Waiting to pounce Q&A with LDP President Sadakazu Tanigaki Share to prepare – When disaster strikes, data must flow freely Design for AM – Additive manufacturing comes into its own At work in Tohoku – Q&A with Miyako Hamasaka, external relations manager for Japan Emergency NGO (JEN)
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2012
THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE IN JAPAN
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8 Share to prepare When disaster strikes, data must flow freely By Justin McCurry
12 Q&A David C Hulme talks to Miyako Hamasaka, external relations manager for Japan Emergency NGO (JEN).
16 Design for AM Additive manufacturing comes into its own By David C Hulme
20 Q&A David McNeill talks to Sadakazu Tanigaki, president of the Liberal Democratic Party of Japan. 2
August 2012
Cover photograph Jeremy Sutton-Hibbert
22 48 46 20
COLUMNS 7 From the Editor
29 Green Biz
44 EBC Personality
19 Executive Notes
Save trees and save water by using paper made of stone. By Rob Goss.
Dan Slater says the West should learn from Japan how to cope with the collapse of an economic bubble.
30 EBC committee schedule
From the Amazon jungle to a Tokyo glasstower office, Taco de Vries has made many adjustments. By David C Hulme.
22 Investing in Japan
31 Event Report
Société Générale Private Banking says it has few competitors in Japan. By Gavin Blair.
Responses to the Tohoku disaster are strengthening Japan and its long-term ties to allies. By David C Hulme.
25 Chamber Voice
35 Upcoming Events
Francesco Formiconi, president, Italian Chamber of Commerce in Japan. By David C Hulme.
Events for the European business community in Japan.
26 In Committee A few basic issues stubbornly resist the liberalisation trend in legal services. By Geoff Botting.
46 Lens Flair Richard Grehan captures the beauty and magic of the Tanabata Festival.
48 Work Place Visit Pâtissier Frédéric Madelaine at Pâtisserie Le Pommier in Azabu-juban.
36 MICE Special Section 40 Shop Window Retailers launch major own-brand offensive. By Roy Larke.
The Mission of the European Business Council To promote an impediment-free environment for European business in Japan. August 2012
3
Your Move. Our World. Publisher Vickie Paradise Green
European Business Council in Japan (EBC)
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The European (EU) Chamber of Commerce in Japan
Editor-in-chief David C Hulme
The EBC is the trade policy arm of the seventeen European national chambers of commerce and business associations in Japan
hulme@paradigm.co.jp
Senior Editor David Umeda
Chairman Duco Delgorge
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Production and distribution
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Big in Japan: Lust for gold
Contributors Justin McCurry reports on Google’s “Big Tent”, page 8
Justin is the Tokyo correspondent for The Guardian and The Observer newspapers in London. He also reports on Japan for GlobalPost and contributes to The Lancet medical journal and several other
David McNeill writes for The Chronicle of Higher Education, The Economist and other publications, and is a coordinator for the e-journal www.japanfocus.org. He first came to Japan to write a PhD thesis in 1993 and has been in the country continuously since 2000. His co-authored book about the 11 March disaster, Strong In The Rain, will be released in October. “I think many of us expected the LDP to be out of power for some time when they
Please visit www.asiantigers-japan.com or contact us at sales@asiantigers-japan.com Customer Hotline: 03-6402-2371 Gavin Blair visits Société Générale Private Banking, page 22
Gavin has been writing about Japan for about a decade and currently contributes articles to magazines, websites and news-
publications in Japan and the UK. Justin graduated from the London School of Economics and later gained a master’s degree in Japanese studies from London University. “My sporadic use of social media became a near obsession in the wake of the Tohoku disaster. Speakers at Google’s “Big Tent” in Sendai praised advances made in the use of technology in disasters. But they also issued a warning: to save more lives, governments must be more open about sharing crucial data with the private sector and NGOs.”
David McNeill interviews Sadakazu Tanigaki, page 20
lost in 2009. Talking to Tanigaki makes me think they may be back again soon, for better or worse.”
papers in Asia, Europe and the United States on a wide range of topics, from business and politics to culture and entertainment. “It seems that one develops a taste for the high-end products and services that one writes about. I have now become quite enamoured with the idea of having my own private banker, rather than being stuck with an automated telephone answering service. All I need now is another ninety-something million yen before I qualify.”
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FROM TH E EDITOR
A world of opportunity The information revolution rolls on, with new technologies, gadgets and applications appearing just about every day, and it is radically changing the way the world works. It is changing the way things are designed, made and distributed. It is changing our entertainment, how we work, how we manage our finances, and how we relate to each other and to our governments. Justin McCurry’s report (Share to prepare, page 8) on the role of technology in disaster preparedness and relief shows how vital it is for governments not only to adopt emerging technologies, but also to adapt to new cultures. It no longer makes sense to routinely monopolise information by holding it in proprietary or inaccessible formats. In the wake of last year’s triple disaster, it was private businesses and private citizens that made best use of instantly available information.
Our Q&A with Miyako Hamasaka of Japan Emergency NGO (JEN) (page 12) uncovers similar themes. Until last year, JEN had assisted the victims of disaster and upheaval outside Japan, and had become accustomed to the culture of sharing that is prevalent among international aid agencies. When called upon to assist in their home country, JEN officials were shocked to discover that no such culture exists here even between the branches of government. A third story in this issue (Event Report, page 31) points toward the immense value of tools for lateral communication. UK Ambassador to Japan Sir David Warren was one of three panelists at a Temple University, Japan Campus discussion of “Japan’s International Relations and the Politics of 3/11”. What emerged was a picture of the British and US embassies setting the pace with innovative use of social networking tools.
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It has been said often enough that change means opportunity. What we see clearly here is that Japan is going through colossal change and will experience even more. There must therefore be vast opportunities for every business operating in this country. For more on change sweeping industry worldwide, see Design for AM on page 16 So far, not everyone is even aware of the dramatic impact of additive manufacturing. However, it is changing whole industries. It is changing the assumptions of designers and engineers, redefining production economics, and reconfiguring distribution systems. It is just one more flow of change creating opportunity everywhere. David C Hulme Editor-in-Chief
hulme@paradigm.co.jp
Share to prepare When disaster strikes, data must flow freely Text and Photos JUSTIN MCCURRY
L
ast year’s triple disaster in Japan demonstrated the huge advances made in the role of technology in response to major crises, according to speakers at Google’s “Big Tent” (“Big Tent: The Role of Technology in Disaster Preparedness and Relief”) in Sendai (Miyagi prefecture) in early July. Still, obstacles remain regarding the free flow of information in Asia, a region of diverse political systems, religions and social structures, which also registers about 70% of the world’s natural disasters.
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Speakers at the event – Google’s first “Big Tent” in Asia – were unanimous in calling on governments to do more to share information, which can then be organised and disseminated to affected people, as well as first responders trying to help them. The Google web tool, Person Finder, was launched within two hours of the earthquake striking Japan’s north-east coast on 11 March last year, according to Brian McClendon, head of engineering and product management for the internet giant, and quickly attracted at least 7,200 pieces of information
FOCUS Panelists at Google’s Big Tent Sendai discuss the use of technology in response to disasters.
about people’s whereabouts. The aftermath of the quake offered examples of how online tools can be married to offline information sharing for humanitarian ends. “We loaded 10,000 photographs into a Picasa Web Album, and they alone were responsible for 120,000 ‘directionals’ in People Finder,” said McClendon. Google Maps was also put to use in a region where millions of tonnes of tsunami wreckage had rendered traditional maps useless. “We were able to provide reasonably up-to-date [information on] roads in Japan,” he said.
McClendon and other speakers from across the Asia–Pacific region agreed that technological innovations are of little use unless they can be accessed, understood and acted upon by those who need them. “We are working with our partners to improve our data acquisition, but much more needs to be done. We need to get more governments to cooperate [in passing on information], and more open-licence data that can be used by everyone in times of disaster,” McClendon said. “Preparing for the next disaster is the most important thing we can do right now.” More than 400 attendees heard that the immediate provision of information must be matched by a commitment to accuracy and verification. When it became clear that all was not well at Fukushima Daiichi Nuclear Power Plant, for example, Twitter and other social media – a vital source of real-time information for survivors, their loved ones, and aid and rescue agencies – were awash with rumour. The lesson here concerns the need to prevent online speculation from turning into received wisdom, according to James Kondo, country representative for Twitter Japan. Twitter has verified about 1,000 accounts related to the disaster in Japan, Kondo said, adding that no one should be surprised that rumour is as much a part of the discussion as it was before the advent of social media. “We verified accounts belonging to government agencies, media outlets, NGOs and nuclear academics to ensure that we weren’t relying on one perspective,” Kondo said. “Our job is to let people know where the information is coming from, not necessarily whether it’s accurate or not.” While government data is indispensable, technology works best in post-disaster situations when the online community embraces pluralism, said Will Rogers, global coordinator for beneficiary communication at the International Federation of Red Cross and Red Crescent Societies. “It’s vitally important to get community-driven responses,” he said, whether it be contributions to social media, offline information such as photographs or first-hand reports through the traditional media, in addition to the official narrative. “When disasters happen, there are lots of players involved and lots of things going on, so it should be about getting information from the community, rather than us shoving our preconceived ideas about what’s best for them down people’s throats,” Rogers said. The aftermath of 3/11 was a good example of private initiative sidelining official channels of communication and distribution. In Tohoku, Amazon Japan used its wish-list service to get vital supplies and services to the tens of thousands of people living in evacuation shelters across the region. “At first I approached the prefectural governments to ask them what we should be inviting people to contribute to our wish-lists, but it didn’t work because the officials had no idea what people in each shelter actually needed,” said Hiroyoshi Watanabe, director of Amazon Japan.
August 2012
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FOCUS
Left: Brian McClendon, Google’s vice-president of engineering, which is responsible for geo products including Google Earth and Google Maps. Right: James Kondo, country manager at Twitter Japan
“I changed my strategy to a bottom-up approach, got reliable information from blogs and social media, and found out that way what people wanted.” It was this grassroots approach, Watanabe said, that led to the construction of a makeshift bathhouse for survivors in the hard-hit city of Rikuzentakata (Iwate prefecture). Japan’s experience had also shown that online tools and services, however well designed, won’t work in the aftermath of a disaster unless they are put in the hands of the right people. “A large number of the victims of the Tohoku disaster were aged over 65, and they are unlikely to be using the technology involved,” said Margareta Wahlström, who heads the UN Office for Disaster Risk Reduction. “But what we did find was that women and children were the most likely to be proactive users of information technology.” Technology should not be limited to response, but also applied with even greater urgency to prevention and hazard awareness. “Experience shows that early warning messages save lives if people receiving the message know what to do when the emergency strikes,” Wahlström said. That message has particular resonance in Asia, which, over the past three decades, has experienced 5,000 major weather-related catastrophes and 51% of the world’s fatalities from natural catastrophes. Concern over official reluctance in some countries to share data emerged as a central theme of the discussions. “We certainly have found that access to data has enormously improved many of our products, including maps,” said Rachel Whetstone, Google’s senior vice-president of Public Policy and Communications. But, she added, “We are still seeing quite a few governments that are quite closed with their data. If we could have greater access to that data, I think we could do even more amazing things.” The accident at Fukushima Daiichi Nuclear Power Plant was proof that, in some circumstances, government agencies will sit on data, in this case with the intent to avoid causing panic and confusion. Wahlström acknowledged that the meltdown
and the sheer number of people affected represented uncharted territory for Japanese officials, but concluded that openness and honesty should have prevailed. “This is an issue of trust, and of how you communicate with people in your own country,” she said. “Organisations need to think carefully about who is the best person to face people and convey the message. And there will be times when that person has to say, ‘I don’t know’.” The nuclear crisis also exposed Japan’s inability to turn complex data into digestible, adaptable pieces of information. Initially, the government released radiation data only in PDFformat, causing servers to crash at the Ministry of Education, Culture, Sports, Science and Technology and preventing scientists from editing and analysing it. The ministry also turned down offers to translate the material into English, rendering it practically useless to non-Japanese speakers. Twitter’s Kondo, who is helping the Japanese government draft new guidelines for releasing information in crisis situations, said officialdom had been unprepared for the earthquake and tsunami, and was striving to enhance its post-disaster response in the event of future catastrophes. “The government probably was the single entity that lost the public trust the most,” he said. What of the future? Nigel Snoad, product manager for Google’s crisis response team, said the firm’s experience in Japan last year had enabled it to partly address perennial issues such as openness, the verification of information, and collaboration between official and private actors. “It means that during the next crisis, we will already have a relationship with the authorities here,” Snoad told EURObiZ Japan on the sidelines of the event. “We will know exactly who to go to. “That said, there has been an opening up that has enabled us to do amazing things in crisis situations. Government officials are acknowledging that this is now a part of reality – and that can only be a good thing. Google Plus, Twitter and Facebook are everywhere now ... there has been a real transformation.” August 2012
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Road to
recovery 12
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David C Hulme talks to Miyako Hamasaka, external relations manager for Japan Emergency NGO (JEN). Photos ALFIE GOODRICH
Q&A
Non-governmental organisation JEN was established in 1994 by a group of Japanese NGOs active in the former Yugoslavia, to assist refugees and displaced persons. Headquartered in Shinjuku, Tokyo, since 2000, JEN has supported victims of war and disaster in numerous countries. Last year, Japan also became a beneficiary of JEN’s experience and resources. Could you summarise the activities of JEN in relation to the March 2011 Tohoku disaster? So far, as experts in emergency assistance, we have operated in 22 countries, mainly those suffering from conflict or natural disasters. That includes Iraq, South Sudan, Afghanistan and Haiti, where an earthquake struck in 2010. When the earthquake occurred in Tohoku last year, we understood immediately that we would have to dispatch. We were ready by midnight, but we had to delay because of the risk of radiation. One of our fundamental rules is that we cannot risk the safety of staff. On the 13th, we finally sent a team by car to Sendai, set up a soup kitchen and delivered some non-food items. We also began collecting information. After one week, a second team took over. That is normal because the firstresponse team encounters the severest conditions. We also set up a centre in Ishinomaki [Miyagi prefecture], because it is the second-largest city in the region, because it is a transport hub, and because the community was a complete mess. Six neighbouring villages had recently been integrated into the city, but the communities were not yet harmonised. People were strangers to each other, and so could not help each other enough. We sent volunteers to remove debris. We provided food to affected people
in their own homes, because many of them were able to live upstairs, but everything downstairs, including kitchens, had been destroyed by the tsunami. Our policy is to maximise local resources. The month after the disaster, we started hiring local staff. In a few years, we hope the local staff will be able to design and run the programme by themselves. We also support income-generation. Debris removal had to begin, but companies had lost vehicles, tools and offices. We rented 26 vehicles for seven companies so that they could rehire their employees and get to work. Now we are in the recovery phase, based on three pillars: community reconstruction, income-generation and volunteer dispatch. From JEN’s point of view, what are the main lessons to be drawn from the disaster and its aftermath? The day after the disaster we were called by various government departments. We had to explain the same things over and over again, which was very surprising for us. When there is an event overseas, the UN and international NGOs will share information and assume particular roles immediately. For example, we have been working in Iraq for some time, and the education authorities of that country know that they can rely on us. But the government of Japan was quite unsure of how to deal
with NGOs. They did not understand that an NGO is not just volunteers. We are professionals at what we do. The Ministry of Foreign Affairs knows us well, but the other departments don’t. Very unfortunately, that poor communication slowed things down and caused duplication and inefficiency. Does Japan have better disaster preparedness now? Only recently the prime minister’s office invited JEN to discuss disaster preparedness. This is a good sign, finally. There is some progress. If there is another disaster, the government is ready to invite us to be part of the disaster-response team. How is the NGO sector developing in Japan? After the 1995 Great Hanshin Earthquake struck Kobe, the private sector responded well and fast, and since then the private NGO sector has grown a lot in Japan. Currently there are more than 45,000 NGOs, 257 of them certified, including JEN. The number is growing fast because of recent amendments to the NPO law, making it easier for smaller NPOs to be certified and receive tax benefits. How was the response of local people in the disaster area? Tohoku was suffering depopulation and a brain drain even before 3/11. The
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Q&A
WE HAD TO EXPLAIN THE SAME THINGS OVER AND OVER AGAIN, WHICH WAS VERY SURPRISING FOR US
people there are reserved, conservative, shy and proud. Perhaps most of them had never heard of NGOs or volunteers. We had to get their understanding. Also, volunteers from other parts of Japan are foreigners there, but now the local people are meeting NGOs and volunteers every day, and getting used to receiving support. How was JEN involved with foreign individuals and organisations that rushed to help in Tohoku? We really appreciate all the help that came from overseas. We got donations from 43 countries, including some where we have been helping. Charity drives were held all over the world and volunteers came from everywhere. JEN always acts as a catalyst and coordinator, in a position between the financial partner and the people who are affected. We have many contacts with overseas organisations, and they contacted us directly. We also have an English- and French-language website. What are the main ongoing needs for the affected area and the people there? Eventually, the local people recover by themselves. The problem is that even if they get back to where they were before the quake, the population will continue to decline. To prevent that, we may bring in something new. We have to move slowly, encouraging people to participate, and we assume that it will take a long time.
So foreigners have a good role in Tohoku, because they have a totally different mindset. Sometimes we bring in foreigners deliberately, and often they become really close friends with the locals. Will towns be rebuilt in the same places? We discuss that openly and frequently with the local people. On the Oshika peninsula, they would like to remain on the coastline. What is the trend in Japan for corporate philanthropy? Japanese companies are developing very good relations with local communities in Japan. We noticed a change since the Haiti earthquake. Large companies were taking a lot of initiative, first by sending donations to NGOs and then by continuing to provide support even months after the disaster. Uniqlo [Fast Retailing] is exceptionally cooperative, and our relationship goes back to 2001. They very quickly set up a warehouse in Fukushima. Usually, donors of personal items have people line up and receive packages. Uniqlo invited people to come into the space and pick out what they wanted. Uniqlo and JEN jointly distributed goods at both evacuation centres and in residential areas. One elderly woman recently told me it was so wonderful to receive new clothes and to have such a great variety.
Another collaboration project we started since the disaster is to provide training in the field for hundreds of employees of large corporations. That means human resources people, not just the corporate social responsibility people, are becoming NGO counterparts. In a couple of months we will start training the management of a company as well. What is the current top priority? Reconstructing the communities, income-generation, and [dealing with] psychological damage. Our priority is anything to do with people. There is still a combination of trauma, grief, loss of jobs, and loss of homes and other possessions. A lot of people are very frustrated about where the government is leading [them]. Unstable living conditions produce increased social problems such as divorce and child abuse, especially at the temporary shelters. In Ishinomaki alone, there are 131 temporary shelters, with 6,800 families. The recovery plan was supposed to be ready in three years, but that does not seem likely. We must assume that the temporary shelters will be there for five years or more. Elderly people, and those who lost their income, can’t move without some clarity about the future. What we are doing in Tohoku is exactly what we do overseas, but here it is more complicated.
August 2012
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Design for AM Additive manufacturing comes into its own Text and photos DAVID C HULME
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August 2012
MGX BY MATERIALISE, WWW.MGXBYMATERIALISE.COM
top of its field. Now the various sportsshoe makers, for example, are nervously watching each other for signs of a game-changing switch to AM. In many industries, a successful application could totally redraw the competitive environment by lowering costs, making customisation the norm and migrating production back towards the point of sale. AM is a way of producing a threedimensional object from a digital file. The 3D computer image is divided into virtual cross-sections, whose data are used to materialise successive layers of the solid object. There are a number of variations. In photopolymer stereolithography, an ultraviolet laser is used to cure successive layers of resin in a vat. Greater precision can be achieved with a method called selective laser sintering, by which a highpowered laser fuses particles of plastic, metal, ceramic or glass into the desired shape. Direct metal laser sintering, using a bed of almost any kind of alloy powder, is ideal for short production runs of functional components or tools. Another technique, called fused deposition modeling, uses computeraided manufacturing software to guide an extrusion nozzle, which deposits beads of material (as small as 0.04mm thick) that harden immediately. Yet another method uses an electron beam to melt titanium alloys in a vacuum. The basic idea, printing cross-sections of a 3D digital model, is the same in all cases. The model itself, though, can be created using design software, or derived from electronic or electromagnetic scanning. It is now a simple matter to scan a small, complex shape such as a dental implant or bridge. Dental fabrication is another industry that has already switched to AM, with machines turning out hundreds of individualised pieces at a time for hundreds of patients across a given region. “The challenge is that you have to tell one item from another,” says Anseeuw. “We develop software to track customised medical parts.” It is not just a matter of matching the part to the patient. “After the operation, you must be able to track the part back to a certain machine on a certain day, with a record of who was operating the machine, the
FOCUS
T
welve years ago, two European companies began discussing how to improve the fit and comfort of hearingaid earpieces. Belgian 3D-printing company Materialise developed the software and provided expertise, and within three years Swiss hearing aid-maker Phonak was printing hundreds of finely customised earpieces at a time, at its Zurich headquarters. In another three years it was producing locally on small 3D printers all over the world. “Millions of people are using hearing aids made by additive manufacturing [AM]. Without being aware of it, they have already changed industries,” says Jo Anseeuw, managing director of Yokohama-based Materialise Japan. The 3D-printing industry is evolving rapidly. The technologies gained popularity during the 1990s, used for rapid prototyping throughout the automotive and other industries. More recently, improved techniques, better materials and more powerful software have brought a growing list of successes in low-volume customised manufacturing. “It is becoming distributive manufacturing,” says Anseeuw. “There is central data management, but manufacturing and distribution are spread worldwide on a regional basis.” Materialise was set up in 1990 by its current CEO, Wilfried Vancraen, as a joint venture with the University of Leuven in Belgium. It wasted no time in commercialising an impressive list of systems. By 1999 it had already expanded to the United States, France, Germany and the UK. With a staff of 800 and growing, it now boasts Europe’s greatest AM manufacturing capacity. In June, industry professionals worldwide voted the soft-spoken Vancraen the most influential figure in AM today. Materialise Japan was set up in 2000. “Our main functions here are software sales, engineering services and consulting. We are also working on some special projects with customers,” says Anseeuw. He declines to spill the beans on which companies, or even industries, may be about to join what some call a new industrial revolution. The stakes are high. Early adaption vaulted Phonak from 5th place to the
THE MINDSET OF A LOT OF ENGINEERS WILL HAVE TO CHANGE Jo Anseeuw, Materialise Japan materials used, the settings and so on,” explains Sadato Kobayashi, Materialise Japan group manager. “If a patient has a problem with a part, you may have to notify other patients of a potential problem.” In hospitals, AM is also transforming surgery. In partnerships with major orthopaedics companies, Materialise has developed surgical guides that shorten operation times for thousands of patients every month. “We print a patient-specific guide that fits on the bone, with slots. The doctor can drill accurately and quickly,” explains Anseeuw. The aim is to reduce the strain on surgeons as well as patients by minimizing the guesswork involved in complex procedures and this often also reduces surgery time. There are great advantages in being able to plan a surgical process in three dimensions rather than two. Surgeons are now performing operations not previously regarded as possible. Bordering on the impossible was a procedure carried out last January at Belgium’s Ghent University Hospital. The patient required replacement of most of the lower facial bone and the attached soft tissue. Based on scans of both patient and potential donor, Materialise developed a detailed virtual pre-operative plan and built AM
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OBL PARIS
FOCUS
Left: AM creates complex shapes quickly and with precision. Right: Materialise surgical guides reduce the guesswork involved in complex operations.
operating guides, reference models and prosthetics. With the parts in place and fitting perfectly, surgeons then connected recipient and donor blood vessels, motor nerves and sensory nerves. Having seen a video of what the 65-strong medical team accomplished, Anseeuw and Kobayashi agree: “The most amazing thing was to see the face turn red the moment they connected the blood vessels.” Understandably, Materialise generates a lot of attention for its work in the medical field, but Anseeuw and Kobayashi stress that there is much more to the picture. “There are plenty of companies with machines, and a few that develop their own software,” says Anseeuw, “but there is no other company with many machines, developing its own software, and also involved in the medical field.” “Our main advantage is the overlap of those three core competencies. That’s where we are unique,” says Kobayashi. The Japanese AM landscape includes a company called Aspect, with some software and several brands of machine, CMET (formed by a group of large manufacturers and NTT Data) and Matsuura Machinery, which has a machine that combines laser sintering and high-speed machining. There is plenty of room for the international players (a few with Japanese offices, but most via Japanese distributors). Some of them partner with Materialise and use Materialise software. NTT Data is the main distributor for
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August 2012
German company EOS, while Marubeni fills that role for US company Stratasys. 3DSystems (US) has a Japan subsidiary. Others active here include Israeli company Objet, EnvisionTec of Germany and Swedish company Arcam, which specialises in electron-beam melting of alloy. “Huge potential for further expansion” was one of the reasons for Materialise being awarded the Nippon Export Award 2011–2012 by the Belgian–Luxembourg Chamber of Commerce in Japan last December. In fact, Materialise is expanding in many directions. Through i.materialise, launched in 2009, anyone in the world can print in 3D. A customer who uploads a design is shown a price for printing and a choice of 20 materials, and then can scale the model to the optimal size before printing as many copies as he or she wants. They can even put their work up for sale in the i.materialise online store. Items of jewellery – in gold, silver, stainless steel and other materials – are popular on i.materialise. The jewellery industry is picking up fast on the potential of 3D printing, and Cookson Precious Metals of the UK and EOS recently signed a strategic development partnership for the purpose of developing applications for the jewellery and watch industry. AM is influencing medicine, DIY, fashion and art, but industrial applications are the most exciting for Anseeuw and Kobayashi. Materialise
helped to develop a lighter, stronger and more comfortable steering wheel for a car to be entered in Australia’s World Solar Challenge. The key to lightness and strength was a fine reinforcement web inside the hollow circular tube, a structure that could not be achieved economically with traditional tooling. “Conventionally, engineers are bound to what can be done with certain tools. But AM is not tooling, so you can design more freely,” explains Kobayashi. “This can mean a lot in terms of aesthetics, structural integrity and weight. You can optimise geometries.” The aerospace industry is becoming seriously interested in the advantages – such as complex assemblies being fabricated as a single piece with less weight – that AM can deliver. After all, reducing the weight of a passenger jet by 1kg will save several tons of fuel over the life of the aircraft. One of the challenges is education. “The mindset of a lot of engineers will have to change,” says Anseeuw. “For example, engineers using injection moulding think about the limitations of materials used in injection moulding. They are not thinking of the limitations for AM, so they don’t readily grasp the potential. They are not designing for AM.” Universities, he says, will have to start teaching design for AM, showing engineers how to go beyond the old assumptions. And he adds: “Industrial production is where the real revolution will take place.”
EXE C UTI V E N OTE S
Know your Japan shows how to cope with a collapse I’ve never written about Japan’s capital markets, because they are so marginal to my vision of Japan (as they are to Japan too, despite their size). Of course, I am a massive bear on Western capital markets. The latest LIBOR scandal is one I have been following closely. Right from the beginning (I think the Financial Times wrote the first article at least one year ago), I could not understand why more people weren’t taking it seriously. People say it’s technical. Well, let me put this way: LIBOR is the clock that regulates the financial universe. A clock is not important in itself, only insofar as it measures TIME. And time is the most precious substance in the universe, at least for living organisms. Similarly, LIBOR is a simple indicator. But the decisions which investors make based on that figure help them understand risk. Based on the data given to them by LIBOR, they make farreaching and high-volume decisions. As a former financial journalist, to hear that this clock has been tampered with filled me with the kind of anger a pilot would feel on finding that his altimeter had been fiddled with, perhaps because of some trivial bet by a mechanic. What he had thought was a device of unimpeachable reliability turned out to be bogus. That’s quite a shock. The difference between Western bankers and Japanese bankers is that the former believe their own fairytales. I have always found Japanese bankers to be far more unassuming and modest. Perhaps the fact that their incomes were far lower than those of Western bankers kept them much more grounded.
Japanese capital markets are also rigged, to a greater or lesser extent. But what’s interesting to me is that everyone knows about it. There is no pretence about the wisdom of markets. My mother-in-law keeps her money in ¥10,000 notes. Thanks to deflation, her little hoard keeps going up in value – without the hassle of determining which asset class to put them in. It’s a litany of familiar problems (insider trading, excessive dilution, shareholder-unfriendliness) that keeps Japanese capital markets so cheap. But even at that level of cheapness, most Japanese don’t buy. They leave that to foreigners, who historically have owned 20–30% of the market. And we are talking really cheap: many companies are trading at less than their break-up value. I would like the Japanese capital markets to be more honest, transparent and high-yield. But I don’t think it is systemically possible. And in the meantime, Japan has far more alternatives than, say, the UK in a world where capital markets are becoming so discredited. Indeed, Westerners should start thinking seriously about their post-bubble world. Japan is the ultimate lesson: The stock market has never come anywhere near its peak of almost 40,000 points just before the bubble burst (1990s). The Nikkei is now trading at well under 10,000. Western investors should start wondering about how their social and work model will look if the same fate befalls them. Already, global ageing is causing huge asset shifts into bonds and out of equities. Retail investors (the “dumb money” from which the bankers
WESTERNERS SHOULD START THINKING SERIOUSLY ABOUT THEIR POSTBUBBLE WORLD made their money) are staying away in droves. Many of the promises made by our bankers are proving utterly false: from paying out pensions to selling products that meet the very minimum standards of decency and honesty. The UK is ablaze with mis-selling scandals at the retail level, as well as fraud at the most senior level. Socially, Japan adapted fairly well post-bubble. Traditional strengths such as loyalty, solidarity and cohesiveness emerged that helped tide the country through – at least until the catastrophic legislation under prime minister Junichiro Koizumi (2001–2006) turned Japan Inc into a cruelly unfair two-tier labour market. But Japan still has moved far less down that road than have capital markets-driven economies. People still remember how a real economy, and a real community, works. For once, Japan should understand it is the sensei here in teaching naive Western economies how to live after an appalling bubble. DAN SLATER Director of the Economist Corporate Network in Tokyo
August 2012
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Waiting to pounce David McNeill talks to Sadakazu Tanigaki, president of the Liberal Democratic Party Photo JEREMY SUTTON-HIBBERT
In 2009, Japan’s Liberal Democratic Party (LDP) was at its lowest historical ebb. After over half a century of almost continuous rule, the party was dumped from power by the rival Democratic Party of Japan (DPJ), which promised something akin to a political revolution. Nearly three years later, however, the DPJ’s factionally held majority in the lower house is in disarray, and the administration recently has had to shift much closer to the LDP on fiscal, defense and social security policies in order to pass key legislation. Most political observers say it is only a matter of time before the Noda administration collapses, pointing to the growing gap between policy and campaign promises. But what would a resurgent LDP bring if back in power?
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Q&A
Are you confident that the LDP will return to power soon? The right to dissolve parliament belongs, of course, to the prime minister. But I believe very strongly that in the next [general] election we will become the majority party [in the lower house]. I think we will see a major change in the country’s political composition by next year. What I can say is that the current government is in violation of its own manifesto, which it drew up three years ago. They have fundamentally accepted our bill on social security reform. When they came to power they promised expanded social benefits, including a new minimum pension and special medical insurance for people over 75. Those things are no longer possible. So what do they stand for? Why should European governments and companies welcome an LDP government? To answer that, you have to look at the current DPJ government. Their identity has essentially collapsed. That’s the biggest problem facing us today. Against that backdrop, you have the European debt crisis and the attempt there to unify fiscal policy. Asia has been pulling the world’s economy along so far. China is the EU’s biggest trading partner, but it is slipping. So, in this very difficult time for the world economy, Japan needs to be very strong and sure of which direction it is heading; but it is not. Without blowing our own trumpet, I think that our party can offer a lot of assurance to the world, based on our long experience of governing. So when we are asked what the LDP would do, we would be sure of our direction. We would be clear about future areas of growth and the need to invest in them. One of the long-term criticisms of Japan is that foreign investment is comparatively low and that foreign firms find it difficult to operate here. Isn’t that partly a legacy of LDP rule? Well, there were a lot of changes under the [Junichiro] Koizumi administration [2001–2006]. The LDP created the
Invest Japan campaign and drew up other policies on investment and trade. I don’t think that that fundamental direction has changed under the current government. I think the bigger problem is with the broader policy and financial details. I’d like the current government to return to that Invest Japan policy. The UK prime minister, David Cameron, has recommended that the EU offer Japan a free trade deal to help it recover from the 3/11 disaster. Tokyo has agreed to address longstanding complaints over non-tariff barriers, prompting the EU Commission to say in May that it is ready for FTA negotiations with Japan. What would the LDP do to expedite these negotiations? We are in opposition, so we don’t have exact details about how far these negotiations on free trade have gone with the current government. But I can say that at the end of our administration we were already striving in negotiations for an FTA. There is naturally a lot of interest in the EU about lowering our trade barriers. I think we have to work hard to solve those issues once in power. Are there any clear disagreements between the LDP and the DPJ on trade and investment? I don’t think so. Our differences are in domestic economic and fiscal policies, and security issues. The DPJ is not clear regarding those areas, and that’s where so many of the problems lie. Another problem is that the DPJ is strongly supported by trade unions. There are many demands from the unions, and the party has trouble standing up to them. That’s one of the fundamental areas of difference with the LDP. Prime minister [Yoshihiko] Noda’s government still believes in big government. We believe we have to pare down social spending. There is a lot of mistrust in government in Japan right now. A fundamental reason is that the DPJ-led government does not know what it stands for. Under these circumstances, we have no choice but to demand that the prime minister dissolve parliament and call fresh elections.
August 2012
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Wealth
management Société Générale Private Banking Text GAVIN BLAIR Photo BENJAMIN PARKS
Christophe Billard 22
August 2012
I N V E ST I N G I N J A PA N
C
elebrating its 10th anniversary in Japan, Société Générale Private Banking has found some similarities between the thinking and expectations of its high-net-worth clients here and those in its home market in France. And despite Japan’s economic woes, it remains a country with a large number of wealthy individuals and families, and with room for growth in private banking services. Interested parties must have a net worth of at least ¥100mn to avail themselves of Société Générale Private Banking’s services in Japan, equivalent to the €1 million minimum that applies in European countries and territories. “Private banking in Japan is a relatively new business, and there is a lot of education to be done in this market, but there are few competitors, either local or foreign,” says Christophe Billard, president and CEO of Société Générale Private Banking in Japan. “We are the only foreign trust bank doing private banking in Japan.” Société Générale’s private banking arm has €85.4bn under management globally. The Japanese operations were established in 2002 with the acquisition of Chase Trust Bank, and an Osaka office opened in 2008. “We focus on wealth management in the sense that Europeans understand it. We are not here to be selling products, but [rather] to nurture long-term relationships with our clients, which is very consistent with the mindset of the trust-bank concept,” says Billard. Japan is the second-wealthiest market in the world, he points out, with 45% of Asia’s wealth concentrated here. “The growth is slow, but the wealth has been accumulated over the years, mainly in land, cash and equities. Much of it has been transmitted from
generation to generation,” notes Billard. Although much of the wealth in Japan is of the “old money” variety, the bank offers services tailored to the various stages in the cycles of life and business. “A young entrepreneur who is starting a business will have very different needs to a person who has already grown their business and is now looking to expand geographically or product-wise, or to a business owner who is thinking about planning for succession,” explains Billard. “And finally there is the person who is really thinking about how to transmit wealth to the next generation and how to divide it up.” Japanese customers, in general, remain attracted to safe, low-yield, conservative investments and to even large amounts kept in cash, according to Billard, adding that these preferences were somewhat reinforced by events following the collapse of Lehman Brothers (September 2008). Société Générale Private Banking has tended to eschew investment trends, such as in emerging markets, a strategy that keeps it in line with the relatively cautious approach of many of its clients. “I usually describe Société Générale Private Banking Japan as a Japanese bank with a French shareholder. The staff is almost exclusively Japanese: out of 120 people, there are fewer than 10 foreigners, and only five French people,” explains Billard. For many years, though, geographical diversification of portfolios was the norm, points out Billard, “and that’s why many clients came to see us, because we are still a foreign bank”. Although local clients saw Société Générale as a route to global markets, the recent strengthening of the yen, which meant losses on foreign currency-denominated assets, has made people more wary of investing overseas. This financial conservatism – along with a belief in the importance of trust and an appreciation of quality, even
THERE IS A LOT OF EDUCATION TO BE DONE IN THIS MARKET for financial services – are some of the values shared between the private banking sector in Japan and that in France, says Billard. “French people also have a kind of cultural attitude towards banking services: it’s not just something you buy, consume and then throw away. In the rest of Asia, people will use five or six different banks, and you shop around and move your money between them if someone offers you one point better on a rate,” he says. “In France or Japan, you don’t do that because there is a strong bond with the bank.” Nevertheless, other side effects of the 2008 financial crisis have included a tendency for clients here to become more questioning of bankers’ advice, and their fees, notes Billard. “The whole financial industry has been shaken since the Lehman Shock. Before that, bankers knew that ‘counterparty risk’ existed, but now clients realise it too,” he says. The current sovereign-debt and banking troubles in the eurozone have hardly been an image-booster for European financial institutions, acknowledges Billard. However, he points out that there are only two banks ranked higher than Société Générale by ratings agency Moody’s, and that it has already been through a process of strengthening its capital base. Société Générale’s residual exposure to Greek sovereign debt is about €100 million, a small amount for a bank its size. And with the dire state of Japan’s public finances, Billard reports that some local clients have even been asking whether those most conservative of assets – Japanese government bonds – are really a safe investment anymore.
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PYTHON
&
PETER
Avocats - Attorneys-at-law - Rechtsanwälte Python & Peter was founded in Geneva Switzerland in 1981. Python & Peter has branches in Lausanne, Pully (Canton of Vaud), Sion (Canton of Valais), Berne, and Zug. In 1998, Python & Peter accentuated its already close links to Asia by opening in Tokyo the first Swiss law firm present in Japan with its partner Charles Ochsner accredited as foreign lawyer by the Daini Tokyo Bar Association. A liaison office was established in Brussels in order to
have a link to the European Community. Our firm has more than 65 attorneys. They are all highly qualified and fluent in several languages (French, English, German, Italian, Spanish, Portuguese, Russian, Japanese and Farsi). Their theoretical background and their practical approach make them particularly suited for corporate and private clients seeking specific legal advice for matters where cross-border and interdisciplinary expertise is a necessity.
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With more than 110 highly qualified, specialised lawyers, we are one of the leading law firms in Japan, offering a full spectrum of legal services including corporate, labour, M&A, creation and termination of JV and distribution network, dispute resolution, corporate compliance/economic crime, insolvency, anti-monopoly, and patent infringement.
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We are most probably the only big law firm in Japan providing full legal services in the German language directly Avocats - Our Attorneys-at-law rendered by a Japan-qualifi ed lawyer. German practice is led by a Partner who completed post-graduate studies at Cambridge (UK) and has years of experience at a leading law firm in Germany after training as a stagiaire in Belgium. We take into consideration Euro-Japanese differences in legal systems and business practices when giving advice.
CHAMBER VOICE
Francesco Formiconi
President, Italian Chamber of Commerce in Japan www.iccj.or.jp Text DAVID C HULME Now that everyone knows Italy for food and fashion, the Italian Chamber of Commerce in Japan (ICCJ) is keen to shift the emphasis a bit. “We expect to slightly detach the ICCJ from that traditional image and move it towards more technology-intensive sectors,” says chamber president Francesco Formiconi. “Italy enjoys leadership in many technological fields without getting enough of the spotlight.” In the wake of the 3/11 disaster, the chamber concentrated on supporting charity initiatives launched by the Italian community in Japan. In more recent months, energy was poured into organising conventional events. “Those events are a vital self-financing activity for the ICCJ, because the chamber can no longer rely on public funding,” notes Formiconi. Various activities during the past year, he concedes, tended to associate the chamber even more strongly with the food industry. “We re-started the contest for young chefs of Italian restaurants in Japan [Gran Concorso di Cucina, EURObiZ, February 2011] in December, with a new formula that we will further implement this year.” There was also a strong focus on the Italian Hospitality Trademark and the Italian Quality Seal. “The trademark is official recognition by the Italian government of restaurants that fulfill certain requirements, and the quality seal recognises restaurants in Japan that follow Italian traditions and quality standards. Despite the difficulties of 2011, the ICCJ did well, and Formiconi expects those results to be consolidated in the year ahead. “We also anticipate increasing
integration with all the institutional bodies that are promoting Italy in Japan, in particular the new agency for promotion abroad and internationalisation of Italian businesses that has replaced the Italian Trade Commission,” he says. The membership trend is positive, the ICCJ president adds, partly due to an increase in the number of specialised missions to Italy that are offered to local businesses that take up membership. “In general, there is also more recognition that the value of various benefits available to our members greatly exceeds the cost of membership,” he explains. Among the benefits is the “huge amount of information about Italy that members can receive from the ICCJ,” Formiconi adds. Through the chamber and the European Business Council, members also have the possibility of contributing to negotiations between the EU and Japan. For Italy, the main areas of concern are still food, agriculture and fashion. “I can assure you that these are major issues, and difficult to resolve,” says Formiconi. One technological field with the potential to create interesting opportunities is energy. “There is increasing interest in Italy regarding the Japanese market for renewable energy and everything related to energy saving and energy efficiency,” he says “and the ICCJ is trying to be a catalyst for Italian companies interested in entering the Japanese market.” For example, he adds, Italy has very capable producers in the field of thermic isolation systems for houses. “Everyone who lives in Japan knows how deficient Japanese houses are in
“Italy enjoys leadership in many technological fields without getting enough of the spotlight” terms of energy-efficiency,” he says. The ICCJ will be kept busy in the coming months with the organisation of a number of events related to renewable energy, business continuity management, and furniture and homeliving. But that’s not all. “This year, 2012, marks the 40th anniversary of the establishment of the ICCJ, and we would like to celebrate it appropriately. In December we will have a spectacular gala ball, with lots of surprises.” Then, in the spring of 2013, the ICCJ has the honour of organising, in Tokyo, the Annual Meeting of the Italian Chambers of Commerce in the Asia– Pacific region.
August 2012
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Legal Services// Stumbling block Text GEOFF BOTTING
James Lawden, chairman of the EBC Legal Services Committee, sometimes feels as though he’s living in 1987. That was the year Japan introduced a regulatory framework under which foreign lawyers could practice law in Japan. Some of the regulations were restrictive and discriminatory, and although a fair degree of progress and liberalisation have been seen since then, some basic issues stubbornly remain – after a quarter century. Lawden is quick to point out that the framework emerged in an era of heightened trade tensions between Japan and its developed-country trading partners. “You know, back when people were trying to justify keeping French skis out because the snow here was ‘different’,” he says. In Japan, while most other areas of business – in services and manufacturing alike – have witnessed impressive market liberalisation over the years, legal services seems in some ways stuck in the past. In its advocacy efforts, the committee has spent the past five years appealing to Ministry of Justice (MoJ) officials, the committee’s Japanese 26
August 2012
Legal Services Committee Key advocacy issues k Registration of foreign lawyers – A requirement that foreign lawyers need at least three years professional experience in the law of their home countries, including two outside Japan, after they qualify as lawyers should be scrapped. k Branches – A restriction that prohibits firms with foreign lawyers or joint firms with both foreign and Japanese lawyers from opening additional branches should be lifted. k Limited liability – The status of limited liability should be introduced. As it is, lawyers in Japan involved in large-scale business deals are often exposed to high levels of risk.
lawyer counterparts, and “anyone else willing to listen”, to scrap – or at least ease – some of the regulations. Last spring, however, the committee learned that a proposed regulation to allow firms with foreign lawyers to
open branches was likely to be watered down, after a special committee set up by the MoJ had spent around two years considering the idea. The committee has yet to learn the details of the measure, but Lawden has heard that only firms with foreign lawyers that don’t contain any Japanese lawyers would be allowed to open branches. The committee has long been calling for firms with both Japanese and foreign lawyers to have branches. Lawden’s own firm, Freshfields Bruckhaus Deringer, would be prevented from having branches in Japan. Says fellow committee member Peter Kilner, a partner at the Clifford Chance Law Office: “Even if we could have our offices in different buildings in Tokyo, that would be a help, say if people were to run out of office space.” Lawden says it is his understanding that the proposal “was ambushed by the Benrishikai [Japan Patent Attorneys Association] for no good reason at all”. Asked why the Japanese patent attorneys – or anyone else for that matter – would object to the branching proposal, Lawden shrugs.
IN COMMITTEE
“Quite often in these debates it’s often difficult to understand where anyone is coming from,” he responds. That said, the issue has never been a pressing priority for the committee. “But it was a point that was so clearly discriminatory against foreigners that we thought it would be an easy one to win,” the committee leader adds. The front-burner issue has been the recognition and approval of foreign lawyers. A foreign lawyer must have at least three years of working experience in the law of their home country (including at least two years working outside Japan) before qualifying to be registered to practice law in Japan. The committee wants this requirement scrapped altogether. The other part of the same advocacy issue is the registration process, which typically takes three to four months. The wait often incurs costs for firms, as their lawyers are forced to limit their professional activities while their applications are processed. There were signs of progress a couple of years ago, when the MoJ introduced a shortened registration form to speed
up the process. However, according to Lawden, the Japan Federation of Bar Associations (JFBA, Nihon Bengoshi Rengokai), which is involved in the registration process, is unhappy with the move, saying the new form doesn’t contain enough information. Indeed, in the view of the committee, the JFBA itself is a major stumbling block to the acceptance of foreign lawyers in Japan. As Kilner explains: “They feel a sense of ownership over the regulation of lawyers in Japan. They don’t feel that this is something purely for the Ministry of Justice. They do feel in all good faith that this arrangement is best for the legal profession and the consumer in Japan. We probably see things differently.” The applications for registration are vetted by both the MoJ and the JFBA. At a meeting in June with JFBA members, Lawden made what he calls “a heretical suggestion” that the ministry alone carry out the approval procedure. “But no, the association said it was ‘a fiercely independent organisation, and we don’t want bureaucrats foisting foreign lawyers on us’,” Lawden says.
“[THE JFBA FEELS] A SENSE OF OWNERSHIP OVER THE REGULATION OF LAWYERS IN JAPAN Peter Kilner, partner, Clifford Chance Law Office As for an EU-Japan free trade agreement, Lawden says it would be nice to have the principle of mutual recognition – as advocated by EBC committees in manufacturing, pharmaceuticals and other sectors – extended to the legal profession. That would mean that qualifications recognised in the EU would be automatically recognised in Japan, and vice versa. But he isn’t holding out much hope. Now Lawden is pondering the next step for the committee, whose membership includes 14 firms, after so many years of no breakthroughs in its major advocacy points. “We may look at new legislation and provide commentary,” he says. “Now we should consider where we go next.” August 2012
27
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GREEN BIZ
Stone-paper Saves trees and water, but yet to catch on Text ROB GOSS
“ORDINARILY, TO PRODUCE A TON OF PAPER YOU WOULD USE AND POLLUTE 100 TONS OF WATER” paper, which looks just like conventional paper, has many practical uses. “Stone-paper can be used for many of the same purposes as normal paper – for postcards, flyers, pamphlets and other kinds of printed materials,” Yamasaki says. “It’s very durable and doesn’t tear easily, and it’s also very resistant to water, which makes it suitable for posters and things like [high-grade] paper shopping bags. It can also be used in place of plastic materials such as polyethylene and polypropylene.” What about drawbacks? The ‘stone’ in stone-paper comes from its composition that includes calcium carbonate, which is extracted from limestone, and constitutes about 80% of the paper. The remaining 20% is high-density polyethylene, the same substance as in plastic bags, the production of which unfortunately consumes fossil fuels. So while stonepaper has many strong environmental benefits over other types of paper, it isn’t yet entirely eco-clean. The stone-paper also doesn’t stand up very well to high temperatures, Yamabuki of Assist says, so it is not very suitable for use in printers or photocopiers. Then there’s the cost. “It’s a bit more expensive than normal paper, so in the current economic climate it is a challenge to get more people to use it,” Yamabuki adds. “But, we are still seeing big companies and major events adopting it as part of their
TBM
U
we Bast’s business card is a conversation starter. Though you would not know when he first hands one to you, it is made from stone. For Bast, who is president of Reme, sole importer of Urimat waterless urinals, the attraction of stone-paper was simple. No water is used to manufacture it. “Saving water is an important topic in my company, and water conservation is the big issue of this century. Even in industrialised, advanced countries like Japan, water shortages are becoming a bigger problem due to the growth of large cities and increasing water usage by the manufacturing industry,” Bast says. “With the stone-paper name cards, we can – in a simple way and with ease – contribute to saving water.” Reme’s stone-paper cards are supplied by Assist, a Tokyo-based advertising, publicity and media production company. Tamio Yamabuki, director and COO at Assist, expands on the paper’s ecological credentials. “Ordinarily, to produce a ton of paper you would use and pollute 100 tons of water, but the stone-paper manufacturing process cuts out all of that. The paper is also made without wood pulp and without cutting down a single tree,” Yamabuki says. To produce a ton of conventional paper using virgin pulp consumes approximately 20 trees. It also produces about 500kg more C0² emissions than the stone-paper process. Assist’s stone-paper is imported under the brand name Keeplus by TBM, which has sourced the material from Taiwan since 2008. TBM also sells its own range of Keeplus business cards and other Keeplus products. TBM’s president, Nobuyoshi Yamasaki, says the
corporate social responsibility [CSR] activities.” One good example was the most recent Sapporo Snow Festival in February, which used stone-paper for printing the area maps handed out to visitors – a good combination of CSR and the practicality of having maps that don’t go soggy at the touch of a few snowflakes. Bast recognises the branding benefits too, saying: “The CSR part is another of the benefits that attracted us. We have an explanation about the stone-paper at the bottom of our name cards to promote this smart idea and to enhance the eco-image of our company.” Urimat’s head office in Switzerland now also uses Keeplus name cards, which Bast has printed for them in Japan. TBM’s Yamasaki is optimistic that more companies will follow suit. “We have seen an increase in interest in stone-paper in Japan because of a growing interest in being eco-friendly,” Yamasaki says. “If we can continue to improve the quality, and work to make stone-paper more affordable, then I hope we will see many more people using it.
August 2012
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COMMITTEE SCHEDULE
Upcoming meetings R Animal Health
3 October, Wednesday, 08:30-, EBC
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23 August, Thursday, 13:00-, off-site
R Automotive Components
11 September, Tuesday, 08:00-, off-site
R Tax
11 October, Thursday, 16:00-, EBC
R Legal Services
28 August, Tuesday, 17:00-, EBC
R Construction
6 September, Thursday, 18:30-, off-site
27 August, Monday, 17:00-, EBC
R Liquor
R Telecommunications Carriers Telecommunications Equipment
R Environmental Technology
4 October, Thursday, 08:00-, off-site
27 September, Thursday, 10:00-, EBC
Committee meeting dates are subject to change. Please contact the EBC secretariat for confirmation. Tel: 03-3263-6222. E-mail: ebc@gol.com
EVENT REPORT
Japan’s International Relations and the Politics of 3/11 10 July, Temple University, Japan Campus, Mita Hall Text and photo DAVID C HULME
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he Great East Japan Earthquake and tsunami of 3/11 was felt around the world and left an indelible mark on the history of Japan’s relations with other nations. Temple University, Japan Campus’ Institute of Contemporary Asian Studies (ICAS) invited three panelists to discuss issues related to the disaster, including Japan’s unprecedented cooperation with its allies and the damage done to Japan’s reputation by the Fukushima Daiichi nuclear accident. Mark J Davidson, minister-counselor for public affairs, United States Embassy, Tokyo, presented a roundup of the response led by US Ambassador John V Roos, who formally declared an emergency within an hour of the disaster. This action set in motion a massive series of actions, including deployment of search-and-rescue teams and nuclear experts. “The US military took action just as quickly,” he said, describing Operation Tomodachi (friends), which in the following nine weeks involved 24 naval vessels, 189 aircraft and 24,000 US service personnel. It also restored the crucial Sendai Airport supply hub in Miyagi prefecture. “The important thing is that everything was done in close cooperation, side-by-side, with the Japan Self-Defense Forces,” said Davidson. Operation Tomodachi, moreover, has now become a powerful brand representing the future of Japan–US relations. It is a public-private partnership, with significant funding from US companies in Japan, investing in the “Tomodachi Generation” through initiatives in education, sport, the arts, culture, leadership and entrepreneurship. Amid the confusion and uncertainty, with the whole world watching,
Sir David Warren
Ambassador Roos was consistent from the outset in sending clear, simple messages and expressing confidence in the future of Japan, Davidson added. He therefore became one of the world’s most followed Tweeters. Historians will look back on 2011 as the point when social media really came into its own for rapid and effective lateral communication in an emergency, Davidson said. Fellow panelists picked up on this theme, examining the implications for government–citizen relationships, the accountability of public officials, information sharing and information quality. Noriyuki Shikata is deputy Cabinet secretary for public affairs and director of global communications in the Prime Minister’s Office of Japan. He explained that the government had set up the global communications office less than a year before the disaster, as a way of addressing the relative decline of Japan in international affairs. Fluent in English, Shikata became the government representative fielding international media queries immediately after the earthquake struck. “Even before the disaster, we had begun discussions about how to use websites, Facebook and Twitter, and China’s Sina Weibo, to communicate the government’s message,” he said.
“We knew there were many things to do in order to become more engaged and connected.” Britain's ambassador to Japan, Sir David Warren, reinforcing the point made by Davidson, said the clear message that it was safe to travel to Japan during the crisis was based on sober risk-assessment. Many Japanese, he said, re-tweeted realistic information emanating from the British Embassy, including via the embassy website. “It is no accident that we were able to provide reliable information,” he emphasised. “The UK public holds politicians and public officials to the highest standards, and so we have a politically accountable system of providing advice.” Ambassador Warren noted that the harsh tone of the report on the Fukushima nuclear reactor meltdown by Prof Kiyoshi Kurokawa may be “a sign of healthy democratic debate”. Davidson saw positives in the process of Japan’s government attempting to win back trust. “There seems to be a division occurring,” he said, “with a politics of policy beginning to displace the old politics of personality.” Panelists responded to some pointed questions, including one from former Japanese diplomat Sadaaki Numata, who wanted to know how the UK and US embassies were able to frame clear messages from the outset of the crisis. “Perhaps it is just a strategic state of mind,” Davidson responded. “Nowadays a word is equivalent to an action.” Although there is no “silver lining” to be found in the Tohoku disaster, the panelists agreed that Japan’s international relations will be affected far into the future, first by a shared experience and second by catalytic effects on changes already taking place in Japanese government and society. August 2012
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Commercial banking Global know-how inside Japan Text DAVID UMEDA Structural reform in Japan’s financial sector took effect back around 2001, referred to as the Big Bang. Entering the new millennium, most stateowned financial institutions in the nation became privatized and the bulk of bad loans carried over from the post-bubble era were addressed. Consolidation meant the creation of major retail and commercial behemoths such as the Bank of TokyoMitsubishi UFJ, which, based on assets, today ranks as the second largest of its kind in the world. Mizuho Bank, one of the nation’s megabanks, handles the second-largest financial services business in the country. Thus the landscape for commercial banking in Japan presents unique challenges to major foreign global banks. Proprietary instruments ING Bank in Japan provides a one-stop portal for such commercial banking products as general and specialist lending facilities, lease financing, debt execution and maintenance, and correspondent banking services. So what makes Japan such a unique market when it comes to these “typical” global instruments? “One of the main challenges ING Bank faces is heavy competition from Japanese banks with much larger domestic franchises and a stronger funding capacity within Japan,” says Yoji Morishita, country manager, ING Bank N.V., Tokyo Branch. “In such an environment, we are quite selective in what we choose to focus on.” UBS offers one of the most comprehensive combinations of wealth management, investment banking and asset management products and services to their clients in the Asia-Pacific region. “We wouldn’t consider these offerings ‘typical’,” says Jason Kendy, chief spokesperson, UBS Japan Securities Co., Ltd. “Each of our solutions tends to be customized toward client needs.” 32
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ING Bank looks for business opportunities in fields for which it has strong expertise and operational excellence in. “Our core strength lies in structured finance, real estate finance and corporate lending products,” explains Morishita. Japanese clients – whether wealthy individuals, corporations, or institutional investors – demand financial strategies that are not simply global, but additionally address their individual local market circumstances, according to UBS Japan Securities. “We approach our business here by understanding local market requirements and realities first,” says Kendy. “We then build on that knowledge to bring our customers solutions that meet their domestic and international goals.” What clients value is that ING Bank can, and very often does, work side by side with its teams across the world, as well as internal groups, to give the very best structured solution to its clients. “In the same way, we have also created strategic partnerships with some Japanese banks to enhance what we can offer our clients,” adds Morishita. Industry insights With approximately 8,000 employees in 13 locations in the Asia-Pacific, UBS puts its clients’ needs at the heart of its business. So what has been the biggest improvements in the Japan market since UBS first set up operations here? “UBS is celebrating its 150th global anniversary this year, and we have been in Japan since the 1960s,” says Kendy. “The Japanese market has literally transformed in the decades since, so it is almost impossible to pinpoint any one area.” ING has had a presence in Japan since 1974 and established its branch office in Tokyo back in 1985. “In the last four decades, our Japanese clients have become truly global in terms of foreign investment,”
points out Morishita. “Japanese companies in the 1970s or so focused on trading, that is, manufacturing products that they then exported overseas. But issues such as escalating labour cost, yen appreciation and price competition soon compelled them to switch strategies from trade to investment.” For UBS, quite possibly the Japanese market’s greatest achievement is its continued commitment to change itself. “Not nearly enough people stop to consider how much this market has evolved and improved in a relatively short period of time,” says Kendy. Japanese companies started to make real investments to enter overseas markets from their existing solid platform in Asia to Europe and America, according to ING Bank. “We, therefore, shifted focus likewise to meet our clients’ needs,” says Morishita. “We started to provide an array of financial solutions.” Firstly, ING Bank focused on overseas structures/project finance for Japanese clients investing in emerging markets and developed countries. “Secondly, we focused on global cash management services as the optimal solution for liquidity management on a global basis,” he adds.
Nakashima D.D.S. Nakashima Dental Office, Roppongi U Bldg. 4F, 4-5-2 Roppongi, Minato-ku, Tokyo Tel: 03-3479-2726, Fax: 03-3479-7947. Email: hahaha@dentist-nakashima.jp Appointments also through whatclinic.com www.dentist-nakashima.jp We provide laser root canal treatment with five-times better results than conventional methods. Qualified in advanced laser gum and cavity treatments. Laser is the only tool available to kill bacteria at the site; in one session, mouth odor problems solved. All treatment phases performed under a microscope to ensure optimum precision. Can install porcelain crown in one week. Can set aside 1-3 hours for busy patient’s appointment. Offer whitening and cosmetic procedures using porcelain or direct bonding composite resin. Adult orthodontics another specialty. Dr. Kazuya Nakashima has received distinguished awards from The American Biographical Institute and International Biographical Centre, Cambridge, England. Comprehensive General Dentistry ADA, AAP, AAE, ALD, AACD, AGD and JDA member Can fill out foreign insurance form to be filed for claim purposes.
Certified laser dentistry for cavity, root canal and gum treatment
EVENTS
Upcoming M events
any airlines reduced services to Narita International Airport as European business travellers cancelled trips following the triple disaster of 11 March. But now European airlines are coaxing passengers back to Tokyo. “We are trying slowly and steadily to get the whole business back to normal,” says Jenny Fürstenbach, passenger sales manager for Japan at SAS, which celebrated 60 years of business in Japan > Austrian Business Council in April. www.abc-jpn.org SAS put a lot of energy into counteracting the negative image of SCCIJ Japan Joint Chamber: ABC and following revelations of the meltdown After-Summer Cocktail at the Fukushima nuclear plant. 7 September, Friday, from 18:30 “For a long time the foreign media Entertainment: English Rakugo portrayed the image that Japan Venue: Austrian Embassy, Commercial had sunk in the sea, everything was Section radioactive, and we all lived in shelters,” Fee: ¥7,500 (non-members/priority to ABC, Fürstenbach says. “So, we realised that SCCIJ members) Contact: tokio@advantageaustria.org we needed to help our crew and sales staff understand that the situation in > Belgian-Luxembourg Chamber of Tokyo is quitein normal.” Commerce Japan In May and June SAS ran a points www.blccj.or.jp campaign for travellers looking to Mid-year pool and BBQ party* visit Tokyo through the end of 2011. 1 September, Saturday Members of the SAS EuroBonus mileage have the chance to visit Japan *program Early afternoon-18:00 (pool), 17:30-21:30 (party) Venue: poolpoints area, Hilton Tokyo Bay, Maihama for 40,000 for an economy class Station to Tokyo Disneyland) seat on(next a roundtrip basis, compared to Fee: ¥10,000 (members), ¥12,000 (nonthe standard 80,000 points. members), half-price (children up to 12 yo) Leisure travellers remain wary about Contact: info@blccj.or.jp visiting Japan, but SAS has seen a pick up in business travellers. “That is a good Belgian beer weekend: sign, because if business travellers feel BLCCJ shop safe then leisure travellers will follow,” Fürstenbach says. 5-9 September, Wednesday to Sunday Turkish Airlines set up a special fare Venue: Roppongi Hills Arena in April and May, donating part of the Cost: free entrance proceedsinfo@blccj.or.jp of ticket prices to the victims Contact: of the disaster, according to information Mitaka International on the company’s website. Fair: A donation BLCCJ booth of ¥3.9 million was made to the disaster area through the10:00-16:00 Japanese Red Cross 23 September, Sunday, Society. Venue: Inokashira Park (west), Kichijoji and For Lufthansa Inokashira stationsGerman Airlines, which celebrated 50 years of doing business in Fee: free entrance Contact: Tokyo ininfo@blccj.or.jp January, the Japanese market is the second most important intercon> British Chamber of Commerce in Japan tinental market after the United States. www.bccjapan.com The company intends to focus on Japan Breakfast and panel discussion during the autumn and winter period, – offering attractive prices. “Diversity: What’s the Point?” “We want to show that Japan can be 6 September, Thursday, 08:00-09:30 one of the more attractive places when Speakers: Barbara Adachi, national managing it comesHuman to cost,” says Deloitte; Otto F. Benz, director, Capital, Haruno Yoshida, general president, managerBT forJapan Japan. Venue: Mandarin Oriental Tokyo, 3F, Linden
Compiled by DAVID UMEDA
Lufthansa also organised a oneweek study tour to Japan for about 25 representatives of the German travel industry in early August, allowing decision makers to gather information and get a firsthand impression of the postdisaster situation. “They got a clear picture that Tokyo is a safe place, and that tourists can visit,” Benz says. “It was important they came here because only when the agents are convinced Tokyo is safe will they generate new programmes.” Room, Station For Mitsukoshi-mae Finnair, 2010 saw Japanese sales Fee: ¥5,500 (members), ¥6,500 overtake Finland-based sales, and it (non-members) is no surprise that the airline aims to Contact: info@bccjapan.com boost the number of Japanese leisure > Finnish Chamber Commerce in passengers visitingof Europe. Japan Finnair was helped by the fact that, www.fcc.or.jp along with Lufthansa, it is one of only two airlines that fly daily services to Finnair AY4159/Honka HJ4169 Central Japan International Airport code-share yakatabune cruise near Nagoya, and Kansai International 23 August, Thursday, 18:30-21:00 Airport near Osaka. Embarkation: Funayado Amisei, 2-1-13 Finnair promotes the shortest flight Komagata, Taito-ku times to a(members), number of¥10,000 regional European Fee: ¥8,000 locations where no direct Japan flights (non-members) Contact: fccj@gol.com exist, such as Manchester. It is also hoping to cash in on the natural beauty > German Chamber of Commerce and of the polar lights. Industry in Japan “We compete with other countries www.japan.ahk.de/en/ and regions – such as Canada and Luncheon Meeting:of“The Alaska – for ownership the aurora, but this is really something Japanese Sovereign Debt and Itsfor Global people to come and see,” says Sakari Implications” Romu, sales director Japan. 4 September, Tuesday, 12:00-14:00 Opinions differ on when the Japanese Speaker: Dr Joerg Kraemer, Chief Economist, market will fully Commerzbank AG recover. Romu believes European travelVenue: Grand Hyattthat Tokyo, 2F, Coriander Room, Roppongi lers are unlikely to return until spring Fee: ¥6,000 2012. The (members) Finnair sales director has Contact: advisedevents@dihkj.or.jp Japanese tourist authorities to conserve Japan all their energiesoffor a market > Ireland Chamber Commerce rebound then. www.ijcc.jp “Next year’s cherry blossom viewing Joint Networking with the is the next key period Event for Europeans to ANZCCJ return,” Romu says. 30 August, Thursday, evening But SAS’s Fürstenbach is reluctant to write off 2011 yet. Contact: secretariat@ijcc.jp “Three weeks after I arrived in March Joint Networking with ash the 2010, we experiencedEvent the Icelandic BCCJ cloud, and we said ‘Oh! This is not a 13 September, Thursday, normal year’,” she19:00-21:30 says. “2009 wasn’t a normal year either as we had the swine Venue: Embassy of Ireland Residence flu. ¥5,500 So, if you start looking Fee: (members), ¥6,500at it that way, (non-members) you will never have a normal year. Contact: secretariat@ijcc.jp “Tokyo has been back to normal for some time, and we Networking want to mirror that Third Thursday as much as possible,” she adds. 20 September, Thursday, 19:00-21:00 Lufthansa’s Benz asks a rhetorical Contact: secretariat@ijcc.jp
question: Is this the country to invest in? And his answer is an unequivocal Yes! “Japan is in a difficult situation, but the trend is positive rather than negative,” Benz says. “European business travellers will return in full by next year.”
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> Swiss Chamber of Commerce and Industry in Japan www.sccij.jp
SCCIJ 30th Anniversary Luncheon 10 October, Wednesday, 12:00-14:00
Speaker: Dr Thomas Jordan, Chairman of the Governing Board, Swiss National Bank Venue: Happoen, Hakuho-kan, Shiroganedai Station Fee: ¥8,000 (members and non-members) Contact: info@sccij.jp
> All-chambers event
Mercedes-Benz Japan Cup The Annual North AmericaEurope Golf Challenge in Japan 28 September, Friday, 07:45 starting time
Venue: Atsugi Kokusai Country Club, Kanagawa prefecture Fee: ¥24,000 Contact: www.dccgolf-japan.com
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MICE Special Section Kyoto Convention Bureau Address
Karasuma-Ebisugawa, Nakagyo-Ku, Kyoto 604-0862
Tel
075 212 4110
Fax
075 212 4121
kyoto@hellokcb.or.jp
Web site
http://hellokcb.or.jp
Facilities / Activities / History Kyoto – Culture Heart of Japan Creative. Intelligent. Accessible. Attractive. Kyoto delivers when it comes to business events and meetings, with world-class service at facilities nestled in the most well-preserved historic Japanese city. Kyoto Convention Bureau provides in-depth impartial advice on the exciting mosaic of event planning here. We offer privileged access to Kyoto and her treasures that are sure to dramatically increase the quality of your event. Convention bureau services are free-of-charge and tailored to your needs. In the process, you are encouraged to become completely immersed in our fascinating culture. For example, conducting a tea ceremony in an historic merchant home or temple adds immeasurably to your team-building activity. Kyoto delivers when it is imperative to impress. Special venues to spark your wow-factor range from 2,000 temples and shrines (including 17 World Cultural Heritage Sites), world-famous samurai movie sets, to private residences and gardens with recorded ownership through tens of generations, and exclusive by-introduction-only restaurants frequented by maiko and geiko. From arrival at Kansai International Airport – now just 60 minutes away – your guests are pampered with refined Kyoto hospitality.
Hotel Granvia Kyoto Address
JR Kyoto Station, Karaduma Chuo-guchi, Shiokoji-sagaru, Karasumadori, Shimogyo-ku, Kyoto 600-8216
Tel
075-344-8888
Fax
075-344-4400
osm@granvia-kyoto.co.jp
Web site
http://www.granviakyoto.com/
Facilities / Activities / History Nestled in the historical magnificence of Kyoto, your attendees will experience the mystical enchantment of Japan. Hotel Granvia Kyoto provides the perfect venue for holding your next meeting, incentive programme, conference or exhibition. We offer 13 function rooms, a ballroom with maximum capacity of 1,400 guests – with complimentary WiFi accessibility throughout banquet floor and all guest rooms. All 535 guest rooms and suites are individually crafted with original artworks and stylish furnishings offering exceptional standards of comfort, and the most spectacular views of Kyoto framed in your window. There are 12 restaurants and bars – from French and Italian to Chinese and Japanese. Our location in Kyoto Station offers unmatched convenience and accessibility, close to endless entertainment, shopping and dining locations. Take advantage of our latest Complete Meeting Package by contacting us at osm@granvia-kyoto.co.jp for details. 36
August 2012
Picturing … change? Kyoto is picturing change in your business meetings and events
Kyoto Convention Bureau
Contact James Kent for consultation on event planning
www.hellokcb.or.jp kyoto@hellokcb.or.jp Telephone 075 212 4140
Makuhari Messe/Makuhari New City
Address
2-1 Nakase, Mihama-ku, Chiba City 261-0023
Tel
043-296-0001
Fax
043-296-0529
Web site
www.m-messe.co.jp/en/
Facilities / Activities / History Makuhari Messe (1989) is comprised of three components. Halls 1-8 offer 54,000m², Halls 9-11 offer 18,000m² of exhibition space easily subdivided by moveable partitions. International Conference Hall’s 22 rooms accommodate meetings, ceremonies, symposia, receptions, seminars and more casual social functions. The 9,000-peoplecapacity Makuhari Event Hall is the perfect grand venue for assemblies, concerts, lectures and fairs. More than 600 events including 50-60 exhibitions involve 5-6 million visitors annually. Adjacent Makuhari New City provides six hotels: 259room Hotel Springs Makuhari (Tel: 043-296-3111, Fax: 043296-3795); 204-room Hotel Green Tower Makuhari (Tel: 043-296-1122, Fax: 043-296-1125); 222-room Hotel Francs (043-296-2111, Fax: 043-296-2120); 130-room Hotel the Manhattan (Tel: 043-275-1111, Fax: 043-275-1197); 1,001room APA Hotel & Resort (Tel: 043-296-1111, Fax: 043296-0977); and 418-room Hotel New Otani Makuhari (Tel: 043-297-7777, Fax: 043-297-7788). There is also Mihama-en, a beautiful Japanese garden. Access: Tokyo to JR Kaihin Makuhari Station (only 30 min). Using Special Express (min. 23 min). Highway bus available from Ginza area or Tokyo Station (approx. 40 min). Direct shuttles from both Narita and Haneda airports.
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MICE Special Section The Tokyo Station Hotel Address
1-9-1 Marunouchi, Chiyoda-ku, Tokyo, 100-0005
Tel
03-5220-1111
Fax
03-5220-0511
banquet@tokyostationhotel.jp
Web site
www.thetokyostationhotel.jp
Facilities / Activities / History The Tokyo Station Hotel, located in the premier business district of Marunouchi, features three elegant meeting and event rooms with state-of-the-art audio-visual technology, Wi-Fi for entire hotel, and various amenities. Each of the meeting and event facilities is flexible enough to be arranged to accommodate anything from a sit-down dinner, buffet to classroom-style layout. The largest event venue, HOUO, accommodates up to 180 people. The Tokyo Station Hotel’s professional sales and catering staff will meticulously support and plan each detail of your next event or meeting.
The Westin Tokyo Address
1-4-1, Mita, Meguro-ku, Tokyo, Japan 153-8580
Tel
03-5423-7000
conference.wetok@westin.com
Web site
www.westin.com/tokyo
Facilities / Activities / History A respite in the heart of one of the world’s largest cities, The Westin Tokyo offers personalized and instinctive service to meet the needs of business travelers, leisure explorers, events participants and cuisine lovers. As you begin the planning of your meeting or special occasion, we trust you will consider partnering with us to transform your vision into reality. Your event is as important to us as it is to you. Whether you are hosting 25 friends or 1,000 conference attendees, our experienced specialists will assist you with every detail, ensuring your event is a success and that all of your guests leave feeling better than when they arrived. We offer various meeting and party packages. Please visit “Meetings & Weddings” at www.westin.com/tokyo Retreat to one of our 438 spacious guest rooms and suites featuring European decor with high ceilings, large windows, an executive-size desk, high-speed Internet access, plush bathrobes and luxurious bathroom with separate bath and shower. Wake up rested and refreshed in one of our tastefully appointed guest rooms featuring our famous Heavenly Bed.
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Hilton Worldwide (Japan)
Hilton Tokyo
Address
Tokyo, Japan
Web site
www.hiltonworldwide.com
Hilton Fukuoka Sea Hawk
Facilities / Activities / History Hilton Worldwide is the leading global hospitality company, spanning luxurious full-service hotels and resorts to extended-stay suites and mid-priced hotels. For 93 years, Hilton Worldwide has been offering business and leisure travellers the finest in accommodations, service, amenities and value. Our 10 brands are comprised of more than 3,800 hotels and 630,000 rooms in 88 countries. Hilton Worldwide entered the Japanese market almost 50 years ago and currently operates the Conrad, Hilton, and DoubleTree brands in major cities and key destinations across Japan. Hilton Worldwide also manages the world-class guest reward program Hilton HHonors速. Hilton Worldwide has 10 hotels across Japan: Conrad Tokyo, Hilton Tokyo, Hilton Tokyo Bay, Hilton Osaka, Hilton Nagoya, Hilton Odawara Resort & Spa, Hilton Niseko Village, Hilton Fukuoka Sea Hawk, Hilton Narita, DoubleTree by Hilton Naha. Hilton Worldwide will be launching its FROM MICE TO MILLIONS promotion from August through December, where you can have a chance to win HHonors points simply by booking your meeting or event at any of our hotels in the Asia-Pacific. For details, please check the promotion site www.hiltonworldwideapmice.com Local restrictions will apply, so please contact any of our hotels with any questions.
Hilton Nagoya
August 2012
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SHOP WINDOW
Retail-branding offensive Retail Brand Sales Targets for FY2012 700
35.0
175
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A Se eon ve n & I CG La C w so n Fa Un m N ily y ih M on ar Ry t ut su H Dai as ei sh ak ai AJ Izu S m iya
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NIKKEI; JAPAN CONSUMING
57.5
alone, estimated sales of retailer brands are likely to top a whopping ¥2.146tr in fiscal 2012, an increase of 19.6% over the previous year. This figure will represent around 4.5% of total food sales. No matter how little Japan’s incumbent and channel-dominating manufacturers might like it, retailer brands are here to stay. The shift is both a threat and an opportunity for European firms. It is a threat because retailer brands are muscling out manufacturer brands, including some imports. Equally, European manufacturers who can offer the right price and quality will have a significant chance of becoming suppliers to Japan’s largest – and fastest-growing – retailers.
JapanConsuming is the leading provider of intelligence on consumer and retail markets in Japan. The monthly report provides news about, and in depth analysis of, current trends.
August 2012
525
0
ROY LARKE
40
80.0 Sales Target ¥bn YoY%
Target Sales ¥bn
Retailer brands are finally gaining a hold in Japanese supermarkets and convenience stores, competing with similar products marketed by manufacturers. Retailers like having their own brands because they offer better profit margins and greater control of marketing. Retailers use direct customer contact to develop products that meet actual (rather than imagined) demand. In the past, similar unilateral action from retailers resulted in a backlash from suppliers of major national brands, but retailers like Aeon clearly believe they now have a mandate to go on the offensive. The balance of power between manufacturers and retailers in the Japanese food-distribution system seems to have reached a tipping point. A recent survey by Nikkei demonstrates just how much retailer brands are coming to dominate shelf space at leading stores. Aeon, by far the leader in retailer brand development, plans to boost sales value by 32.7% in fiscal 2012. Aeon’s annual sales target for retailer brands at its stores is ¥700bn, around 15% of total sales – well up on the previously reported 12% last year. Aeon plans to boost the number of product lines to 300, generating more than ¥1bn per year, a 50% increase year-on-year. Aeon also aims to grab 80% of total sales from its own brands in no fewer than 100 categories over the next 12 months. Convenience-store-chain Lawson, too, is to expand its retailer brand sales by 80% in fiscal 2012. Supermarket Uny plans a 20.7% increase and Daiei sees 20% (excluding contributions from the brands of its alliance partner Aeon). For eight of the major food retailers and the country’s four largest fast moving consumer goods (FMCGs) buying groups
JC
JapanConsuming
For more information, please see www.japanconsuming.com or contact Sally Bedown at subs@japanconsuming.com
CBRe named
#1 Real estate advisoR and Consultant in Japan foR thRee ConseCutive YeaRs
thank you. the 2011 Euromoney Real Estate Awards ranked CBRe the top real estate advisor and consultant in Japan for three straight years. We thank our clients and industry colleagues for consistently recognizing CBRe as the top player in its category.
#1 IN REAL EstAtE sERvIcEs WoRLdWIdE www.cbre.co.jp 03-5470-8500
“Our clients hire us because – ultimately – they trust us” While globalisation is defining market strategy, when it comes to full-service real estate service companies, it is imperative to possess an intimate knowledge of virtually each major market in the world. Furthermore, intellectual capital and technology resources must develop – and deliver – superior analytical research and client service tools relevant to the country – in this case, Japan. When shopping around for expertise, those in need of real estate services must look beyond profiles that promise relevant products and results. A proven track record of meeting diverse client needs must be substantiated, and, whenever possible, a leadership position
in any of the relevant service lines should be demonstrated. Besides recognising the need for real estate know-how, those shopping around should determine whether or not the organizational structure of a full-service consultancy is harnessing its collective expertise. CBRE recognises that all the aforementioned combines to empower our people – and our clients – with information needed to anticipate market opportunities, seize competitive advantages, and execute the best possible real estate strategies in Japan, the region and the world. Underlying proven credentials, however, is the recognition that the business
of real estate is all about relationships. Integrity, trust and confidence define the line between success and failure. At CBRE, our clients hire us because – ultimately they trust us. They seek our advice, expertise and guidance in making decisions that are in their best interest. This is embodied in our corporate values of Respect, Integrity, Service and Excellence: RISE. These values are timeless and transcend all markets, service lines, languages and business cultures.
“We are well positioned to take the next step here” Andrew Gauci, Managing Director and CEO, Lend Lease Japan
Japan remains an attractive destination for real estate investors despite the turbulence that continues to buffet international capital markets. The scuttlebutt has always been: Property in Japan yields less than stellar returns, but it’s safe. Of course, different investors have different goals. For those looking for core or core-plus, Japan is very much on the map. Never mind the hype about the “lost 20 years”. Among the reasons is the yield spread. Investors can borrow money at rates that remain low by international standards, even post-2008 when rates in the US and Europe plummeted. New development
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projects aside, the trick in Japan as elsewhere has been to find undervalued but well-located properties whose income stream or transaction value can be enhanced beyond what capex is spent to upgrade. Competition for these properties remains intense as the lowhanging fruit is gone. Lend Lease remains bullish on Japanese real estate and continues to look for more opportunities to introduce our integrated property model into the Japanese market. In our home market in Australia, our business model has always spanned the full cycle – find, invest, develop, build and operate. Having been in Japan for 24 years and
with over 1,000 staff on the ground through our Project Management business, we are well positioned to take the next step here. Another opportunity for real estate investors in Japan lies, ironically, in the sad lack of proven sustainable developments. In Japan, smart investors can look to sustainability as a potential differentiator that earns them a higher return now and greater value further into the future.
Lend Lease Japan, Inc.
Address
Akasaka Enokizaka Mori Bldg. 3F, 1-7-1 Akasaka, Minato-ku, Tokyo
Tel
03-6866-5600
Fax
03-6866-5607
bd.japan@lendlease.com
Website
www.lendlease.com
Contact
Andrew Gauci, Managing Director & CEO
With over 1,000 staff in nine regions across Japan, Lend Lease Japan provides consultancy, project and programme management services to public and private sector clients by a team made up of Western and Japanese construction professionals. As an experienced builder, planner and manager, we provide flexible construction advisory services tailored to the needs of each project, leveraging the capabilities and customs of the local market while adhering to international standards. Our approach has been refined specifically to respond to increasing demand for an independent “Client-Advocate”, who provides professional construction planning and project management services on a pure consultant basis. • Integrated Project Management from pre-design to post-occupancy • Site Evaluation and Feasibility Studies • Design & Schedule Management • Cost & Procurement Management • Construction Management • Multi-site Program Management • Sustainable (Green Building Design) Consulting • Engineering Due Diligence • Facility Decommissioning and Divestiture Support
P
icture a platoon of 40 young military conscripts from the back streets of Amsterdam and the Hague, in 1984, many of them accustomed to liberal use of drugs and alcohol, and heartily resentful of the Netherlands’ national service requirement. Now picture their lieutenant, Taco de Vries, straight out of officer training, who has spent his childhood in an Amazonian jungle village and his youth among the tulips and dairy cows of an orderly Dutch polder settlement. “I grew up in a protected environment. I remember the first time I set eyes on those men. I was completely flabbergasted,” says de Vries, who is now vicepresident of temporary staffing and HR services company Randstad in Japan. “I went to inspect the rooms and discovered this guy lying there on his bunk, smoking and half drunk.” Recovering from the initial shock, de Vries accepted the challenge and made the necessary mental and emotional adjustments. “Eventually, I won their acceptance. I was able to weld a team, and we achieved some outstanding results,” he recalls. “Fortunately, I was good at sports, and they respected that.” He spent his childhood in South America because his father worked for a timber-processing concern. He remembers attending primary school with the children of Brazilian villagers, playing games with them in the jungle, a lot of lazing about in hammocks, and his mother teaching him to speak Dutch. With his family’s agricultural background, after high school de Vries obtained a degree in agricultural management, but then had to re-think his career plans. “It was not so easy to get work in that area,” de Vries says, “so then I wanted to study economics.” As it turned out, he took a Master’s degree in Dutch law instead. “That taught me to be more analytical, to ask questions and challenge assumptions,” he says. Clearly, there is an energetic mind at work here. He has also completed a
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number of courses on management, commerce, finance and languages, and is an avid reader of both fiction and nonfiction. He describes himself – for business purposes – as ambitious, no-nonsense, output-oriented and farsighted. A relaxed and congenial conversationalist, de Vries is a dedicated family man. A few days prior to speaking with EURObiZ Japan, he had taken his twin children (a boy and a girl) to the summit of Mt. Fuji. The sunburn is still evident. He was never tempted to become a lawyer. “Usually, a lawyer has to specialise. I am more of a generalist,” he remarks. And he is a busy generalist at that. For most of the six years that he studied law, de Vries also worked full-time as a sales engineer for a world-leading Dutch maker of poultry slaughtering equipment. He was responsible for Portuguese-speaking countries, Eastern Europe and Asia, in a position linking R&D, production, sales and aftersales service. With a grounding in law, his next move was to a small consulting firm that provided expertise in project and subsidy management. “There are people with innovative projects who are not using the available government subsidies,” says de Vries, describing a difficult, legalistic and bureaucratic process whereby the firm would be commissioned to come up with a proposal or plan designed to attract those subsidies. He joined Randstad, headquartered in Diemen, the Netherlands, in 2000. The company now employs almost 30,000 people, while about another 500,000 people work in other companies through Randstad. He was regional manager for Randstad Deutschland when asked to come to Japan, and arrived in February last year. Did the earthquake and tsunami create any doubt about staying? “Not for a second,” de Vries states emphatically. “It would not have been a good signal to send.” Signals matter. The whole reason for de Vries being in Japan is to help merge the culture of Randstad with that of a Japanese family business that it bought two years ago. Randstad had spent almost a decade searching for a
Do you like natto? Title: Vice-President, Randstad K.K. Time in Japan: “18 months” Career highlight: “Being asked to go to Japan” Career regret: “I don’t believe in regret” Favourite saying: “You cannot influence the wind, but you can trim the sails” Favourite book: “The Greatest Show on Earth: The Evidence for Evolution, by Richard Dawkins” Cannot live without: “My wife” Secret of success in business: “Clear targets, focus and the right team” Do you like natto?: “No” Japanese company with values similar to its own, and this was the one. Located in Utsunomiya, two hours north of Tokyo by car, and with 1,000 employees who speak almost no English, the company possesses a strongly distinctive Japanese culture. At the outset the goals, priorities and perspectives were different from those of the new parent company. “Except for the [shared] values and the emphasis on quality, there is not a bigger difference imaginable,” says de Vries. Meetings and other communications between the two entities are all conducted through interpreters and translators, and for the first year, he says, “I had to reset my expectations several times.” The only real preparation that de Vries had for the task at hand, which he shares with CEO Marcel Wiggers and fellow vice-president Marjet Andriesse, was the confidence gained from previous international experience, especially in Germany. From a Dutch perspective, he says, Germany and Japan are quite similar in business culture and practice. Never shy of work, de Vries also serves as a member of the EBC executive operating board and is on the management committee of the Netherlands Chamber of Commerce in Japan. His ambition for Randstad in Japan is for the company to reach the point where it can grow and secure a bright future without depending on senior foreign management. His personal dream, de Vries says, is continuously developing: “You just have to make sure you are not standing still.”
EBC PERSONALITY
Taco de Vries Merging cultures Text DAVID C HULME Photo IRWIN WONG
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Tanabata Photos and text RICHARD GREHAN Tanabata, the “star festival�, is celebrated on 7 July in some parts of Japan and on 7 August in others. The matsuri celebrates the annual meeting of the lovers Orihime and Hikoboshi who, according to Chinese legend, are at all other times separated by the Milky Way. Prior to the festival, boys and girls write their wishes on strips of paper and hang them up for the gods to see. The day itself is a riot of colour in dress and decoration, as well as in foods, toys and novelties for sale.
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LENS FLAIR
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WORK PLACE
Frédéric Madelaine Owner, Le Pommier
Pâtissier Frédéric Madelaine, from Caen, in the Normandy region of France, opened Pâtisserie Le Pommier in 2005 in Kitazawa, Tokyo, and this one in Azabu-juban four years later. Some Japanese ingredients, such as mattcha green-tea powder, are found in his cakes. Others are not. “Anko [red bean paste] should be left to Japanese sweets,” he says. One of Le Pommier’s best sellers is shortcake with strawberries and cream, which was not his own idea. “I didn’t want to make it, but my wife insisted,” he says. “She was right.” Photo PADDY O’CONNOR
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because there’s no place like home, especially when you’re sick.
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