikkei, edited and translated by the author)
Company Name / Based In / Business Type / Decision/Action
Michelin / France / Tyre production / Close Ohta Plant in Gunma Prefecture
Liberty Global / U.S. / CATV / Sell share holding of JV and withdraw
Prudential / U.K. / Life insurance sales / Terminate new sales by PCA Insurance under umbrella of Prudential
Carrefour / France / Supermarket / Terminate contract (name usage etc.) with AEON
Hyundai / Korea / Passenger car sales / Negotiate with dealers to terminate passenger car sales
Versace / Italy / High-end brand apparel sales / Close stores and withdraw
Office Depot / U.S. / Office equipment sales / Withdraw from sales (excluding mail order)
Michelin will close its Ohta plant in Gunma Prefecture (380 employees) in July 2010. It has been successfully manufacturing high quality tyers but profitability deteriorated with the worldwide economic crisis. On the other hand, Michelin will construct a new plant, investing 40 billion rupee (approximately 76 billion yen) in South India that manufactures tyers for buses and trucks.
Hyundai Motor Japan, Japan office of Hyundai located in Tokyo, terminated its new sales of passenger cars. They will continue sales of buses. Instead, Hyundai will invest 8,000 million USD (approximately 70.4 billon yen) in China to construct their new plant in Beijing, which will be their third plant in China. They aim to start operating the new plant in the end of November, 2010.
Withdrawal is in process even in promising industries. Ballard Power Systems, a fuel cell giant based in Canada (British Columbia), has liquidated joint venture with a Japanese fuel cell manufacturing giant in 2009. Ballard Power Systems do not intend to continue business in Japan. Instead, they have invested to a telecommunication equipment manufacturer based in Denmark in January 2010.
Liberty Global, a media giant based in the U.S., sold JCOM stock it had owned by over 360 billion yen to KDDI and withdrawn from Japan CATV business. The reason is, according to Liberty spokesman, “roadmap to increase penetration rate for households of paid content in Japan to the level of western countries cannot be developed and executed”. Liberty has acquired CATV giant based in Germany by approximately 3.5 Euro (approximately 420 billion yen) in the end of January 2010.
Withdrawal from Japanese capital market is also prominent. Number of non-Japanese companies listed in TSE (Tokyo Stock Exchange) was at the peak with 127 companies in 1991 but has been on the decline and currently only 15 as of March 9, 2010. And in the end of March 2010, Aegon based in Holland is to be de-listed, and in April UBS based in Switzerland. There has not been new listing since 2008.
2. How is Japan attractive as investment destination？ (From a survey result)
According to the survey result of a global leading consulting company, attractiveness of Japan an investment destination is drastically decreasing. The survey was implemented to management executives from 1000 global companies. The result was that Japan, which was #15 in 2007, fell to below #26 (ranking is available for the top 26 only) in 2010. China has been #1 for 6 consecutive years from 2002, and Brazil rose up to #4.
A retail giant based in China planning to invest to Laox, a Japanese leading mass merchandiser of consumer electronics; however, such a case is an exception.
3. Why Japan’s attractiveness as an investment destination decreasing?
The main reason why Japan’s attractiveness as an investment destination is decreasing is that Japan’s expected growth is low, especially compared with emerging countries such as China and India, after the worldwide economic crisis. This attributes highly to low birthrate and to deflation mentioned in the previous article How Japan Can Get Out From 10 Year Deflation? Thus, more and more global companies are not counting Japan as an investment destination.
4. How could Japan’s attractiveness as an investment destination recover?
With low expected growth, possible way that Japan’s attractiveness as an investment destination can be recovered is by improving its investment environment. First measure is lowering corporate tax because as mentioned in the previous article Japanese Tax Haven Application Rule to Change, corporate tax of Japan is as high as 40%, which is much higher than other countries. Second measure is de-regulation. The author would say that the industry that needs de-regulation the most is agriculture, although its regulation has softened around 1990 once, when import of beef and oranges was de-regulated. The author also feels that there are other industries that need de-regulation if Japan is to become competitive.
Japan need to improve its global competitiveness, attracting investment and business (production, sales etc.) of global companies regardless of its nationality, to survive, grow and increase tax. This is the requirement for Hatoyama administration to achieve its goal and realize its strategy, mentioned in the previous article How Japan's Growth Strategy Shoud Be?
Following the previous article Why Production Shift from Japan to Overseas? in which electronic component production of Japanese companies shifting from Japan to overseas is explained, how investment of major foreign capital is shifting from Japan to emerging countries is explained in this article.
Lately major foreign capital companies have been withdrawing from Japan business (production and sales) one after the other. According to balance of payments statistics, direct investment to Japan for 2009 has decreased by 55.7% vs. 2008. This is because major foreign capitals have been prominently shifting their investment destination from Japan to other countries, especially to emerging countries. Japan may well need to review and improve investment environment such as decreasing corporate tax and de-regulation.
1. How is investment from major foreign capitals shifting from Japan to overseas (emerging countries)?
According to Nikkei’s article issued on March 10, major foreign capitals such as Michelin, a tyre manufacturer giant based in France, Hyundai, automobile giant based in Korea, and fuel cell system giant based in Canada are withdrawing from Japan. They have been increasing their investment in emerging countries, and therefore this means they are shifting their investment destination from Japan to emerging countries, with the objective of making the most of rapidly growing demand of emerging market.
Major Foreign Capitals That Have Downsized / Withdrawn from Business in Japan
(Source: Nikkei, edited and translated by the author)
Company Name / Based In / Business Type / Decision/Action
Michelin / France / Tyre production / Close Ohta Plant in Gunma Prefecture
Liberty Global / U.S. / CATV / Sell share holding of JV and withdraw
Prudential / U.K. / Life insurance sales / Terminate new sales by PCA Insurance under umbrella of Prudential
Carrefour / France / Supermarket / Terminate contract (name usage etc.) with AEON
Hyundai / Korea / Passenger car sales / Negotiate with dealers to terminate passenger car sales
Versace / Italy / High-end brand apparel sales / Close stores and withdraw
Office Depot / U.S. / Office equipment sales / Withdraw from sales (excluding mail order)
Michelin will close its Ohta plant in Gunma Prefecture (380 employees) in July 2010. It has been successfully manufacturing high quality tyers but profitability deteriorated with the worldwide economic crisis. On the other hand, Michelin will construct a new plant, investing 40 billion rupee (approximately 76 billion yen) in South India that manufactures tyers for buses and trucks.
Hyundai Motor Japan, Japan office of Hyundai located in Tokyo, terminated its new sales of passenger cars. They will continue sales of buses. Instead, Hyundai will invest 8,000 million USD (approximately 70.4 billon yen) in China to construct their new plant in Beijing, which will be their third plant in China. They aim to start operating the new plant in the end of November, 2010.
Withdrawal is in process even in promising industries. Ballard Power Systems, a fuel cell giant based in Canada (British Columbia), has liquidated joint venture with a Japanese fuel cell manufacturing giant in 2009. Ballard Power Systems do not intend to continue business in Japan. Instead, they have invested to a telecommunication equipment manufacturer based in Denmark in January 2010.
Liberty Global, a media giant based in the U.S., sold JCOM stock it had owned by over 360 billion yen to KDDI and withdrawn from Japan CATV business. The reason is, according to Liberty spokesman, “roadmap to increase penetration rate for households of paid content in Japan to the level of western countries cannot be developed and executed”. Liberty has acquired CATV giant based in Germany by approximately 3.5 Euro (approximately 420 billion yen) in the end of January 2010.
Withdrawal from Japanese capital market is also prominent. Number of non-Japanese companies listed in TSE (Tokyo Stock Exchange) was at the peak with 127 companies in 1991 but has been on the decline and currently only 15 as of March 9, 2010. And in the end of March 2010, Aegon based in Holland is to be de-listed, and in April UBS based in Switzerland. There has not been new listing since 2008.
2. How is Japan attractive as investment destination？ (From a survey result)
According to the survey result of a global leading consulting company, attractiveness of Japan an investment destination is drastically decreasing. The survey was implemented to management executives from 1000 global companies. The result was that Japan, which was #15 in 2007, fell to below #26 (ranking is available for the top 26 only) in 2010. China has been #1 for 6 consecutive years from 2002, and Brazil rose up to #4.
A retail giant based in China planning to invest to Laox, a Japanese leading mass merchandiser of consumer electronics; however, such a case is an exception.
3. Why Japan’s attractiveness as an investment destination decreasing?
The main reason why Japan’s attractiveness as an investment destination is decreasing is that Japan’s expected growth is low, especially compared with emerging countries such as China and India, after the worldwide economic crisis. This attributes highly to low birthrate and to deflation mentioned in the previous article How Japan Can Get Out From 10 Year Deflation? Thus, more and more global companies are not counting Japan as an investment destination.
4. How could Japan’s attractiveness as an investment destination recover?
With low expected growth, possible way that Japan’s attractiveness as an investment destination can be recovered is by improving its investment environment. First measure is lowering corporate tax because as mentioned in the previous article Japanese Tax Haven Application Rule to Change, corporate tax of Japan is as high as 40%, which is much higher than other countries. Second measure is de-regulation. The author would say that the industry that needs de-regulation the most is agriculture, although its regulation has softened around 1990 once, when import of beef and oranges was de-regulated. The author also feels that there are other industries that need de-regulation if Japan is to become competitive.
Japan need to improve its global competitiveness, attracting investment and business (production, sales etc.) of global companies regardless of its nationality, to survive, grow and increase tax. This is the requirement for Hatoyama administration to achieve its goal and realize its strategy, mentioned in the previous article How Japan's Growth Strategy Shoud Be?
Why Production Shift from Japan to Overseas?
Osaka – Saturday, March 13, 2010
From recent reports of March 10 and 11 from Nikkei, specialized in economy/business and politics, production of electronics component and investment by non-Japanese capitals are shifting from Japan to overseas. This reflects worldwide trend of global competition getting more and more severe, and of companies focusing on business in emerging countries, attributing to expected growth in market and business opportunity of emerging countries.
In this article, how electronic component production of Japanese companies is shifting from Japan to overseas is explained.
1. How is electronic component production by Japanese companies shifting from Japan to overseas?
According to Nikkei’s article issued on March 11, Japanese electronic component makers are to accelerate transfer of their production from Japan to overseas. Japan’s production of electronic equipments has been drastically shifting to overseas, and already 90% of PCs and 70% of AV equipments such as TV sets have been manufactured overseas. In line with this, electronic components production of each company will be transferred to overseas with the objective of absorbing rapidly growing demand of emerging market.
Overseas Production of Electronics Component Manufacturers
(Source: Nikkei, edited and translated by the author)
Company Name / Transfer To / Overseas Production (Current, %) / Overseas Production (Target, %) / Timing of Achieving Target / Products
Konika Minolta Holdings / Malaysia / 67 / 81 / Oct. 2010 / Glass base material for HDD
Nippon Chemi-Con / Asia / 40 / 60 / FY* 2010 / Aluminum electrolysis condenser
Murata Manufacturing / China, Malaysia / 15 / 30 / FY* 2012 / Ceramic condenser
Fuji Electric Holdings / Malaysia / 50* / 70 / March 2010 / Electric disc for HDD
* FY = Fiscal Year
** Current overseas production of Fuji is of April – June 2009
Konika Minolta will construct a new plant in Malaysia that manufactures glass base material for HDD, investing 11 billion yen. Operation is to start in October 2010. This is because of their assumption that glass demand will steadily grow in emerging countries with promising growth of PC demand in emerging countries. Their production in Malaysia will double to 1.3 million (volume base) per month, and their overseas production will increase from current 67% to 81%.
HOYA, the global leader of glass base material for HDD is investing approximately 15 billion yen to construct their fifth plant in Philippines. The new plant is to start its operation in August 2010 and the production capacity is assumed to increase by 30% to 33 million (volume base). HOYA already manufactures all its products overseas.
Fuji Electric Holdings, a manufacturer of electric discs for HDD, will increase its production capacity of Malaysia in March 2010, to increase their overseas production from 50% to 70%. HDD makers to which Fuji Electric Holdings supply glass base materials has already located their strategic plants in Asia; for example, Toshiba in Philippines and Hitachi Global Storage Technologies in China.
Production transfer of other electronics components will also be driven. Murata Manufacturing will re-locate equipments used in Japan to China and Malaysia where their volume zone products such as condensers will be produced. As a result, their overseas production will be increased from 15% to 30%.
2. Why is electronic component production transfer ongoing?
With global competition getting more and more severe, Japanese electronic makers are shifting their production to overseas drastically. According to JEITA (Japan Electronics and Information Technology Industries Association), overseas production of AV equipments such as TV sets has reached 72% in 2009. Japanese PC makers produce approximately 90% of their PCs overseas.
It is quite logical and rationale for electronic component makers, the suppliers of electronic makers, to also shift their production to overseas. Electronic component overseas production is already 63% in 2009. It is quite possible that production shift from Japan to overseas will be further driven by high yen.
In the next article, how investment of major foreign capitals is shifting from Japan to emerging countries is explained.
From recent reports of March 10 and 11 from Nikkei, specialized in economy/business and politics, production of electronics component and investment by non-Japanese capitals are shifting from Japan to overseas. This reflects worldwide trend of global competition getting more and more severe, and of companies focusing on business in emerging countries, attributing to expected growth in market and business opportunity of emerging countries.
In this article, how electronic component production of Japanese companies is shifting from Japan to overseas is explained.
1. How is electronic component production by Japanese companies shifting from Japan to overseas?
According to Nikkei’s article issued on March 11, Japanese electronic component makers are to accelerate transfer of their production from Japan to overseas. Japan’s production of electronic equipments has been drastically shifting to overseas, and already 90% of PCs and 70% of AV equipments such as TV sets have been manufactured overseas. In line with this, electronic components production of each company will be transferred to overseas with the objective of absorbing rapidly growing demand of emerging market.
Overseas Production of Electronics Component Manufacturers
(Source: Nikkei, edited and translated by the author)
Company Name / Transfer To / Overseas Production (Current, %) / Overseas Production (Target, %) / Timing of Achieving Target / Products
Konika Minolta Holdings / Malaysia / 67 / 81 / Oct. 2010 / Glass base material for HDD
Nippon Chemi-Con / Asia / 40 / 60 / FY* 2010 / Aluminum electrolysis condenser
Murata Manufacturing / China, Malaysia / 15 / 30 / FY* 2012 / Ceramic condenser
Fuji Electric Holdings / Malaysia / 50* / 70 / March 2010 / Electric disc for HDD
* FY = Fiscal Year
** Current overseas production of Fuji is of April – June 2009
Konika Minolta will construct a new plant in Malaysia that manufactures glass base material for HDD, investing 11 billion yen. Operation is to start in October 2010. This is because of their assumption that glass demand will steadily grow in emerging countries with promising growth of PC demand in emerging countries. Their production in Malaysia will double to 1.3 million (volume base) per month, and their overseas production will increase from current 67% to 81%.
HOYA, the global leader of glass base material for HDD is investing approximately 15 billion yen to construct their fifth plant in Philippines. The new plant is to start its operation in August 2010 and the production capacity is assumed to increase by 30% to 33 million (volume base). HOYA already manufactures all its products overseas.
Fuji Electric Holdings, a manufacturer of electric discs for HDD, will increase its production capacity of Malaysia in March 2010, to increase their overseas production from 50% to 70%. HDD makers to which Fuji Electric Holdings supply glass base materials has already located their strategic plants in Asia; for example, Toshiba in Philippines and Hitachi Global Storage Technologies in China.
Production transfer of other electronics components will also be driven. Murata Manufacturing will re-locate equipments used in Japan to China and Malaysia where their volume zone products such as condensers will be produced. As a result, their overseas production will be increased from 15% to 30%.
2. Why is electronic component production transfer ongoing?
With global competition getting more and more severe, Japanese electronic makers are shifting their production to overseas drastically. According to JEITA (Japan Electronics and Information Technology Industries Association), overseas production of AV equipments such as TV sets has reached 72% in 2009. Japanese PC makers produce approximately 90% of their PCs overseas.
It is quite logical and rationale for electronic component makers, the suppliers of electronic makers, to also shift their production to overseas. Electronic component overseas production is already 63% in 2009. It is quite possible that production shift from Japan to overseas will be further driven by high yen.
In the next article, how investment of major foreign capitals is shifting from Japan to emerging countries is explained.
2010年3月12日金曜日
What is Japanese Valentine’s Day and White Day?
Osaka – Friday, March 12, 2010
March 14 is White Day in Japan. This event is a twin celebration of Valentine’s Day that is unique to Japan. Taking the opportunity of celebrating this event in Japan, the author would like to introduce Japanese style Valentine’s Day and White Day, that are closely associated with business and marketing strategy of confectionery makers in Japan.
1. Let’s recap on Valentine’s Day. What is Valentine’s Day?
Valentine’s Day, celebrated on February 14, is a day when people express affinity and love. In Western countries, both men and women exchange presents on Valentine's Day. Valentine's gifts are not limited to chocolate - red roses are another popular present. Cards are popular as well, in which quite often people write “From Your Valentine” and “Be My Valentine”.
2. How is Valentine’s Day in Japan? How did it start and became popular?
Concept of Valentine in Japan is basically the same as in Western countries and has become quite popular also in Japan as well; however, it has developed into something unique to Japan. Valentine was first introduced to Japan by a western person who came to Japan before World War II. Soon after, confectionery makers and retailers tried to make it pervasive to promote their sales, but it was in the latter half of 1970s that it became quite popular in Japan. Valentine’s Day in Japan became something quite unique, with manners and customers unique to Japan; females giving males to express their affinity and love.
3. How is Valentine’s Day unique in Japan?
The following four points are the characteristics of typical Japanese style Valentine’s Day, making it so unique.
1) Chocolate is common as a gift, although recently some people started to give other things such as cookies and candies.
2) Gift is given usually one-way, from females to males, not vice-versa.
3) Valentine’s Day is regarded as an opportunity for females to express their affinity and love to males.
4) Gift-giving or chocolate from females to males (bosses and colleagues) at work is also quite common. This is called “giri-choko”, which is literally “obligatory chocolate” in English. This is not accompanied by romantic feeling.
4. How confectionery makers started to promote Valentine’s Day to boost their business?
How and when confectionery makers first started to make the most of Valentine’s Day in order to boost their sales is not clear. There are many as five different theories, ranging from a theory that a Kobe confectionery maker started in 1936 to a theory that was started in Sony Plaza in 1968, but none is ascertained.
What is ascertained is that department stores exerted much effort to make Valentine’s Day pervasive in Japan with chocolate promotion but in vain, and therefore many people viewed that Valentine’s Day would not become popular in Japan around 1968. However, from 1970s, chocolate sales for Valentine’s Day increased drastically. This was because teenagers started to give chocolates on Valentine’s Day at first, and this manner spread to adults in 1990s. Thus, although it is often said that popularity of giving chocolates on Valentine’s Day in Japan attributes to hidden strategy of chocolate makers, it also attributes to the fact that some factors of Valentine’s Day were well accepted to Japanese society and some others were not, and to the option selected by consumers.
5. What is White Day? What is the relationship with Valentine’s Day?
When Japanese unique Valentine’s Day of females giving chocolates to males to express affinity and love has taken root in 1980, another manners and customers unique to Japan formed, which is White Day, celebrated on March 14. The custom of White Day is quite unique to Japan. On this day, men have the opportunity to give gifts to women in return for the chocolate they received on Valentine's Day.
The custom of White Day started in 1978 in Fukuoka City when a sweet maker came up with the idea as a way to promote sales,. Then White Day campaign was planned and approved by nationwide association of candy industry and the first campaign was held in 1980. The fifth campaign in 1984 has become such a huge success that they were short of products, and 1984 was named as the year that in which White Day has taken root.
White Day has slowly become an annual custom among many men, although Japanese men were not accustomed to giving gifts like this to women, and then the custom eventually spread throughout the country. At first, the gifts given to women were often something white, like marshmallows or white chocolate, hence the name White Day. Recently however, various gifts are given, regardless of the color, and currently, companies from many different fields are developing products for the day.
6. How Valentine’s Day evolved to support confectionery business in Japan by strategic marketing of confectionery makers?
Valentine’s Day has become a truly national event, and since 2000 it has been evolving and diversifying. Indeed, it is said that as much as 20% of yearly chocolate consumption in Japan is of this day. Besides the primary concept/objective of females giving chocolate to males to express their affinity and love, other concept and forms have emerged. Females started to give to their lovers and husband. People started to give to males/females they admire. And small children started to take part in Valentine’s Day as well.
“Giri-choco” or obligation chocolate mentioned earlier that had taken root much earlier has been declining since latter 1990s, but other types of chocolates have emerged. One is “tomo-choco”, literally “friend chocolate” in English, which started to spread from around 2000. It now supports Valentine business in Japan and its market has been growing steadily since latter 2000s.
Another type of chocolate that has emerged is “gyaku-choco”, literally “reverse chocolate” in English. This is chocolate given to females from males, which is reverse of the traditional Japanese style Valentine’s Day. This has been promoted aggressively by Morinaga in particular by various campaigns from latter 2000s. Some people also started to buy “jibun-choco”, literally “self chocolate” in English, as a gift to oneself from around 2000.
7. Is success and popularity of Valentine’s Day and White Day (business) the result of marketing effort of confectionery makers?
The author would answer “yes”. It is no doubt that marketing campaign and promotion by confectionery makers was successful in activating chocolate (and other confectionery) consumption. Confectionery makers have been making much effort in marketing valentine specific products and other novelty products such as imported product, accompanied by huge campaigns, for business of Valentine’s Day and White Day. With their effort, they have to execute marketing strategy meeting (potential) needs of Japanese consumers understanding their psychology and behaviour well, to create a new market, to build and establish business of Valentine’s Day and White Day, when in general, consumer consumption and spending is in the low level after Christmas, the business/sales peak of the year.
March 14 is White Day in Japan. This event is a twin celebration of Valentine’s Day that is unique to Japan. Taking the opportunity of celebrating this event in Japan, the author would like to introduce Japanese style Valentine’s Day and White Day, that are closely associated with business and marketing strategy of confectionery makers in Japan.
1. Let’s recap on Valentine’s Day. What is Valentine’s Day?
Valentine’s Day, celebrated on February 14, is a day when people express affinity and love. In Western countries, both men and women exchange presents on Valentine's Day. Valentine's gifts are not limited to chocolate - red roses are another popular present. Cards are popular as well, in which quite often people write “From Your Valentine” and “Be My Valentine”.
2. How is Valentine’s Day in Japan? How did it start and became popular?
Concept of Valentine in Japan is basically the same as in Western countries and has become quite popular also in Japan as well; however, it has developed into something unique to Japan. Valentine was first introduced to Japan by a western person who came to Japan before World War II. Soon after, confectionery makers and retailers tried to make it pervasive to promote their sales, but it was in the latter half of 1970s that it became quite popular in Japan. Valentine’s Day in Japan became something quite unique, with manners and customers unique to Japan; females giving males to express their affinity and love.
3. How is Valentine’s Day unique in Japan?
The following four points are the characteristics of typical Japanese style Valentine’s Day, making it so unique.
1) Chocolate is common as a gift, although recently some people started to give other things such as cookies and candies.
2) Gift is given usually one-way, from females to males, not vice-versa.
3) Valentine’s Day is regarded as an opportunity for females to express their affinity and love to males.
4) Gift-giving or chocolate from females to males (bosses and colleagues) at work is also quite common. This is called “giri-choko”, which is literally “obligatory chocolate” in English. This is not accompanied by romantic feeling.
4. How confectionery makers started to promote Valentine’s Day to boost their business?
How and when confectionery makers first started to make the most of Valentine’s Day in order to boost their sales is not clear. There are many as five different theories, ranging from a theory that a Kobe confectionery maker started in 1936 to a theory that was started in Sony Plaza in 1968, but none is ascertained.
What is ascertained is that department stores exerted much effort to make Valentine’s Day pervasive in Japan with chocolate promotion but in vain, and therefore many people viewed that Valentine’s Day would not become popular in Japan around 1968. However, from 1970s, chocolate sales for Valentine’s Day increased drastically. This was because teenagers started to give chocolates on Valentine’s Day at first, and this manner spread to adults in 1990s. Thus, although it is often said that popularity of giving chocolates on Valentine’s Day in Japan attributes to hidden strategy of chocolate makers, it also attributes to the fact that some factors of Valentine’s Day were well accepted to Japanese society and some others were not, and to the option selected by consumers.
5. What is White Day? What is the relationship with Valentine’s Day?
When Japanese unique Valentine’s Day of females giving chocolates to males to express affinity and love has taken root in 1980, another manners and customers unique to Japan formed, which is White Day, celebrated on March 14. The custom of White Day is quite unique to Japan. On this day, men have the opportunity to give gifts to women in return for the chocolate they received on Valentine's Day.
The custom of White Day started in 1978 in Fukuoka City when a sweet maker came up with the idea as a way to promote sales,. Then White Day campaign was planned and approved by nationwide association of candy industry and the first campaign was held in 1980. The fifth campaign in 1984 has become such a huge success that they were short of products, and 1984 was named as the year that in which White Day has taken root.
White Day has slowly become an annual custom among many men, although Japanese men were not accustomed to giving gifts like this to women, and then the custom eventually spread throughout the country. At first, the gifts given to women were often something white, like marshmallows or white chocolate, hence the name White Day. Recently however, various gifts are given, regardless of the color, and currently, companies from many different fields are developing products for the day.
6. How Valentine’s Day evolved to support confectionery business in Japan by strategic marketing of confectionery makers?
Valentine’s Day has become a truly national event, and since 2000 it has been evolving and diversifying. Indeed, it is said that as much as 20% of yearly chocolate consumption in Japan is of this day. Besides the primary concept/objective of females giving chocolate to males to express their affinity and love, other concept and forms have emerged. Females started to give to their lovers and husband. People started to give to males/females they admire. And small children started to take part in Valentine’s Day as well.
“Giri-choco” or obligation chocolate mentioned earlier that had taken root much earlier has been declining since latter 1990s, but other types of chocolates have emerged. One is “tomo-choco”, literally “friend chocolate” in English, which started to spread from around 2000. It now supports Valentine business in Japan and its market has been growing steadily since latter 2000s.
Another type of chocolate that has emerged is “gyaku-choco”, literally “reverse chocolate” in English. This is chocolate given to females from males, which is reverse of the traditional Japanese style Valentine’s Day. This has been promoted aggressively by Morinaga in particular by various campaigns from latter 2000s. Some people also started to buy “jibun-choco”, literally “self chocolate” in English, as a gift to oneself from around 2000.
7. Is success and popularity of Valentine’s Day and White Day (business) the result of marketing effort of confectionery makers?
The author would answer “yes”. It is no doubt that marketing campaign and promotion by confectionery makers was successful in activating chocolate (and other confectionery) consumption. Confectionery makers have been making much effort in marketing valentine specific products and other novelty products such as imported product, accompanied by huge campaigns, for business of Valentine’s Day and White Day. With their effort, they have to execute marketing strategy meeting (potential) needs of Japanese consumers understanding their psychology and behaviour well, to create a new market, to build and establish business of Valentine’s Day and White Day, when in general, consumer consumption and spending is in the low level after Christmas, the business/sales peak of the year.
2010年3月7日日曜日
Is Japan a Developing Country of Sports? (Part 2)
Is Japan a Developing Country of Sports? (Part 2)
Osaka – Sunday, March 7, 2010
In the previous article "Is Japan a Developing Country of Sports? (Part 1) possible reasons why Japan is/can be said as a developing country of sports were explained. In this article of part 2, the author would like to introduce a few examples of support and assistance from organizations to athletes recently delivered by news media, and attempt to draw a conclusion answering to the title of the article.
1. It cannot be denied that Japan is a developing country of sports.
In conclusion, it cannot e denied that Japan is a developing country of sports. The reason is that the support and assistance from the organizations to athletes to be introduced below are minority, complementing the insufficient support from the government and other public sector, and insufficient public infrastructure and systems (facilities etc.)
2. Some universities provide full support to their top class athletes to complement insufficient public support.
It is common in Japan that universities provide full support to their top class athletes. Athletes actually decided which university to go by the availability of support, including the facilities the school own, level of coach available and other “soft” support such as flexibility the school can provide to the athlete so that they can balance being a student and an athlete.
Daisuke Takahashi, bronze medalist of male figure skating of Vancouver Olympics, goes to Kansai University in Osaka, one of the few universities in Japan that own skating rink. Mao Asada, silver medalist of female figure skating of Vancouver Olympics, and Miki And, ranked 5th of female figure skating of Vancouver Olympics, go to Chukyo University in Nagoya, Aichi prefecture, another university in Japan that own skating rink. Both universities are private.
A good example of support was introduced in a recent TV programme by Chukyo University to Ms. Asada, by having staff members to keep the rink in excellent condition for her training, especially at the peak of training/practice for the Vancouver Olympics. Skating rink needs to be kept in good condition (smooth surface) by hard work of staff. Ms. Asada needed to practice intensively, starting from 6:00 in the morning (the time of her performance at the Vancouver Olympic). The staff members smoothed the skating rink surface to maintain the rink condition 6 times a day, the first maintenance before 6:00 am. Of course, similar support is provided by Kansai University, and both universities have been providing support daily to all their athletes. Such universities are minority.
3. Some companies/organizations support their top class athletes, a few providing full support, to complement insufficient public support.
A few companies and other organizations owning sports club with necessary facilities and coaches support their athletes, such as the following examples introduced in recent TV news, but they are also minority.
1) Full soft support to athlete from companies and organizations is an exception.
The hospital that Nao Kodaira works for, gives full soft support. Ms. Kodaira is a speed skater, who participated in several games in the Vancouver Olympics including team speed skating that won silver medal. She had delivered excellent result in the recent World Tournament. Recent TV news reported how she was warmly welcomed by the hospital staff members and patients when she came back from the Vancouver Olympics, and that she thanked them, showing her silver medal to patients. The news also mentioned that she will be leaving the hospital a few days later to attend the next tournament to be held abroad, and the hospital has been allowing her to focus on speed skating, not making her doing hospital work.
This kind of full support is exceptional. The reality of many athletes, even if the organization they belong to has relevant facilities, is that they work 8 hours a day and do training in the morning and after work. Some supportive organizations allow their athletes to work shorter hours and/or focus on training before tournaments.
2) Reward for exceptional result is breaking news.
Rewards from a company or an organization to their athletes for exceptional result has never been given until the recently, which turned out to be “breaking news”. TV news recently reported press conference by NIDEC SANKYO Corporation, the company Kiichiro Nagashima, silver medalist of male speed skating and Jyoji Kato, bronze medalist of male speed skating works for. In the press conference held on March 3 in which the founder and CEO of NIDEC, the parent company joined, and made announcement that Mr. Nagashima is given reward or 10 million yen and Mr. Kato 6 million yen (in addition to a few million yen reward from Japan Olympic organization), and that both of them will be promoted to positions 2 levels above their current positions as of April 1, 2010. 8 million yen, half of the total reward given to the 2 athletes, were paid from the pocket money of the CEO of NIDEC. The reward and promotion was a big surprise to the two athletes as well as the media, who reported this as breaking news immediately, and caused a big repercussion.
4. The government needs to take the lead to drive support from the public sector, making private sector to follow.
With the above exceptional examples complementing insufficient support from the private sector meaning Japan is a developing country in sports, the government need to take initiative to improve support from the public sector. This would make burden of individual athletes smaller (e.g. easier to use necessary facilities) and make private sector easier to follow to support, being able to support with less burden. Then above kind of examples could become less exceptional.
First measure is improving infrastructures and systems, especially facilities. Next measure is financial and other resource support, including minor sports especially Paralympics, which currently winners (medalists) are not rewarded at all, although this issue may depend on whether athletes are defined/positioned as professional or amateur.
Such measures would drive “soft” mental support, winning attention from the media and the general public, and as a result, making Japan a “developed country” of sports.
Osaka – Sunday, March 7, 2010
In the previous article "Is Japan a Developing Country of Sports? (Part 1) possible reasons why Japan is/can be said as a developing country of sports were explained. In this article of part 2, the author would like to introduce a few examples of support and assistance from organizations to athletes recently delivered by news media, and attempt to draw a conclusion answering to the title of the article.
1. It cannot be denied that Japan is a developing country of sports.
In conclusion, it cannot e denied that Japan is a developing country of sports. The reason is that the support and assistance from the organizations to athletes to be introduced below are minority, complementing the insufficient support from the government and other public sector, and insufficient public infrastructure and systems (facilities etc.)
2. Some universities provide full support to their top class athletes to complement insufficient public support.
It is common in Japan that universities provide full support to their top class athletes. Athletes actually decided which university to go by the availability of support, including the facilities the school own, level of coach available and other “soft” support such as flexibility the school can provide to the athlete so that they can balance being a student and an athlete.
Daisuke Takahashi, bronze medalist of male figure skating of Vancouver Olympics, goes to Kansai University in Osaka, one of the few universities in Japan that own skating rink. Mao Asada, silver medalist of female figure skating of Vancouver Olympics, and Miki And, ranked 5th of female figure skating of Vancouver Olympics, go to Chukyo University in Nagoya, Aichi prefecture, another university in Japan that own skating rink. Both universities are private.
A good example of support was introduced in a recent TV programme by Chukyo University to Ms. Asada, by having staff members to keep the rink in excellent condition for her training, especially at the peak of training/practice for the Vancouver Olympics. Skating rink needs to be kept in good condition (smooth surface) by hard work of staff. Ms. Asada needed to practice intensively, starting from 6:00 in the morning (the time of her performance at the Vancouver Olympic). The staff members smoothed the skating rink surface to maintain the rink condition 6 times a day, the first maintenance before 6:00 am. Of course, similar support is provided by Kansai University, and both universities have been providing support daily to all their athletes. Such universities are minority.
3. Some companies/organizations support their top class athletes, a few providing full support, to complement insufficient public support.
A few companies and other organizations owning sports club with necessary facilities and coaches support their athletes, such as the following examples introduced in recent TV news, but they are also minority.
1) Full soft support to athlete from companies and organizations is an exception.
The hospital that Nao Kodaira works for, gives full soft support. Ms. Kodaira is a speed skater, who participated in several games in the Vancouver Olympics including team speed skating that won silver medal. She had delivered excellent result in the recent World Tournament. Recent TV news reported how she was warmly welcomed by the hospital staff members and patients when she came back from the Vancouver Olympics, and that she thanked them, showing her silver medal to patients. The news also mentioned that she will be leaving the hospital a few days later to attend the next tournament to be held abroad, and the hospital has been allowing her to focus on speed skating, not making her doing hospital work.
This kind of full support is exceptional. The reality of many athletes, even if the organization they belong to has relevant facilities, is that they work 8 hours a day and do training in the morning and after work. Some supportive organizations allow their athletes to work shorter hours and/or focus on training before tournaments.
2) Reward for exceptional result is breaking news.
Rewards from a company or an organization to their athletes for exceptional result has never been given until the recently, which turned out to be “breaking news”. TV news recently reported press conference by NIDEC SANKYO Corporation, the company Kiichiro Nagashima, silver medalist of male speed skating and Jyoji Kato, bronze medalist of male speed skating works for. In the press conference held on March 3 in which the founder and CEO of NIDEC, the parent company joined, and made announcement that Mr. Nagashima is given reward or 10 million yen and Mr. Kato 6 million yen (in addition to a few million yen reward from Japan Olympic organization), and that both of them will be promoted to positions 2 levels above their current positions as of April 1, 2010. 8 million yen, half of the total reward given to the 2 athletes, were paid from the pocket money of the CEO of NIDEC. The reward and promotion was a big surprise to the two athletes as well as the media, who reported this as breaking news immediately, and caused a big repercussion.
4. The government needs to take the lead to drive support from the public sector, making private sector to follow.
With the above exceptional examples complementing insufficient support from the private sector meaning Japan is a developing country in sports, the government need to take initiative to improve support from the public sector. This would make burden of individual athletes smaller (e.g. easier to use necessary facilities) and make private sector easier to follow to support, being able to support with less burden. Then above kind of examples could become less exceptional.
First measure is improving infrastructures and systems, especially facilities. Next measure is financial and other resource support, including minor sports especially Paralympics, which currently winners (medalists) are not rewarded at all, although this issue may depend on whether athletes are defined/positioned as professional or amateur.
Such measures would drive “soft” mental support, winning attention from the media and the general public, and as a result, making Japan a “developed country” of sports.
2010年3月6日土曜日
Is Japan a Developing Country of Sports? (Part 1)
Osaka – Saturday, March 6, 2010
The title of this article is from a statement of Hiroyasu Shimizu, the gold medalist of Nagano Olympic male 500m speed skating. Mr. Shimizu said that Japan is a developing country of sports, which was introduced in a recent article of one of the Japanese popular newspaper. This has caused a big repercussion, being mentioned in many other Japanese media. Mr. Shimizu had won silver and bronze medals in other winter Olympics but was could not participate in the Vancouver Olympics so he watched the whole Olympic Games with reporters. And on March 5 he announced in a press conference that he will finish his playing career at the end of this season.
The primary reason that Japan is/might be a “developing country” in sport is that assistance, in particular financial, is not sufficiently given to athletes, according to the newspaper article and a brief discussion among the panelists in a recent TV programme, together with some other reasons.
1. “Hard” support is not sufficient from the government and other organization compared with other developed countries.
The biggest reason is the insufficiency of “hard” support and assistance, especially financial, from the government and other public administration. Also most companies that athletes belong to are unable to sufficiently support athletes, especially in the recent severe economy, to complement it.
1) Budget allocated by the government is insufficient.
Budget allocated by the Japanese government for sports is much smaller than many other developed countries of America, Europe and Asia. According to the data introduced in the TV programme, the largest budget allocated is Germany. Japan’s budget is below one-tenth of Germany, and much less than that of Korea.
A panelist pointed out that simple comparison of the data is inappropriate because the figure for Japan is only of MEXT (Ministry of Education, Culture, Sports, Science and Technology) that is responsible for Olympics but not for Paralympics, which falls under the responsibility of MHLW (Ministry of Health, Labour and Welfare. Even such point is considered, the panelists agreed that financial assistance from the government is not sufficient and it is highly desired that budget is allocated strategically, under the concept of “selection and focus” similarly to corporate strategy.
2) Sports system is poorly-resourced and necessary facilities are insufficient.
Many sports need facilities and equipments such as skating rink, swimming pool and athletic stadium, but they are insufficient, or rather, simply unavailable for some sports. The most prominent is unavailability of skating rink. This was emphasized by Shizuka Arakawa, the female figure skating gold medalist for Torino Olympics, after winning the gold medal, mentioning how the existing rinks had/has been closed, and was mentioned in many media.
3) Few companies/organizations are capable of supporting athletes, especially in the current business environment.
Only a few companies/organizations can support athletes, and less and less can continue to support. Most Japanese athletes benefit from support from schools and/or facilities of the public when they are student, and after graduating, they manage to continue being athletes with support from the company/organization they belong to. However, companies/organizations that are capable to support are extremely limited from availability of resources. What is more, with the recent downturn in economy, many of them has been closing the sports club they had been owning and managing to support athletes, including those with tradition, high performance/reputation and top-class athletes.
As a result, many athletes in Japan have difficulty in making a living and continuing to play sports as athletes meaning obtaining resources (e.g. financial for training and taking part in tournaments). They usually manage by part time jobs.
2.“Soft” support is also insufficient compared to other developed countries.
“Soft”, mental support is also insufficient compared to other developed countries.
1) General public pay attention to sports only during Olympics and other international tournaments.
The whole country pays attention to sports only when Olympic Games, World Cup and other international tournaments are held. This is mentioned by Mr. Shimizu and other top-class athletes, which may attribute to how the media deliver information to the general public, including the timing and coverage to some extent.
In addition, some sports do not at all win attention of the mass media and general public. A good example mentioned by the panelists is sports of Paralympics, which is quite true; there is almost no media coverage on Paralympics and the general public is not really aware of it. The author feels that there are many other minor sports in Japan whose situation and reason are quite similar that deserve attention.
2) Sport is not recognized as a highly “cultural activity”.
When people in Japan are asked which of the two, enjoying arts/paintings and playing golf, is more “cultural”, many people would say the former is. This is mentioned in the discussion of the TV programme, although definition of culture is rather ambiguous and diverse. Whether Japanese people in general value highly of enjoying arts/paintings or not is a question to the author, especially comparing with people from other countries with rich traditional culture in this field, but she fully understands what the panelists meant. This kind of recognition also might be one reason for the fact that general public pay attention only during Olympics and other international tournaments.
In the next article, a few examples of support and assistance from organizations to athletes recently delivered by news media will be introduced.
The title of this article is from a statement of Hiroyasu Shimizu, the gold medalist of Nagano Olympic male 500m speed skating. Mr. Shimizu said that Japan is a developing country of sports, which was introduced in a recent article of one of the Japanese popular newspaper. This has caused a big repercussion, being mentioned in many other Japanese media. Mr. Shimizu had won silver and bronze medals in other winter Olympics but was could not participate in the Vancouver Olympics so he watched the whole Olympic Games with reporters. And on March 5 he announced in a press conference that he will finish his playing career at the end of this season.
The primary reason that Japan is/might be a “developing country” in sport is that assistance, in particular financial, is not sufficiently given to athletes, according to the newspaper article and a brief discussion among the panelists in a recent TV programme, together with some other reasons.
1. “Hard” support is not sufficient from the government and other organization compared with other developed countries.
The biggest reason is the insufficiency of “hard” support and assistance, especially financial, from the government and other public administration. Also most companies that athletes belong to are unable to sufficiently support athletes, especially in the recent severe economy, to complement it.
1) Budget allocated by the government is insufficient.
Budget allocated by the Japanese government for sports is much smaller than many other developed countries of America, Europe and Asia. According to the data introduced in the TV programme, the largest budget allocated is Germany. Japan’s budget is below one-tenth of Germany, and much less than that of Korea.
A panelist pointed out that simple comparison of the data is inappropriate because the figure for Japan is only of MEXT (Ministry of Education, Culture, Sports, Science and Technology) that is responsible for Olympics but not for Paralympics, which falls under the responsibility of MHLW (Ministry of Health, Labour and Welfare. Even such point is considered, the panelists agreed that financial assistance from the government is not sufficient and it is highly desired that budget is allocated strategically, under the concept of “selection and focus” similarly to corporate strategy.
2) Sports system is poorly-resourced and necessary facilities are insufficient.
Many sports need facilities and equipments such as skating rink, swimming pool and athletic stadium, but they are insufficient, or rather, simply unavailable for some sports. The most prominent is unavailability of skating rink. This was emphasized by Shizuka Arakawa, the female figure skating gold medalist for Torino Olympics, after winning the gold medal, mentioning how the existing rinks had/has been closed, and was mentioned in many media.
3) Few companies/organizations are capable of supporting athletes, especially in the current business environment.
Only a few companies/organizations can support athletes, and less and less can continue to support. Most Japanese athletes benefit from support from schools and/or facilities of the public when they are student, and after graduating, they manage to continue being athletes with support from the company/organization they belong to. However, companies/organizations that are capable to support are extremely limited from availability of resources. What is more, with the recent downturn in economy, many of them has been closing the sports club they had been owning and managing to support athletes, including those with tradition, high performance/reputation and top-class athletes.
As a result, many athletes in Japan have difficulty in making a living and continuing to play sports as athletes meaning obtaining resources (e.g. financial for training and taking part in tournaments). They usually manage by part time jobs.
2.“Soft” support is also insufficient compared to other developed countries.
“Soft”, mental support is also insufficient compared to other developed countries.
1) General public pay attention to sports only during Olympics and other international tournaments.
The whole country pays attention to sports only when Olympic Games, World Cup and other international tournaments are held. This is mentioned by Mr. Shimizu and other top-class athletes, which may attribute to how the media deliver information to the general public, including the timing and coverage to some extent.
In addition, some sports do not at all win attention of the mass media and general public. A good example mentioned by the panelists is sports of Paralympics, which is quite true; there is almost no media coverage on Paralympics and the general public is not really aware of it. The author feels that there are many other minor sports in Japan whose situation and reason are quite similar that deserve attention.
2) Sport is not recognized as a highly “cultural activity”.
When people in Japan are asked which of the two, enjoying arts/paintings and playing golf, is more “cultural”, many people would say the former is. This is mentioned in the discussion of the TV programme, although definition of culture is rather ambiguous and diverse. Whether Japanese people in general value highly of enjoying arts/paintings or not is a question to the author, especially comparing with people from other countries with rich traditional culture in this field, but she fully understands what the panelists meant. This kind of recognition also might be one reason for the fact that general public pay attention only during Olympics and other international tournaments.
In the next article, a few examples of support and assistance from organizations to athletes recently delivered by news media will be introduced.
2010年3月1日月曜日
Will Doll’s Festival Celebration Be Passed On?
Osaka – Monday, March １, 2010
In Japan, families with girls celebrate March 3rd is a day to wish for their growth and happiness. Families with girls display a set of hina dolls at home and make offerings of white sake and hina-arare, (rice crackers). It is believed hina dolls protect girls from bad luck.
1. What is the Doll’s Festival and how is it celebrated?
In Japan, families with girls celebrate March 3rd is a day to wish for their growth and happiness. Families with girls display a set of hina dolls at home and make offerings of white sake and hina-arare, (rice crackers). It is believed hina dolls protect girls from bad luck.
1. What is the Doll’s Festival and how is it celebrated?
This family event originally began in the Edo era and is referred to as the Doll's Festival because families of girls display a set of dolls representing the emperor, empress, their servants, miniature furniture, and so forth, on a five or seven-tiered stand, like the one shown in the photograph. Cerebration also accompanies the Doll’s Festival foods including vinegared rice with thin strips of egg, pieces of raw fish, vegetables and crab meat arranged on top and diamond-shaped coloured rice cake (as in the photo) in addition to white sake and hina-arare. There is also the Doll’s Festival song as well.
2. What are the related events and lores?
It is often said that ancient people transferred their sins onto the dolls and threw them in rivers. This event is called Nagashi-bina, in which dolls are floated down rivers to wash away bad luck. In Katsuura City, Chiba Prefecture, more than 10 thousand dolls are displayed during the festival. A hina parade featuring children dressed like hina dolls is also staged.
In addition, it is often said that the set of dolls need to be put away immediately after March 3rd otherwise the girl will not be able get married. There does not seem to be a logical relationship between the timing of putting away the dolls and whether the girls get married or stay single (or timing of getting married). What they try to imply is that in traditional ancient Japan, girls brought up in a family with sloppy lifestyle (e.g. lazy to put away seasonal things such as the Hina dolls in a timely manner) will not easily welcomed as a bride.
3. What is the reality today?
Similarly to other traditional ceremonies, less family is celebrating the Doll’s Festival as it used to be. This might be because people simply cannot afford to buy set of dolls and/or have no space to display in their house. Or people simply do not find importance of celebrating such a tradition.
Also, Japanese females now have much wider range of options to choose from (thus some are stuck to choose the best choice for them) and they are mostly free from stereotyped marriage and housewife. This is good; however, it is possible that this is one reason for low birthrate, along with weak economy and tough labour market leading to anxiety in economic independence of individuals, economic burden of raising children and poor social infrastructure for working mothers.
Sublime concept “wish for growth and happiness or girls” of the Doll’s Festival and the belief that “hina dolls protect girls from bad luck” remain the same regardless of the era but the definition of happiness and luck seem to be going through change society in which we live in and values of people changes. Similarly to keeping to and succeeding philosophy of the company to next generation but transforming/evolving the organization, strategy and methodology of realizing philosophy, the author feel that essence off the tradition of the ceremony is to be maintained and passed down to our posterities.
2. What are the related events and lores?
It is often said that ancient people transferred their sins onto the dolls and threw them in rivers. This event is called Nagashi-bina, in which dolls are floated down rivers to wash away bad luck. In Katsuura City, Chiba Prefecture, more than 10 thousand dolls are displayed during the festival. A hina parade featuring children dressed like hina dolls is also staged.
In addition, it is often said that the set of dolls need to be put away immediately after March 3rd otherwise the girl will not be able get married. There does not seem to be a logical relationship between the timing of putting away the dolls and whether the girls get married or stay single (or timing of getting married). What they try to imply is that in traditional ancient Japan, girls brought up in a family with sloppy lifestyle (e.g. lazy to put away seasonal things such as the Hina dolls in a timely manner) will not easily welcomed as a bride.
3. What is the reality today?
Similarly to other traditional ceremonies, less family is celebrating the Doll’s Festival as it used to be. This might be because people simply cannot afford to buy set of dolls and/or have no space to display in their house. Or people simply do not find importance of celebrating such a tradition.
Also, Japanese females now have much wider range of options to choose from (thus some are stuck to choose the best choice for them) and they are mostly free from stereotyped marriage and housewife. This is good; however, it is possible that this is one reason for low birthrate, along with weak economy and tough labour market leading to anxiety in economic independence of individuals, economic burden of raising children and poor social infrastructure for working mothers.
Sublime concept “wish for growth and happiness or girls” of the Doll’s Festival and the belief that “hina dolls protect girls from bad luck” remain the same regardless of the era but the definition of happiness and luck seem to be going through change society in which we live in and values of people changes. Similarly to keeping to and succeeding philosophy of the company to next generation but transforming/evolving the organization, strategy and methodology of realizing philosophy, the author feel that essence off the tradition of the ceremony is to be maintained and passed down to our posterities.
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