Japanese Market News

When entering the Japanese market, it is inevitable for those new to the market to be forced to come up with a well thought out game plan to differentiate themselves from already established companies. The situation perhaps may be different if your company's product had never before been developed, but since most of the time this is not the case, there is no way to rise to the top but to carefully plan for success. This is especially true in the electronics industry where there are already too many established companies in Japan to simply compete with the same methods for the same customers.

For example, if a well-known Japanese electronics company such as Panasonic or Sanyo developed a new portable electric stove, it would be marketed towards the growing elderly population. These stoves can be advertised as safe for the elderly compared to a gas stove, and these established companies could utilize their brand name to market reliability. For a company less known by the elderly population, this same marketing strategy would not work.

Following the footsteps of Tescom & Co. Ltd., a newcomer in the electronics industry, would perhaps provide hints to compete against already established companies. A twenty-something woman designed Tescom's IH electronic stove for young women using a sleek silver design. The price and marketing strategy was also set to appeal to young women keeping the price low and using colorful store displays. However, interestingly, 50% of those who purchased the stove were senior citizens, 40% were families, and only 1% were young women.

As you can see, the company's product development and marketing strategy targeting young women were really not setup to attract the attention of these female customers. But use of these different means served to differentiate themselves from the more established electronics manufacturers. Tescom succeeded by focusing on their strengths as a women friendly electronics manufacturer to eventually attract the same customers as their larger competitors.

Posted by Alisa at 09:15 AM | Permalink

In Japan, not enough shop space, or lack of a potential market in the immediate surrounding area are common obstacles. However, especially in the food and beverage sector, meticulous attention to detail in producing and maintaining a restaurant, store, or product can be enough to overcome these obstacles and attract customers from afar.

The success of a 46.2 square meter sake shop that has recently been receiving a lot of attention for its business tactics, specializing in sake (Japanese rice wine) and shochu (distilled spirit) from Kuramoto, is evidence that attention to detail is king. More than half of the shop's customers are from outside the city area. This is not because the shop runs an e-shop where these customers can purchase items online. The owner's dedication to maintaining his extensive knowledge on sake and shochu and his personal relationship with his suppliers and customers attracts repeat business even from afar. Every year, he dedicates one whole month to making his rounds in the Kuramoto area. Instead of just communicating via fax or phone, directly meeting with his suppliers is what has allowed him to uphold his stock of 1800 high quality items. Of course the popular tasting event the shop sponsors is one of the keys to the owner's successful relationship with his customers, but his daily efforts in providing customers the perfect alcohol of choice based on their preferences is what really keeps them coming back for more.

Posted by Alisa at 08:52 AM | Permalink

Compared to previous generations, more under-forty fathers are actively participating in their children's lives. Research shows fathers are spending more money on activities such as trips to the museum and restaurants to develop the child's senses. From cooking to computer building, classes where children participate with their fathers are increasingly becoming popular. Service providers are seeing this change in the father-child relationship as a development of a new target market in Japan.

Different expectations or values are what pushes these fathers to take their children to various places to experience new things. While parents of the older generation wanted their children to become leaders in society, nearly half of 20 to 30 year old parents find it more important for their children to gain a special skill that will allow them to differentiate themselves and thus achieve independence. With the fathers themselves also interested in learning new things along with their children, the number of services, including workshops and tours, targeting this market is expected to grow.

Posted by Alisa at 09:13 AM | Permalink

When purchasing items for one's own living space, cost is often a crucial element but design can always make or break a decision. With more design conscious consumers in Japan, many home appliance manufacturers are treating their microwaves, air conditioners, and refrigerators as room interior décor items and developing more than just plain white electronics. Recent examples are several air purifiers, humidifiers, and heaters introduced in natural colors such as "silky beige" to attract female consumers.

Though this trend of producing design conscious electronics is not completely new, it was the Healsio water oven with its sleek bright red design inspired by traditional Japanese lacquerware that recently revived this trend. However, the difference between the current trends with its predecessors is that consumers are not looking for eccentric designs but more for designs that go well with a room’s interior. Sanyo’s new air conditioners with replaceable stylish cover panels in seven different colors are great examples of a product that has successfully responded to this new trend.

Posted by Alisa at 09:04 AM | Permalink