Japanese Market News

Within these past few years not only has there been an increase in number of tourists coming to Japan but there has been an increase in interest in the general Japanese public to market towards these tourists. Many newspapers and magazines articles have been written on how travel agencies, accommodations, restaurants, theme parks, tourist destinations, shops of all ranges in Japan are working together and hard to understand their new market, meet their needs, and find more potential.

Japanese locals in the more rural parts of Japan were less enthusiastic about opening up to foreign customers in the past, are now actively seeking consultation on how best to accommodate these new foreign customers coming from all over the globe.

New tours, services, products, signs, job positions have been created due to these changes in the industry and more is yet to come.

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Increase in oil prices has had a detrimental effect on Japanese businesses such as well known Italian restaurant chain Saizeriya. Famous for their low prices such as their 299 yen pasta, this family restaurant among others are rethinking their business strategies and planning on closing a few stores in selected suburban areas and instead reopening in shopping centers.

Posted by Alisa at 09:26 AM | Permalink | Comments (0) | TrackBacks (0)

Beginning with the growing popularity of the Himitsu no Kenmin Show, a Japanese television show featuring celebrities representing various prefectures in Japan to discuss local curiosities such as dialect, customs, and foods, there has been an increase in interest among the Japanese population to learn more about these previously overlooked regions. The focus has always been on Tokyo but now there has been a slight shift in thought and even among the younger population, hidden treasures are thought to be hiding beyond the metropolises. Various books featuring prefecture specific facts and trivia have been published and have been selling well. Local cuisine has been an especially hot topic, now with annual events such as the B-1 Grand Prix where local restaurants compete with their regional cuisines. Though these various regional differences which are finally being exposed to the general public, new product ideas and business opportunities are being found.

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Donuts have not been a highlight of the Japanese diet until these past few years when donut stores from abroad began to popup all over in the streets of Tokyo. With the introduction of gourmet donut shops, the local donut shops which were already popular now needed to compete fiercely with the newcomers against their new “premium” style of donuts and services. More stores with stylish interior and higher quality donuts began to popup in response. As a result a whole market has evolved with a new range of customers that were never before considered to be part of the target market which consisted of more children and teenagers. Similar trends have been occurring in every sector of the Japanese market with products from soft drinks, desserts, to running wear, premium products have been developed to include unlikely targets for previously unrelated products.

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Well known companies such as the tea manufacturer Lipton Yellow Label Tea, have successfully survived the market for decades for various reasons including continuous changes in package design. However, advertising the relaxation benefits of L-Theanine. which can be found in tea, was the cause of a major boost in sales especially in this generation where people in Japan buy their way to relaxation with bath salts and herbal teas. Of course the basics such as improvements on flavor cannot be ignored especially in a country with consumers as picky as in Japan.

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Popularity for spas has reached a new level with the opening of a spa theme park in March in Tokyo. The various spas that will be introduced into the complex will each have a country theme. One spa might have an Israeli theme providing massages using Dead Sea salt. Another with an Indian theme may provide Ayurveda massages and so forth. With more women in Japan investing money on health and beauty, the popularity for spas continues to expand beyond facilities with an endless line of bath and beauty products found in every corner of shopping areas all across Japan.

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Frozen food technology in Japan has evolved these past twenty years allowing the market to multiply. Especially with the introduction of techniques that allow for rapid freezing, ingredients no longer loose its flavor during the freezing process. Last year a refrigerator was introduced with a special cooling technique that kept vegetables in the freezer fresher than ever before. These new freezing technologies have also helped in preserving the quality of food being delivered throughout the country. This includes your standard delivery of seafood to specially made food for diabetic patients.

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Nintendo has changed the face of the gaming industry in recent years attracting the interest of people who never thought twice about gaming such as women and the elderly and forming a new market. With new products such as the Wii Fit, created to encourage families to exercise together, possibilities for the gaming industry have expanded beyond the realms of what was previously dominated by companies such as Square Enix, the makers of popular games such as the Final Fantasy series. Following in the footsteps of the Brain Age game by Nintendo, a puzzle game to help keep the brain active targeting the elderly, a game targeting casual wine drinkers interested in learning more about wine tasting and etiquette via quizzes was recently introduced. Game creators are even finding an audience in the medical field where doctors are discovering that certain games are an effective way of motivating the elderly to keep up with their rehabilitation routines.

Posted by Alisa at 10:42 AM | Permalink | Comments (0) | TrackBacks (0)

Modern art in Japan reached a new level when Takashi Murakami and Yoshimoto Nara artwork were sold in the millions at an auction held in New York early this year. Pricing in the art world was once controlled by the western world but now Asian art dealers have more of a presence and voice in order to achieve their goal of promoting modern Asian art to the world. With the rising number of wealthy potential clients willing to purchase modern art for investment, this is a perfect time for the Japanese art industry to flourish.

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These past few years zoos and aquariums have experienced a surge in popularity which all began with the country’s new found fascination with Asahiyama Zoo located in a rural area in northern Japan. There is no secret magical formula to what the zoo did to increase visitors. The core reason behind its popularity lies in the zoo’s layout which was redeveloped so the animals were not just caged and displayed but redesigned so visitors can interact with the animals. Other changes include increase in number of animals and the addition of night time hours which was unexpectedly popular among the public. Zoos and aquariums across Japan followed suit and as a result have experienced its share of popularity.

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Extreme ironing is an extreme sport or a performance art that began in England where participants take an ironing board and iron a few pieces of clothing at a remote location such as a side of a mountain or while doing a sport like snowboarding. Though it is debatable whether or not this is a sport and if its popularity will last, nevertheless its Japanese media coverage has increased within these past few weeks due to Japanese enthusiasts who are currently preparing for the upcoming international extreme ironing competition.

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Rain boots are the rage not just on rainy days but even when the sun is shining. They are now a hot fashion item and are selling well among young women in Japan. The trend trickled down from celebrities who wore their rain boots in front of the cameras, and more and more manufacturers even in Japan are developing their own designer rain shoes, bringing much variety to a market previously unheard of.

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Leading a healthy lifestyle has always been important in Japan, but recently it has reached a new level and become fashionable. Though old news to some, health and beauty products with collagen are advertised and pop up everywhere, targeting women who are yearning for perfect skin. Fad diets have always been around, but now there are more and more fad exercises. The most recent highly publicized and popular import fad exercise is Billy’s Boot Camp. As for sports, the rage right now is running, and although not everyone is catching on, many running related products are gaining interest among those who never before thought of it as a sport. Women are the main target for these new exercises and sports as they are the main consumers. Interestingly enough, in a country where vegetarianism and veganism never really caught on and is still struggling for exposure, the macrobiotic lifestyle has recently received a lot of press. Mineral water has as well, even among a population whom once saw no reason to pay for water when it was always available for “free.”

Posted by Alisa at 10:57 AM | Permalink

Up until now it was rare for the travel industry in Japan to aggressively target visitors from abroad. However, there has been a recent rise in interest not only within the travel industry but from beyond to provide opportunities for visitors to experience a more in-depth view of Japan.

An example of tours that provide this deeper view of Japan is one that delves into the world of sumo. Participants watch the wrestlers practice in the morning, try a little sumo, and eat chankonabe, a special hotpot that sumo wrestlers often eat.

At a more local level there is a sushi restaurant that allows visitors to make sushi. After the lesson participants have a greater appreciation for the art since they can taste the difference in professionally made sushi. Another example is aimed at those who wish to experience Old Tokyo for cheap by staying at guest houses with themed rooms that are decorated with a hint of Edo. For a modern alternative, capsule hotels and comic cafes are also gaining popularity as a place to stay replacing your average hotel.

Posted by Alisa at 09:49 AM | Permalink

In countries where bicycles are an important means of transportation yet space is always a limitation, Marunaka’s portable bike Carry Me is great news. A manufacturer in Taiwan developed this product which folds up to become 30 cm in width, 114cm in height, and 21cm in depth (minus the pedals). This compact size is extremely convenient for those looking for the perfect solution to avoid not only bicycle theft but those living in confined spaces. Not only is it small but very light at only 7.9 kilos. Currently they are sold in Japan in six colors at a little less than 600 US dollars.

Posted by Alisa at 09:40 AM | Permalink

Fifty years ago Kikkoman Corporation predicted that the soy sauce market in Japan would decline. In response, the company decided early on to expand to the overseas market during a time when no other Japanese company in the food industry would dare try. Just as predicted the soy sauce market continued to shrink in Japan. However, Kikkoman was able to support itself by its sales activities outside of Japan, which make up more than half because of Kikkoman’s early entrance in the overseas market.

Unlike now where Japanese food is widely known outside of Japan, fifty years ago the average American was far from interested in foreign flavors. However, by staying true to the motto, “when in Rome, do as the Romans do” Kikkoman was gradually able to introduce soy sauce into the All-American kitchen. Instead of introducing Kikkoman soy sauce as how it is use in Japan, the black and white Kikkoman commercials of the time tried to grab the interest of these average Americans by introducing soy sauce as a type of barbeque sauce. Kikkoman’s teriyaki sauce was also introduced into the market as a barbeque sauce and became a big hit. Since then, although more people are using soy sauce in Asian dishes, its use has expanded to be used as flavoring for non-Asian foods such as sandwiches and frozen foods.

Posted by Alisa at 09:43 AM | Permalink

Everywhere you look in Japan there are iPod users. You can say even more so for cell phones. With the spread in use of both items, it only makes sense that a company like IMJ would develop an iPod remote controller that alerts iPod using cell phone users when they are receiving a phone call or email via their iPod.

The remote control uses Bluetooth technology to temporarily stop the user’s iPod, and alert the user with a ring tone. After the phone call it will automatically restart from where the iPod was stopped. It is possible to make adjustments such as the volume of the alert tone.

Though there are many iPod accessories that are available, like this BluRing, there is still more room for more ideas especially in the Japanese market.

Posted by Alisa at 10:06 AM | Permalink

Glasses are regaining popularity here in Japan with numerous chain stores offering eyewear for not only quick and cheap but in infinite designs. Glasses are no longer just a functional item but an accessory to complete someone’s wardrobe. Along with this trend, glasses cords are finding a new following to further personalize these new accessories. This may come as a surprise to many, since more are likely to consider glass cords as something favored only for functional purposes by the elderly. Defying preconceptions, there are more women in their thirties and forties that purchase these cords as if they are shopping for necklaces or other jewelry. Although a trend that is more visible among women, glass cords with simple designs are also surprisingly popular among men.

Posted by Alisa at 09:25 AM | Permalink

In comparison to before, there is more variety in services and products that have become popular among visitors who come to Japan. Snow has become a major attraction that has helped to counter the declining number of Japanese domestic travelers. One example is Yamagata’s Zao hot springs area where within these two years there has been an increase in number of visitors from Asia, especially Korea that come to ski. While there has been a general decrease in number of Japanese visitors at all ski resorts in Japan, last season the Zao area welcomed an average of 6000 non-Japanese visitors, which is twice the year before. These statistics were made possible with the help of about 20 Korean travel agencies which planned a scheme to attract these newcomers with a sensible 3 day 2 night ski package under 50,000 yen. Locals in the area are trying hard to welcome these new visitors posting multilingual signs and menus but more work needs to be done to continue increasing visitors. However, the future does seem promising.

Similar to these trends, there has been an increase in number of people from Hong Kong who visit Japan during the Lunar New Year holiday, especially to Hokkaido, Tokyo, Osaka, and Wakayama for not only shopping but to be exposed to nature.

Apart from tourists wanting a glimpse of Japan’s ski slopes and waterfalls, Akihabara is still on the list of popular tourist destination. However instead of searching for the standard electronics or anime, now what visitors from especially China want are plastic models of helicopters and other vehicles which are said to be expensive back home. Shop owners say that these visitors are more eager to make large purchases than the Japanese locals. One visit may lead to a 100,000 yen purchase.

Other popular items among visitors are health products such as supplements, baby formula, and high tech western style toilets. Restaurants are seeing a change in their customers. Kaiten-zushi (conveyer belt sushi) restaurants are seeing that there has been an increase in number of Asian customers, especially from China and Korea. Lodging facilities, particularly capsule hotels and budget ryokans (traditional Japanese-style hotels are seeing an increase in number of Western visitors.

Posted by Alisa at 09:14 AM | Permalink

Recently communication within the nuclear family is slowly decreasing due to changes in lifestyles and values in Japan. While there are many ways to approach this issue, one business has found a way not only to help but profit from this growing concern.

Hometech, a company based in Fukuoka recently introduced a device that monitors how each family member spends time within the house for a week. Multiple receivers collect this data from transmitters that are placed on each family member wrists. This data is analyzed and summed up on a computer for those at Hometech to see and suggest a home improvement solution that will not only fit the family’s lifestyle but improve it.

For example the data may find that the father and son might be in the house at similar times but may spend time in different rooms. In response to this data, Hometech may suggest a space for a computer in the living room which will increase chances for father and son for communication.

Posted by Alisa at 09:10 AM | Permalink

Christmas traditions are slowly starting to change in Japan and as a result of these changes, businesses are being greatly affected.

In Japan, the Christmas season has always been a time for dating couples rather than families and so it was almost taken for granted that hotels and restaurants would be full with reservations during the holidays. However, there has been a slow shift in consciousness and these past few years more and more think of the holidays as time to spend time at home.

Christmas decorations have become increasingly popular because of this new trend. Apartments in Japan these days have higher ceilings allowing more to purchase Christmas trees to decorate–a tradition which was unheard of in past years. What was once a market where only 90 to 120 cm trees were sold has grown to where 180 to 240 cm tall trees have also become popular. What’s more is that Christmas decoration trends have not stopped inside the house but the western tradition of decorating outside the house with Christmas lights has also caught on.

While to some in the restaurant and food industry, this new Christmas trend has had a detrimental affect as mentioned above, others have found new business opportunities through the catering business. More find it more cost effective to close their restaurants for the holidays and just focus on catering for home parties. Another example of businesses who have found joy from the holiday season are cooking schools which teach men to cook season foods so they can entertain their partners, families, and friends.

Posted by Alisa at 09:15 AM | Permalink

It is important to have a great product and it is also important to have great design. However, a humorous product name can also do miracles in bringing sales. Earlier this year, a line of tofu with eccentric names like “Kaze-ni-fukarete-tofuya-johnny” (Johnny the Tofu Maker, Blowing in the Wind),”Otokomae tofu” (Handsome Tofu),”Kenka-jyoutou-yakko-yarou” (The Fighting Fool), grabbed the attention of consumers and became a big hit. Ito Shingo, the master mind behind these new creations was able to help his company escape sluggish sales from having to produce low-priced tofu by producing these not just buzz worthy but very flavorful high-priced tofu.

By realizing that a product as traditionally Japanese as tofu cannot just be healthy or delicious but must stand out also by other means, Ito was able to not only survive but shine while other companies were filing for bankruptcy left and right. The eccentric ideas did not stop there. The line of tofu has its original theme music adding to the brand’s image.

Humor is key to Ito’s success. Perhaps you can bring humor to Japan’s market.

Posted by Alisa at 09:21 AM | Permalink

Since a new flower shop opened this April in Osaka, Japan, it has been the center of attention of the media and it’s many customers. What could possibly make a single flower shop so ground-breaking and create such commotion? A simple glance at the flower shop WiSH’s display counters will help explain everything.

At WiSH, instead of just your usual vase flower arrangements, flowers are arranged to look like sundaes, cakes, and tarts. Most customers are women in their twenties who purchase these “sweets” for friends or themselves.

Though the flower shop does sell your traditional arrangements, ironically what differentiates WiSH from others are these unique arrangements created with the same flowers.

Posted by Alisa at 09:33 AM | Permalink

Ganbanyoku (rock bathing) has been the recent rage in the ever changing health and beauty industry in Japan. Especially due to the decrease in price of stones used in these bathing facilities, ganbanyoku has become the next best thing to a luxurious spa visit at a weekend getaway.

However, due to the increase in number of ganbanyoku facilities, the craze is soon expected to reach its peak. Bringing a new twist to their current services has become crucial in order to not only outlive the competition of two thousand spas nationwide but sustain the trend. A successful example is a Nagoya based ganbanyoku chain which has utilized its extensive knowledge of stones to develop unique new products for women using a stone powder with healing properties.

Posted by Alisa at 10:29 AM | Permalink

Due to the recent decrease in birthrate, numerous businesses in Japan have shifted their consumer focus on the elderly. Even exhibitions which used to simply display products for infants have changed their exhibition name to include products targeting the elderly. Manufactures are no longer able to survive depending just on the baby products market. Such companies include for example, those that have used technology they used to manufacture caster wheels and handles for baby carriages for products for the elderly.

Some businesses that have always only targeted their services towards infants, have had to expand further and completely renew facilities and services to include adults. Photo studios are one example, which are hoping that young families will continue to come back for other photo opportunities as their children grow older. Businesses such as these are planning recovering by taking advantage of the positive impact the decrease in birthrate has had on the market, which is the large investments parents are willing to make for each child.

Posted by Alisa at 08:20 AM | Permalink

There is an expanding market for the increasingly wealthy population–especially women in their thirties and forties who are willing to spend money on luxury. Customized spa services are one example, which can easily become twice the price of an average spa visit. Money is not an issue for these women but instead the quality of personalized counseling on traditional Chinese medicine is more crucial.

However crazy this may sound, the increase in demand for diamonds with more than 3 carats (80 times the cost of an average 0.3 carat engagement ring) supports the argument for the trend mentioned above. What before only found themselves in the hands of wealthy 60 year olds, are now finding a new market between the ages of thirty and forty.

The publishing industry has caught on and found this population to be a profitable target and have published a successful catalogue that features everything from limited edition jewelry to real estate outside of Japan.

Even more, due to the style of networking among this new wealthy population changing from previous years and there has been an increase in popularity for restaurants that offer catering services have experienced a 40 percent increase in profit within these last two years. The average budget when inquiring for these catering services is usually 20 thousand yen for one person. This interest for home parties has extended to individuals int

Posted by Alisa at 09:08 AM | Permalink

Especially with the summer festival season at full swing, stores selling traditional Japanese festival clothing and accessories are working hard to utilize the web to expand their target markets. From traditional Japanese shirts and split toe socks worn for the summer festivals to decorations ranging from traditional to modern festival themed cell phone straps, one can find a wide range of items on these online stores.

The detailed product descriptions even for what are considered standard products for Japanese festivals such as the split toe socks are helping to boost sales. Clearly showing the online store’s strengths such as providing products that will help to make the customer’s festival a more unique experience, is what is also attracting more and more customers away from the well networked brick and mortar stores to these online stores.

Posted by Alisa at 09:06 AM | Permalink

What simply began as an online store in 1996 selling various import and domestic beers five years later became an online specialty store selling just Belgium beer. In Japan, online shopping is becoming more a part of the everyday lifestyle creating more demand for very specialized online shopping experiences such this Belgium beer store.

The site is set up so visitors can search for beer by taste, type, glass, brewery, region, and fruit and all listed beers have a picture or illustration and description to make it easy to navigate even for first time visitors unfamiliar with Belgian beer. The major part of the site’s success is due to this extra care that is put into the website including the newsletter and blog where the brewers are introduced, adding depth to the site’s products. Currently the site owner’s dedication to Belgium beer has attracted 1000 to 1500 orders a month and half are regular customers.

Posted by Alisa at 08:30 AM | Permalink

According to a recent research on advertising done by online company goo research, in Japan television advertising still gets the most exposure at 60.8 percent. However, internet advertising is only a few steps away at 9.7 percent from newspaper advertising which is at 12.8 percent, and has already surpassed radio advertising at 1.9 percent and magazine advertisement at 2.7 percent. Furthermore, the research results continue with consumers expressing that if the internet and email advertisements are adjusted to their needs, almost 45 percent are expected to express interest in the advertisements.

These statistics show the emerging potential of internet advertising, which can be a great advantage for overseas businesses interested in targeting their products and services in Japan at a low cost.

Posted by Alisa at 08:31 AM | Permalink

In Japan, ecommerce has developed these past few years to a point that even businesses selling cardboard boxes are finding opportunities to make a profit online. Previously just selling via brick and mortar, the company’s business expansion to the internet which began in 1996 is finally breaking through with 40 thousand unique visitors a day. At bestcarton.com, you will find anything from boxes for moving, storage to product delivery for individuals and major companies.

The secret to the online store is its automated quotation system. The lesson to learn here for small and medium sized online businesses is that it is not just the technology behind the system that has made the site a success. It was simply having the patience and the flexibility to accept seemingly unprofitable small orders starting from one box to gain loyal customers.

Posted by Alisa at 08:33 AM | Permalink

Since the release of a coloring book for adults last year in April, coloring, an activity traditionally associated with young children has become a hit among the unexpected. The activity is especially popular among women between ages forty and seventy, but fans in general range as young as eleven to as old as ninety-five. The surprisingly wide target market has attracted businesses looking for new opportunities. Bookstores have been holding coloring book fairs in response to the unprecedented high demand for a wide range of coloring books. Its popularity has affected even the gaming industry with a coloring game waiting to be released this July.

Posted by Alisa at 09:09 AM | Permalink

Several businesses in Japan are becoming popular not from introducing completely new services or products but by becoming flexible with the times they provide their services. Blatter Massen Corporation, a cleaning delivery service based in Tokyo is one of many of these new businesses taking advantage of the demand for midnight and early morning services.

Blatter Massen’s competitive advantage is being able to provide services after 8pm when the average cleaner is closed. Customers do not hesitate with their high pricing since most value the convenience of being able to call at two in the morning for delivery services.

In the case of Japan, it is usually assumed that services offered early in the morning and late at night are targeted towards the young and elderly. However these timeslots are actually the most ideal for targeting working men and women who have difficulty finding time within their heavily scheduled weekdays to run errands or simply relax.

From package delivery services to accommodate late night pickup at nearby convenience stores, McDonalds franchises in selected business districts where times are adjusted for late night workers, to selected health clubs open early in the morning to accommodate those who wish to work up a sweat before going to work–more and more services are being introduced to support the busy lifestyles of working Japanese men and women.

Posted by Alisa at 09:23 AM | Permalink

Kamikatsu, a mountain town with a population of just over two thousand, was seeing their small town grow static. Their famous mandarin oranges were destroyed due to cold weather and the lumber industry was becoming sluggish. Tomoji Yokoishi, currently Irotoridori, Co., Ltd.’s executive, was determined to revive the town by finding the perfect business that would match the town’s aging demographic.

The idea for his current business, Irotoridori, flashed through his mind when Yokoishi came across the inedible leaves that decorated the dishes at a traditional Japanese restaurant. Utilizing the internet to network between the locals, who picked leaves in the surrounding fields and mountainsides, and the hotels and restaurants that were in need of the leaves, the company provided Kamikatsu a collective income of US$2 million a year.

Posted by Alisa at 08:35 AM | Permalink

Teaching young children physical education has become a business high in demand. The reason behind its rise in popularity is the increase in concern among parents for their children who have not been fully expose to various forms of physical activity outside of school. Readers may be fast to criticize the parents for making their children develop these skills solely through commercial means, especially since the tutoring fees are quite high. However, numerous restrictions that did not exist for previous generations have made it difficult for these children to simply go to the playground or participate in local sports leagues. For instance, recent years have seen a decrease in the number of children living in the same neighborhoods as well as a lack of safe areas for children to engage in outdoor physical activity.

Nevertheless, the various services have had a positive effect on these children and are not only helping children gain physical strength, they also help them learn team-building skills. This industry is said to grow, beginning with sports gyms across the country introducing physical education classes aimed at children. Even the Ministry of Education provides aid to support such business development. Japan's national soccer team, the J. League, and the country's oldest and most popular baseball team, the Yomiuri Giants, are also becoming involved by running sports camps and free classes at local schools.

Posted by Alisa at 09:18 AM | Permalink

After learning about the laundry delivery service business in the United States, president Mika Yamazaki started her own similar service, Wash & Fold on March 2005. The service is based on a pricing system where anything you can fit within a Wash & Fold bag will cost 2400 yen to wash. The items placed into the bag need to be washable with a normal washing machine and are simply picked up, washed and folded and delivered back to the customer. The service's reasonable pricing and convenience have attracted around a thousand members mainly in the Tokyo area and are receiving approximately 20 bags a day.

It is difficult to say in such beginning stages whether or not the service will be able to compete once the prices of dryers decline, but the service definitely has potential in a country where more people are willing to invest their money for time away from such mundane household chores.

Posted by Alisa at 08:41 AM | Permalink

Responding to the needs of retailers having difficulty reaching potential customers interested in sampling products, Luke 19 created Sample Hyakkaten.

In Japan, product samples are often handed out near large terminal stations or in crowded streets. Sample Hyakkaten takes this process online and makes it convenient for companies to deliver product samples and collect survey results from potential customers.

The site currently has one hundred thousand registered members and its most popular sections include sampling cosmetic and health products. By responding to surveys and sending comments on product samples, users collect points in order to receive more samples. Currently, its users are mostly women but there is great potential for products targeting male, elderly, and teenage audiences. The site is considering adding a function where companies can sell products that are popular among registered members.

Posted by Alisa at 08:41 AM | Permalink

After learning about the laundry delivery service business in the United States, president Mika Yamazaki started her own similar service, Wash & Fold on March 2005. The service is based on a pricing system where anything you can fit within a Wash & Fold bag will cost 2400 yen to wash. The items placed into the bag need to be washable with a normal washing machine and are simply picked up, washed and folded and delivered back to the customer. The service's reasonable pricing and convenience have attracted around a thousand members mainly in the Tokyo area and are receiving approximately 20 bags a day.

It is difficult to say in such beginning stages whether or not the service will be able to compete once the prices of dryers decline, but the service definitely has potential in a country where more people are willing to invest their money for time away from such mundane household chores.

Posted by Alisa at 09:05 AM | Permalink

Japan's forestry industry is currently in a slump but this has not stopped the increasing number of customers interested in building houses with domestic Japanese lumber. The use of wood has always been deeply part of Japanese culture with approximately 70 percent of the county being covered with forests. However, imported lumber eventually became more popular due to its decline in price. As a result, forestry became an unprofitable market in Japan with many in the industry abandoning their forests. Several foresters aimed to revive the industry in response to these woodlands which have slowly been going to waste.

Like other industries in Japan, foresters are now focusing on enhancing the quality of the wood rather than increasing the quantity that is being produced. As a result of this movement towards reviving Japan's forestry industry a unique hybrid beam was developed by Chugoku Lumber Co. Ltd. (Chugoku Mokuzai Co. Ltd.) combining Japanese cedar (cryptomeria japonica) for its durability and Douglas fir for its compressibility and flexural properties. By utilizing domestic lumber the company is hoping to not only revive the lumber industry within Japan but contribute to conserving the forests of Alaska from where Japan imports much of its lumber.

Posted by Alisa at 11:24 AM | Permalink

Currently, there is a movement toward diversifying energy sources in Japan, which will allow the country to become less dependent on fossil fuels and reduce greenhouse gas emission. Among other projects, the Japanese government is involved in manufacturing bio-fuels from agricultural products, beginning with the experimental study of biomass ethanol with Asahi Breweries and the National Agricultural Research Center for Kyushu Okinawa Region. This project, conducted on Ie Island, Okinawa, involves the production of biomass ethanol from high biomass sugarcane to develop E3 gasoline, an automobile fuel containing biomass ethanol.

Posted by Alisa at 08:41 AM | Permalink

In 2005, 1 out of 5 people in Japan expressed concerns related to sleeping. Beginning with sleep apnea syndrome, which first received major media exposure in Japan three years ago when a train driver was caught dozing at the controls of a bullet train, there has been a rise in the number of people who struggle with insomnia, restless leg syndrome, REM sleep Behavior Disorder, narcolepsy, and other sleep related problems. This trend has become a social problem resulting in an increase in the number of clinics and general hospitals specializing in the treatment of sleeping disorders. It is also a problem affecting businesses, especially the transporation industry, which now encourages sleep apnea syndrome examinations to assure that employees are sleeping well to avoid accidents that can lead to financial losses.

Behind many health problems is a large market responding to the needs of these consumers. Currently, the market in Japan for sleep related products and services are expected to rise to 100 billion yen. Matsushita Electric Works is one company that is aiming to develop products that will provide customers with an all-around solution, including electronics and bedding that will assist in solving sleeping problems.

Posted by Alisa at 08:46 AM | Permalink

With the increase in popularity of online trading, the real estate industry in Japan is hoping to also expand its business online. Recently, a real estate auction site opened with hopes to shift the industry from an area specific business to one that can cover a wider locale and satisfy a wider range of customers. Although the site is currently for resale only, visitors will find a 12 billion yen market with just the click of a mouse, from one room apartments to entire buildings.

Posted by Alisa at 08:50 AM | Permalink

Convenience stores have become an essential part of the everyday lives of people living in Japan. Starting out as a store for one-stop shopping for food and everyday necessities, these stores evolved to places where customers can pay utility bills, send packages and faxes, make photocopies, and do ATM transactions. However, the market has reached a point where convenience stores need to provide more to differentiate themselves from their competitors. In order to appeal to a wider variety of customers, some convenience stores have ventured into the 100-yen shop business where all or parts of their products are sold either at 100 or 99 yen. Many of these stores are also selling small portions of fruits and vegetables for the same price targeting singletons. Furthermore, some convenience stores are focusing their energies towards serving the growing number of health conscious urbanites and especially women. Natural Lawson, a part of the second largest convenience store chain Lawson Inc., is one example as these stores specialize in organic foods and natural products. On the other hand, Famima!!, which is part of the third largest convenience store chain Family Mart, is an example of a convenience store providing health and style with its selection of gourmet soups, sandwiches, pastas and everyday import items from around the world. ampm enta and Happily are the most recent examples of these specialty convenience stores by am/pm Japan, another one of the largest convenience store chains in Japan. ampm enta focuses on DVD rentals and books, while Happily sells items targeting women such as cosmetics, health foods, etc.

Posted by Alisa at 08:55 AM | Permalink

The food industry is one of many segments of Japanese business that is finding new ground overseas. While sushi, teriyaki, sukiyaki, and tempura were the obvious forerunners, Japanese chefs and food exporters are now challenging local tongues to a new face of Japanese food culture. The most obvious place to spot the new overseas activity is with the increasing number of Japanese restaurants opening left and right in various countries. In order to survive the fierce race for quality, chefs are introducing new Japanese dishes to the world. However, perhaps less known is the fact that more and more food exporters are stepping up to the challenge to export Japanese delicacies from fruits to seafood, targeting the increasing number of health conscious shoppers interested in such foods as miso, as well as the average shopper with more familiar foods such as apples and scallops. Importers from various countries are also currently flocking to Japan to find the next hit.

Posted by Alisa at 09:33 AM | Permalink

More and more men over 60 years old who have never been associated with cooking have recently been seen attending cooking classes and purchasing cookware at specialty stores. The main factor for the growing interest in cooking is that these men have retired and wish to find something productive to do with their free time. However, another contributing factor is that many feel they cannot keep on relying on other family members.

Although the number of 60-year-old men taking classes is still small compared to the number of female or younger students, schools are increasing the number of classes expecting the next wave of male retirees to become potential students. Along with these instructors are specialty shop owners who are stocking up on more cookware specifically targeting this group of male retirees. This is because these men are said to put more emphasis on quality and are willing to pay more regardless of how expensive an espresso machine or brand name copper saucepan costs. For example, with knives, particularly knives for soba (buckwheat noodles) making, those in the 30 to 40 thousand yen price range are selling more than those in the 5000 yen price range.

Posted by Alisa at 05:37 PM | Permalink

Internet coupons, via both personal computers and cell phones, have become omnipresent in Japan as a way for various services to attract customers. However, the companies themselves still experience financial hurdles in paying for the publicity cost of being placed in these coupon directories.

Noticing the financial burdens small businesses have to face, a coupon site specializing in massage and relaxation therapy related services recently opened with coupon listings for free services of over 200 stores. In this coupon service, the store registers to pay approximately 20thousand yen (200 US dollars) for website development and a monthly maintenance fee of 10thousand yen (100 US dollars).

Posted by Alisa at 08:51 AM | Permalink

The Internet is changing the face of how products are marketed in Japan. The increase in number of internet community portal sites where those with common interest spread information word off mouth are what brought buzz marketing to a new level. One of the most well known community sites in Japan is cosme.net, a portal site specializing in cosmetics. With 600 thousand registered members and more than 3 million written reviews on a variety of cosmetics, the influence the site has is large enough that any item with a good review is said to sell well. The surprise is that this trend can be seen regardless of how large or small the cosmetics manufacturer. Cosmetics developed by previously unknown manufacturers are selling extremely well without investing millions on advertising fees, which is forcing large cosmetic manufactures to rethink their sales and marketing strategies. There are now companies that have utilized the site's influence to their advantage as a cost efficiently way to do research and development.

Blogs have also become major players in this buzz marketing phenomenon because of affiliate programs where individuals recommend products on their blogs. It is important to note that this trend towards buzz marketing is not just present in the consumer goods market but other industries as well, such as the food service industry, etc.

Posted by Alisa at 08:44 AM | Permalink

Ideas found in various cultural traditions can sometimes lead to unexpected hit products in the Japanese market. The rising popularity of the ger, a traditional Mongolian dwelling that can easily be assembled and disassembled to support a nomadic lifestyle, is an example of such a phenomenon.

Something that the public would have never purchased seven years ago is now turning into a new business, resulting in an increase in imports of these dwellings. Beginning with the popularity of Mongolian Village Tenger, a campsite in Tochigi Prefecture Nasu City, where trees and snow surround 13 ger, business ventures using ger are increasing. For example, a Mongolian restaurant just recently opened in Tokyo built inside a 10-meter ger. However interesting enough, these new ger import businesses are mainly responding to demands from individuals looking to purchase a ger as a second home.

It is hard to deny that the increase in popularity of these dwellings is at least partially related to Asashoryu, the Mongolian sumo wrestler whose fame recently put Mongolian culture in the spotlight in Japan. However, there was definitely something in this Mongolian dwelling that spoke to the modern citizen living in Japan. Many say that the lack of partitions between people when living or just dining in these ger was what attracted customers. To those that live in large cities in Japan like Tokyo where people find it difficult to communicate and meet new people, these ger provide a space that allows them to easily start conversations with strangers.

Posted by Alisa at 09:16 AM | Permalink

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

Renting DVDs via the Internet from computers or cell phones is gradually becoming popular in Japan. Memberships at two of the four leading online DVD rental stores, Rentrak of Culture Convenience Club (known for their entertainment rental stores throughout Japan) and Posren (a subsidiary of the major Internet portal site Livedoor), have doubled within this year.

Interestingly, different trends occur at online DVD rental stores in contrast to traditional brick and mortar rental stores. While new releases, which make up two percent of what is in stock at brick and mortar stores, bring in 80 percent of store sales, at online rental stores it is not unusual for older releases to gain similar popularity due to user reviews on the online store site.

Online DVD rental services are just an example of the numerous businesses that are moving online to respond to the changing lifestyles of those living in Japan, mainly those between their 20s and 40s who seek culture with convenience. Similar trends are occurring with television via Internet sites that provide shows on demand with commercials to keep the service free.

Posted by Alisa at 11:12 AM | Permalink

This year was another year of new products, services, and trends in Japan. Though there are trends that overlap those in other countries such as Apple's iPod products, Skype, and Mixi (a social network service similar to Friendster or MySpace), Japan still has its own distinct market trends that perhaps should be reviewed for inspiration or reference for those entering the Japanese market.

First, 2005 was a year targeting those seeking products and services with class. This included services targeting the wealthy that required exclusive memberships, a trend that was thought to have completely died out with the burst of the bubble economy. There were also services that specifically targeted wealthy retirees, such as upscale resort-like retirement homes. In contrast, a new market targeting those seeking to simulate a celebrity-like luxurious lifestyle through more affordable means emerged this year. Some major examples of what became popular within this market are stylish bars where customers drink while standing, high quality chocolates, and affordable luxury handbags and denim. Convenience has also gained new meaning this year, with the increase in number of convenience stores selling fresh groceries in smaller portions for just 100 yen. The popularity of these stores is due to changing lifestyles in Japan where consumers prefer smaller portions because of the increase in number of persons living alone and smaller sized families.

This year, perhaps partially influenced by the increase in health conscious consumers due to the heavily media fueled LOHAS-style living, there is a growing number of health conscious products that are being released or have regained popularity, such as soy or other traditional Japanese flavored ice creams and non-alcoholic beer. Furthermore, the instant popularity of paper shredders this year was a response to the Japanese Personal Information Protection Law. This last example illustrates how it can be helpful to keep track of events such as this where any old average product can instantly turn into a hit with the right timing.

Posted by Alisa at 09:30 AM | Permalink

Because the demand for health foods is always very high among consumers in Japan, companies are continuously on the run to develop the next sensational health product.

Kewpie Co. recently announced Dife, a condiment that looks and tastes like mayonnaise that is not only low in calories but lowers cholesterol. This new miracle worker took an approximately five and a half year struggle to develop. The secret is in the use of plant sterol found in soybeans and rapeseed which displaces cholesterol in the micelle, a liquid particle. Since cholesterol cannot be absorbed by the small intestine without the ability to become part of the micelle, it does not reach the bloodstream. Though Kewpie Co. dominates with 70 percent of market share, there is no time to rest since the health food battle continues with Ajinomoto, Kewpie Co.’s competitor which is currently in the process of developing a similar product.

Posted by Alisa at 09:03 AM | Permalink

Labeling places of origin on groceries has been a standard practice in supermarkets but recently restaurants have caught on the trend for the same reasons: to gain trust among their customers. This is not only a practice incorporated by those trying to bring back customers to eat their meat dishes who have lost trust due to the various recent health safety issues surrounding beef and chicken imports, but also for vegetables to emphasize their quality with more background information.

To those who own restaurants, labeling at first may not seem like a favorable trend since there is a need to invest time and money to reexamine distribution channels that will be trustworthy enough to expose to their customers. However, seeing that 79 percent of Japanese consumers consider knowing places of origin labels a necessity according to a recent poll, it is not unlikely that customers will soon or later choose restaurants based on these labels.

Posted by Alisa at 09:52 AM | Permalink

The number of "free paper" or free magazines found everywhere from train and subway stations to stores throughout Japan has flourished the past four years from around 1,200 to 2,500. These magazines have recently become a significant resource for companies wanting to reach consumers not just with advertisements, but with sponsored articles and coupons. The main reason why the magazines are so effective is because the target market for each magazine is focused. Such audiences range from a relatively broad demographic, such as free magazines for men or women working in the Tokyo metropolitan area, or more specific such as for golf, cars, water sports, or pet enthusiasts.

Posted by Alisa at 09:34 AM | Permalink

The so-called "reused car" export business continues to grow every year in Japan due to a large demand among many overseas buyers. "Reused cars" are older cars with higher mileage than the average used car. A few years ago, they would have been disposed of as scrap cars. However, nowadays, there is an expanding market for these "reused cars" where they are being repaired and auctioned off. Currently, the number of "reused cars" sold at used car auctions held throughout Japan are increasing and is said to reach 8 hundred thousand this year.

The benefits of the "reused car" business are that the parts are easy to find and the cars are easy to repair. What also attracts buyers to this business is the amount of money that can be made. The price of a car at an auction can start as low as 3000 yen (30 US dollars). Most cars are said to last for another 3 hundred thousand kilometers (around 187 miles) if repaired and some can be sold for well above the purchase price in countries in such places as South America and Africa.

Posted by Alisa at 09:13 AM | Permalink

Despite the average 6 g shortage in daily intake of dietary fibers among the current Japanese population, the 40 billion yen dietary fiber related products market has remained static. The main reason is due to products such as the coenzyme supplement Q10 that has been dominating the market for its marketability as an anti-aging product. In response to this phenomenon, several competitors including Asahi Soft Drinks, co., Ltd., Asahi Food & Healthcare, Ltd., Shikishima Baking Co., Ltd., Nippon Flour Mills Co., Ltd., Lotte Co., Ltd., and Rohto Pharmaceutical Co., Ltd. came together to revive the dietary fiber market by developing products that specifically suffice the 6 g and over shortage and by marketing through unified promotion efforts such as using a common red project logo, promotional items, and promotional activities. Since the project began in April this year, consumers have been responsive. The companies hope that the products, which include powder supplements, zero sugar chocolate snacks, bread, nutritional bars, and drinks, will reach sales figures of 5 billion yen.

Posted by Alisa at 01:26 PM | Permalink

Since Japan's Personal Information Protection Law was enforced in April 2005, businesses all over Japan have been rushing to become certified with seals such as the Privacy Mark to reassure its customers that they are properly handling their personal information. Since this craze began, the Japanese population's attention towards security has risen, and has affected various industries, especially the electronics industry. Specifically, businesses in the computer recycling industry that work mainly with businesses have responded rapidly to these new concerns. Guaranteeing compensation for data leakage is one of many measures taken to avoid client data from leaking from the recycled computers to be resold to other businesses.

Posted by Alisa at 09:06 AM | Permalink

It is already well know that 100 yen shops in Japan brought extraordinary changes to the Japanese market these past few years. With the store products mostly being items needed in ordinary everyday life, it was only natural for demand to grow since there is something for everyone for such a low price including household and kitchen goods, office supplies, cosmetics, food, stationary, gardening and pet supplies, toys, souvenirs, etc. Currently there are multiple story mega stores that boast wider selection or others especially popular among women, which place more focus on interior merchandise with good design. However, besides a wider selection of 100 yen stores, now the 100 yen business market is expanding due to deflation, with 100 yen per minute hair salons, standup bars with all 100 yen food and drinks, 100 yen per 15 minute arcades, karaoke, fishing, and 100 yen convenient stores where various food, drink, and household items can be purchased for of course a 100 yen.

Posted by Alisa at 09:20 AM | Permalink

Though Japan is infamous for its today here, tomorrow gone market trends, what stands out most at the moment is what is occurring at the very high end of the business to consumer market. There are currently more persons in this social bracket than before, and they are looking to spend.

Some recent unique and popular services and items include e-shopping for 1 million yen weekend vacation packages, diamond rings, designer, and other luxury goods. Another steady trend is purchasing not only Renoirs and Picassos but Ministry of Finance gold coins at art auctions for investment purposes.

Posted by Alisa at 09:08 AM | Permalink

Following the footsteps of world renowned Harry Winstons and Ferraries, there are new businesses in Japan that are thriving by purposely narrowing down their target market. The success of a 40-years-and-older only bar in Tokyo is a wonderful example, which currently boasts 500 members, a number achieved just by word-of-mouth since it opened in July 2005. The bar owner openly proclaims that he has no interest in widening its target market beyond their strict age range. Having a focused target market was what allowed the bar to maintain its refined atmosphere—the main force that kept customers coming back.

Posted by Alisa at 09:01 AM | Permalink

The baby boomer generation is now ready to spend as they approach retirement. Unlike their parent’s generation, perhaps mainly because more are living longer, a large amount of money is being spent on themselves than saved for their children. One particular area where much of their money is being poured into is in home improvements in preparation for their new hobby filled daily lives. Whether it is to build space for cooking or doll making, reverse mortgage is allowing these baby boomers to make their dreams home come true. As a result, sales for home improvements specifically for kitchens and bathrooms are said to have increased 6 percent in the last three years. Many couples are also converting rooms that used to be their children’s rooms into their own private rooms so each can spend more time alone and focus on hobbies.

Posted by Alisa at 09:47 AM | Permalink

In Japan, it is said that 8 to 10 thousand new toys are introduced every year. If ten are released in one day, most disappear without notice. Toy manufacturers on average develop a new toy every month even though the time and money spent on product development does not always guarantee success. The decrease in number of children in Japan is one of the major reasons for the struggles.

By broadening their target market, Tomy, one of Japan’s leading toy manufacturers was able to step to the challenge and produced a toy that has so far survived the market for three years. The Nohohon-Zoku digital solar clock toy dolls have captured the hearts of both young and old consumers with their cute and calming expressions and movements. The full year spent on just developing the perfect calming face for this toy is only part of the reason for the product’s success. The time and effort spent on marketing, mainly constantly changing store display shelves to keep customers interested, and getting restaurants and doctor offices to display the clock near the cash register or at the front desk is what really helped boost sales.

Posted by Alisa at 09:25 AM | Permalink

The LOHAS (Lifestyles of Health and Sustainability) market is rapidly growing in Japan and is now larger than in the United States, which is where the movement started. Currently, around 29.3 percent of Japanese adults are living based on LOHAS values. According to a survey by E-Square Incorporated, 21 percent of these people have a family income of approximately 9 million yen, and Nikkei Research Institute of Industry and Markets suggests that if the product meets the high expectations of these consumers, they are usually willing to pay three times more than the average price. The consumers of this market are very educated and make conscientious purchases and investing decisions based on environmental and social responsibility. Products and services in this market include alternative transportation (e.g. bicycles and hybrid cars), energy-efficient electronics and appliances, renewable energy, green building and industrial goods, eco-friendly household products, natural and organic foods and beverages (e.g. macrobiotics), natural personal care products, alternative healthcare (e.g. aromatherapy), vitamins, minerals, dietary supplements, eco-tourism and travel, and socially responsible investing. Although there are critics that suggest that the term LOHAS itself may end as just hype, these new trends in consumer buying patterns are nevertheless expected to expand.

Posted by Alisa at 09:13 AM | Permalink

Businesses whose main target has traditionally been children are currently looking elsewhere for consumers due to the decline in the number of children. Tomy for example, which has long been a company focused largely on selling children's toys, recently began to shift its focus towards adults, selling reproductions of toy cars from thirty years ago and introducing a new clothing line. The frozen foods market is also strengthening its focus on business persons who currently make up 30 to 40 percent of their consumers. What was once a market that relied on producing side dishes for children's lunches, companies are putting emphasis on the quality of the ingredients, taste, and healthiness to capture a wider percentage of adult consumers. Also, a unique example is a beach that shifted its target from families with children to dog loving individuals. A dog friendly beach that opened just this summer has been receiving an overwhelmingly positive response.

Posted by Alisa at 09:21 AM | Permalink

Sales of slightly higher-end products and services targeting children are performing better because of the declining number of children and increasing number of working women in Japan. With more money to spend on less children, businesses are becoming very sensitive to their needs. Since Asics introduced a line of children's shoes, sales have been increasing thirty to fifty percent during these past few years despite their expensive prices ranging from 5000 to 6000 yen. The key to the line's success is in the company's quality customer service, offering shoes that are most comfortable and fit by carefully measuring the child's feet. Competitors in the industry such as Adidas have also taken notice of this new market and have introduced a line for babies. Besides products, there has been an increase in demand for services such as babysitting that provide more than just child care. Currently, there is high demand for babysitters that offer English, piano, violin, and other lessons, even though there is an approximately 1000 yen higher charge than an average babysitter. Furthermore, daycare facilities in office buildings are becoming popular among the increasing number of working parents for their convenience.

Posted by Alisa at 10:09 AM | Permalink | Comments (0) | TrackBacks (0)

The matchmaking market in Japan is growing with the increasing number of older singles whom are finding it difficult to stumble upon partners for marriage. There are currently 3000 companies that provide matchmaking services in Japan, but within this pool of services that all hold their own unique matchmaking events, there are a handful of online matchmaking sites that are currently gaining some spotlight. While the percentage of partners who meet via online are still under 1 percent in Japan compared to the 12 percent in the United States, there is still much potential in Japan for online matchmaking services. Match.com which recently began services in the Japanese market currently has 100 thousand users whose number is expected to increase. This is a surprisingly positive response considering more people were expected to misinterpret these sites as the cell phone dating sites which became a major social problem in the past few years.

Posted by Alisa at 09:38 AM | Permalink

Odor is a significant concern during the summer, especially for a country that is already well known for its obsession with cleanliness. While sales for standard products such as deodorant increase annually, unique products such as Atsugi Co., Ltd.'s pantyhose which use photocatalysts to eliminate odor and kill bacteria are also becoming popular. This cleaning product's market has grown to extend into pet products. Unicharm recently introduced a cat litter tray and cat litter that sold extremely well because of the product's ability to leave absolutely no odor for a week. In line with this trend, there are also new services that are increasingly becoming popular such as Kalmor's services, a company in Tokyo that inspects and deals with odor, Sick Building Syndrome, dioxin, fungus, and bacteria related issues in the home and office. Another is White Wings Co., Ltd. in Shizuoka that provides cleaning services specifically for removing pet odor and stains, whose customers have doubled since last year.

Posted by Alisa at 10:07 AM | Permalink

Japan has traditionally been well known for its many gift giving customs including Oseibo and Ochugen where gifts are given to co-workers, friends, and relatives before New Years and in midsummer. However, these formalities are slowly being replaced with gifts given to mainly friends and relatives for birthdays and Christmas. Those giving gifts are mostly female, approximately one out of five, giving more than 11 gifts per year. Organic foods, shochu (Japanese distilled spirit), and flower arrangements are among the most common gifts. Gift ideas usually arise from browsing stores but also largely from the internet. Gifts are also bought mostly at department stores, stores within train stations, or on the internet.

Posted by Alisa at 09:44 AM | Permalink

Many businesses in Japan such as restaurants, banks, railways, hospitals, stores etc. are putting a lot of emphasis on decreasing wait time for their customers despite the many distractions already available to fill these voids. When customers were asked where they were most frustrated with waiting time, the results that stood out the most were the number of frustrated males at restaurants when waiting for their orders and females waiting at public restrooms. Reading magazines, books, or newspapers and checking mail on cell phones were a common activity to pass the time. However, some solutions that were suggested, which would possibly lead to new business ideas, were for restaurants to send a message to customers' cell phones a few minutes before a table is available, place a pay restroom for those who do not want to wait in line, run commercials to distract customers waiting in line at the cash register, or some other non industry specific ideas were placing large screen televisions, put on soothing music, or provide a massage or tea service.

Posted by Alisa at 09:32 AM | Permalink

The face of the dental industry is changing in Japan becoming more transparent and service oriented. OMORI Inc. is one company that has stepped to the challenge to assist in transforming the lagging management side of these dental offices through a franchise. The company's aim is to separate management and the technical side of the practice allowing OMORI to take charge in aspects such as training non-technical workers and implementing services and means that will attract repeating customers. Examples include placing a restaurant menu like chart in the front desk that clearly lists the prices and treatment details, a point card system where customers receive 1 point for every 10 yen spent and dental products in exchange for accumulated points, and also having even the practitioners go out into the streets to pass out flyers for the clinic. There are also other clinics that are competing with their 24 hour 354 day services.

Posted by Alisa at 10:10 AM | Permalink

Following the increase in popularity of vinegar based drinks, the one and only vinegar sommelier has recently come into the media spotlight with a mission to spread the various ways vinegar can be enjoyed. It was the vinegar sommelier's fruit based dessert vinegar that first sparked public interest, and now there are a variety of flavors including blueberry and Muscat. The sommelier recommends that these dessert vinegars be mixed with not only water but also milk, distilled spirits, or wine, and can also be enjoyed with ice cream and yogurt. A spoonful of this dessert vinegar in curry is said to add depth to its flavor, and in the wintertime, this vinegar can simply be mixed with hot water or put on croissants with butter. The high level of creativity that is demonstrated in his introduction of dessert vinegar is representative of the time and dedication required by the Japanese food and beverage industry to gain and sustain local consumers' attention, who are known to be the most demanding in the world.

Posted by Alisa at 09:39 AM | Permalink

In attempts to follow the footsteps of popular, young, professional female golfers Sakura Yokomine and Ai Miyazato, junior golf schools have seen an increase in the number of parents and children taking lessons together. There are even several schools that are planning on expanding to respond to the expected increase of students. While it is not surprising that driver models used by the two professional golfers are ranking well in sales, others golf club manufacturers such as Salomon & TaylorMade Co., Ltd. also steadily continue to keep market share. Golf courses are also in this race to regain momentum as well in this golf frenzied Japanese market.

Posted by Alisa at 10:07 AM | Permalink

The anime and gaming market is said to be worth 88 billion yen, so it is not surprising that both the public and private sectors are taking notice of the benefits of investing in the anime business.

The most noticeable example within the public sector is the anime trade fair sponsored by the Tokyo Metropolitan Government held every year to further promote the anime industry on an international level. In the private sector, Itochu Corp., a major trading house, plans to set up a fund investing in Japanese animation with U.S. media and entertainment giant, Time Warner Inc., to increase the number of animated television programs to be aired around the world. The rise in anime related company stocks up to 1 trillion yen is also another concrete indication of the market’s potential. Some major examples are used anime books and goods store Mandarake's stock rising up to 1.2 million yen, online game company Koei Net's stock quadrupling to 1.7 million yen, and anime entertainment company Broccoli Co. Ltd. and Toei Animation Co. Ltd. experiencing similar boosts.

Posted by Alisa at 09:59 AM | Permalink

More and more previously unrelated industries are looking for business opportunities in the nursing care sector, a market worth over 5 trillion yen and still growing.

Watami Co. Ltd., well known for its successful Japanese style pub franchise, recently bought RnoKAIGO Inc., which operates 16 nursing facilities within the Tokyo, Kanagawa, and Saitama area. Watami's decision to buy RnoKAIGO was to strengthen its position in the nursing care business. While it is still a unique venture for a company mainly known for its long history in the food service industry, Watami has already made improvements including utilizing its food business expertise to improve the quality and cost structure of the nursing home food services.

Posted by Alisa at 10:51 AM | Permalink

Social Network Services (SNS) similar to Friendster or Orkut are currently flooding the Japanese internet scene. With the popularity of eMercury, Inc.'s Mixi and GREE Co., Ltd.'s GREE, the internet is yet again proving itself an even more indispensable tool in connecting the Japanese population. Even before these two communities popped into the internet scene, sites such as Kanshin.com and the infamous 2channel boards were a popular source for community and information. Although these SNSs are free to its 300,000 plus users for basic services, besides charging for advertising and premium membership fees, these SNSs have a lot of potential in finding ways to form the next generation innovative business models.

Posted by Alisa at 09:49 AM | Permalink

The future of Japanese business may seem bleak at first glance due to two major employment issues. First, the "year 2007 problem," also known to some as the "retirement bubble," is when much of the Japanese baby boomer generation is said to retire. This exodus of workers born during the years 1947 and 1949 will create an urgent need for businesses across the country to find replacements for the jobs being left behind. At the same time, while businesses will want more employees, the increasing number of NEETs (Not in Employment, Education or Training) or young "silver spoon syndrome" children between the ages 19 and 23 not planning to seek employment, are said to cause a shortage in skilled labor within Japan.

Despite this gloom and doom, the Japanese business world is finding new hope within its increasing working female population. Female company presidents such as Mika Noguchi, the founder and president of Peach John, Hino Mizuho, the 29 year old founder and president of Eclipse, and Maho Shibui, a renowned money and career advisor, are among the many female business role models who are currently leading the way and changing the face of employment and business practices in Japan. This shift towards more woman friendly business environments is even taking place in the industrial sector with Sakie Akiyama, the CEO of Saki Corporation. This inspection machine manufacturer's factory is located in the same 31st floor room of a Tokyo skyscraper as its sales team and every other division of the company. As a result of this ground breaking all-in-one unique business model implemented by Sakie Akayama, she is helping to bring back value to Made in Japan manufacturing as an alternative to overseas manufacturing.

Regardless of the fear of a shortage of skilled workers to support the Japanese economy within the next few years, the key to revitalizing the next generation of Japanese business is thought to be up to the creative hands and minds of young women.

Posted by Alisa at 09:32 AM | Permalink