Cool Japan Strategy: Japanese Culture Export in 10 Businesses

Osaka – Saturday, January 8, 2011




Nikkei, Japanese leading newspaper specialized in business and economy, reported today in its evening paper that by implementing “Cool Japan” strategy the Japanese government (METI: Ministry of Economy, Trade and Industry) is to initiate new businesses to promote export of Japanese culture of animation, fashion and foods that are highly evaluated and popular abroad from 2011. Such initiatives include installation of time-limited antenna shops that introduce Japanese sake (alcoholic drink) and food, and collaboration with local distributors to proliferate Japanese culture. The initiatives are expected to drive export of products of small and mid-sized companies and individuals (craft men and creators), to achieve export or 13 trillion yen in 2020.



1. What is Cool Japan Strategy?



It is a strategy in which Japanese products with global competitiveness in fashion, design, content such as animation and movies, food industries are positioned as “Cool Japan = Japanese culture that the world find it cool” and are used as drivers in expanding business worldwide and attracting tourists from around the globe. The Japanese government had developed Cool Japan Strategy and included in the New Strategy of Japan that was agreed among the cabinet members in June 2010.



2. How has the Japanese government been initiating the Cool Japan Strategy?



METI established Cool Japan Office in June 2010, which is planned to be up-graded to a department headed by “Creative Industry Councilor” in 2011, integrating all departments engaged in fashion and content business. Thus, the department is to promote Cool Japan strategy across the related industries.



METI allocated 1.4 billion yen for Cool Japan Strategy in the 2011 budget. The budget is to be used in 10 businesses that have been selected together with target country/region in order to drive export in fashion and household goods to China and in selling animation and consumer electronics to Brazil that adopted Japanese format in digital terrestrial broadcast.



10 Selected Businesses of Cool Japan Strategy


(Source: Nikkei, translated and edited by the author)



Country or Region / Business / Objective

Asia / Food / Introduce Japanese food culture and sell good, alcoholic drinks, dishes etc.

Asia / Housing / Sell housing, environmentally-friendly electronics, furniture etc.

China / Fashion, household goods / Collaborate with shopping mall targeting the rich

China / Content / Leverage Japan & China co-hosting events such as of movies

South East Asia / Japan regional traditional goods / Branding of Japan regional traditional goods

South East Asia / Fashion, household goods / Export Harajuku Brand targeting the young

India / Fashion / Collaborate with local fashion media

US / Food / Establish Japanese food and alcoholic drinks

US / Content / Export content leveraging animation and 3D technologies to Hollywood

Brazil / Content, consumer electronics /Proliferate TVs and One Seg mobiles leveraging animation at the timing of FIFA and Olympics



3. What are concrete examples of the initiatives?



For example, in China, consortium constituted by Japanese product planners and producers such as designers and small and mid-sized companies will be established. Then products will be gathered at antenna shops and EC website for　experimental sales locally. In addition, collaboration is to be made with local distributors that have access to shopping malls to make experimental sales into sustainable sales. When this system becomes a success, it will be rolled out to other businesses.



4. Who are the main players in Japan Cool culture industries?



It is mainly individuals of designers and creators, and small and mid-sized companies. Many of them have difficulty in starting business abroad themselves due to insufficient capital and know-how. METI would like to discover such business owners and match them with overseas business owners to develop as an export industry. METI also believes that it would contribute to creating jobs for the young generation.



5. What are the assumed positive effects of the initiative?



1) Increase in export



METI estimates that worldwide market size of fashion, food and content in 2020 will be 932 trillion yen. Achieving feasible market share of 1.4% means 13 billion yen export, which is far greater than the current export.



2) Image enhancement of Japan



Proliferation of Japanese culture industries around the globe to expand business would lead to image enhancement of Japan as well. These initiatives are similar to Cool Britania initiatives of the U.K. in latter 1990s, and the recent South Korea initiatives of which export in consumer electronics and apparel increased through export of life style via export of movies and TV dramas to Asian countries.