BCCJ Acumen February 2015 by Custom Media KK

February 2015 | 짜900

The magazine of the British Chamber of Commerce in Japan

ACUMEN MEDIA ARTS BOOKS HEALTH TRADE TECHNOLOGY COMMUNITY EVENTS and much more

INDUSTRY & A-LIST REAL ESTATE & RELOCATION

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Style: UK rules the runway

BCCJ event: cautious optimism

Gongs: Britons receive top awards

EXPORT

DRIVE! UKTI conducts GREAT trade mission for some 50 British firms and 500 local buyers

February 2015 VOLUME 6, ISSUE 2

7 EDITOR Market entry success kathryn wortley

35 JET Where are they now? Cultural knowhow aids strategic planning

8 MEDIA UK–Japan news

37 GONGS Britons receive top honours Invaluable efforts on industry, tourism, government

11 EXECUTIVE DIRECTOR Learning together lori henderson mbe

40 ARTS 12 MEDIA Japan news 15 PRESIDENT Stimulating business relations david bickle

UK events in Japan • Documentary film • Art retrospective • Botanical exhibition • Romantic ballet • Live band • National dance company

16 TOP STORY Style: UK rules the runway British fashion means business at Tokyo show

42 COMMUNITY Photos from UK-Japan events

23 BCCJ EVENT Cautious optimism for 2015 A look at the economic climate

44 HELP The slippery slope to eating disorders Helping children deal with the pressures of dieting

24 TRADE Export Drive! UKTI conducts GREAT trade mission for some 50 British firms

45 IF YOU ASK ME What price freedom of speech?

27 TECHNOLOGY Expert tech scene appeals to Japan firms

46 BOOK REVIEW Current issues in historic context What hinders freedom in Japan ian de stains obe

46 24

INDUSTRY Real Estate & Relocation 31 A-LIST

COVER: LORD LIVINGSTON AND AMBASSADOR TIM HITCHENS AT THE BRITISH EMBASSY TOKYO

SHARE YOUR STORY, ENHANCE YOUR BRAND The British Chamber of Commerce in Japan

BCCJ MISSION To strengthen business ties between Britain and Japan, promote and support the business interests of all our Members, and actively encourage new business entrants into the Japanese market as well as Japanese investment into the UK. LEADERS President: David Bickle Deloitte Touche Tohmatsu Vice-president: Anna Pinsky Individual Member Custom Media has been chosen as the B2B partner of customised Moleskine notebooks, which can be ordered and designed in Japan. Instead of showing your appreciation to clients or colleagues with edible treats, why not give a gift that is more than a commodity—an object that finds its way into bags, desks, hearts and minds? Classic, sleek and innovative, a customised notebook can enhance your brand identity and make events memorable. With a growing presence in 92 countries and 24,000 points of sale, Moleskine is an aspirational global brand. Large-size (13cm x 21cm) customised notebooks are available at competitive retail prices, with a minimum order of 300. Have a notebook made for: • • • •

Special events, such as product launches Training and development tools Corporate and holiday gifts Loyalty and incentive programmes

EXECUTIVE STAFF Executive Director: Lori Henderson MBE Operations Manager: Sanae Samata Membership and Marketing Assistant: Sarah Firth Global Sporting Events Project Manager: Hyon-Suk Lee EXECUTIVE COMMITTEE Jonty Brunner | British Airways Graham Davis | Individual Member James Dodds | KPMG Simon Farrell | Custom Media K.K. Iain Ferguson | Lloyd’s Japan Inc. Philip T Gibb OBE | Canning Professional K.K. Susumu Kaminaga | Individual Member Anna Pinsky | Individual Member Reiko Sakimura | Clifford Chance Law Office Ajab Samrai | Ogilvy & Mather (Japan) G.K. Richard Thornley CBE | Individual Member James Weeks | Kreab Gavin Anderson K.K. Haruno Yoshida | BT Japan Corporation EX OFFICIO Sue Kinoshita | British Embassy Tokyo Jeff Streeter | British Council Japan BCCJ ACUMEN Editor in Chief: Simon Farrell British Chamber of Commerce in Japan 12F Ark Mori Bldg. 1-12-32 Akasaka, Minato-ku, Tokyo 107-6012 Tel: (03) 4360-8361 | Fax: (03) 4360-8454 info@bccjapan.com | www.bccjapan.com BCCJ ACUMEN is the magazine of the British Chamber of Commerce in Japan

Contact Megumi Okazaki: megumi@custom-media.com 03-4540-7730

4 bccj acumen, february 2015

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CONTRIBUTORS

BCCJ members and writers are welcome to submit ideas for content, which will be reviewed by the editor. kathryn@custom-media.com

Julian Ryall

Kathryn Wortley

Mark Schreiber

John Amari

Japan correspondent for The Daily Telegraph.

An editor at Custom Media who has an academic background in media and Japanese, and a portfolio of published work in the UK and Japan.

An author and translator who has been based in Tokyo since 1966. Schreiber was employed as a media analyst in market research before turning to freelance writing.

A writer and researcher from the UK who specialises in articles on intellectual property and business.

Koshiro Iwaya Leader of the energy and infrastructure team at Robert Walters Tokyo.

Noah Katz A freelance writer, proofreader and translator based in Tokyo. Katz writes about rural Japan, as well as Japanese organisations and firms promoting their business abroad.

Paul Leonard Studio manager at Custom Media and designer of BCCJ ACUMEN. Leonard has 27 years of experience in publishing and design.

Kana Shimoyoshi A project coordinator at Custom Media. Shimoyoshi compiles the events pages of BCCJ ACUMEN.

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/BCCJ Company Page

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Custom Media BCCJ 2013 Company of the Year Publishers of BCCJ ACUMEN for the British Chamber of Commerce in Japan. Specialists in bilingual brand strategy/visual communications, corporate bespoke solutions. Producers of Business in Japan TV. Daiwa Azabudai Bldg. 6F 2-3-3 Azabudai, Minato-ku, Tokyo 106-0041 (03) 4540-7730 www.custom-media.com

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EDITOR

arlier this month, people celebrated the festival of Setsubun that, according to the Japanese calendar, marks the end of winter and the beginning of spring. While shouting “Oni wa soto! Fuku wa uchi!” (Out with the devil! In with good fortune!) some individuals no doubt were wishing for an improvement in the national economy as well as, perhaps, in their personal work situation. While the former change is unlikely to be achieved soon, this time of year can bring real hope to businesses: a new financial year with the attendant goals, projects and budgets.

Market entry success

Making business connections Relishing their newly found opportunities this year will be a number of British firms that made an impact on buyers and consumers at recent Tokyo events. The creative duo of Englishman Steven Hall and his Japanese wife, as well as designer Henry Holland, also from the UK, made a splash at Fashion Week Tokyo. There they accepted awards from DHL that acknowledge the appeal of their respective brands and their proven ability to extend the reach of their creations across borders. The warm reception of their runway shows is a testament to the fact that, in the

Reputation, expertise as a platform kathryn wortley kathryn@custom-media.com

fashion industry, UK firms punch well above their weight (page 16). Also well received was a trade mission that had been organised by UK Trade & Investment as part of GREAT Week Japan. Covering the sectors of fashion, retail and luxury, as well as food and drink, the initiative involved events at which delegates could showcase their goods and services

INFLUENCE LEADERSHIP

in the hope of generating new business and expanding existing relationships (page 24). Respected industry experts Meanwhile, in the reverse direction, next month London will be host to three Japanese enterprises. Winners of the first Japan-UK Tech Awards, their goal is to enter a market that is both considered

a global base, and renowned as a cutting edge, high-tech centre, replete with highly specialised human resources. Besides the trip to London, the winners shall receive support in setting up their enterprises (page 27). Individuals have also been drawing attention. Martin Barrow, a former president of the British Chamber of Commerce in Japan (1979–’80), has been recognised by the Japanese government for promoting the country as a tourist destination, while Mark Crowther, former president of International Nuclear Services Japan, has received an MBE for services to the British nuclear industry in Japan (page 37). Using his specialist knowledge, Crowther has played a role in nuclear services that have become a key bilateral industry. With experience in various facets of the nuclear industry, the UK is home to experts whose work has wide applications. A Cumbriabased firm has developed the world’s first camera-imaging technology for robots that is being used at the plant to map areas that are too radioactive for humans to enter (page 9). It is to be hoped that UK firms will maintain their leading edge, and continue to blaze trails to further success.

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COMING SOON

UK–JAPAN NEWS

MEDIA Tokyo pitches jet to London

Nations hold first major defence talks

The P-1 submarine hunting jet ©japan maritime self-defense force

Japan has asked Britain to buy its P-1 submarine hunting jet in what would be Tokyo’s first major military deal outside the Asia-Pacific region, The Telegraph reported on 7 January. Part of steps by the government to develop arms exports, officials raised the issue of London buying the aircraft to replace the maritime patrol, search and rescue Hawker Siddeley Nimrod— developed in the UK and retired in 2011—at a meeting in July with their British counterparts to discuss defence-equipment cooperation. A Ministry of Defence spokesperson said they would continue to consider future requirements ahead of the next Strategic Defence and Security Review this year.

Expert looks for sweet ideas Marks & Spencer has been on a fact-finding trip to Tokyo in search of the firm’s new range of sweets, The Independent reported on 4 January. James Campbell, dessert product developer, tasted 140 Japanese desserts over one week in an effort to uncover “the next big trend for 2016”. Renowned as world leaders in the art of patisserie, Japan’s influence in the high-street brand’s puddings is expected to include the use of yuzu and a focus on seasonality, which is key to Japanese cooking.

Crisis help for expats A ground-breaking pact between the British Embassy Tokyo and InterFM Co., Ltd. is set to help Britons in the face of calamities, according to a press release issued on 9 January (see page 42). The agreement permits the radio station’s broadcast of the embassy’s English-language public service announcements, designed to safeguard UK nationals at times of disaster and to minimise harm. Included in the broadcasts will be emergency evacuation instructions and measures for assistance, lifelines, sources of information, and particular actions to be taken for specific disasters.

Locals name man who died in 1871 A family from Ishikawa Prefecture, who have tended a Briton’s grave for over 140 years, has learned of his true identity, The Guardian reported on 31 December. Previously thought to be the resting place of Philip Ward, research has shown the kanji engraved on the tombstone should be read as Bernard George Littlewood, who died in Japan in 1871. Neighbours, the Murai family, stepped in to maintain the site when the replacement of feudal domains by prefectures meant no one was charged with its upkeep. Kumiko Murai received a letter from British Ambassador to Japan Tim Hitchens CMG LVO thanking her family for helping ties between Japan and the UK.

Dessert developer James Campbell

8 bccj acumen, february 2015

The first foreign and defence ministerial meeting between the UK and Japan has been held in London, according to a press release issued on 21 January. Speaking of the discussions, Philip Hammond PC MP, foreign secretary, said they “demonstrate the unity between Japan and the UK, as strategic partners and as friends. We will continue to work together on the dangers we face and the interests we share”, he added. Ministers discussed the global security situation, including international terrorism, as well as what both countries can do together in the areas of defence and security to promote international peace and understanding.

FEBRUARY 2015

Deal to boost growth in trials of stem cells

Skill helps nuclear clean-up Camera technology created by a Cumbria-based firm is locating radiation sources at the Fukushima Daiichi Nuclear Power Plant, The Financial Times reported on 18 January. First used at England’s Sellafield site, the invention by Create Technologies Ltd. is being applied to robots, enabling them to draw a 3D map of areas too contaminated for human workers. A spokesman for International Nuclear Services Japan K.K. said N-Visage “is the only technology that has the right weight, speediness and capability for high radiation”.

Cell therapy’s chief executive, Keith Thompson (left), met with Vince Cable MP. photo courtesy of cell therapy catapult

Cell Therapy Catapult has made a deal with iPS Academia Japan that is thought to be of strategic importance to the British cell therapy community, according to a press release on 16 January. Under the patent licence agreement, the London-based centre can sub-licence, manufacture and commercialise lines of induced pluripotent stem cells (iPSCs) for use in early-stage research and clinical trials. Pioneered in Kyoto in 2006, iPSCs are adult cells that have been genetically reprogrammed to an embryonic stem cell-like state and hold promise as useful tools for drug development, the modelling of diseases and regenerative medicine.

Gem body offers new online course The Gemmological Association of Great Britain (Gem-A) has launched a new course in Japanese, in response to demand for specialist knowhow, www.indexonline.com reported on 13 January. Ayako Naito of Gem-A Japan said the thirst for expertise about precious stones has accelerated in Japan in recent years. The new course will combine a British teaching style with new technologies to unlock the potential of the country’s gem professionals, she explained. The online distance-learning diploma, set to be available from September, was promoted at the trade fair International Jewellery Tokyo on 21–24 January.

Data link bridges Asia and Europe A new fibre-optic cable linking Tokyo and London via the Northwest Passage will speed up the transmission of data between the two countries, www.spectrum.ieee.org reported on 29 December. The expected time required for data to travel from one end to the other has been reduced by 24 milliseconds to 154 milliseconds. That saving has attracted the attention of investors and firms eager to gain a commercial advantage. Expected to be in service by the end of 2016, the ¥100bn project from Arctic Fibre will also bring online 57,000 Canadians and 26,500 Alaskans.

Lennon legacy could help peace A fan of The Beatles has proposed that land formerly owned by the family of Yoko Ono host a replica of John Lennon’s family home, The Telegraph reported on 16 January. Tatsuro Hara, who believes Lennon is an “apostle of peace”, said he would like the building to be a “memorial hall” identical to the property located in Liverpool, and now owned by The National Trust. Fukushima Prefecture’s Yanagawa City, which set aside ¥30mn to buy the land, said among its considerations are using the land for a museum or a park.

A gate is the only structure left on the land. photo courtesy of yanagawa city

bccjacumen.com 9

EXECUTIVE DIRECTOR

onnecting industry with education is an ongoing endeavour at the British Chamber of Commerce in Japan (BCCJ), bringing new ideas and energy to our member firms and young people alike. On 22 January, 40 students from Kokura Minami Senior High School, in Fukuoka Prefecture, visited us to learn about doing business in a global setting.

Learning together

Working women Hosted at the offices of platinum member BT Japan Corporation, the seminar began with a talk by President Haruno Yoshida. Showing the importance of connecting Japan with the rest of the world, Yoshida set up a live link to staff in the firm’s Sydney and

Role models from big business, entrepreneurs and Japanese culture

Hong Kong offices. While sharing her experiences of working abroad, she reminded the students that they are “the future of Japan”. Her colleague Kaoru Iino, marketing manager, spoke about her time studying for an MBA in an international environment.

lori henderson mbe

From his experience of delivering and safeguarding network security services for the London 2012 Olympic and Paralympic Games, Morris suggested that cyber security would be a good career option, particularly as the global spotlight will soon be on the nation. There followed a talk by entrepreneur Jeremy Sanderson, head of BCCJ member firms Icon

Career advice The students were given a sneak peek at how Japan’s telecommunications might look in 2020 by Phil Morris, chief technology officer of the firm.

Icon Partners

Supply Chain Talent Specialists S.C.M.

•

LOGISTICS

•

FACILITIES MANAGEMENT

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Partners K.K. and the Japan office of Compass Offices. A former police officer and tour guide in the UK, Sanderson attributes his current status of running five businesses in Japan to “never being afraid to take risks”. The Shinkansen On 29 January, BCCJ members enjoyed a behind-the-scenes visit,

hosted by member firm JR Central, to see the Tokaido Shinkansen. Our group visited JR Central’s General Education Center, the General Control Center, and Shinkansen Maintenance Tokai Co. in Tokyo to better understand the scale of operations. I was impressed to meet young female Shinkansen drivers, and I took away a renewed respect for the “Japanese way”, including mind-boggling technology operated by dedicated people, and supported by a holistic training programme: a lesson for all businesses. Thank you for your support BP Japan answered a request, published on our Weekly Round Up from the British Council, to help fund an international field trip for the Society of Petroleum Engineers Imperial College Student Chapter. As a result, the students will visit Japan in May, and the BCCJ is delighted to have played a small part in making this happen. Thanks also to BCCJ member Yoko Majima, who played a role in my becoming a permanent resident of Japan last month. I look forward to spending many more years serving BCCJ members and the UK–Japan relationship, while continuing to grow with you all.

icon-partners.com TEL: 03-4530-9600

FINANCE

GOING THE EXTRA MILE Our level of understanding, matching accuracy, tailored services and timely short-listing and introduction of candidates are just some of the reasons why Icon Partners leads the industry in supply chain management recruitment. Nominee, 2014 British Business Awards Company of The Year

JAPAN NEWS BY MARK SCHREIBER

MEDIA pain and gain to be price of cheap yen The weekly Shukan Economist (13 January) has projected how yen–dollar exchange rates are likely to affect certain business sectors. First, it will mean a windfall for Japan’s big five

shrug off the negative effects of the April 2014 increase in consumption tax. “We’re moving premium products like Japanese sake in the ¥20,000 to ¥30,000 range”,

automakers (Toyota Motor Corporation, Honda Motor Co., Ltd, Nissan Motor Co., Ltd., Mazda Motor Corporation and Fuji Heavy Industries Ltd., owners of the Subaru brand). Since the firms have projected their budgets for the next financial year based on an average rate of ¥105/US$1, a decline in the exchange rate to ¥115/$1 can be expected to result in before-tax profits of an estimated 14–23%. Another sector that is certain to benefit from the change is inbound tourism. In 2014, the number of foreign visitors to Japan exceeded 13mn for the first time. This growth resulted in the emergence of duty-free shops that cater almost exclusively to foreign tourists, such as the LAOX Co., Ltd.’s electrical goods store in the Akihabara district of Tokyo, which principally attracts customers from China. “Many customers are comparing our prices with those in Hong Kong and South Korea. Thanks to the cheaper yen, the advantages of shopping in Japan have increased”, Laox store manager Satoru Shimura is quoted as saying. Tax breaks for foreign visitors are also helping department stores

said Mikio Kanda, the sales planning manager at Takashimaya department store’s Shinjuku branch. The store has expanded services to include direct deliveries to the airport or a customer’s hotel. Meanwhile, the lower value of the yen has been adversely affecting the cost of foodstuffs, leaving the industry with no choice but to raise prices. From January, Nissin Foods Holdings Co., Ltd. and House Foods Corp. announced price increases of 5% or more for instant noodles—the first such rise in seven years. The expansion of demand for raw materials from emerging developed countries has also had an impact. From January, Nissin announced price increases of ¥20/kg or higher for cooking oil. Beginning in March, olive oil prices are expected to follow suit, to the tune of an increase of 30–50%. The food and beverage industry is also looking at price increases. In December 2014, fast food chain Yoshinoya Co., Ltd. raised the price of a large serving of its everyman’s staple, gyudon (beef and vegetables over rice) by ¥80, to ¥380. Businesses in the household goods sector are reportedly feeling the pinch. Daio Paper Corporation, one of the main suppliers of paper goods to households,

12 bccj acumen, february 2015

Laox’s Akihabara store attracts many customers from China.

said it would be implementing a 10% price increase for toilet tissue and other items starting on 22 January. The ¥100 shops, which source most of their products from China and other developing economies, are said to be facing particular difficulty regarding product pricing. Tokyo-based Can Do Co., Ltd., one of Japan’s major ¥100 chains, declined to respond to questions posed by the Shukan Economist.

J-Cast Business News (21 January) cited a survey, conducted between 15 December and 5 January by Teikoku Databank Ltd., in which 46.2% of the 10,583 responding firms said the demerits of the lower yen outweighed the merits. Only 7.2% said they were benefiting from the lower yen. Some 25.8% said the impact was roughly even, while 13.4% reported that they observed no changes.

FEBRUARY 2015

store considers plan to pay staff more Isetan Mitsukoshi Holdings Ltd., operator of two of the nation’s largest department store groups, said in December that it is considering a change in its wage system for salespeople to reflect job performance, the Sankei Shimbun (30 December) reported. The new guidelines would aim to nurture “charismatic sales staff” by removing the cap on wages, enabling top

a system it calls seizo-kouri (manufacturing– retailing). This initiative will focus on strengthening sales efforts, as opposed to the conventional system, according to which department stores buy merchandise from the manufacturers and cannot return unsold products, thus requiring them to sell all stocks.

sales achievers to obtain remuneration “at levels equivalent to that of company directors”. Under the current system, wages are tied to seniority-based rank and performance. However, on average, even the most prolific salespersons receive no more than ¥10,000 per month, on top of their regular wage. While annual sales rung up by about 5,000 regular employees are said to average between ¥20mn and ¥30mn per person, some staff have made sales that, in total, exceed those figures tenfold. This puts their income in the same class as that of directors, “or at least above that of bucho” (division manager).

Helping tourists spend In preparation for the large influx of visitors to Japan before and during the Chinese New Year on 19 February, the Japan Shopping Tourism Organization said it would operate a booth on the lower level of Tokyo Tower, in Minato Ward, from 20 January until the end of February. This operation, which aims to provide shopping assistance for foreign visitors, is to be called “Shopping Tourism Station” and staffed by retirees. The help they offer will include introducing patrons to restaurants and places where Wi-Fi can be accessed. Hours of operation will be 10am–5pm.

Isetan’s main department store is in Shinjuku. ©isetanmitsukoshi

However, there is a possible negative side: If implemented, the new system of rewards would not go into effect until 2016. In the interim, if the plans are to go ahead, management will need to hammer out the details with the employees’ labour union. The firm also announced plans to reduce costs by implementing closer coordination between planning, production and retailing in

top gift-giving events When it comes to giving gifts, which anniversaries and other occasions are most popular among the Japanese? The top occasion to celebrate was someone’s birthday, according to a survey of 1,000 men and women aged 20–69. The poll was conducted by Macromill Inc. in December and published in the Nikkei Marketing Journal (16 January). Among females, birthday presents were given by 71.2% of respondents, well above the figures for wedding gifts (32.9%); Mother’s Day (31.9%); and the arrival of a newborn (30.8%). While 54% of women in their twenties said they gave gifts on St. Valentine’s Day, only 17% of males in their forties said they reciprocated to a lady love on White Day (14 March).

On birthdays, the most likely recipient of a gift was found to be one’s spouse or object of romantic interest, accounting for 66.4% of the total. Over 60% of those surveyed across both genders and all age groups carried out this practice. The second most common recipient was children at 54.9%. Among females and males of all age segments, 56.7% and 39.9%, respectively, gave birthday gifts to their parents. The act of giving gifts was highest among those in their twenties, whose parents were likely to receive a gift in 63.6% of cases. In terms of the types of gifts given, the most popular item given to one’s spouse or romantic interest was cake, cited by roughly half,

followed by wearable accessories (31.1%) and garments (24.7%). About 40% of males in their twenties gave pieces of jewellery or precious metals. Some 40% of 20-year-olds of both genders—as well as males in their sixties— stated they budgeted outlays of ¥10,000 or higher for their gifts, while 40% of males in their twenties said their purchase was likely to run between ¥5,000 and ¥10,000. The respondents were also asked on whom they placed the most emphasis when giving gifts. The highest overall figure, representing 28.8% of the total, was for “family, relatives, friends or lover”, without any particular distinction. This response was particularly high among females, at 38.4%.

bccjacumen.com 13

PRESIDENT

ow into the year’s fourth quarter, the British Chamber of Commerce in Japan (BCCJ) has less than three months before its annual general meeting in April. Although that will bring to an end the current term of the executive committee (excom), I am pleased to announce that we find it more focused than ever on effectively serving BCCJ member needs. As I communicated in a recent email to the membership, former President Alison Jambert and 2014–15 excom member Yoko Kosugi recently stepped down from the committee. We thank them for not only their dedication and commitment, but also the tremendous contribution they have made to the BCCJ throughout their respective tenures. We wish them well as they embark on exciting new opportunities. New faces In response to these departures, excom has invited Susumu Kaminaga and Ajab Samrai to join the committee for the remainder of the chamber year. The decision is based on an assessment of both excom capabilities and the resources required to support the executive director and secretariat

Stimulating business relations Excom members and VIPs play role david bickle @BCCJ_President

in achieving BCCJ goals. Kaminaga and Samrai bring valuable skills and experience to excom, thereby strengthening our collective capabilities and enhancing our ability to provide BCCJ members with a more effective platform for business exchange and networking. As a chamber, we are exceptionally fortunate to

have within our membership a large number of very talented individuals, who are passionate about nurturing, stimulating and developing business relations between Japan and the UK. Top tips first-hand As a result of the hard work of the BCCJ secretariat and events task force, we are delighted to be

able to provide our members with access to important figures in British business. On 17 February, we will welcome two such personalities. In the morning, we will host Lord Deighton KBE who was chief executive of the London Organising Committee of the Olympic and Paralympic Games. This occasion will enable us to hear first-hand what it takes to host a successful megatournament to which the world are invited. For the second part of our double header, BCCJ members, at an evening gathering, will have the chance to hear from Paul Polman, chief executive of Unilever. He will discuss the challenges of building businesses that are not just financially profitable, but also sustainable, from social and environmental perspectives. Seize chances As I hope you will agree, there is much to fit into the remainder of the chamber year. Together with a rejuvenated excom, I relish the opportunities that await our members over the coming three months, and urge you to participate in the exciting programme that the BCCJ is offering.

TOP STORY

Henry Holland showed his collection at Fashion Week Tokyo.

he unwavering love of British apparel among Japanese consumers has boosted the confidence of two up-andcoming global designers with an eye on the market. And, with their potential recognised in the form of awards presented at Fashion Week Tokyo in October, their hope for success would seem not unfounded. Making his debut at the capital’s top fashion event was Henry Holland. Creator of House of Holland, the London-based designer fought off competition from applicants in 36 countries to win the DHL Exported Award, thereby enabling him to showcase his collection. As part of the initiative, aimed to help designers—who are expected to flourish globally—to expand across international borders, Holland will return to Tokyo next month for a second show.

Talented hopeful

STYLE:

UK rules the runway British fashion means business at Tokyo show by kathryn wortley

16 bccj acumen, february 2015

Chosen by a committee of experts as the designer who would benefit most from the programme, Holland is firmly established in his home market. After entering the UK limelight in 2006 with a line of ’80s-inspired, irreverent T-shirts, the Briton showed his collection for the first time in London Fashion Week just two years later. His brand, House of Holland, is now marking its 13th successful season. “We are hopeful that the support we provide these ambitious and talented young designers to expand their business into Japan through the DHL Exported programme will lead to increased choices for fashion consumption in Japan”, said Taketo Yamakawa, president and representative director of award organiser DHL Japan. Although, as part of the global programme, showcase options include the Fashion Weeks of New York, Milan and London, Holland said Tokyo was the natural choice. “Tokyo really feels like the most relevant for me and my company, for our evolution and our growth”, he told BCCJ ACUMEN. “We want to focus on Japan and bring our business here in line with the rest of our business in the Asia–Pacific region. Aesthetically, Japan suits our look quite well, and we have some good stockists here, but

TOP STORY

Bright colours and florals are key in Holland’s 70s-inspired designs.

I think there is a lot more penetration in the market that we can achieve here”, he added. As winners of the award, the firm will now receive help from DHL, in collaboration with IMG Fashion, to do just that. While support is to cover the fields of logistics, marketing, digital and social platform development, as well as e-commerce, Holland believes a key benefit is the opportunity to do two runway shows in consecutive seasons. “I think we have a lot of work to do between now and March to try and grow our business here”, Holland said in October. “But that is the beauty of doing it twice: we get to come and meet the people. We do it once, get things in motion, and then have the next six months to try and cement it”.

Tokyo muse After his “really fun, calm and enjoyable experience” of doing a show at Fashion Week Tokyo, compared with the experience at its London counterpart, the designer is keen to incorporate the country in his work. Speaking of his love for Tokyo, Holland said that, aside from plans to organise a photo shoot here for his new collection, he will be coming back for research. “Japan has always been about street fashion: the Japanese coined the term”, he said. “I think Japan—and Tokyo—is a really fascinating place for that. There are lots of trends that come from the street and different areas of the city”. Perhaps not surprisingly then, inspiration for the 31-year-old’s latest collection came after he had been watching a documentary about groupies in the 1970s. He loved the fashion choices of the girls, who followed rock stars from gig to gig. With them as his muse, Holland updated the clothes’ shapes and silhouettes to create pieces that were modern and floral, designed with a savvy London-girl aesthetic in mind. The result: a vibrant, ’70s-inspired collection, dominated by bold prints and glaring colours.

Cater to market Yet, conscious of the need to localise his brand for success, Holland enlisted a local stylist to adapt his collection for the Japanese market.

bccjacumen.com 17

TOP STORY

Hall Ohara’s In-Process has a Mexican aesthetic. photos: koji shimamura @ fashion press

Speaking of his Tokyo show, Holland said “we got rid of some of the longer-line pieces and we went for more of the shorter pieces; we added a bit more colour and removed some of the print. “We added some accessories that we thought were more key to the market”, he added, emphasising that the overall look was unchanged. “There were subtle changes, very minimal, and we stayed very true to the aestheticism of the show”. Given the demand for, and appreciation of, British fashion in the Japanese market, it could be said the Greater Manchester-born designer has an advantage in maintaining and promoting his British style. According to UK Trade & Investment, Japan is the largest market for UK fashion outside the EU and the United States. With “Made in the UK” considered by many as a sign of authenticity, British fashion is highly regarded and admired among Japanese consumers. Senior trade adviser at the British Embassy Tokyo, Kae Miyazawa, says the understanding and love of UK fashion among Japanese consumers runs deep. “They are keen in the story behind the brands, and respect those hidden parts of the brands a lot”, Miyazawa explained. “They buy fashion not only because of prices, designs or brand names but because of the brand’s ethos or beliefs. And, it is British fashion that can offer those authentic values”. Holland agrees: “I definitely think there is an appetite for UK fashion in Japan”, he said.

Henry Holland greeted guests at the end of his runway show.

“Anything British—tartan, heritage fabric, tweed—has always resonated with the Japanese market”.

Collab attracts attention Fashion designers Steven Hall and Yurika Ohara have experienced this first-hand. In fact, it was the Japanese appreciation for UK designs that brought the husband-and-wife team to Tokyo, where they set up their business. Graduates of Central Saint Martins of the University of the Arts London, London-born Hall and his Japanese wife began their career making T-shirts. At first, they sold them solely to

boutiques in the capital, but then their design caught the eye of Japanese buyers. “I think there is something slightly English but also something very Japanese about our style”, Hall told BCCJ ACUMEN. “Then I went to Tokyo to visit and I really liked the fashion. That’s why we ended up here”, he explained. From those humble beginnings, the duo established In-Process by Hall Ohara in 2006. That same year the brand made a splash at London Fashion Week, where Hall and Ohara won the New Generation Award for new designers. They have continued to flourish

Steven Hall and Yurika Ohara (centre) received the award from Junko Takata of DHL.

bccjacumen.com 19

TOP STORY

“[Japanese consumers] buy fashion not only because of prices, designs or brand names but because of the brand’s ethos or beliefs. And, it is British fashion that can offer those authentic values”. since the brand began showing at Fashion Week Tokyo in 2010–11. Like Holland, In-Process had its international potential recognised at the capital’s high profile event in October, with their receipt of the 7th DHL Designer Award. Selected by DHL and the Japan Fashion Week Organization from 48 brand collections presented at the show, the judging panel said the Anglo-Japanese team had “original ideas characterised by modern nostalgia”. Reflecting Hall and Ohara’s love of Mexico,

award includes overseas shipping credit from DHL valued at ¥500,000, which will support the couple’s aim to further develop their brand. “We are going to join up with a sales agent next season”, said Hall. “The sales agent covers Tokyo and Milan, so we are going to try and push the brand as far as we can, and see how good we are”. Perhaps what Hall describes as the “natural mix of British and Japanese fashion” in his brand is symbolic of the wider interest and collaboration in fashion between the

the runway show drew on inspiration from tiles, architecture and other cultural pieces from the country, while maintaining their overall design approach “to capture the aura of a garment that is in the process of being made”. Created to support young, up-and-coming fashion designers to expand overseas, the

two countries. “There are a few shops in London that are very interested in Japanese style, and you have really cool [Japanese] brands that may feed off the English side as well. In terms of style, sometimes Japanese fashion is inspired by London, and England in general”, he said.

NEW NICHE CARVED WITH FUSION OF OLD CRAFTS Hoping to develop her fledgling BCCJ ACUMEN. “Old pastelbusiness through reciprocal coloured obi are so strong in their appreciation of British and colouring and so is Harris Tweed, Japanese fashion is milliner so the two go well together”. Pheigi Sugahara Macdonald. Speaking of her work, A newcomer to the Japan Macdonald said the range and market with her start-up Aka Tombo quality of accessories available Millinery, the Tokyo-based Scot is to her, including natural stone, seeking to provide ladies with a lace, feathers and British vintage modern twist on vintage chic. brooches from her family in the Macdonald, who has received UK, is a real asset. training from Rose Cory, a holder “Making hats is like flowerof a Royal Warrant for hats for the arranging”, she said. “All the bits Queen Mother, uses traditional are beautiful already—the fabric, cloth from Scotland and Japan. She the feathers—it’s just a case of specialises in combining Harris arranging it like a sculpture”. Tweed, handmade by islanders in Through an e-commerce her native Outer Hebrides, with platform, she has successfully sold fabric from kimono and obi (kimono her creations around the world, sash) to make hats for everyday including to clients in the UK, the fashion and special events. US, Australia and Jamaica. “Japan is the biggest importer In Tokyo, while most of her of Harris Tweed and it is definitely custom comes from non-Japanese going through a boom”, she told residents, Macdonald designed

the hats for the Tokyo International Players production of Little Women in December. She hopes that the image of the UK as a nation of hat lovers, and an appreciation of the traditional crafts that she supports, will help expand her reach. “Most of the hats I’m selling to Japanese people are for wearing at weddings so they tend to be quite fancy: the last one I made was a plain, button, kimono hat with a big purple bow”, she said. Yet, dressing one’s head is not just for formal occasions according to Macdonald. “Every girl should have a little black hat, the same way they should have a little black dress”, she added. Macdonald uses kimono fabric and Harris Tweed for her creations.

bccjacumen.com 21

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BCCJ EVENT

CAUTIOUS OPTIMISM FOR 2015

• Bank of Japan’s goals for inflation may be reached • Corporate tax and labour law changes to have pros and cons

What firms can expect in the current economic climate

• Government’s focus this year likely to be geopolitical concerns

by john amari

n 20 January, the British Chamber of Commerce in Japan held a breakfast session, during which members sat enthralled. Holding forth was

Moreover, while corporations would welcome lower taxes, they would be unlikely to spend their profits on raising employee wages, which is something the Abe

Japan expert and media adviser William Sposato. Sposato presented a whirlwind assessment of the “three arrows” of Abenomics, Prime Minister Shinzo Abe’s strategy since 2012 to revive the Japanese economy via monetary easing, fiscal stimulus, and structural reform. He began with the second arrow—fiscal stimulus—which he called a no-brainer tactic by the Abe administration that has been long practiced by the ruling party. He then moved on to arrow one— monetary easing. This policy, Sposato explained, is in fact a manifestation of “Kurodanomics”, a strategy named after Haruhiko Kuroda, the governor of the Bank of Japan. When the plan was unveiled in April 2013, Kuroda announced his goal to double the monetary base over two years to achieve 2% inflation. While likely to reach the target, concerns remain: the target may not be reached in the expected time; Kuroda may exceed his goal, thus realising runaway inflation; and, unexpected events, such as tanking crude oil prices, may scupper plans. Sposato also said that crude oil prices are as likely to go up suddenly as they are to go

administration desires. Sposato also made reference to potential headline-making events, including on-going TransPacific Partnership negotiations, the diminishing role of the Japan Agricultural Cooperatives Group in politics as a whole, and the issue of military bases in Okinawa. Turning to the stock market, he said one expects an attractive price– earnings ratio (the price per share divided by the annual earnings per share) and strong fundamentals for Tokyo Stock Exchange-listed firms. Sposato was optimistic that the Government Pension Investment Fund, Japan—the largest pool of retirement savings in the world—will continue to show better management as more of it moves into the stock market. But, while shareholder value is likely to improve with dividends going up on average, a lack of hostile activity in relation to mergers and acquisitions may mean that a great deal of the implicit value in Japanese firms remains locked up. In closing, he said Abe’s main focus in 2015 may be geopolitical concerns rather than the economy. When asked whether he was cautiously optimistic about Japan’s economic outlook in 2015, Sposato answered in the affirmative.

William Sposato with BCCJ Executive Director Lori Henderson MBE

down, putting Kuroda’s plans at further risk. According to Sposato, a key impact of Kurodanomics is likely to be its effect on loosening the nation’s real cash holdings, said to total about ¥93trn—twice the comparable level in the US. When the inflation rate is higher than the rate of return on investments, the issue is real interest rates, Sposato pointed out. Right now, he continued, Japan has positive real interest rates, which is good for savers. What the Bank of Japan wants to do, however, is to reach the point of negative real interest rates, causing bank deposits or cash to lose value in real terms. This would encourage savers to seek higheryielding investments. This may well happen, he observed. But there is a downside to this. Should the rate of inflation

continue to be higher than the rate of return, savers would continue to lose out. Moreover, Japan’s debtto-GDP ratio, currently about 240% of annual GDP, would remain one of the highest in the world. Meanwhile, the beneficiaries of high inflation would include the largest borrower of them all: the Government of Japan. Moving on, Sposato said the third arrow—structural reform—was a complicated mishmash of ideas that include a revolution in robotics, increasing the participation of women in society, as well as labour and immigration reform. Liberalisation of labour laws and corporate tax cuts, Sposato said, were likely to be doubleedged swords: reform will mean firms can hire and fire with greater ease, but history suggests they will do mainly the latter.

bccjacumen.com 23

TRADE

EXPORT DRIVE!

• Aimed to promote brand and help firms make an impact • Featured public events and initiatives for local consumers

UKTI conducts GREAT trade mission for some 50 British firms and 500 local buyers

• Showcased delegates’ products to potential partners

by julian ryall photos by kathryn wortley

hen a doubledecker London bus emblazoned with the Union Flag and the words “Shopping is Great Britain” is central to your message, it is one that is hard to miss. This made the iconic vehicle perfect for the first campaign to promote UK brands and retailers in Japan. The bright red Routemaster was turning heads even before the official launch of GREAT Week Japan on 27 October, with Japanese passers-by stopping to have their photo taken alongside the doubledecker outside the Marucube space in the Marunouchi Building, Chiyoda Ward.

24 bccj acumen, february 2015

“[On the mission are] companies from the fashion, retail and luxury, and food and drink sectors that embody what Japan wants . . .” Inside, Minister of State for Trade and Investment Lord Livingston launched an event that had attracted more than 80 British brands from sectors including fashion, retail and luxury, as well as food and drink. Pointing out that the trading relationship between the UK and Japan dates back more than 400 years, Lord Livingston voiced his anticipation that there would be even more opportunities in the years ahead.

“It is a pleasure to be here to formally launch GREAT Week in Japan, part of my government’s flagship campaign to promote British business and culture”, he told more than 100 guests. “The campaign is not just about raising awareness of our national brand”, he added. “It’s about helping British companies get their products and services into the hands of businesses and consumers worldwide. “Japanese consumers rightly demand both quality and value”, he added. “Tokyo is truly a city of immense style. That is why, in addition to the British brands partnering with us this week, I am delighted to also bring with me 49 companies from the fashion, retail and luxury, and food and drink sectors that embody what Japan wants and what, I believe, Britain is truly great at”. GREAT Week involved a host of events open to the Japanese public, including talk shows at Marucube and a major online campaign offering prizes and giveaways to Japanese consumers through the event’s social media channels. In parallel, a large delegation of British firms—most of which were visiting Japan for the first

time—were able to showcase their products at the British Embassy Tokyo and meet potential partners from the local market. Speaking to BCCJ ACUMEN at the reception to mark the start of GREAT Week, Marie Rodgers and Maria Livings said they were looking forward to meeting potential Japanese partners for their London-based Lush Designs studio for homeware. “This is our first time to visit Japan, although we have sold some of our designs to shops here in the past”, said Rodgers. “What we have seen of Tokyo so far is all very bright and exciting, but we’re really looking forward to being able to meet with Japanese companies, to hear what they think of our ranges, and to see if we can strike any deals”, she explained. “I think our designs for fabrics, lampshades, ceramics and tinware would work well here. Japanese people seem to be very keen on their pets, and we’re dog people too, as you’ll see from our designs, so we’re hopeful”. Guests were also addressed in a video by Prince Charles, who set up The Campaign for Wool in 2010 to counter falling global prices for the resource and the impact that was having on farmers. “For too long we have forgotten what a wonderful, versatile and utterly sustainable fibre it is”, he said, adding that it is cool in summer, warm in winter,

TRADE

British-themed products were made and sold at the event.

Lord Livingston spoke to delegates and guests.

durable, fire-resistant and absorbs moisture, making it a favourite among many of the fashion firms taking part in the mission. “This is a truly constantly renewable fibre that only requires pasture and sunshine to thrive”, he added. “I hope this campaign will put wool back on the map”. Towards the end of the week, businesses that had taken part in the trade mission were already reporting successes. Maria Whitehead, director of Hawkshead Relish Company Ltd., was holding talks with a potential distributor to settle the details of how they might work together to market the firm’s awardwinning products. “Having people taste our products at the UK Trade & Investment showcase event was a real delight, as I was able to explain about each item”, she said. “The surprise hit was our Red Onion Marmalade, which was tried with scepticism and yet loved by everyone—without exception.

“Many of the people were very surprised by the flavours of the jams, marmalades and lemon curd”, she added. “I think that the real difference in the flavour of a hand-made product shone through”. Whitehead was also making her first foray into Japan. Although she had read up extensively on the destination before leaving the UK, nothing really had prepared her for the actual experience, she explained. “It is busy, but calm”, she said. “Everyone is so helpful and

friendly. I have felt so welcomed. Coming here on my own has been a delight and not at all a problem as a woman travelling alone. “I’m really sad to be leaving as I have made many friends and the trip has really whetted my appetite to see more of Japan”, she added. “But I have no doubt that I will be back and Japan will be host to my relishes soon”.

Speaking of the importance of bilateral relations, Lord Livingston said that “Japan is one of the UK’s closest partners. Not only do Japanese companies invest successfully in the UK, but Japan is vitally important to British businesses, both large and small.” In conclusion, he noted, “That is why GREAT Week Japan is so important”.

British character Shaun the Sheep joined delegates at the launch of GREAT Week Japan.

bccjacumen.com 25

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TECHNOLOGY

EXPERT TECH SCENE APPEALS TO JAPAN FIRMS Awards help innovators visit London

• Competition promotes UK base as springboard to global market • Winners to meet investors and established firms • British strengths in finance, manufacturing and online sales

by julian ryall

hree Japanese technology firms are receiving support as they leap into the British market this year, thanks to the first Japan-UK Tech Awards. Launched in November by Minister of State for Trade and Investment Lord Livingston, the awards are designed to encourage Japanese firms to select the UK as their overseas base. By so doing, they can expand their business in a booming new market, which can serve as a springboard to a wider global audience. Some 15 firms entered the inaugural competition, organised by UK Trade & Investment (UKTI) in Japan. Judges then selected three winners—translation specialist anydooR Inc., online eyewear store Oh My Glasses, and all-in-one marketing solutions provider iRidge, Inc. The winners will travel to London next month to see for themselves Britain’s vibrant tech scene. During their trip, they will meet representatives of Japanese firms who have already set up in the UK, as well as UK investors, established businesses, firms that provide professional services, and others that operate as technology accelerators. The winners will be allocated a space for one month at The Bakery Worldwide Limited, a specialist incubator space in London for start-up businesses. “This is a huge opportunity for us”, said Naoki Yamada, who in 2009 founded Conyac, a social, crowd source-based translation service at anydooR Inc. “We have been trying to go global for the last few years, but it has been quite hard to find customers outside Japan”, Yamada told BCCJ ACUMEN. “Having this chance to go to England to meet potential clients and partners will give us an opportunity to grow our business”. The company’s business model aims to provide a short translation “for the price of

Representatives of Tohmatsu and the UK government joined the launch of the awards.

a cup of coffee”. The firm presently has no fewer than 40,000 translators operating in 75 languages, although the majority work between English and other Asian languages. Supported by British Airways, The Bakery, NTT Docomo Ventures, Inc. and Tohmatsu Venture Support Co., Ltd., the awards required Japanese businesses to submit a business plan of up to five pages.

“We . . . want to encourage more [Japanese] companies, in an early stage, to consider the UK as a base for their international operations”.

A panel of five judges then assessed each of the entrants, awarding them points based on three main aspects: the freshness and appeal of their product, service or business model; the degree to which it would fit into the UK market; and the prospects of the business’s growth there. The winners were announced on 19 December. Speaking at the announcement of the initiative, Lord Livingston said he was “delighted to launch the Japan-UK Tech Awards, but also to celebrate the strength of Britain and Japan’s ties in the technology sector”. “Japan remains one of the most important and biggest investors in the UK”, he said. “In the ICT [information and communication technology] sector alone, hundreds of Japanese companies have operations across the UK. We value these companies greatly and want to encourage more companies, in an early stage, to consider the UK as a base for their international operations.

bccjacumen.com 27

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TECHNOLOGY

UK financial investment in start-ups has soared 800% in just five years. “As so many Japanese companies already know, the UK is a great place to grow your business”, Lord Livingston explained. Firms already operating in the sector in Britain benefit from an advanced technological infrastructure, a wide array of support, and a public that is happy to purchase goods online with credit cards or through other electronic transfers. It also helps, Lord Livingston pointed out, that Napoleon Bonaparte’s jibe, that the British are “a nation of shopkeepers”, has a ring of truth to it. As well as excelling in manufacturing and financial services, Britons are successful online sellers. The UK, he pointed out, is the number one e-commerce exporter in the world. While similar technology-award campaigns have already taken place in the United States and Canada, and another

contest is currently under way in Finland, Lord Livingston stressed that the decision to launch it here “reflects the great strength of the Japanese technology sector”. Also attending the launch was Masayuki Kimura, director of the Advisory Service Division at Tohmatsu Venture Support, who detailed the help available for firms that want to set up in the UK. “It is a very attractive environment— backed by the government and established companies—that fosters specialist start-ups across many sectors”, Kimura said, adding that UK financial investment in start-ups has soared 800% in just five years. “It is very easy to set up in the UK, and with the support of the British government and UKTI, meetings between key players that would normally take months to arrange now take place much faster”, Kimura added.

THE JUDGING CRITERIA • Innovation • Product/market fit • Potential WINNERS anydooR Inc. This Tokyo-based firm launched its social, crowd source-based translation service, Conyac, in 2009. Oh My Glasses TYPE, a brand of this online eyewear store, offers glasses named after and inspired by print typefaces. iRidge, Inc. The brainchild of this business, popinfo, sends location-based push notifications on smartphones.

PUBLICITY

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Koshiro Iwaya leads the energy and infrastructure team at Robert Walters Tokyo. They assist major engineering firms; start-ups in the areas of solar, wind and smart grid power; as well as engineering, procurement and construction contractors who build plants according to suppliers’ requirements. What are your team’s particular strengths? Each consultant has several years’ experience providing specialised recruitment support in the energy industry. Regularly attending seminars, study sessions and trade

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The A-List of Real Estate & Relocation Asian Tigers Mobility provides a comprehensive end-to-end mobility service that is tailored to meet the global needs of you or your transferee’s relocation. With more than 30 years of regional experience, we are committed to delivering the very best relocation and destination services. Relocating individuals and families can generate immense stress at both corporate and personal levels. We can alleviate this stress with our flexibility and accountability. With a full menu of relocation and move management services, we can tailor an individualised programme to fit your needs. AREAS OF EXPERTISE Asian Tigers Mobility Nakata Mac Toranomon Bldg. 2F 1-1-10 Atago Minato-ku, Tokyo 105-0002 Andrew Olea 03-6402-2371 sales@asiantigers-japan.com www.asiantigers-japan.com

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Century 21 Sky Realty is proud to mark its 25th anniversary this year serving the expatriate and Japanese communities in Tokyo. We support businesses looking to find or expand their office space in Tokyo, and also assist individuals with leasing houses and apartments in the area. Our multilingual agents are skilled at helping clients find their ideal location that combines smart design with functional style. We seek to accommodate various lifestyles, locate investment opportunities, or find the best venues for clients’ commercial operations.

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The A-List of Real Estate & Relocation In 50 years, we’ve come a long way. The Crown Worldwide Group firms all share a common quality—the experience and insight to accomplish anything, from the complex to the routine. Crown World Mobility provides strategic assignment management and Crown Relocations complete relocation services for multinationals and government organisations. Crown supports employees on the assignment and relocating of private individuals.

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Crown Records Management is a significant force in corporate information management. Helping clients maximise the value of their corporate memory, Crown manages secure archiving and retrieval of information in physical and electronic format. Further divisions encompass storing and managing wine collections, project management of oil and gas equipment, hotel refurbishments, and warehousing and distribution of luxury goods. The Crown Worldwide Group, headquartered in Hong Kong, was established in 1965 in Japan. We have over 265 locations in almost 60 countries.

Founded in 1983, Japan Valuers is one of the leading real estate appraisal firms in Japan. Based on a nationwide network of valuers, we have business alliances with overseas firms, and structure valuation frameworks to correspond to clients’ needs. As a corporate member of the International Valuation Standards Council, we provide services in accordance with the latest accounting rules of the International Financial Reporting Standards. We are also registered with the Royal Institution of Chartered Surveyors and provide services based on its high standards. Working closely with our clients, both global and domestic, we assist various types of real estate decision-making through valuation and counselling. Japan Valuers Co., Ltd. Asahi Kanko Bldg. 4F 2-4-3 Fujimi, Chiyoda-ku Tokyo 102-0071 Takashi Nakazawa, head of international relations 03-3556-1702 global@japanvaluers.com www.japanvaluers.com

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速

JET

WHERE ARE THEY NOW?

Cultural knowhow aids strategic planning by rob gorton

erhaps surprisingly—given the extent to which Japan has become a part of my life—I did not apply to the Japan Exchange and Teaching (JET) Programme because of a long-term interest in Japan. Rather, after university, I heard about the scheme and jumped at the chance to do it. It was during the application process that my interest in Japanese culture and language grew. On reflection, that was fortunate. I was placed in a rural part of Kumamoto Prefecture that became my home for three years, which were often joyful, sometimes frustrating, but always memorable. Many evenings I would go to a bar and try my shaky Japanese on the customers. Incredibly patient with my attempts to communicate, they were both interested in me and interesting. What is more, they were always welcoming. After three years, I spoke fluent conversational Japanese—with a distinctly rural Kumamoto accent—and I felt I belonged in the community. After leaving the programme, I joined an English language school in Kumamoto City. However, on realising that I was finding the management aspects of the job particularly rewarding, I returned to the UK to study for an MBA. That could have been the end of my professional relationship

Now in its 27th year, the Japan Exchange and Teaching (JET) Programme has welcomed over 55,000 people from 62 countries to deliver grassroots international exchange between Japan and other nations. Seventh in our series, this column features former JETs, both in the UK and Japan, who keep the idea of fostering mutual understanding firmly at heart.

with Japan, but it was not. I spent a couple of years as a management consultant and felt I would like to incorporate my Japanese experiences into my career. So, when I was offered a job at Toyota Motor Manufacturing (UK) Ltd, I readily accepted. It is not well recognised that the state of the UK’s motor manufacturing business today is something of a success story. Production levels are the fourth highest among European countries and are projected to rise. Firms export to countries across the globe and investment continues in both motor plants and parts suppliers, while British factories have a reputation for high productivity, flexibility and quality.

A lot of the success of the industry can be contributed to the entry of Nissan Motor Co., Ltd., Honda Motor Company, Ltd and Toyota in the 1980s and ’90s. At present, around half the cars produced in the UK are made by Japanese firms. More importantly, these firms invested not just in factories, but also in people. They committed to developing their respective workforces and those of their suppliers, reflecting Japan’s manufacturing philosophy that requires built-in quality, continuous improvement and the elimination of waste. This means there is a highquality workforce available to drive the entire industry forward. While having learnt a lot at Toyota, those skills were built on

the knowledge I acquired on the JET Programme. My first role at Toyota was to arrange visits by top executives from Japan to the UK. My firsthand experience with Japanese culture was vital to project our firm’s feeling of omotenashi (the spirit of hospitality) to our visitors. Today, I manage the Corporate Planning team, looking after strategic planning and corporate governance for Toyota’s UK manufacturing operations. Knowledge of the Japanese way of working remains invaluable. Building consensus, for example, is a key part of Toyota’s DNA, as it is of Japanese culture. At best, it is a powerful way for a large organisation to make plans and execute them as a team. At worst, it can seem like endless rounds of discussions going nowhere. Yet, as this cannot be avoided, understanding the culture helps me judge when the process is working well, and how to move it on when it is not. In that way, my time working in Japan is still a real part of my career. While my current job is different from that which I held on the JET Programme, I would like to think there is something uniting both of them. By having taught English in Japan and now by strengthening a Japanese manufacturer’s operations in the UK, I am part of the move to build and deepen links between the two countries.

Rob Gorton taught English to children in elementary school in Kumamoto Prefecture.

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PUBLICITY

PROJECT MOVES OUTSTANDING FIRMS ONTO GLOBAL STAGE Saitama City provides chances for joint R&D by noam katz

apan’s manufacturers are worldrenowned for high quality craftsmanship and inimitable technology, yet many outstanding firms have yet to establish themselves abroad. To counter this trend, in 2008 Saitama City set up a certification programme—Saitama City Leading-edge Companies Certification and Support Program—to strengthen home-grown innovation and the ability of local businesses to compete overseas as “Global Niche Top Companies”. According to Yuji Okuma, assistant director of the Business Development Division, City of Saitama, certification is awarded to businesses that already possess leading-edge technology and know-how in particular niche markets. Once certified, they receive assistance to develop new technologies and overseas markets, while experts provide training to enhance production quality and product marketing. Now in its seventh year, the programme has certified 34 leading-edge local firms. Most are medium-size businesses engaged in producing small volumes of high-addedvalue products. The programme’s success was especially evident in March 2014, when two leading-edge firms that Saitama City had certified were chosen to be part of the Ministry of Economy, Trade and Industry’s nationwide “Global Niche Top Companies Selection 100”. Nittoku Engineering Co., Ltd. has produced an automatic coil-winding machine that can be used in electronic parts, and has a more than 30% share of the world market for the machine.

Representatives of Saitama City’s Leading-edge certified firms attended a certification ceremony.

Porite Corporation, a specialist in powder metallurgy, holds an 80% share of the world market for bearings used in small motors and micro-motors with IT applications.

The city’s final objective goes beyond simply exporting goods; it aims to provide opportunities for joint R&D with global partners.

The following 34 firms certified by the programme each have specialities and are seeking global alliances with overseas partners. Acoma Medical Industry Co., Ltd. Antenna Giken Co., Ltd. Arai Helmet, Limited Asahi Rubber Inc. ASAP Co., Ltd. Bellnix Co., LTD. Calsonic Kansei Corporation Clarion Co., Ltd. Cosmo Research Corporation Goto Precision Engineering Co., Ltd. HAMAMATSU Co. Ltd. HARVES Co., Ltd. Hasegawa Machine Works Ltd. Hokkai MIC Co., Ltd. Iino Manufacturing Co., Ltd. Kaneko Manufacturing Co., Ltd. KIMOTO CO., LTD.

KOKI TEC CORP. NIHON DENTO KOUGYO Co., Ltd. NIPPON PISTON RING Co., Ltd. Nishina Industrial Co., Ltd. Nissan Motor Light Truck Co., Ltd. Nissho Electronics Co., Ltd. Nissin Kasei Co., Ltd. NITTOKU ENGINEERING CO., LTD. Porite Corporation SCIENCE INC. SOFTRONICS Co., Ltd. SUMITA OPTICAL GLASS, INC. Tamron Co., Ltd. TechnoScope Co., Ltd. TOKYO TITANIUM CO., LTD. WATANABE Co., Ltd. Yamada Machine Tool Co., Ltd.

Business Development Division, Department of Economy, Bureau of Economic Affairs, City of Saitama 048-829-1371 • sangyo-tenkai-suishinka@city.saitama.lg.jp • www.saitamacity-business.jp/eng/index_eng.html 36 bccj acumen, february 2015

GONGS

BRITONS RECEIVE TOP HONOURS Invaluable efforts on industry, tourism, government by julian ryall

ritish nationals have once again been recognised for their work to further relations with Japan. Two honorary ambassadors—both long affiliated with the British Chamber of Commerce in Japan— are being celebrated for their achievements. Mark Crowther, former president of International Nuclear Services (INS) Japan K.K., and now head of the firm’s overseas business, was awarded the Most Excellent Order of the British Empire (MBE) in the New Year Honours list for his services to the British nuclear industry in Japan. Martin Barrow GBS CBE JP, an honorary ambassador for the UK’s Visit Japan campaign, has been rewarded by the Japanese government with the Order of the Rising Sun, Gold Rays with Neck Ribbon for his work to promote Japan as a place for British travellers. Speaking about their acceptance of the awards from Japanese Ambassador to the UK Keiichi Hayashi, both Barrow and Crowther expressed surprise and a deep sense of honour at having their efforts recognised. Yet, they insisted that the awards belong to their respective teams. Key bilateral work “The period I was working in the INS Japan office was a significant period for the UK and Japanese nuclear industries”, said Crowther,

Japanese Ambassador to the UK Keiichi Hayashi (left) presented Martin Barrow with the award.

who lived in Japan for more than 26 years after arriving in 1987. He joined INS in 2002. “The UK started the return of nuclear waste—a by-product created in the UK—to Japan”, he said, adding that it was “a complicated international project, involving transport by sea of highly radioactive waste”. This bilateral relationship in the nuclear sector is a long one, dating back to the 1960s when Tokyo decided that its first reactor would

“The UK is clearly back on the radar in terms of nuclear industry support to Japan”.

be imported from Britain. That initial import evolved into the provision of support in the form of reprocessing services and, more recently, decommissioning. In the aftermath of the incident at the Fukushima Daiichi Nuclear Power Plant, following the earthquake and tsunami of March 2011, the relationship reached a new level of partnership. “The Fukushima accident has brought the two countries closer together at government level, through commitments of cooperation between the prime ministers of the UK and Japan, and on a detailed practical level between organisations, companies and individuals, in which I played a key part”, Crowther said. “The UK is clearly back on the radar in terms of nuclear industry support to Japan”, he added. “The respect between the two industries has grown significantly”.

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#UNIQUEBYDESIGN | UNIQUE@CUSTOM-MEDIA.COM | WWW.CUSTOM-MEDIA.COM

GONGS

Barrow and Crowther expressed surprise and a deep sense of honour at having their efforts recognised. Yet, they insisted that the awards belong to their respective teams.

Personal impact of disaster

Early influence Martin Barrow’s association with Japan goes back even further than that of Crowther. He first landed in Japan in 1964, at the age of 20, accompanied by two friends. “We had travelled by land from London to South East Asia and then arrived in Kobe by

More traffic for business “Thanks to the good efforts of the Embassy of Japan in the UK, and so many others on both sides, Japan–UK relations are in very good shape, with so many common values and plenty of dialogue between the two”, he said. “I hope we will see more people going in both

“There are many memorable occasions from my time in Japan, but the strongest memory has to be that of the 2011 earthquake and subsequent nuclear accident at the TEPCO Fukushima Daiichi Plant”, he said. “While the human tragedy of the tsunami far outweighed that of the Fukushima accident, all of the media focus was fixed firmly on Fukushima. “Seeing the immediate impact of the state of the prefecture on loved ones was heartbreaking. Working in the industry certainly left me ambivalent in my feelings towards nuclear energy, as I tried to explain the situation to friends and family in Fukushima”, he added. “It was therefore satisfying— personally and professionally—to be associated, even in a small way, with supporting recovery at the site”.

ship”, said Barrow, 70. “We were in Japan for almost two months, travelling everywhere from Kyushu to Hokkaido—from where we left by ship to Vancouver—and we experienced the Japanese spirit of omotenashi so many times”. A former president of the BCCJ, Barrow, who was born in the Lake District but lives in London, returned to Japan in 1967 to work for the Jardine Matheson Group. After his marriage to Noriko, he completed postings in Thailand and Hong Kong, before returning to Japan in 1974. One of Barrow’s most prized memories is the four years when he presented giant bottles of White Horse Scotch whisky to winners of sumo tournaments. Another great honour, he adds, was his service to the chamber from 1979 to 1980.

directions: tourists to visit and students to study. “The JET Programme does a tremendous job with so many young British people teaching all over Japan”, he added. “Hopefully, too, there will be more and more inward investment in both directions”. Barrow’s particular focus is on promoting Japan as a destination for British tourists, emphasising the five key strengths of the country: spirit and hospitality, traditional culture, “cool Japan” fused with tradition, nature, as well as value and access. “There are so many people across the world who have a deep interest in Japan”, he said, pointing out that they just need to be persuaded to make the trip. “I have never met anyone who has regretted a visit; everyone says after a visit they wish they had visited before”, he added.

Crowther, who moved back to the UK in 2014, also has a personal connection to the region. His wife is from Fukushima Prefecture and he is an honorary ambassador for the region.

SUPPORTING GOVERNMENT Hugh Trenchard, 3rd Viscount Trenchard, has also been recognised by the government here for his contribution to Anglo–Japanese relations. Trenchard was awarded The Order of the Rising Sun, Gold and Silver Star at a ceremony at the Embassy of Japan in the UK in December. According to the award citation, he has “contributed to promoting parliamentary exchange and mutual understanding between Japan and the United Kingdom”. The honour comes 94 years after his grandfather, 1st Viscount Trenchard, was awarded Japan’s Order of the Sacred Treasure, Grand Cordon. Trenchard, 64, lives in Hertfordshire and is vice chairman of the British-Japanese Parliamentary Group and former joint chairman of the Japan Society (2000–04).

Hugh Trenchard (centre) received his award at a ceremony in December.

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ARTS 1

NOW SHOWING National Gallery This documentary film directed by Frederick Wiseman is a behindthe-scenes look at one of the world’s foremost art institutions, The National Gallery, London. PHOTO: © 2014 GALLERY FILM LLC AND IDEALE AUDIENCE. ALL RIGHTS RESERVED.

Bunkamura Le Cinema (Among other locations) 2-24-1 Dogenzaka Shibuya-ku, Tokyo Various show times Adults: ¥1,800 » www.bunkamura.co.jp/cinema/ 03-3477-9111 ◉ Gift We are giving away five postcards featuring this film. 2

UNTIL 1 MARCH James McNeill Whistler Retrospective A resident of London since he was 22 and a prominent 19th century artist, James McNeill Whistler is renowned for his Japonisme works. This special exhibition consists of about 130 objects including oil paintings, watercolours and prints. ARTWORK: Crepuscule in Flesh Colour and Green: Valparaiso, 1866 PHOTO: © TATE, LONDON 2014

Yokohama Museum of Art 3-4-1, Minatomirai, Nishi-ku Yokohama, Kanagawa 10am‑6pm Adults: ¥1,500 » http://yokohama.art. museum/eng/exhibition/ index/20141206-254.html 03-5777-8600 ◉ Free tickets We are giving away five pairs of tickets to this event.

UNTIL 1 MARCH Captain Cook’s Voyage and Banks’ Florilegium Ethnographic artefacts and other findings of British explorer and navigator Captain James Cook, as well as copperplate prints from the collection of botanist Joseph Banks, will be on display at this exhibition. ARTWORK: Banksia serrata, an engraving from Banks’ Florilegium

The Bunkamura Museum of Art 2-24-1 Dogenzaka Shibuya-ku, Tokyo 10am–7pm (until 9pm on Fridays and Saturdays) Adults: ¥1,300 » www.bunkamura.co.jp/museum/ 03-5777-8600 ◉ Free tickets We are giving away five pairs of tickets to this event.

40 bccj acumen, february 2015

UK EVENTS IN JAPAN COMPILED BY KANA SHIMOYOSHI

◉ To apply for free tickets or gifts, please send an email with your name, address and telephone number by 24 February to: coordinator@custom-media.com. Winners will be picked at random.

28 FEBRUARY– 1 MARCH 4

Giselle Exploring the strength of a peasant girl’s love, this romantic ballet is directed by British choreographer Sir Peter Wright CBE. This production led to the establishment of Wright’s international reputation as a producer of a major classical repertory, and will be performed by Japanese dancers. PHOTO: © A.I. CO., LTD.

Bunkyo Civic Hall Bunkyo Civic Center 2F, 1-16-21 Kasuga Bunkyo-ku, Tokyo 2pm Adults: From ¥4,000 » www.sdballet.com/performance/ performance.html#info1 03-3401-2293 ◉ Free tickets We are giving away two pairs of tickets for S seats to the 28 February show.

Shibuya Club Quattro 32-13-4.5F, Udagawacho Shibuya-ku, Tokyo 7:30pm (doors open 6:30pm) Adults: ¥6,000 » www.creativeman.co.jp/ artist/2015/03kindness 03-3499-6669 6

26–28 MARCH Scottish Ballet Japan Tour 2015 Scotland’s national dance company will present the romantic, yet tragic, love story of Romeo and Juliet in this special performance—the first in Japan after a period of 23 years. PHOTO:

Andy Ross

Bunkamura Orchard Hall 2-24-1 Dogenzaka Shibuya-ku, Tokyo 26 March, 7pm 27 March, 2pm and 7pm 28 March, 2pm Adults: from ¥6,000 » www.kyodotokyo.com/scottish 0570-550-799

26 MARCH Kindness The solo project of British singer-songwriter and musician Adam Bainbridge, this live band has performed at festivals and headline shows around the world. Bainbridge released his debut album, World, You Need a Change of Mind, in 2012. 6

bccjacumen.com 41

COMMUNITY

Photos from UK-Japan events 1 | BCCJ EVENT BCCJ members attended a trip to JR Central’s General Education Center in Mishima, Shizuoka Prefecture, on 29 January. 2 | EDUCATION Some 40 students of Kokura Minami Senior High School, in Fukuoka Prefecture, attended a BCCJ event about doing business in an international environment at BT Japan Corporation on 22 January.

42 bccj acumen, february 2015

3 | EMBASSY Hiroyuki Nasu, manager of the programming and operating division of InterFM Co., Ltd., and Joanna Roper, consular services director of the Foreign & Commonwealth Office, signed an emergency broadcasting Memorandum of Understanding at the British Embassy Tokyo on 9 January (see page 8). 4 | TRADE From left, Tim Johnson, head of the UK Trade & Investment Japan Strategic Trade team, and BCCJ executive committee member Graham Davis, delivered an Export to Japan webinar, entitled Opportunities in Japan’s Global Sporting Business, on 21 January.

5 | ARCHITECTURE Attending an event at the British Embassy Tokyo on 5 February to celebrate the first showing in Japan of the Meiji model of Taitokuin Mausoleum were (from left): William Coaldrake, project professor at the graduate school of the University of Tokyo, Bishop Tatsuyu Tomoda, chief secretary of Zojo-ji Temple, Jonathan Marsden, director of Royal Collection Trust, and British Ambassador to Japan Tim Hitchens CMG LVO. photo: british embassy tokyo

COMMUNITY

6 | TOURISM Berry Bros & Rudd and VisitBritain held a tourism seminar and New Year party, with the theme of royal warrants in relation to commerce and inbound tourism to the UK, in Chiyoda Ward on 16 January. photo: visitbritain/kiyoshi sakasai

7 | EVENT Nick Hays, marketing and sales manager of Cathay Pacific Japan, launched the firm’s new year sale at a luncheon on 21 January.

8 | CULTURE Year 10 students from the British School in Tokyo took part in a homestay at Ajimu, Oita Prefecture, on 27-30 January. 9 | MUSIC London J-pop band Neko Punch performed at the British Bonenkai held at Paul Smith Space, Shibuya Ward, on 12 December.

bccjacumen.com 43

HELP

THE SLIPPERY SLOPE TO EATING DISORDERS Helping children deal with the pressures of dieting

amily members of a child with an eating disorder are often baffled by how fast the child’s behaviour escalates from what at first seemed

the nation to put on silly socks and donate £1 to the charity, Beat’s suggestions for raising money include:

Although people develop eating disorders in different ways and at different rates, the associated complaints are more or less visible. Very often, early

form of restricted eating and increased exercise. Next comes a struggle with self-image, followed by extreme emotions, attitudes and behaviour focused on being in

positive, healthy habits to a dangerous situation. Why would anyone suspect that, for example, giving up junk food and eating more vegetables, or being more active and exercising regularly could ever turn into a nightmare? These actions are usually seen as good model behaviours that reflect a child’s increased consciousness of, and motivation to follow, a healthy and disciplined lifestyle. So, when should proud parents become concerned about their child’s habits? “I Had No Idea” is the theme for this year’s National Eating Disorders Awareness Week in the United States. Launched by the National Eating Disorders Association, the campaign runs from 22 to 28 February. Its goal is to promote the importance of early detection and intervention, and to recognise the diverse experiences of people affected by such disorders. Meanwhile, Beat, the UK’s national organisation to battle eating disorders, will mark the country’s Eating Disorders Week— from 23 February to 1 March—with a quirky fundraising campaign called Sock it to Eating Disorders. Based on the idea of asking

• Organise a silly socks day at work or school • Decorate your socks in Beat colours of pink and blue • Take part in a sponsored event in your silliest socks • Make your own socks and sell them to friends and family • Encourage your sports team to wear silly socks during a match

signs and symptoms are ignored or missed. Due to the complex mix of experiences and observations, there are many myths about dieting which is healthy and that which is not, accompanied by a variety of explanations and broad speculation regarding why and how some people take habits too far and become ill. Still not completely understood, eating disorders are the manifestation of serious emotional and physical problems that can be life-threatening. Most of these disorders start with some

control and different. It is by correcting the myths and, at the early stages, challenging the related actions and thoughts that the onset of a serious eating disorder can be significantly reduced. Further, years of struggle to recover from the illness can thus be avoided and, ultimately, lives saved. TELL Counseling, in joining this important campaign, will present a talk on dieting issues as part of the Exceptional Parenting Program lecture series at Wesley Center, Minato-ku on 25 February from 10am to noon. TELL Counseling will challenge the myths about eating disorders and focus on how to help children who go on unhealthy diets. Come to the lecture to hear fascinating and compelling accounts of eating disorders, and learn how adults can help children deal with the pressures of dieting.

44 bccj acumen, february 2015

Beat’s approach is a fine example of how you can use— forgive the pun—off-beat means to address even very serious issues, so helping ease some of the stigma associated with mental health.

www.nationaleatingdisorders.org www.b-eat.co.uk

TELL’S EXCEPTIONAL PARENTING PROGRAM Chie Sawa excep.parents@telljp.com

IF YOU ASK ME

WHAT PRICE FREEDOM OF SPEECH?

by ian de stains obe

he Universal Declaration of Human Rights, ratified in 1949, recognises freedom of expression as a human right. Article 19 states:

necessary for respect of the rights or reputations of others, and for the protection of national security or of public order (ordre public), or of public health or morals”.

“Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers”. The French satirical magazine Charlie Hebdo argues its right to pursue such freedom by publishing cartoons that lampoon aspects of Islam. Although it has to be recognised that its satirists also target Judaism, Christianity and a host of other orthodoxies, in the current global climate of radicalised Islam there is, perhaps, some credibility to the claim that some self-restraint would be preferable to outright provocation. That is in no way an attempt to excuse the diabolical attack on the magazine’s headquarters or the evil slaughter of its staff. Indeed, there is an understandable view that to capitulate is to demonstrate weakness. However, the International Covenant on Civil and Political Rights, ratified in 1966, recognises that sometimes controls may be necessary: “The exercise of the rights . . . carries with it special duties and responsibilities. It may therefore be subject to certain restrictions . . .

Until very recently, this struggle to confront radicalised Islam has felt somewhat remote from these shores. That idea is no more. Two Japanese citizens, who recently were taken hostage by IS, appear to have been murdered after the Japanese government refused to meet the demands of their kidnappers. Some people are now questioning when the terror will visit Japan itself. The Japanese government most properly has been circumspect in its statements regarding the hostage situation. Were the demands of the US$200mn ransom considered, discussed or negotiated? It is surely significant that this amount is exactly what Prime Minister Shinzo Abe recently pledged in order to help the international fight against terrorism. However, press conferences have been noticeably silent on the details, and journalists have been noticeably reticent to press for answers. Part of the reason for that must surely be the passing, on 6 December, 2013, of the Act on the Protection of Specially Designated Secrets (tokutei himistu no hogo kansuru horitsu), which effectively gives the government the right to decide what is or is not an official secret. This is a measure

that Abe has been keen to force through the Diet. Interestingly, his grandfather, Shinsuke Kishi, when he was prime minister (1957–60), sought to introduce a similar measure but the pubic protests were so strong that he had to give up. Abe has fared better, in part because this generation does not recall the era of the “thought police”. The new law seeks essentially to give the government greater control of the media: journalists face the threat of prosecution if they breach it. But here’s the rub: the law does not set out limits or definitions. Officials can decide at any time what they determine to be a secret. This has the effect of making self-censorship on the part

in their criticism—has long been a thorn in the side of foreign reporters. But, before the new law came into force, this system largely had been an informal arrangement between media organisations and the establishment. Now there are legal constraints. What about the people’s right to know and the fundamental rule that government information belongs to the people? The rights to freedom of speech, press and other forms of expression are guaranteed under the Japanese Constitution. In theory, we are all at risk. Officials who might, once upon a time, have spoken of goings on in their departments will now weigh even more carefully whether or not they can speak. There has

of the press all but inevitable. Japan’s reliance on the kisha kurubu (press club) system—under which journalists have access to politicians in exchange for restraint

always been an argument that Japan’s official voice has lacked transparency. The new measures suggest that transparency now is even less likely.

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BOOK REVIEW BY IAN DE STAINS OBE BCCJ ACUMEN has one copy of this book to give away. To apply, please send an email by 28 February to: editor@custom-media.com. The winner will be picked at random.

Oxford University Press £20.00

Current issues in historic context What hinders freedom in Japan

Without doubt, this is the most important book on Japan by a nonJapanese writer to have appeared in the last two decades. It should be required reading for anyone professing to know Japan or wishing to teach others about it. The author, R. Taggart Murphy, is professor of international

46 bccj acumen, february 2015

political economy at the MBA Program in International Business at the Tokyo campus of the University of Tsukuba. But Japan and the Shackles of the Past is no dry academic treatise. A long-time resident of Japan, Murphy clearly loves the country and its people. Yet, he is far from

being unwilling or unable to criticise and recognise the deep malaise that has afflicted Japan— aspects of which, according to the respected author Karel van Wolferen, invite “future disaster for the region and possibly the world”. What Murphy has done so masterfully is to put Japan’s current difficulties into an extremely impressive historical context. He articulates, with great clarity, the significance of that history and its impact on virtually every aspect of life today. The shade of the country’s feudal past is in many ways very much still with us; understanding those influences goes a long way to explaining the many apparent contradictions that puzzle so many Western Japan watchers. He sheds valuable light on Japan’s “hidden champions” (a term, coined in the late 1980s by management expert Hermann Simon, referring to firms with less than $4bn in annual sales and that enjoy large local and global market shares, while remaining relatively unknown). Thus, while many business commentators are familiar with the big brands—Toyota, Sony, and so on—these are no longer Japan’s most profitable businesses. Indeed, as Murphy points out, “the most profitable company in Japan in the first decade of the 21st century was Keyence, making sensors, barcode readers, digital microscopes, and various types of high-precision measuring equipment”.

Never heard of them? Neither had I. Nor had I heard of all but one of the rest of the top five: Fanuc Corporation, Hirose Electric Group, Pacific Metal Company and Union Tool Co. Murphy offers similar perspectives on other areas of contemporary Japan: politics is understandably in his sights. His opinion of Abenomics and the real motive behind Prime Minister Shinzo Abe’s need to take control of both houses makes for fascinating reading: it is as much about hard-nosed politics as it is about the economy. But there are also the matters of gender relations as well as a rapidly changing business landscape, and the culture—both high and low. Murphy explores each area he touches on with tremendous sensitivity, demonstrating how the shackles of the past hinder true freedom today. What is likely to surprise many readers, however, is Murphy’s take on current Japan–US relations. Supposedly Washington’s closest ally in the Asia–Pacific region, the country has to all intents and purposes vanished from America’s radar. In many ways Japan is seen as a spent entity and yet Capitol Hill’s influence over what Tokyo can and cannot do appears to be as strong as ever. Or, to put it another way, Tokyo’s deference to Washington is undiminished. Author van Wolferen, who wrote of The Enigma of Japanese Power, believes that Japan is not a free country. Murphy’s book explains in no uncertain terms why that is so.