EURObiZ Japan July 2011

Flying high Finnair

Q&A with Makoto Iokibe of the Japan Reconstruction Design Council Waterless urinals reach Japan EU firms save energy this summer

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Sakari Romu Finnair

2011

THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE IN JAPAN

8 FOCUS

8 Watt?

How EU firms are saving energy this summer

By Rob Goss

14 To localise or not The right product for the Japanese market

By Andy Sharp

16 Looking ahead Five industries of opportunity

By Geoff Botting

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July 2011

1048 2420 Cover photograph Benjamin Parks

COLUMNS 7 From the Editor

24 Investing in Japan

34 EBC committee schedule

7 Inbox – your letters

Finnair is flying high in the Japanese market. By Justin McCurry.

35 Who’s Who Directory

10 Q&A Justin McCurry talks to Makoto Iokibe, chairman of the Japan Reconstruction Design Council.

13 Executive Notes Dan Slater discusses Japanese executives striving to break through the “kimono ceiling”.

20 Nordic Cool Designs for work and home from Sweden, Norway, Denmark, Iceland and Finland.

By Rob Goss.

23 Chamber Voice Swedish Chamber of Commerce and Industry in Japan chairman, Fredrik Alatalo.

28 In Committee

MICE and Hospitality

Japanese patients risk losing access to the latest medical technology, warns the EBC Medical Diagnostics Committee. By Geoff Botting.

44 Shop Window

31 Event Report Social Media and Crisis Management during the Fukushima Nuclear Crisis was organised by the Italian Chamber of Commerce in Japan.

32 Green Biz Urimat waterless urinals are eco-friendly and economical. By Alena Eckelmann.

Where do Japanese people buy their clothes, asks Roy Larke?

45 Upcoming Events Events for the European business community in Japan.

46 EBC Personality Argentina-born Miguel Teuscher is a lifelong student of Aikido, and business.

48 Work Place Bertrand Larcher is president of Le Bretagne.

The Mission of the European Business Council To promote an impediment-free environment for European business in Japan.

July 2011

3

Novo Nordisk Pharma Ltd.

Headquartered in Denmark, Novo Nordisk is a global healthcare company with 88 years of innovation and leadership in diabetes care. The company also has leading positions within haemophilia care, growth hormone therapy and hormone replacement therapy.

Novo Nordisk Pharma Ltd. is a Japanese affiliate of Novo Nordisk.

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 Tony McNicol

The EBC is the trade policy arm of the seventeen European national chamber of commerce and business associations in Japan

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Published by Paradigm 4-18-12 Takanawa, Minato-ku, Tokyo, Japan 108-0074 Tel: 03-5447-8831 Fax: 03-5447-8832 www.paradigm.co.jp Published monthly in Tokyo. All rights reserved.

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Big in Japan: Aircon at 28°C, reusable damp towels, Bermuda shorts and hairy legs

Contributors Rob Goss finds out how EU firms in Japan will save energy this summer, page 8

Originally from Dartmoor in the UK, Rob has been living in Tokyo for more than a decade.

He writes on a range of topics, from travel

Alena is a German freelance writer based in Kansai. A researcher by profession and at heart, she has a wide range of interests and regularly contributes articles on Japan-related topics, including business, community, non-profit, education and travel, to publications in Japan and abroad. She came to Japan on the EU’s Executive Training Programme in 2005 and she now works for the Japan Market Expansion Competition (JMEC) as assistant program director.

“Urimat urinals prove that even the

Dan Slater discusses the “kimono ceiling” facing Japanese who work at foreign firms, page 13 Dan has spent almost 15 years in Asia covering the region’s leading business and financial news. As deputy editor and China correspondent for FinanceAsia, he worked

and culture to business and finance. His current client list includes Time, National Geographic, Continental, Tuttle, and many other publications around the globe.

“Energy saving has come up in a lot of conversations I’ve had the past few weeks, not just for this month’s story, but with all sorts of people I’ve met. What’s been most striking is that all of the solutions are so easy to implement. It makes me wonder why we had to wait for a crisis to put them into action.”

Alena Eckelmann reports on ecofriendly waterless urinals, page 32

‘smallest room’ can help solve the world’s environmental problems. I wish there was a similar solution for the ladies.”

out of Shanghai, Beijing, Hong Kong and Taipei to cover the extraordinary story of the rise of China. He also spent two years in Japan covering the country’s efforts to achieve international competitiveness, before joining The Economist Group in September 2009.

“Being a Japanese worker in a foreign company often means being viewed as mercenary by your peers, and as unfit for a global role by your employers.”

because there’s no place like home, especially when you’re sick.

Hospitals are excellent establishments. It’s just that no-one likes going into them unless they have to. So why not have the hospital come to the patient instead? Getting healthcare at home is a simple solution that makes patients less anxious and hospitals less crowded. Find out more at www.philips.com/because

F rom the E ditor

Inspiration and perspiration Ame ni mo makezu/ kaze ni mo makezu/ yuki ni mo natsu no atsusa ni mo makenu Be not defeated by the rain, nor by the wind, nor snow, nor the heat of the summer

Kenji Miyazawa

European companies certainly aren’t yielding to the summer heat. As Rob Goss reports (page 8), they are working hard to meet government energy-use rules and help employees keep cool.

There’s more on inspired energy-saving in this issue with Alena Eckelmann’s report about Reme KK’s ingenious water-less urinals. A single Urimat system can save 212,000 litres a year, which equates to 157kg of CO2.

This month has a bit of a Scandinavian theme, with a special feature looking at why companies from Northern Europe

NEXT 3 TÜV Rheinland Investing in Japan MONTH

inbox Go West?

On our Facebook page facebook.com/eurobizjapan we asked, “Is now the time to move operations to Kansai?”

The question of whether or not now is the time to move to Kansai is a tough one. As a 23-year resident of the region, my basic answer is “It depends”. On what? On whether (1) your company believes things in Tokyo are going to get worse, not better, over the coming years; and (2) whether your company can afford to move.

have done so well in Japan. One of the most successful, Finnair, is profiled by Justin McCurry on page 24.

Our Chamber Voice this month is an interview with Swedish Chamber chairman, Fredrik Alatalo. Like other chambers, the SCCJ has been through a turbulent time since the earthquake, but things are getting back to normal.

The situation in north-eastern Japan, of course, will take much longer to return to any semblance of normality.

3 FabLab Japan

Personal digital fabrication

In our Q&A Makoto Iokibe, chairman of the Japan Reconstruction Design Council, gives a candid account of the government’s plans for Tohoku.

Lastly, I’d just like to mention that a lively discussion took place on our Facebook page (www.facebook/ eurobizjapan) about the pros and cons of moving to Kansai. That discussion is still open – and others too – if you are interested. Two thought-provoking letters on the topic are printed below.

Until next month, keep cool.

Tony McNicol Editor-in-Chief

tonymcnicol@paradigm.co.jp

3 i in the sky

Cloud computing

Contact us via eurobiz@paradigm.co.jp or www.eurobiz.jp Letters to the editor may be edited for length and style.

During a recent visit to Tokyo, I found a lot of people in denial about how serious things could get over the coming weeks and months. Because, materially, Tokyo is pretty much back to “normal”, a lot of Tokyoites simply cannot, or will not, consider relocating.

There are scattered reports now that the number of people in Tokyo who are out sick is rising, and that figure will likely increase as the weather gets warmer. Are we talking summer colds, or some form of stress-related illness?

It’s unclear, but after the Kobe quake, it took about six months for cases of post-traumatic stress to really kick in.

So, if I were a CEO in Tokyo, I’d be moving heaven and earth to relocate staff who did not absolutely, positively have to be in Tokyo, and who could and wanted to go somewhere else. Not necessarily to Kansai. Hokkaido, Kyushu, or even overseas will work for some firms.

It’s simply a matter of spreading the

risk in a quake-prone country.

Eric Johnston, Osaka (via email) Time to relocate to Kansai? It’s not that simple. I think I can speak for many Tokyoites when I say “no way”.

For starters, we have a deep love for the city. We’re proud of its collection of people and our Edokko spirit. We’re a bit different than our fellow Kansai dwellers, and we like that. There is also a bit of a stubborn “last man standing” attitude. Our determination to stay put somehow separates us from those who flew the coop, and those who didn’t. I wear my non-flyjin status like a medal of honor. Of course we have concern, watching the lack of progress at the power plant, knowing in our hearts that we might indeed have to move should things take a turn for the worse. But until then, count me out.

Elizabeth Wenner-Ishiyama, Tokyo (via Facebook)

July 2011

7

Watt?

How EU firms are saving energy this summer

Text Rob Goss

T

he old saying that bad news comes in threes is holding true this summer. Not only is the summer likely to be as shirt-clingingly muggy as usual, but you can forget about cranking up the air-con: Tepco has forecast an electricity supplydemand shortfall of 6.2GW (approximately 10%).

To compound matters, Tohoku Electric Power is expecting a shortfall of 1.1GW. In response, the Ministry of Economy, Trade and Industry is requiring businesses to substantially cut back their electricity consumption. Those using 500kW or more must map out and implement a plan to reduce electricity consumption by at least 15% year on year during peak periods (9am to 8pm on weekdays) between 1 July and 9 September. For businesses

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July 2011

using less than 500kW, along with households, there will be a voluntary 15% target.

So how are companies, including EBC members, aiming to reach these targets?

Saving energy at work Some manufacturers are shifting factory hours to the weekends or evenings to reduce demand at peak consumption periods. Other businesses are opening and closing their offices an hour earlier to cut down on air-conditioning needs, or even moving to a four or four-and-a-half-day week. Meanwhile, the annual Cool Biz initiative will help reduce electricity demand by allowing higher air-conditioner temperatures.

Bringing energy-saving tech to Japan But while many European firms in Tokyo are focused on reducing their energy usage this

summer, others are offering long-term solutions.

Shizen no Sumai, a company founded in Nagano in 1988 by Austrian Peter Mathae, builds houses 100% free of chemicals and glue, and made entirely from sustainable resources. For the main structure of its houses, Shizen no Sumai uses environment-friendly “Holz 100” wood building casings produced by Austrian company Thoma.

The homes boast excellent insulation to keep heat in or out, thereby drastically reducing heating and cooling needs.

The homes are strong too; on the Ministry of Construction’s (now part of the Ministry of Land, Infrastructure and Tourism) strength scale of one to five, they are the only residences to have received a grade seven (sic) rating – meaning they are extremely earthquake-resistant. (When the houses were tested they exceeded previous highs and so received a higher than usually possible rating.)

The homes also offer significantly better-thanstandard fire security and radiation shielding – as well as 100% protection against mould growth.

Another Austrian company, SOLID, is offering the Japan market solar energy air-conditioning that provides heating and cooling using just 20% of the energy that conventional systems consume. Among the other environmental benefits of SOLID’s system are zero CO2 emissions and its long lifespan.

In a related field, Norwegian firm Elkem Japan provides raw materials (solar-grade silicon) used for solar panels. Made in Norway with a production process driven by hydroelectric power, the material is manufactured using just 25% of the energy consumed by traditional technology.

Elkem Japan’s representative director, Hiroyuki Date, believes solar power is a viable power alternative.

“A benefit of solar power is that the peak generation hours of the day happen to meet more or less with the peak consumption hours, which would greatly contribute to preventing large scale blackouts,” he says.

Shizen no Sumai’s Mathae thinks that attitudes to sustainable living are changing.

“There are many architects who still think it is better to replace buildings entirely after 10 or 20 years, so they can easily be fitted with the latest technologies,” he says.

“But I think there are lots of people in Japan who are interested in a more sustainable, environment-friendly approach. It’s certainly not a difficult area to do business in nowadays.”

And with Japan now having to drastically reduce its energy consumption – perhaps over the long term – there may be even more business opportunities ahead for European firms.

FOCUS

Mary Zanette is the senior vice-president for strategic planning, marketing, e-commerce, and store planning at Toys”R”Us Japan. She says they will enhance energy-saving plans implemented during last year’s unusually hot summer.

“I guess many companies are doing similar things, such as turning off unnecessary lights,” she says. “One thing we started last summer, to cut down on how much heat was generated in the office because it was so hot, was to have everyone turn off their PCs, monitors, electric kettles and so on at the end of the day, and also draw down the blinds to keep the sun’s heat out. We now have someone in each department in charge of checking that this is done,” Zanette says.

“It sounds like such an obvious thing to do, but you would be amazed at how much energy is wasted through small things like that. No matter how small you think an appliance is, the energy consumption all adds up,” she says.

At Hays Specialist Recruitment Japan, managing director Christine Wright says they are taking a similar approach.

“We’ve cut 50% of the lighting in the office, have set the air-conditioner temperature higher, are asking staff to use stairs rather than elevators, and are getting them to turn off all monitors and PCs before going home,” Wright says. “These are all easy things to do.”

Toys”R”Us has been thinking outside of the toy box, too, by applying energy saving to the office restrooms and turning off electric bidet toilets. And for good reason: in the 70% of Japanese homes that have such high-tech loos, they account for 3.9% of annual electricity consumption.

Zanette says Toys”R”Us is also saving energy in its stores.

“We’ve turned off the pylons [large signboards in and outside stores] and are using fewer lights; the air-conditioning is set so it goes on only when the temperature hits 28 degrees. In stand-alone stores we have automatic doors to make sure that air-conditioning stays in the building, and is not blown out onto the street and wasted,” Zanette says. “We’ve managed to cut in-store electricity use by about 30%.”

The company has been carefully monitoring customer feedback since it adopted the in-store measures and has yet to receive any complaints.

Staff, too, are positive about the measures.

“Our staff have really taken to turning off equipment and reducing the lighting, plus they get to wear casual clothing to be more comfortable with the reduced air-conditioning,” Zanette says.

Hot or not?

Sento temperature 43˚C Hottest day in Tokyo 2010 37.2˚C Human body temperature 37˚C

45° 40° 35°

Japanese government recommended room temperature 28˚C Room temperature (Japan) 27˚C Room temperature (Europe) 23˚C Red wine serving temperature 18˚C

White wine serving temperature 10˚C

30° 25° 20° 15° 10° 5°

July 2011

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July 2011

Q&A

Building the future

Justin McCurry talks to Makoto Iokibe, chairman of the Japan Reconstruction Design Council Photo Benjamin Parks

As chairman of the newly formed Japan Reconstruction Design Council, Makoto Iokibe oversees the blueprint for the reconstruction of areas devastated by the 11 March quake and tsunami. Iokibe, president of the National Defence Academy of Japan in Yokosuka, Kanagawa prefecture, has come out in favour of tax increases and called for greater involvement of foreign companies and individuals in the long rebuilding process.

Drawing on his experience helping plan Kobe’s recovery after the 1995 earthquake, Iokibe envisages safe, environmentally sound towns and cities.

Have the authorities done enough to help the people of Tohoku?

I went to Tohoku one month after the disaster and again about two months later. The difference in the space of that month was very clear. The first time the coast was dark and forbidding, whole cities had been destroyed, and the only people on the streets were soldiers trying to clear roads. The citizens were all in evacuation centres. I visited the first batch of temporary housing units in Rikuzentakata, Iwate prefecture, but there was no sense of human activity anywhere.

On my most recent visit, those places were beginning to regain their confidence. The intense sadness had lifted and the people were more positive. Local offices were able to offer more temporary housing since the government

started to pay rent (¥60,000 to ¥80,000 per month) for those who lost their homes in the tsunami and wanted to stay in vacant private houses.

But the debris, especially in the sea, is still a big problem. The government is paying ¥12,000 a day to fishermen to help remove it, so now they are able to build a foundation for their future.

Before, they had no money or work; they just stayed in shelters. Now they are positive and optimistic – it’s a dramatic change.

What will the new towns and cities look like?

Some citizens want to rebuild their homes in the same place as before because they own the land. But they are the exception. Many survivors told me they wanted this to be the last time that

their homes were destroyed by a tsunami. They want to create a new history.

That’s much easier now because, regardless of tsunami, new towns are built on hillsides in many cities around Japan. Historically, the Japanese have mostly regarded nature as a friend, but occasionally it becomes violent. In the past, people would endure disasters and then work hard, together, to rebuild their towns. It was a way of life. But modernisation means they don’t have to do that now. We should build safe, resilient cities. This is our opportunity to do that.

Where and how will the new communities be built?

We will be recommending the use of tsunami debris to build artificial hills.

The houses will be positioned on the hillsides, and low-lying areas will be turned July 2011

11

Q&A

To rebuild places as they were would be a waste of time and money

into parks and agricultural land. We will also need to reserve harbour areas for industry, commerce and leisure, but in places that can be evacuated quickly in case of another tsunami.

Will participation in the reconstruction process be open to people and companies from outside Japan?

Before the tsunami thousands of foreigners, many from other Asian countries, were working in the region as trainees in fishing and agriculture.

Sadly, some of them were among the victims.

So, yes, we need to think about improving the foreign contribution to the region’s reconstruction, ideally on a permanent basis. We should give priority to the local people who have suffered, but since the population is declining and the sea in that area is abundant in natural resources, there aren’t enough local people to make the fishing industry prosperous.

Although our council doesn’t have enough time to go into detail, we think it should be possible to combine the two groups of people. We should also encourage greater access to ports, which should be internationally competitive.

I’m hoping to draw on foreign ideas for the reconstruction of Tohoku’s towns and cities. There is a total of 200 places in Iwate and Fukushima prefectures that need advice. Each town and city should make its own plan with the help of the prefectural and central governments, as well as private-sector specialists. But there are so many affected

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July 2011

places that we must think about how to cooperate with international groups.

Physical reconstruction aside, how important are quality-of-life issues?

Clean energy is the most important point. The Fukushima Daiichi accident has sent a message to the Japanese people. Some believe that nuclear energy should be abolished, while others think that it can continue as long as the necessary safety improvements are made. I think the nuclear accident has helped make the change to clean energy more urgent, and people have the desire to do that in the new cities we are planning. The task will be much easier with government support.

Can Japan afford this ambitious reconstruction programme?

I think so. We have no option. To rebuild places as they were would be a waste of time and money. Instead, we need places that can survive and prosper in an increasingly competitive world. One of our council’s guiding principles is that the reconstruction effort and the rebirth of a new Japan should proceed at the same time.

Tohoku is experiencing depopulation and its communities are ageing fast.

How can you persuade young people to live there?

The people in that region love their home deeply – the only problem they face is a lack of opportunity. If there are good jobs available they will want to stay there, even the youngsters. Many fishermen are over 60 and about half of

them have no successors, so we need to increase outside access to harbours and activities to create jobs, not only for young people in Tohoku, but also for those from all over Japan and the rest of the world.

The priority is to build safe towns, but that alone will not be enough for them to survive. They need industry as well.

Does the government have the political will to open fisheries and agriculture up to competition?

That is what Prime Minister [Naoto] Kan would like to do, but he has not been able to persuade everyone in his government. At the end of last year, the government was trying to come to a decision on free trade, but it has been put off until October because of the tsunami. I hope the government will have the guts to go with it.

Has the public’s perception of the SelfDefence Forces [SDF] changed since the disaster?

After the Kobe earthquake in 1995, the SDF was slow to arrive in the stricken area, but they learned a lesson from that and changed their approach. They are much more proactive now. Only the SDF can save lives under these circumstances. They have done a very good job and people have come to realise that the SDF is a last resort in guaranteeing national security and securing citizens’ safety. Until Kobe, the image of the SDF was rather negative. Afterwards, those affected by the earthquake had a more positive view, and since the recent disaster, that view has become even more widespread.

Do you have an opinion on this topic you’d like to share? Please post comments at www.eurobiz.jp or send letters for publication to eurobizletters@paradigm.co.jp

EXE C UTI V E N OTE S

Gaishi executives Breaking through the “kimono ceiling” Foreign multinational corporations (MNCs) in Japan are inherently tough to manage. On top of all the stress of meeting business targets set by a headquarters far away, you have the international nature of the organisation. In times of stress, demarcation lines can widen into fractures.

Just as many buildings have survived the earthquake, but with cracks spidering down their walls, so it is with many foreign MNCs; the consequences of disharmony stemming from 3/11 will not go away for a long time.

I have already argued in this column that, because of the nature of Japan-based MNCs, their HR executives should be more carefully chosen, better paid, and given more power.

Such capable executives could have tempered much of the dissatisfaction that now plagues foreign companies in Japan.

At our next Economist Corporate Network event we are addressing this gap from the Japanese perspective – one might say from the bottom up, rather than top down. The event is entitled “Gaishi Executive” (Executive at a foreign company).

The idea is to appeal to a special type of ambitious and competent Japanese – who has already demonstrated a streak of independence and courage by joining a foreign company.

The event will not just help him (no hers have signed up yet, unfortunately) do a better job in his existing role, but also break through the “kimono ceiling”.

The latter involves acquiring the skills to become a worldclass executive (with all the nice trappings of power and wealth), equally at ease in Beijing, London or Tokyo. Many young Japanese executives do not want to be trapped within the confines of the deflationary and hyper-competitive Japan market, and we want to help them escape that trap.

The response to this initiative has been interesting. Many of the Japanese invitees have requested very specific information about the rank and title of other attendees. This has put me in a bit of a quandary. My idea of the event was not that it be defined by mere titles. Rather, the aim was for the event to bring together a wide range of dynamic individuals from different industries, united by a wholesome ambition to be the best they can.

Equally surprising has been the response of CEOs from Western companies with Japanese employees. Some have seized the opportunity and wish to send up to a dozen participants (which we have had to limit to three per company), while others have shown very little interest.

One type of response was more inspiring. There is a sense among a lot of gaishi executives that they are not punching their weight. As one executive told me: “In theory, we should be the gateway between Japan and the outside world. But instead of being appreciated for this role of intermediary, we actually tend to be looked down on.

Japanese people imply we are mercenary, and only interested in money. Foreign CEOs complain we don’t act internationally enough.

“Morale is not as high as it should be among gaishi executives. We need to follow in the footsteps of Ryoma Sakamoto [a rebel and reformer from the end of the Edo period], who was young, dynamic and internationally minded.”

a special type of ambitious and competent Japanese For this executive, it was not just a matter of helping his own career; it was also a matter of bringing back global best practice to Japan, and helping the country get off its unexciting growth path.

At our event, The Economist journalists Henry Tricks and Kenn Cukier will give presentations on the nature of the volatile and uncertain world executives need to understand.

But the participants, bright young Japanese and experienced Western and Japanese CEOs, will also have much to learn from each other.

The panel discussion that will follow the speeches by Kenn and Henry, will involve Tom Dooley, CEO of Alcon Laboratories, Japan; Sakie Fukushima, president of G&S Global Advisors, a renowned HR consulting firm; Masanobu Todome, a seasoned executive at Lenovo in Japan; and Masaaki Kawana, a highpotential young Japanese at the outset of his career with Groupon.

Dooley will discuss what he views as the main issues with his Japanese staff, and will provide advice on how to scale the corporate ladder of a foreign company; Kawana will talk about his fears and hopes in starting work at Groupon, while the Todome executive will share his experience of climbing up Lenovo’s ranks. Finally, Fukushima (who has just finished a massive study on globalisation involving interviews with 48 Japanese CEOs) will share the benefit of her varied insights.

We hope the event will help foreign and Japanese executives forge bonds, and understand the challenges each other face. Stay tuned for next month’s column, when we’ll find out whether or not we succeeded.

Dan Slater Dan Slater is director of the Economist Corporate Network (www.corporatenetwork.com) in Tokyo, and you can reach him at danslater@economist.com

July 2011

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To localise or not

The right product for the Japanese market Text Andy Sharp

T

o localise, as defined by The Oxford English Dictionary, is “to make local in character; or to invest or imbue with characteristics of a particular place or locality”. Successful product localisation can vary from selecting certain items from a range to changing the very essence of a product.

Yet, with Japanese consumers being such a sophisticated – and finicky – bunch, European companies must really do their homework.

Take how Perfetti Van Melle, the Italian maker of Mentos, Frisk mints and Chupa Chups lollipops, has adapted its confectionary to the Japanese palate.

“We have developed Chupa Chups flavours such as matcha [green tea] latte, ramune [Japanese lemonade] and melon soda specially for the Japanese market,” says François Stroobant, the company’s country manager.

“Japan is the most innovative market in the world for candy and we have to monitor trends carefully.

“Three thousand [confectionary] products are launched every year in Japan and we keep having to launch new products, making minor changes. You won’t get your products on the shelves of Seven-Eleven if you don’t rotate them enough.”

Mint condition Successful localisation means not taking anything for granted. Despite Japan having the highest per capita consumption of mints in the world, and Mentos being famous 14

July 2011

as a mint in most countries, the top flavour in Japan is grape.

Yet, Frisk mints (another Perfetti product) do extremely well – thanks to some adroitly localised marketing.

“We position Frisk here as mental stimulation [‘Sharpens you up’] to give you a boost when you are tired after working long hours, but in Europe it’s about expressing yourself [‘Don’t be afraid to open your mouth’].”

Hiestand Japan is the local subsidiary of Swiss frozen breadmaker Hiestand, and is the largest and oldest importer of these products in Japan, according to Robert Grimme, the company’s managing director. Its main business-to-business customers are hotels, restaurants, coffee shops and convenience stores.

Grimme’s job involves deciding which of the more than 1,000 products in its catalogue should be sold here (currently around 130).

“Our core strategy is [for our products] to be Europeanlooking but Japanese-tasting,” the German says. “The best-selling products here are Danish pastries and soft rolls. Anko [bean paste] and apricot fillings are only sold in Japan and China. Marron [chestnut] is only sold in Japan.”

According to Grimme, the company launches between 20 and 30 items a year (about 15% of its product range). Selections are made based on knowledge of the kind of product that will sell well here, but regulations are also a factor.

“We have to take care that ingredients in the products we import are permitted,” he says. “Sunflower lecithin, a kind of oil, is allowed everywhere in the world except Japan. And we have had to change the ingredients of other snack items A ramune (Japanese lemonade) lollipop

F ocus

Pink cocottes are only sold in Japan because Japanese people are fond of kawaii Monica Pinto, Le Creuset

A Villeroy & Boch Boston Crystal wine glass

due to regulations. You can’t import products with processed cheese or processed meat ingredients.”

For other companies, the modest size of the typical Japanese home is an issue. Furniture and kitchen equipment, for example, have to be smaller. Brita, a German maker of water filtration products, specially designed water jugs to fit Japanese fridges.

“After work in both Germany and Japan on the basic shape and features, designers from Germany came to Japan to perform the final modelling of designs suitable for Japanese fridges and sink/faucet geometry,” says Onno Jalink, the representative director of Brita Japan.

“Certification procedures and labelling requirements are [also] different, so we have Japan-only packaging for some products,” the Dutchman adds.

Small is beautiful Le Creuset, a French maker of quality cookware, has tweaked its line-up to meet Japanese cooking needs, while preserving the essentially Gallic feel of its cocottes (casserole dishes).

“The sizes of families and portions of food are smaller in Japan, and so smaller cocottes sell well here,” says Monica Pinto, Asia managing director of Le Creuset. “We kept the design exactly the same, but we resized products for the Japanese market, bringing in 14cm and 16cm cocottes.”

“Pink cocottes are only sold in Japan because Japanese people are fond of kawaii [cute]”, the Brazilian adds. “But every time we tried to bring other Japanese flavours to our products, we failed. The Japanese really want a French brand, but also a product that fits into Japanese culinary culture.

“For example, our shallow pots are used for sukiyaki in Japan, but the same pots are used for making risotto in the United States.”

Not every company, however, makes special products for the Japanese market.

Philippe Jardin, managing director of Villeroy & Boch Tableware Japan, says that, for logistical reasons, the range of products the company can sell in Japan is limited, making product selection key.

“We have our own warehouse in Japan, but we can’t stock all of our products in there due to its size, unlike in Europe when our entire range can be shipped from our warehouse in Germany,” the Frenchman says.

“Space in department stores is also limited, so we focus on our best-selling products such as our Metropolitan collection of white tableware. But we don’t have specific products for the Japanese market.”

When making selections, Jardin looks for products from categories popular in Japan, but with a European feel that makes them stand out.

“A product needs to be unique in terms of design,” Jardin says. “You can’t find anything like our Boston crystal wine glass here, and this is why it does so well.”

In the details Ian de Stains, former executive director of the British Chamber of Commerce in Japan, has spent more than two decades helping British companies gain a foothold in the local market. He says attention to detail is all-important.

“The way that products are packaged is important,” says de Stains. “Think of the way tea bags are each individually wrapped here. In the UK, the bags are often simply loose in a box.”

But he warns against making quick assumptions about the market. “Attempting to generalise too much is actually one of the mistakes people make,” he adds. “The key, as with most areas of doing business here, is to do your homework thoroughly.

“Don’t assume because some product has been successful in another market that it will be here.”

July 2011

15

Looking ahead

Five industries of opportunity for EU firms

Text Geoff Botting

Disaster, radiation, deflation, economic stagnation and an ageing population. We are all familiar with the problems facing Japan. Yet, against the odds, some businesses, foreign and Japanese alike, are managing to turn a healthy profit and – what’s more – predict business is only going to get better.

Left to their own devices

16

July 2011

Philips Electronics Japan has its sights set on the elderly-care market. One of its strategies is to first introduce a group of non-medical products such as alert devices then, when the groundwork is laid, concentrate on medical devices.

There are plans to launch the “Philips Lifeline” medical alert service in Japan this summer or autumn. The company hopes to sign up around half-a-million subscribers over the next four to five years.

The devices allow elderly users to lead free and independent lives at home, rather than in institutions. Subscribers get an alert pendant so that if they fall while alone, they can press a button that alerts a response associate who would then contact emergency services or a family member. The device can even determine the user’s position on the floor.

“There’s a lot of technology in it,” says Philips Japan managing director Danny Risberg.

The advantage of focusing on non-medical

products first, explains Risberg, who also heads the EBC Medical Equipment Committee, is that they don’t require government approval, a process that can take two to three years with no guarantee of success. “[It] is a way to get out there and to be able to build the system, minimise our risk and ensure that the infrastructure is up and running,” says Risberg. “Because once we have that going, then the second layer of products that run on top of the system will go through the regular [approval] process.”

Risberg expects growth in the medical devices industry to expand “a couple of points above GDP” in the foreseeable future.

“I think the driver is the shift from acute care [care lasting for short periods] to chronic care for things like heart disease, diabetes and so on,” Risberg explains. “The older you get, the more susceptible you are to [chronic illnesses].

They aren’t going to go away.”

For most industries, Japan’s rapidly ageing society equals a rapidly shrinking market. For care providers like Swedish Quality Care (SQC), it’s the opposite.

The company, with its Tokyo office at the Swedish Embassy, offers services and products for the care of the elderly, as well as people with disabilities and children.

As the company’s name implies, Sweden is an integral part of its brand. “Here in Japan, Sweden has a very good reputation when it comes to welfare,” explains Jaokim Kautto, who heads SQC’s Tokyo office.

One of its programmes is the Bunne Method, named after musical therapist Sten Bunne. The idea is to get people suffering from dementia or other disabilities to play

music together on simple and modified instruments, so that they can be active and engaged.

SQC works as a consultancy for private social-welfare organisations in Japan, instructing them on how to set up Swedishstyle healthcare programmes. It also helps send staff from Japanese care facilities to Sweden and Denmark for training, and sells care-related equipment.

While Japan is “a growing market” for care services, Kautto says, “the tricky thing is that there isn’t much money in it. The people operating the care services aren’t really so wealthy.”

Rather, bigger margins tend to lie in sales of equipment.

“I think it’s easier to enter this market with a focus on products, such as medical devices

or devices that support independence,” says Kautto. “There are not enough people to take care of the elderly. We need to keep [the elderly] more independent to avoid excessive costs.”

Those costs are expected to skyrocket in the years ahead. Japan is outpacing nearly every other developed country in terms of a greying population. By 2050, about a third of the population will be 65 or older, compared to under a quarter for Sweden and the United Kingdom, according to a projection by research company Frost & Sullivan.

SQC, with a staff in Tokyo of just three fulltimers and three part-timers, sees Japan as a test-bed market. After establishing itself here, SQC plans to take its Swedish-style products and services elsewhere in Asia, including to South Korea, China and Taiwan.

By 2050, about a third of JAPAN’S population will be 65 or older, compared to under a quarter for Sweden and the United Kingdom

In the cloud

While businesses continue to grapple with the disruptions and inconveniences spawned by the 11 March disaster, some companies have found protection in cloud computing – services that store data off-site, usually abroad.

“After the earthquake, people who had cloud solutions were sitting prettier than those who had their IT infrastructure set up in Japan,” notes Jason Winder, president of Tokyo-based Webnet IT.

“Even after the infrastructure went down, the power went out and internet connections were dodgy, their data was safely hosted in distributed computing centres around the world.”

Such cloud solutions also provide safety from blackouts, he notes.

Cloud computing is one of several technologies highlighted in the Ministry of Internal Affairs and Communications’ March 2009 Digital Japan Creation Project. The plan calls for a rapid increase in the amount of capital investment in Japan’s information and communications technology.

Winder, who cites 18% year-on-year growth in company sales to early this year, believes that foreign companies, particularly SMEs, are well-positioned to take advantage of projected growth. That’s because large Japanese competitors tend to be slow-reacting and conservative, and to offer limited choices to clients.

“We listen as hard as we can and put together a proposal that echoes back exactly – in a proposal form – what the client says it needs,” he says. “There is certainly a place in the market for foreign companies that sit down and provide a proposal as close to the clients’ requirements as possible.”

Rick Cogley, CEO of eSolia, meanwhile, has his eyes set on a different technology – unified communications. This is the integration of various communications services, centred

on a phone system using Internet Protocol (IP). It allows all services – such as messaging, desktop computing, chat clients or voicemail – to work through a consistent user interface.

“There is a big push in that direction because it’s efficient,” Cogley says. “Right after the quake, for example, no one could use cell phones, but everyone could use chat, Twitter, and so on. So if your cell phone goes down, you would still have Skype, for instance.”

Similar to Winder, Cogley has seen his company – which he describes as a “virtual IT department” for its clients – grow steadily despite a gloomy business climate.

“Even in the down economy, we’ve seen business because companies want to merge, divest, expand to Japan or expand their operations. This is especially the case for companies in healthcare,” says Cogley, who presides over about 15 core staff members and 20 consultants.

“Our approach is slow and steady. We really want to develop relationships with the clients – and expand when we need to.”

July 2011

17

F ocus

When we’re 64

FOCUS

Plane selling The aviation industry has had a bumpy ride recently due to a slew of catastrophes including 9/11, the global economic crisis and erupting Iceland volcanoes.

Though Japan hasn’t escaped the turbulence, for Airbus Japan the market is looking up.

The company made headlines when Japanese airline Skymark announced it was considering the double-decker A380, the world’s largest passenger airliner. The discount carrier has since placed firm orders for six of the aircraft.

That was followed by news earlier this year that A&F Aviation, All Nippon Airways’ new low-cost affiliate, would lease 10 Airbus A320s.

Why all the attention? Because for almost seven decades, US planemakers have dominated Japan’s market, while Airbus had a share of under 5%. “[But] the map in Japan is changing,” says Stephane Ginoux, president and CEO at Airbus Japan.

The European company forecasts that around 570 airliners, mostly for passenger use, will be delivered to the Japanese market between 2009 and 2028, for a total value of around $106bn. Airbus wants to grab a share of that business.

“In the short term, let’s say the next five years, we would like to increase our order intake 20% to 30%. Over the longer term, we

want to secure 50% of the Japanese market, which is what we have in the rest of the world,” says the Airbus Japan boss.

Much of the growth could come from the A380, which Ginoux sees as a perfect fit for Japanese domestic flights which, as in Europe, generally carry large numbers of passengers between major population centres.

As for going against Boeing on aircraft for long-haul flights, Airbus Japan is looking to its next-generation medium-size airliner, the A350 XWB. “[The plane] is an ideal replacement for the ageing 777s operated by major Japanese carriers,” Ginoux says

Japan’s prospective trade partners are demanding liberalisation of agriculture

Taste of the future As it stands, organic food makes up a miniscule 0.2% share of Japan’s €240bn food market. In Europe, however, organic food accounts for around 2%. That leaves plenty of scope for future growth in Japan, says Duco Delgorge, president of Mie Project. The Tokyobased importer of organic and fair-trade food products may be a small player in a very small market, but he predicts big things for the future.

One factor that could work in favour of foreign foodmakers is demographics, says

18

July 2011

Delgorge. Rural Japan has fewer and fewer young people willing to take over family farms, and the nation will have to import more food, despite the government’s goal of raising the nation’s food self-sufficiency ratio.

Growth won’t be limited to imports, Delgorge says. He expects domestically grown organic food to become more popular, and foresees cooperation between EU and Japanese companies fostering organic food exports in both directions.

“You need the stimulus somewhere, and that stimulus will come from imports,

because there are so many excellent quality fair-trade products around the world. The whole movement has gone on for so long, several decades, around the world but has almost totally bypassed Japan.”

Other developments that seem to bode well for the food industry are the FTA talks between Europe and Japan, as well as the free-trade agreements Tokyo is trying to forge with a number of countries. Japan’s prospective trade partners are demanding liberalisation of agriculture. That could help stimulate the market and drive competition, amongst other benefits, says Delgorge.

Meanwhile, health food is another sector already growing well and set to flourish further. Japan’s ageing citizens, concludes a 2008 Japan External Trade Organization (JETRO) report, will look more and more to health food to stay sprightly – even in very old age.

According to JETRO, the market for products such as bottled drinks containing fibre, ballooned from around ¥132bn in 1997 to ¥680bn in 2007.

PROMOTION

The beauty of functionality

F

or more than half a century, Scandinavian design and architecture has been admired the world over. Its popularity is tied to Scandinavian histories and cultures that are rooted in simplicity, harmony and functionality. It taps ways of life that unite what is natural and organic with the ideals of beauty and design.

Scandinavian Living was founded in 1990, and focuses on the Scandinavian lifestyle through its trademark Scandinavian flooring, furniture collections of chairs and tables, and building materials such as windows, doors, lighting, and other interior appointments.

Among Scandinavian Living’s many brands, a true standout is PP Møbler – a family-owned Danish joinery workshop

established in 1953 – with a strong tradition of crafting design furniture of the highest quality. PP Møbler is motivated by a love of wood – working with the material as an organic whole – and by an uncompromising belief that technique, ingenuity and craftsmanship combine to define quality.

While a commitment to such traditions is unwavering, PP Møbler also values innovation and a diligence in exploring and developing its skills further – to find a better, more precise way. They refine the process, but never at the expense of compromising the material, which mostly comes from the beautiful, sustainable forests of Denmark and Germany.

PP Møbler chooses to keep all aspects of production under one roof. They control all

processes, thereby securing the highest possible level of quality.

PP Møbler cooperates with the designer, bringing both aesthetical and professional satisfaction to the fore.

PP Møbler is one of the few remaining cabinet-making workshops in Denmark.

Producing for the Japanese and the American markets with furniture from Hans J. Wegner among others, the workshop is now an internationally recognised brand.

A gem offered by Scandinavian Living’s PP

Møbler is The Chair, designed

by Wegner and perhaps the most famous Danish furniture piece of them all. The 1950 version differs from the 1949 original only in terms of its upholstered seat. PP Møbler’s contribution has been to improve The Chair in several respects, securing it an even longer life.

Wegner’s Teddy Bear Chair offers a playful, organic design, reflective of the animal world that many of his chairs express. The name is derived from a critic who described the armrests as “great bear paws embracing you from behind”. Through the years, the chair has become one of the most popular Wegner designs of all. He also designed an accompanying footrest.

Come to our showroom and see for yourself. Mon-Fri, 10:00-18:00. A 2-min walk from JR Gotanda Station across the street, or in front of Exit A7 of the Asakusa subway line. Tokyo Design Center, 5-25-19 Higashi-Gotanda, Shinagawa-ku, Tokyo 141-0022. Tel: 03-5789-2885. www.scandinavian.co.jp | www.pp.dk July 2011

19

Nordic cool Text Rob Goss

Be it sleek and functional interior design and household goods or famously employee-friendly working environments, Nordic style has come to mean one thing to many people: cool

And for Finland, Iceland and the three Scandinavian countries of Denmark, Norway and Sweden, Nordic cool translates into business opportunities in Japan.

“In products and services which relate to nature, sustainability and lifestyle, Nordic countries and their companies have a very good reputation in Japan,” says Clas Bystedt, executive director of the Finnish Chamber of Commerce.

“That helps our airline and tourist industry to sell more trips to unspoiled Finnish nature; our forest

20

July 2011

industry companies to sell more paper, board and wood from sustainable forests; log house manufacturers to sell more homes reflecting our lifestyle; and interior businesses to sell more furniture and textiles based on our design legacy,” Bystedt says.

Part of the reason Japanese consumers have so taken to Nordic products is the common ground between Japanese and Nordic values, says Daiki Koshiba, executive director of the Danish Chamber of Commerce.

“The design philosophy and appreciation of nature is similar in both cultures,” Koshiba says. “Japan and Scandinavia have a tradition of simplicity in art and design, and also an appreciation for quality and craftsmanship, which you may not find in other countries today.”

That’s a thought echoed by Frederik Møller, vice president of sales at Fritz Hansen, a Danish interior design company that counts Japan as its second-biggest export market.

“Scandinavian design is probably

Scandinavian design is probably more about lifestyle than fashion Frederik Møller, Fritz Hansen

more about lifestyle than fashion, and Japanese consumers treasure and understand the values we represent: simplicity, quality and timeless design. It never goes out of fashion, and for those who wish to invest in high-end furniture, those are very strong arguments,” Møller says.

“The Japanese consumer is very well educated, and does not only follow trends; they also have their

special feature

ICELAND

FINLAND

NORWAY

sweden

denmark

own, individual preferences. Our brand is widely recognised amongst architects and designers, and also amongst retail customers with an interest in design.”

But design is just one aspect of Nordic cool.

“To us design is a really big thing, not only in Japan but also elsewhere, and this is clearly noticeable in the interiors of our planes,” says Sakari Romu, head of Finnair in Japan.

“But a bigger issue is the Nordic way of interacting with people, based on trust, creativity and respect for others – that matches perfectly with the Japanese mind. It’s an essential part of our business in Japan,” he says.

Most obviously, that manifests itself in the way Nordic businesses look after their employees.

“It’s very normal in Scandinavia for employers to want staff to have a good working environment,” says Henrik Irmov, managing director in Japan for Danish freight forwarder Scan Global Logistics (SGL).

“At SGL Japan we have lots of wood in the office, instead of metal desks and fittings, to create a natural environment.

We have small desk islands for the staff, flowers and plants around the office, and we rely mostly on natural lighting,” Irmov says.

Pharmaceutical and biotech company Novo Nordisk has been selling its products in Japan since the mid 1950s.

Today it employs 1,100 staff in Japan and specialises in drugs for diabetes, growth hormone disorders and haemophilia.

“The style of our office is very much Scandinavian. We emphasise light wood throughout and have an open plan that reflects our open approach to doing business,” says Claus Eilersen, Novo Nordisk’s president in Japan. “My door is certainly always open to staff and it’s a common Scandinavian value to be open and honest in the way we operate.”

At SGL Japan, whose main business is exporting Japanese machinery and automobiles and importing goods such as European furniture and healthcare products, openness is also encouraged.

“The way we do business is largely Japanese, but we have brought some things in from Denmark. For example, one Friday a month we have a standing breakfast with coffee and pastries; something we do weekly at our offices in Denmark.

“It’s a social event with sometimes a little business involved, and it’s a chance for all the staff to get better acquainted and end the week on a positive note,” Irmov says.

And Eilersen points to one other reason Nordic business is admired in Japan: a willingness to accept and adapt to the Japanese way.

“A key to our strong foothold in Japan is that we come from a very small domestic market and so need to be flexible as we go overseas seeking bigger markets,” Eilersen says. “That means accepting the way business is done in Japan, in combination with sticking to our common values.”

Add to that adaptability, cool design philosophy, appreciation of nature and progressive working environments, then it’s no wonder Nordic business is booming in Japan.

July 2011

21

PROMOTION

Taking off How important is the Japanese market to SAS? Japan is a very important market in the SAS network. We have been here for exactly 60 years. This is a great milestone for us. The arrival time for our daily flights from Narita to our hub in Copenhagen is convenient for making connections to almost 100 other European destinations.

We focus on the business traveller, but in the Japanese market we have good cooperation with travel agencies and enjoy a good mix of business and leisure passengers.

When Japanese tourists choose to fly with us to Scandinavia it is because they want to see Scandinavia’s special natural phenomena: the midnight sun in summer and the Aurora in winter. Japanese travellers also enjoy the natural environment of Scandinavian countries, which are also clean and safe. We can cover the whole region so it is easy for tour operators to put together a programme that meets the needs of Japanese travellers.

What kind of travelling experience do you offer?

The service on the ground and in the air is very good. We have been named the most punctual airline in Europe for the last two years. At Copenhagen, we have five different ways to check-in and other features for passengers in Business and Economy Extra classes, such as a Fast Track security lane. But it’s also about the personal services we offer.

We are now developing an in-flight internet service that will be launched soon. That is a fantastic development for long-haul flights, especially for business travellers who want to work. The service will be available free of charge in the Business and Economy Extra classes, and for a fee in Economy class.

Are you expanding your fleet?

We have just placed an order with Airbus for 30 new Airbus A320neo aircraft, a move that will take our green initiative to the next level. The Airbus A320neo is for short-haul flights and represents a huge investment for our Scandinavian and 22

July 2011

European services. The aircraft will have approximately 15% lower fuel consumption and 15% lower carbon emissions. We are also part of a Green Approach scheme with airports in Scandinavia, which allows us to take off knowing exactly when we will land. That means there is no circling required and no fuel or time is wasted.

Has SAS won any awards?

Yes, our frequent-flyer programme received the Frequent Traveler Award and in 2009 and 2010 we were crowned Europe’s most punctual airline by FlightStats.com. SAS was the only airline outside the Asia-Pacific to have been nominated as the world’s most punctual airline.

The International Air Transport Association also presented us with an award for being the first and only airline in the world to meet all five criteria for fast travel. We have lots of check-in possibilities, as well as Fast Track security, that make the whole procedure very smooth.

We make it easy to travel. We respect our passengers’ time.

How are you attracting visitors to Japan?

We are sending the message to our home market that Japan is a safe and fantastic country to visit. The common perception is that things are really taking off now. In April, we signed a code-share agreement with All Nippon Airways, so that should also increase traffic flow to and from

Leif Nilsson, Regional General Manager, Asia & Pacific, Scandinavian Airlines

other important destinations in Japan such as Osaka, Sapporo and Fukuoka.

Do you have any special promotions planned?

We have fare campaigns from time to time that normally include destinations in Scandinavia and other popular destinations in Europe, such as London, Paris and Brussels. For business travellers we offer a win-win solution called “SAS Credits”, with the company earning 6-8% Credits and redeeming them for future flights, while the employee earns EuroBonus/Star Alliance points.

C hamber voice

Fredrik Alatalo

Chairman, The Swedish Chamber of Commerce and Industry in Japan www.sccj.org Text EUROBIZ JAPAN Chairman of the Swedish Chamber of Commerce and Industry in Japan (SCCJ), Fredrik Alatalo, came to Japan four years ago, and has been a member of the SCCJ’s board for two and a half years. He took over the helm of the chamber just this April, after what he describes as “a certain amount of turmoil”.

The most recent general assembly was cancelled due to the earthquake, and many members, Alatalo says, have been “very busy” with their own companies.

But the chamber is back to normal now, and energetically following its mission to “stimulate Sweden-Japan business exchange and business contacts.”

“Since we have so many different companies, from small to large, Swedish and Japanese,” he says, “we have to find a way to be useful to all of them.”

One key way to do that is the SCCJ Monthly Club Evening, a regular networking event at Restaurant Stockholm in Akasaka.

The chamber’s services, including such networking events, are especially useful for smaller companies that don’t have the extensive knowledge of local business conditions that larger

SCCJ Monthly Club Evening

operations might, says Alatalo.

“Start-ups are in a very different situation. They have few ideas about whom to contact and how to do things.

“It’s always good to know people, have someone you can ask: ‘Did you experience this?’”

One new initiative this year is a business award for Swedish companies in Japan – the SCCJ Commerce Awards.

At the SCCJ’s next general assembly in November, members will vote on participating companies and their business enterprises.

The competing companies will include both start-ups and firms established in the Japanese market, while members will be looking to reward innovation and initiative. “The prize will be the honour… or maybe something more substantial,” Alatalo jokes.

Sweden has certainly had plenty of success in Japan. Internationally renowned companies such as IKEA and H&M have expanded robustly. Alatalo himself is president of Nippon Ericsson KK, which has also seen steady growth since 2003.

Barriers to business vary greatly depending on the industry, says Alatalo.

For example, in telecommunications, typically they are low, but in medical industries – another area where Swedish companies excel – they are more substantial. The Swedish Chamber strongly supports the EBC’s push for an economic integration agreement to address such issues.

But Alatalo is keen to stress that Japan’s lackluster business environment is not necessarily the problem it appears. The reason is that, even when

I believe that any foreign company has a lot to learn from Japan, as well as something to bring to Japan the overall performance of the economy is modest, European companies still have a lot of space into which they can expand.

“Even if you go from 0% to 1% market share in the third-biggest economy in the world, that’s still a lot of business,” he says. “There can be a way to do something in a better way, a more innovative way, cheaper way.”

SCCJ members have the advantage of Sweden’s very positive image here.

“Many Japanese people see Sweden as a kind of nice society with a balance between work and private life,” says Alatalo. And it’s a relationship of admiration on both sides. “There is a big admiration and respect for Japan in Sweden.”

“We admire technology, and we admire innovation. So do Japanese people. I believe that any foreign company has a lot to learn from Japan, as well as something to bring to Japan.”

July 2011

23

Northern flights Finnair

Text Justin McCurry Photo BENJAMIN PARKS

H

ow many Japanese travellers realise it is possible to fly to a European airport in under 10 hours, and from there on to 40 regional destinations? Or that the national carrier of one of Europe’s smaller nations is the second-biggest European airline in Japan in terms of capacity, ranking alongside Air France with 21 flights a week?

That so few are aware of Finnair’s lofty place in Japanese commercial aviation is perhaps the only real chink in its corporate armour. And with the industry here reeling from the effects of the March earthquake and tsunami, it is an anomaly that the airline’s sales director 24

July 2011

in Japan, Sakari Romu, is determined to fix.

“We are not known among enough Japanese, even those in the travel trade, so that’s something we have to push,” Romu says in an interview at Finnair’s sales office in Tokyo’s Kojimachi district.

“And we can’t be the second biggest by only being an airline that serves Finland. To be successful, we have to reach out to people who are going to Europe in general.”

To achieve that, it must find a way to promote the Helsinki route to seasoned travellers already equipped with an impressive knowledge of Europe’s bestknown destinations.

Romu concedes the difficulty of that task, yet behind his modesty are many

inspired decisions that have kept Finland at the centre of Japan’s commercial aviation market.

The first, says Romu, was to direct its marketing energies towards leisure, rather than business travellers. As other airlines scaled down their Japan presence, Finnair was expanding here.

“I can’t speak for other companies, but many of them had relied very much on the business segment, so after the Lehman shock it was very hard for them,” he says.

“In a way, our weakness has also been our strength, because we didn’t have that many business travellers at that time, and the leisure segment wasn’t hit nearly as hard.

“Of course there have been periods

I nvesting I n J apan

when we have had fewer passengers – during the SARS and bird-flu crises, for example – but generally we have been growing very steadily in the leisure sector.”

Since it began its Japan service in 1983, with just one flight a week from Narita, Finnair has become one of only two European airlines (the other is Lufthansa) to offer daily flights from Narita, CENTRAIR near Nagoya and KIX near Osaka.

Finnair’s passenger makeup has shifted slightly since it started operating daily flights between Tokyo and Helsinki 15 months ago.

“Until we reached that stage, any attempt to reach out to business travellers would have been a waste of resources,” Romu says. “You need a minimum of five or six flights a week to attract that kind of passenger, whereas with leisure travellers there is more room for flexibility.”

finnair’s Japanese sales are the largest of all its foreign sales July 2011

25

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Finnair Airbus A330

He is realistic enough to accept that few outgoing business passengers will end their journey in Finland, even to indulge the perennial Japanese passions for the Moomins (Tove Jansson’s fictional trolls who dwell in Finland’s forests) and the aurora polar lights.

Instead, over the course of a year, about 90% of all passengers from Japan use Finland as a gateway to dozens of other destinations in Europe.

“Our main strategy is to concentrate heavily on secondary cities in Europe, places to which there are no direct flights [from Japan].

“The main point is to have a good service and good connections to the places Japanese want to travel,” he says, adding that Finnair hopes to exploit a newfound interest among Japanese in Eastern European, Baltic and Scandinavian destinations.

Finnair’s success in Japan owes much to an inspired advertising campaign, launched just over a year ago, which has since influenced the carrier’s marketing strategy in other countries.

The message behind the ads, which were found mostly in newspapers, magazines, and airport terminals, is beautifully simple: Finnair is the fastest route to Europe. The Japanese actor Koji Yakusho – dubbed “Mr. Europe” in the campaign – was chosen to front the ads because he combines familiarity, trustworthiness and sophistication.

“Ad agencies told us, ‘If you are unknown in Japan, then let’s pick someone who is not unknown and make it big for you. That’s why Koji Yakusho was

chosen – everybody knows him.

“The main point is that, in my opinion, you only get results if you market your service in a local way. We’re not bringing our global or European campaigns to Japan, we are doing it in a local way, with local characters like Mr. Europe. We have been very successful doing it that way.”

The message to consumers, Romu points out, was that like Yakusho, they would be “first in line to Europe”, not just to Finland.

The unusual approach was given the blessing of the head office in Helsinki from day one. “We do the same in other regions now, using locally well-known characters to front our campaigns, such as [former international footballer Pierre] Littbarski in Germany,” he says.

“In Europe, the industry has not traditionally used celebrities, but in Japan it works very well.”

It is impossible to overstate Japan’s importance to Finnair’s global strategy.

The airline’s Japanese sales are the largest of all its foreign sales; and in August 2010 its monthly sales were greater in Japan than in Finland, the first time overseas sales had exceeded those at home.

Some of the credit for that must go to Finnair’s attention to the market outside the Tokyo metropolis. Romu firmly believes that competitors have made an error of judgment in treating Osaka and Nagoya almost as an afterthought, or ignoring them altogether.

“As a European carrier that doesn’t serve Osaka and Nagoya, you stand to

There is still a huge opportunity to build traffic between Japan and Europe Sakari Romu, Finnair lose a lot of business. They really are separate markets.”

Finnair, like every other airline in Japan, has been adversely affected by the Tohoku disasters and the accident at the Fukushima Daiichi nuclear plant.

But despite the sharp downturn – the number of leisure passengers from Europe is still close to zero – Romu is optimistic about Japan’s place not just as a source of visitors to Europe, but as a destination for incoming tourists and businesspeople.

“There is still a huge opportunity to build traffic between Japan and Europe,” he says. “The disasters notwithstanding, Japan is becoming a more popular destination among Europeans.”

That opportunity could be realised in the next couple of years, when aircraft will be able to use both Narita runways to take off and land, enabling Finnair to consider a second daily flight from that airport. “We are interested, willing and have the capacity to increase the frequency of our flights to Japan,” Romu says.

July 2011

27

Medical Diagnostics// Japanese patients risk losing access to the latest medical technology Text Geoff Botting

I

t’s no secret that Japan’s healthcare system is facing a crisis.

With one of the world’s oldest populations, the Japanese government has been struggling to maintain the system’s universal coverage and quality of care.

It seems like an uphill task, given the spiralling costs of healthcare and the severely strained state of the nation’s finances.

For the past 15 years, the Ministry of Health, Labour and Welfare (MHLW) has kept a tight lid on costs by capping expenses, such as reimbursement amounts for medical equipment and drugs, to keep them roughly in line with the nation’s GDP growth.

However, many doctors and officials in the pharmaceuticals and medical devices industries criticise that approach, calling it short-sighted. They argue that, in the long run, cost containment could end up costing everybody more, while at the same time destroying patients’ quality of life.

The EBC Medical Diagnostics Committee is among the critics. It has a particular interest in this issue, as 28

July 2011

Medical Diagnostics Committee key advocacy issues k Reimbursements – payments should better reflect the clinical value of invitro diagnostic (IVD) products. k Product approval — The EU and Japan should mutually recognise product certification, and Japan should drop its unique clinical-data requirements when reviewing products already approved in the EU. k Diagnosis procedure combination (DPC) — The introduction of DPC in 2003 has led to a reduction in the number of diagnostic tests due to cost-cutting at hospitals. Therefore, the Japanese government should introduce guidelines that encourage a more effective use of diagnostics. the products of its member companies are used to prevent serious diseases or catch them in their early phases before they become chronic and much more expensive to treat.

“What we are trying to do is to convince the health ministry to focus more

of its spending in the area of early diagnosis to pick up the high-risk groups of patients,” explains Dr. Isao Ikeda, chairman of the Medical Diagnostics Committee. “By doing that, doctors can accurately identify these patients in the early stages of illness. After that, they can be treated appropriately. The result is improvements in the patients’ quality of life, and eventually a reduction in the amount of spending on healthcare.”

The problem is that reimbursement levels for the equipment needed to do that are too low, in the view of the diagnostics industry. The financial rewards are insufficient for device-makers to introduce their most cutting-edge products to Japan.

“We’ve been telling the health ministry that we should have a higher level of reimbursement to give our industry greater motivation to develop new tests and improve diagnostics. As it stands, there is no real incentive,” says Yoshiki Kawabata, vice-president of Ortho Clinical Diagnostics Japan and a fellow committee member.

The ministry announces its reimbursement levels, in the form of

I n C ommittee

points, every two years. Since 1998, the national health insurance points (fees for testing) for diagnostic devices have been reduced on an accumulated basis by around 50%, according to the committee.

One major consequence of all the cuts is that many foreign companies are paying less attention to the Japanese market than before. For example, Japan may find itself in a situation where patients don’t have access to the latest in-vitro (test-tube) diagnostic (IVD) technology, despite it being available elsewhere.

Indeed, only about 25% of all the diagnostic products manufactured by US and European Union companies are available in Japan, according to a survey conducted two years ago by the international firm L.E.K. Consulting. These include some of the most advanced diagnostic products in the world.

The other obstacle to innovative products from abroad is Japan’s complicated and unique approval process. Foreign companies aiming to register new products here often face high costs and long waiting periods.

For example, Japanese reviewers occasionally demand clinical data from companies trying to register their products, even if those products have already been certified as safe in Europe.

In its negotiations, the committee has requested the end of such unique data requirements and harmonisation of certification between the EU and Japan.

The Medical Diagnostics Committee is small, with only five members. Thus, its efforts and activities nearly always involve the cooperation of larger industry groups such as the American Medical Devices and Diagnostics Manufacturers’ Association (AMDD), a Japan-based advocacy group with around 70 members. Ikeda also chairs the organisation’s IVD Committee.

Despite the problems and barriers, Ikeda notes that there have been some positive developments by the Japanese government in recent years. For one, cuts in reimbursement points for diagnostic devices have almost levelled off since 2008, after around a decade of double-digit cuts implemented every two years.

Cost containment could end up costing everybody more, while at the same time destroying patients’ quality of life This change was achieved after an extensive campaign of dialogue with health ministry officials, launched jointly by several groups, including the Japanese Promotion Council for Laboratory Testing.

About half a dozen sessions took place during 2007, at which industry experts gave presentations to government officials. The idea was to convey the clinical value of IVDs, covering such issues as the benefits of early and accurate detection.

“We can create a better healthcare system,” says Ikeda with assurance.

July 2011

29

EVENT REPORT

Social media and crisis management during the Fukushima nuclear crisis 24 May, Ristorante Il Desiderio, Italian Chamber of Commerce in Japan Text and photo Tony McNicol

W

ho did a good job communicating with the public after the disaster? Did the foreign media? Domestic media? Japanese government? Tepco?

The Nuclear and Industrial Safety Agency? The answer, said Edelman Japan president Ross Rowbury speaking at a recent Italian Chamber event, was probably none of the above – with the debatable exception of the local media.

Over lunch at Il Desiderio in Aoyama, Rowbury explained how many communicators had lost at least some credibility in the aftermath of quake, tsunami and nuclear calamity.

The effect on paid media (advertising) was perhaps most dramatic. In the immediate aftermath of the earthquake and tsunami, 95% of ads were cancelled through so-called jishuku (self-restraint). By the end of the May Golden Week holidays the atmosphere had changed somewhat, but many events still had “an element of contribution”, such as being tied to fundraising for north-eastern Japan.

Overseas media has been heavily criticised over its reporting of the disaster, which Rowbury dubbed “irresponsible”. Aside from the absurdity of some reports, sensationalism panicked some foreigners in Japan who didn’t understand the Japanese media, as well as relatives back home. Rowbury did, however, note that the culprits were journalists not normally based in Japan.

Local media also faced huge challenges. “There was a flood of information,” said Rowbury. “They were inundated. Every single journalist in Tokyo was reassigned to cover the disaster.”

In other words, every hack – from the automobiles to entertainment beats

– was suddenly tasked with reporting on the chaotic situation in Tohoku.

Tepco and the government reacted well in the immediate aftermath of the disaster, said Rowbury, but soon “lost control of the message”. He pointed to a lack of message control, and a lack of attention to the needs of visiting foreign media. Two-and-a-half-hour government press conferences were one of the more egregious mistakes.

“Never do a 2.5-hour press conference,” said Rowbury, pointing out that journalists ran out of questions before the end. “It is bound to be a disaster.”

“Tepco’s biggest mistake was probably that they did not tell the truth” was another blunt assessment. “Although perhaps they did not know what the truth was,” he added.

Another blunder was the highly conspicuous absence of Tepco’s CEO at the height of the crisis. In Japan, more than elsewhere, the public expects to hear from a company’s head, stressed Rowbury.

He then moved on to Japan’s

burgeoning social media scene and its vast blogging community. Not so long ago, he informed the audience, more blogs were written in Japanese than any other language.

But interestingly, surveys show that Japanese people are the least likely to buy something on the back of what they read on a blog. Since Japanese blogs tend to be personal and anonymous, the issue may be one of credibility, he suggested.

“The growth in Twitter has been exponential,” he also commented, observing that many people are using their real names. “Through Twitter Japanese people have learnt to be privately public”.

Lastly, Rowbury looked at the world’s most popular social media site, Facebook, which is growing faster in Japan than anywhere else in the world. As Japan forms a “new sense of community” post-quake, the site has a special role to play. “Facebook is becoming a platform for the articulation of that,” he said.

July 2011

31

What a relief

Waterless urinals are eco-friendly and economical Text Alena Eckelmann Photo tony mcnicol

Christian Schmitz executive director Reme KK

32

July 2011

Uwe Bast representative director

G reen B iz

A

ttention gents. Going to the toilet can help you save the planet, say Uwe Bast and Christian Schmitz of Reme KK, sole distributor in Japan of Urimat waterless urinals.

Urimat is the world-leading waterless urinal with more than 100,000 customers in 37 countries, notably Switzerland (where Urimat originated), Germany, Austria, England, France, Belgium, the Netherlands and Luxembourg.

“In Germany and Switzerland Urimat is as famous as McDonalds or CocaCola,” says Bast, Reme’s representative director. “Ask a man and chances are that he will know [the name].”

So what is the secret of this super loo?

“It is a toilet that does not smell; it is eco-friendly since it doesn’t use water; it produces less CO2; it offers cost-savings for building owners; and, on top of all that, it is an advertising medium,” says Schmitz, executive director of Reme.

of all clean water used in people’s homes goes to flush toilets.

And with each flush of a urinal about four litres of water goes down the drain, Bast points out. “If we keep wasting our water, we will run out of clean water before we run out of oil.”

In an office with 50 male staff, one Urimat system could save about 212,000 litres of water per year. Taking into account the energy used in transporting and cleaning water, the CO2 reduction is 0.72kg per 1,000 litres of water, or 152kg per year. For an office building with 1,000 male staff it would be three tons of CO2.

Building owners and managers can save money as well as water. With 212,000 litres of water saved for each urinal and annual running costs less than ¥30,000, the cost savings would amount to over ¥100,000 per year, per urinal.

In Europe, McDonald’s, Coca-Cola, and many other companies purchase or sponsor Urimat urinals as part of their corporate social responsibility (CSR)

says Schmitz. “Even being number one in the world, in Japan, you are nothing without local references.”

One of Reme KK’s senior advisors, a building owner in central Tokyo, installed Urimat in one of his buildings in Shimbashi, creating a place where Bast and Schmitz could take potential customers to see the product at work.

Reme KK celebrates its second anniversary in June. Bast and Schmitz can already report that the company is in the black and thay have received much positive feedback from the B2B market, such as large construction companies, rail companies and public organisations.

Their client list includes construction and housing companies Daiwa House, Taisei and Takenaka, as well as a petrol station chain. The city of Yokohama installed test urinals at one of its zoos with a second location to follow this month, and the United Nations University did the same at their building in Aoyama in Tokyo.

In fact, Reme KK is not the first

An electronic display on top of the urinal informs users of Urimat’s green credentials during the 40 seconds (average) they are at the loo This unique urinal system, patented in 1998, consists of three components: a lightweight and break-resistant porefree urinal bowl made from high-tech plastic; a hydrostatic siphon cartridge at the bottom of the bowl; and a microbacterial cleansing agent that neutralises odour and prevents the drainage pipe from clogging.

“Urimat is very popular with food and beverage companies, especially fastfood restaurants, because it is odourless. Unpleasant smell from toilets is a big problem for them,” explains Schmitz.

A more significant issue for the planet, however, is the shortage of water. Only 2.5% of water on this planet is fresh water, Bast points out, of which most is ice in the Artic and Antarctic, and underground water. Less than 1% is available for human use, but in recent years industrial water use has increased drastically, leading to water shortages.

What’s more, the world population is expected to triple and water use increase six times as a result. A quarter

work. McDonald’s annual CSR report recommends Urimat and makes the waterless urinal a minimum requirement in its “Silver Standard” for setting up new franchise restaurants in Europe and the United States.

An electronic display on top of the urinal informs users of Urimat’s green credentials during the 40 seconds (average) they are at the loo, about the length of a TV advertisement, but without any chance to switch channels.

The display can also advertise products to match its location. For example, Urimat installations in pubs can be an interesting platform for beer or vodka marketing.

Despite its success in Europe, Urimat is not yet widely known in Japan. So Bast and Schmitz are busily promoting the brand at trade shows and through articles in specialist magazines. They also engage Japanese advisors and have four local distribution partners.

“The crucial factor for success in Japan is to get the right connections and to establish relationships of trust,”

company to introduce waterless urinals to Japan, and they face worries about how they work, as well as doubts about whether Urimat can live up to its promise. (Competitor urinals failed to solve the problem of smell).

Nevertheless, inviting people to test the urinal over several months has proved a successful way of dispelling concerns.

In May this year Urimat won the 2011 Environmental and Equipment Design Award, an annual competition run by the Japanese Association of Building Engineering and Equipment.

Although Urimat has already won many prizes in Europe, this is the first from a top industry organisation in Japan.

Looking to the future, Bast and Schmitz envision a wide network of Urimat installations throughout Japan and Urimat being the market leader for waterless urinals here. They hope to help combat water shortages, one of the most serious environmental challenges of our time.

July 2011

33

committee schedule

Upcoming meetings R Animal Health

13 Oct, Thu, 08:30-, EBC

R Medical Equipment

23 Sep, Fri, 14:00-, off-site 16 Dec, Fri, 14:00-, off-site

R Food

21 July, Thu, 14:00-, off-site 25 Aug, Thu, 14:00-, off-site

R Asset Management 22 July, Fri, 12:00-, EBC 22 Sep, Thu, 12:00-, EBC

R Automotive Components 6 Oct, Thu, 16:00-, EBC 15 Dec, Thu, 16:00-, EBC

R Construction 30 Aug, Tue, 17:00-, EBC 24 Oct, Mon, 17:00-, EBC

R Environmental Technology

14 Sep, Wed, 09:00-, EBC 1 Dec, Thu, 09:00-, EBC

R Railways 23 Aug, Tue, 08:30-, EBC 4 Oct, Tue, 08:30-, EBC

R Human Resources 26 July, Tue, 19:00-, EBC 27 Sep, Tue, 19:00-, EBC

R Sustainable Development 2 Sep, Fri, 09:00-, EBC 11 Nov, Fri, 09:00-, EBC

R Legal Services 8 Sep, Thu, 18:30-, off-site 17 Nov, Thu, 18:30-, off-site

R Telecommunications Carriers R Telecommunications Equipment

R Materials

15 Sep, Thu, 10:00-, EBC 15 Dec, Thu, 10:00-, EBC

29 Aug, Mon, 17:30-, EBC 21 Nov, Mon, 17:30-, EBC

25 Aug, Thu, 08:30-, EBC

Committee meeting dates are subject to change. Please contact the EBC secretariat for confirmation.

Tel: 03-3263-6222. E-mail: ebc@gol.com

Get

COMMITTEES

> Aeronautics

& Space

> Airlines > Animal > Asset

involved

> Legal

Health

Management

> Automobiles > Automotive

Components

> Banking > Business

Aviation

> Business

Continuity Management

> Construction

Some 400 of the over 2,500 affiliated local European companies and individuals participate directly in one or more of the EBC’s 30 industry committees covering a wide variety of economic sectors.

Technology

> Food

Resources

> Information

> Logistics

& Freight

> Materials > Medical

Diagnostics

> Medical

Equipment

> Patents,

Trademarks & Licences

> Railways

& Wholesale

> Sustainable

> Defence

> Human

Services

> Liquor

> Retail

> Cosmetics > Environmental

> Insurance

Communication Technology

Development

> Tax > Telecommunications

Carriers

> Telecommunications

Equipment

To join the EBC visit www.ebc-jp.com For more information please contact the EBC Secretariat.

Alison Murray, EBC Executive Director. Tel: 03-3263-6222. E-mail: ebc@gol.com 34

July 2011

Who’s Who

MICE + Hospitality in Japan

July 2011

35

Who’s Who // MICE and Hospitality

Kyoto, made for MICE!

K

yoto has served as Japan’s capital for over 1,200 years, beginning in the 8th century. The ancient city has been not only the centre for politics and the economy, but also the heart of our culture. Much of Japanese culture originated in Kyoto, then was introduced to the rest of the country and spread to the far corners of the world.

Nowadays, we are leading a convenient life that our ancestors would not have imagined possible back in the 700s. On the other hand, with such modern conveniences, we seem to have lost hold of some important values.

But here in Kyoto, tradition and culture remain in places and in people’s minds. Here one can find the spirit of true hospitality, developed and preserved when welcoming guests through the centuries.

Kyoto, as a favoured MICE city, has all the modern convention facilities. Yet,

what distinguishes Kyoto from other cities are the numerous historical sites known as ‘Unique MICE Venues’. Here in Kyoto, one can hold receptions and gala dinners, while experiencing Japan’s precious culture. In addition, one can be filled with the Japanese spirit on an excursion programme or team-building exercise.

In the decision-making process of selecting a MICE destination, accommodations are also a key factor to consider. Kyoto has a large number of well-established, highly regarded hotels that can accommodate groups for MICE, and which will be enhanced by two more international hotel chains coming to Kyoto in 2014.

As is the tradition of Kyoto, these additions will bode well here – not only increasing the number of available rooms in town, but also generating a synergy within the MICE industry.

Kyoto continues to combine its more

Richard Suter General Manager The Westin Miyako Kyoto

than 1,200 years of cultivated Japanese hospitality with international knowhow and quality service in delivering world-class MICE experiences. In the years ahead, Kyoto will become an even more attractive MICE destination.

A potential goldmine

T

he acronym ‘MICE’ has an ‘I’ in the middle for ‘Incentives’, which needs some serious consideration by the Japanese government. Japan has the potential for worldwide recognition as the ideal business travel and tourism destination.

To be a serious contender for the global MICE business, however, Tokyo must compete on a price/cost basis with other destinations in the region, such as Singapore, Bangkok, Shanghai and Seoul, as well as Capetown et al. Japan’s capital also needs to compete on a cultural basis with Paris, Berlin, Beijing, Madrid and London et al. Who hasn’t visited a museum lately and wondered, yes, the plaque in English on the display tells me it is a … but what does it mean?

Let’s come back to the ‘I’ in MICE: the high-end of tourism rewarding highachieving sales people, or groups of manufacturers, that must be seen

36

July 2011

as a ‘special tour’ – the carrot to give incentive for people to do more for their organisations. So what is being done by the government agencies to go out, and try and bring some of this business to Japan? Most large incentive group organisers are accustomed to turning to a Convention and Visitors Bureau for a flexible, one-stop solution to coordinate travel, hotel bookings, stadium or meeting hall rental, government special arrangements, and large movement of delegates. Does Tokyo have one that functions this way? Japan has so much to offer: safe travel, clean environment, some of the best cuisine in the world, more Michelin stars than London and Paris combined, and more. Brand Japan needs to be sold to the inbound market worldwide, offer the romance and culture in a story that can be understood in English. Visitors need to go home with a story to tell of their own – what they

Frank Bochmann Hotel Manager The Westin Tokyo

learned about the culture, the unique countryside – not just Disneyland. So who is selling Japan outside Japan?

Who’s Who // MICE and Hospitality

Hotel Granvia Kyoto

Address

Tel

JR Kyoto Station, Karasuma Chuo Guchi, Shiokoji-Sagaru, Karasumadori, Shimogyo-ku, Kyoto 600-8216 075-344-8888

Fax

075-344-4400

Email

osm@granvia-kyoto.co.jp

Web site

www.granviakyoto.com

Facilities / Activities / History Elegant Haven of Modern Comfort and Style – Hotel Granvia Kyoto is a world-class deluxe hotel and an integral part of the architecturally striking masterpiece, JR Kyoto Station Building, providing a convenient location with superb accessibility to Osaka’s Kansai International Airport (KIX) and major Japanese destinations such as Osaka and Tokyo. The hotel offers 535 beautifully appointed rooms. For business needs, there are 13 function rooms, as well as a ballroom with a maximum capacity for 1,400 guests – all with wireless connectivity.

Hotel Granvia Kyoto also offers 12 restaurants & bars – from European continental, French, and Italian to Chinese and Japanese. Each has an invitingly distinct atmosphere, but all provide outstanding service and authentic cuisine created by skilled chefs. High-speed internet access in all guest rooms and meeting facilities are complimentary.

Kyoto and Hotel Granvia Kyoto, the Ideal MICE Venue – Hotel Granvia Kyoto can provide guests not only with luxury accommodations, on-premise dining and state-of-the-art function rooms, but also unique entertainment & leisure programmes to experience the real Kyoto.

July 2011

37

Who’s Who // MICE and Hospitality

Hyatt Regency Tokyo

Address

2-7-2 Nishi-Shinjuku, Shinjuku-ku, Tokyo 160-0023

Tel

03-3348-1234

Fax

03-3340-3722

Email

cuisines@troisgros.jp

Web site

www.troisgros.jp

Facilities / Activities / History In addition to 18 state-of-the-art function rooms and a business centre, the Hyatt Regency Tokyo takes pride in the authenticity of its six restaurants. They aim to satisfy culinary tastes through cultivating relationships with chefs who are not only standouts on a global scale, but also sensitive to “local” preferences.

Cuisine[s] Michel Troisgros, for example, opened on 15 September 2006 inside the hotel, and is overseen by renowned chef Michel Troisgros, who has a longstanding relationship with the Hyatt Regency Tokyo. For four consecutive years, the restaurant has earned two stars in the Michelin Guide Tokyo. Executive chef and director Lionel Beccat carries on the spirit of Troisgros’ vision in Tokyo, while incorporating cooking techniques from all over Japan that fashion local ingredients to complement the climate and seasonal characteristics. The delicate flavours and purity of contemporary cuisine require appropriate pairing with fine French wines. The walk-in cellar stores a continuously updated selection of 230 wines under optimum conditions. The interior of Cuisine[s] Michel Troisgros strikes the delicate balance between indigenous and French themes, classic and contemporary elements.

38

July 2011

From left: Chef Michel Troisgros, Mr. Damien Mazars, Mr. Lionel Beccat

Who’s Who // MICE and Hospitality

Makuhari Messe

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 (Nippon Convention Center), located in the heart of Makuhari New City in Chiba prefecture, is comprised of three components that offer infinite possibilities. Halls 1-8 provide 54,000m2 of exhibition space that can easily be subdivided using moveable partitions to meet your particular event specifications. The 22 meeting rooms in the International Conference Hall are ideal for meetings, ceremonies, symposia, receptions, seminars and more casual social functions. The Makuhari Event Hall with a capacity for 9,000 people is the perfect venue for grand gatherings such as assemblies, concerts, lectures and fairs. In May, we added four mid-sized meeting rooms on the first floor to address the growing demand for this type of MICE facility. While public transportation conveniently connects you to central Tokyo, Makuhari Messe has large parking accommodations for 5,500 vehicles. The neighbouring area has a rich selection of hotels, shops and restaurants, as well as close access to many tourist attractions, leisure spots – and Narita airport. Makuhari Messe has been one of the leading venues of Asia for both domestic and international events since 1989.

July 2011

39

Who’s Who // MICE and Hospitality

The Strings by InterContinental Tokyo

Address Tel

Shinagawa East One Tower, 26-32Fl., 2-16-1 Konan, Minato-ku, Tokyo 108-8282 03-5783-1111

Fax

03-5783-1112

Email

book@intercontinental-strings.jp

Web site

www.intercontinental-strings.jp

Facilities / Activities / History Located in Shinagawa, a vibrant district, The Strings by InterContinental Tokyo is ideal for both business and leisure.

The hotel is easily accessible from Shinagawa Station, East Exit, which is reachable from Haneda and Narita Airports by the Airport Limousine bus service, and by Narita Express train line. The bullet train also stops here.

All 205 luxurious rooms and suites offer complimentary hispeed internet access, and facilities include a 24-hour Business Centre, Wi-Fi in the lobby, and a fitness centre with one of Tokyo’s best views.

The Club InterContinental features priority check-in and check-out, buffet breakfast, complimentary in-room private bar, all-day refreshments and evening cocktails at THE DINING ROOM. The hotel proposes two superb dining experiences: at THE DINING ROOM (International Cuisine Restaurant & Bar) or at CHINA SHADOW (Chinese restaurant), which provide panoramic views of the city skyline and Tokyo Bay. One banquet and conference room also features a lounge and bar area, in an inviting atmosphere for special occasions or other gatherings.

40

July 2011

Who’s Who // MICE and Hospitality

The Westin Miyako Kyoto

Address

Keage, Sanjo, Higashiyama-ku, Kyoto 605-0052

Tel

075-771-7111

Fax

075-751-2490

Email

reservation@westinmiyako-kyoto.com

Web site

www.starwoodhotels.com/westin/kyoto

Facilities / Activities / History Icon of Japanese Hospitality since 1890 “Our prestigious and historic 501-room hotel has played a key role as a social centre in the community and for the country during the past 121 years. The Westin Miyako Kyoto is an integral part of this fascinating and well-preserved ancient city, Japan’s revered imperial capital. Many visitors from all over the world have honoured us with their patronage through the years. While staying with us, visit and enjoy our beautiful gardens registered as a Kyoto cultural assets and our very own mountain – as well as nearby historical and UNESCO World Heritage sites such as Nanzenji Temple and Heian Shrine. Also indulge in our many facilities: 8 service-attentive, smart-looking restaurants and bars; 17 flexibly configured, natural-setting banquet/meeting rooms; fitness centre with indoor/outdoor swimming pools, gym, sauna and Jacuzzi; The Westin Store, a retail shop/business centre; professional skincare salon; and Satellite concierge at Kyoto Station. The heavenly bed, heavenly bath and heavenly futon – originally produced by The Westin Miyako Kyoto for our Japanese annex, Kasui-en – let you enjoy a heavenly stay and recharge you for the day ahead.

July 2011

41

Who’s Who // MICE and Hospitality

The Westin Tokyo

Address

1-4-1, Mita, Meguro-ku, Tokyo 153-8580 Japan

Tel

03-5423-7000

Email

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 hope 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 are offering various meeting and party packages. Please visit “Meetings & Weddings” tab of www.westin.com/tokyo Retreat to one of our 438 spacious guest rooms and suites featuring European décor 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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July 2011

MedicaLingual Let MedicaLingual make your documents resonate – anywhere in the world For patients MedicaLingual provides highly accurate translations of foreign-language medical records to give Japanese caregivers a clear and concise understanding of your treatment history, connecting you with the most appropriate and highly recommended facilities and healthcare professionals for your needs.

MedicaLingual Inc.

For doctors MedicaLingual’s aim is also to assist Japanese physicians working at hospitals undergoing clinical treatments in their manuscript submission to international journals to announce the results of their studies to the world. Our translators, medical writers and native English staffers will translate, edit or write their papers as well as effectuate all the necessary application procedures for publication.

1-13 Kanda Nishiki-cho, Chiyoda-ku, Tokyo 101-0054

For pharmaceutical industries MedicaLingual utilizes a global network of translation professionals with a high level of medical and pharmaceutical knowledge and experience to provide translation and medical writing services for documents across the entire drug development process. The experience and professionalism of MedicaLingual’s staffers can help shorten the time required for drug development and approval.

Tel: 03-5283-9633 Email: page@medicalingual.com Website: www.medicalingual.com

SHOP WINDOW

Where do Japanese people buy their clothes?

0.9 3.5

100

80 47.0

1.0 2.9

1.0 2.7

0.9 2.1

43.8

41.6

38.0

60

40

20

0

2010 Department stores

2009 General merchandising stores

Until the 1990s, Japanese essentially bought their clothes at two places: supermarkets for basics and department stores for higher-end apparel.

There were a few mail order catalogues, but unless someone was buying a suit, there were few compelling speciality fashion chains. Today the situation is quite different.

Speciality chains, such as Point and Uniqlo, exploded onto the market after the economic bubble ended in 1991, offering more for less just when budgets were tightening and consumers were looking for better value. From around the same time, shopping centre developers created a glut of new locations for nimble fashion chains – and neither retailers nor consumers have looked back since.

For most department stores, that depend on apparel for around 40% of turnover, consumers’ preference for more exciting and better value speciality stores was a disaster.

We can measure this decline by looking at the market share of the top 100 apparel retailers. They

44

July 2011

38.0

36.3

34.1

31.6

21.0

18.4

18.2

17.0

2008 Specialty stores

2007 Non-store retailing

Supermarkets

account for 50% of apparel sales, so what happens to them is a good guide to the whole market.

In 2000, department stores’ share of the top 100 stood at around 45%. As the chart shows, this had fallen to 38% by 2007 and to just 31.6% in 2010.

General merchandising store chains such as ItoYokado had a share of 26% in 2000, but only 17% last year.

Almost all the slack has been taken up by speciality stores. They became the leading format for apparel sales in 2007, and now command close to half the market, up from 32% in 2000.

Roy Larke 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.

JC

JapanConsuming

For more information, please see www.japanconsuming.com or contact Sally Bedown at subs@japanconsuming.com

events

Upcoming events > Belgian-Luxembourg Chamber of Commerce in Japan www.blccj.or.jp

Belgium beer weekend Tokyo 8-11 September, Thursday-Sunday

Venue: Roppongi Hills Arena Fee: Entry free of charge. Purchasable food and drink tickets.

Contact: www.belgianbeerweekend.jp

> British Chamber of Commerce in Japan www.bccjapan.com

BCCJ 51 informal networking night 14 July, Thursday, 19:00-21:00

Venue: Conrad Tokyo 28F, TwentyEight Bar and Lounge Fee: ¥4,000 (members, guests)* Contact: info@bccjapan.com * 3 drinks & selection of food

Inside my company 7 September, Wednesday, time to be confirmed

Speaker: Tony Ennis, president, BAE Systems (International) Ltd. Venue: ANA InterContinental Tokyo B1, Aurora room Cost: ¥5,500 (members), ¥6,500 (guests) Contact: info@bccjapan.com

> Danish Chamber of Commerce in Japan www.dccj.org

The DCCJ social circle 14 July, Thursday, from 18:30

Venue: Balcony Restaurant and Bar, Izumi Garden Tower 3F, Roppongi Fee: no cover charge Contact: dccjsocial@gmail.com

> Finnish Chamber of Commerce in Japan www.fcc.or.jp

FCCJ yakatabune cruise* 24 August, Wednesday, 19:00-21:30

Fee: ¥8,000 (members, guests) Contact: fccj@gol.com

Legal dos and don’ts for foreign executives in Japan 15 September, Thursday, 18:30-21:00

Speaker: Thomas Witty, ARQIS Foreign Law Office Venue: GCCIJ conference room, Hanzomon/ Kudanshita Fee: ¥5,250 (members), ¥8,400 (non-members) Contact: events@dihkj.or.jp

> Ireland Japan Chamber of Commerce www.ijcc.jp

Third Thursday 21 July, Thursday, 19:00-22:00

Venue: The Irish Times, Shimbashi Fee: no charge Contact: secretariat@ijcc.jp

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Aperitivo della camera 15 July, Friday, 19:00-21:00

Venue: Caffè Triestino, Kagurazaka Fee: ¥1,000 (members), ¥2,000 (non-members) Contact: iccj@iccj.or.jp

> Netherlands Chamber of Commerce in Japan

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Speaker: Richard van Rooij, representative director, Colliers International Venue: Colliers International, Tokyo Fee: no charge Contact: nccj@nccj.jp

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NCCJ briefing & drinks – Saving occupancy costs in today’s real estate market

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SCCIJ July luncheon 13 July, Wednesday, 12:00-14:00

> Swedish Chamber of Commerce and Industry in Japan www.sccj.org

Back to Tokyo evening 8 September, Thursday, time: TBD

*Sponsors: Finnair, Finn-Tour

Venue: The Swedish Embassy Fee: ¥4,000 Contact: office@sccj.org

> German Chamber of Commerce and Industry in Japan

> Swiss Chamber of Commerce and Industry in Japan

www.japan.ahk.de/en/

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www.sccij.jp

Speaker: William Saito, CEO, InTecur K.K. Venue: Hotel Okura Tokyo, Kensington Terrace Fee: ¥8,000 (members) Contact: info@sccij.jp

> The Bellwether Series: Japan 2011

The future of finance in Asia-Pacific 27 July, Wednesday, all day

Venue: The Westin Tokyo Fee and contact: www.economistconferences. asia/event/bellwether-series-japan-2011

Compiled by David Umeda July 2011

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Miguel Teuscher “More with less” Text and photo Tony mcnicol

E B C personality

M

iguel Teuscher spent the first 26 years of his life in Argentina, where he was born to parents of German and Austrian stock. But in 1975, while a university student, he travelled to Japan, intending to stay a year. Yet, when the year ended, he still felt he’d barely scratched the surface of Japanese culture.

At the time, the political situation in Argentina was rapidly worsening. And during a short trip back to Buenos Aires, Teuscher began to search for a new direction. “I knew what I didn’t want; but I wasn’t yet sure what I wanted,” he recalls. He decided to stay longer in Japan, attracted by the “business climate and people”, and the chance to throw himself further into the practice of Aikido.

Teuscher had begun studying the martial art in Argentina, introduced to it by his brother. “I saw it in his eyes …” remembers Teuscher, “how he was full of energy after each practice.” In Tokyo he studied at the dojo of the founder of Aikido, Morihei Ueshiba.

Teuscher remained a student in Japan until 1979, teaching Spanish part-time, which gave him plenty of time for learning Japanese and practising Aikido.

After two years working in Singapore, in 1981 Teuscher came back to Japan and took up a job with his current employer, Treibacher Schleifmittel, which produces minerals for abrasives, ceramics, and a range of other products used in various industries.

Originally part of the Treibacher Group, Treibacher Schleifmittel separated in 1996 from the main group, and since 2000 has been part of the Parisheadquartered Imery Group.

At the time, Treibacher was selling through agents in Japan, but wanted to open a representative office. Teuscher became the new company’s head.

But by 1992, Teuscher was looking for “something new”. He asked his brother in the United States to recommend a business school. Over the next three years he travelled back and forth between Japan and Los Angeles and San Diego to attend business school workshops and classes.

The end result of his studies was the 1998 establishment of a sales office for Treibacher’s abrasive powders, a joint venture between him and Treibacher.

He had a stake in the company in more ways than one. “I cannot just work for a paycheck,” says Teuscher emphatically.

“It is a waste of a life.”

To begin with, the company’s staff comprised just him and one assistant/secretary to coordinate the sales network. “We started from zero,” says Teuscher. Nevertheless, the company’s turnover increased twentyfold in just 10 years.

“We are still only six people,” says Teuscher, “but [together with a sister company in the same group] we have ¥4bn a year in sales. People are extraordinary if they are given what they need in order to work.”

Earlier this year, the joint venture concluded, and the company reverted to being wholly owned by Treibacher.

People are extraordinary if they are given what they need in order to work Teuscher has experienced three great economic upheavals during his time in Japan: the 1978 second oil shock, the signing of the Plaza agreement, and the bursting of the economic bubble.

They taught him some important lessons about both anticipating and responding to dramatic change. A friend who is a surfer gave him this analogy: “You have to be able to see the wave to ride it.”

He believes that Japan is about to experience another big change but, “during any time of change, you don’t know if it is positive or negative; it is only afterwards that you can judge,” he stresses.

Teuscher’s life-long dedication to Aikido has helped keep both his personal life and business career rooted and focused. “If you are emotionally connected to what you do,” he says, “your power to move things is threefold or

Do you like natto?

Title: President, Treibacher Schleifmittel Japan K.K. Career highlight: “Every single day, with the steady development and the growth of the organisation and team.”

Career regret: “When (daily) mistakes are made, not to have corrected them immediately on detection.”

Cannot live without:: “My wife and my family.”

Most important lesson: “To do more with less. This applies to absolutely all areas.”

Do you like natto? “Yes, but not every day. For even just health reasons, wherever in the world you are, it is best to eat the local fermented food.” fourfold. The way to have other people do things is not to say ‘do that’ ”.

Despite four decades of Aikido practice, he generally doesn’t talk about his rank (5th Dan). “A rank is important when you come to realise why you have reached it,” he says.

There are two books that have influenced Teuscher deeply during his life. One is R. Buckminster Fuller’s The Critical Path. Teuscher first encountered the work of the architect, designer and futurist while studying in the US. “Buckminister Fuller could not be pigeon-holed. He believed that discovery meant freedom.”

The other is Mahatma Gandhi’s autobiography, which Teuscher read at age 20. “Gandhi had many weaknesses,” he says, “but he could recognise them and talk about them. That is why he was strong. It is a paradox.”

Teuscher lives in Tokyo with his wife Mari, while his son and daughter reside in the US. He observes that he left Argentina at the same age that his own father left Germany, and that now his children also live on a different continent. “History repeats itself in different countries.”

At 62, he has no thoughts of retirement. “My passion is my work,” says Teuscher. “When people ask me if I will retire, I say ‘never’. My grandfather was planning his next factory when he died.”

“Any success we have in life comes from integrity,” says Teuscher. “As human beings, we may not always achieve integrity, but we can at least try to get close.” Integrity is the essence of our lives.

July 2011

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W ork P lace

Bertrand Larcher President, Le Bretagne Inc. Le Bretagne has introduced a traditional and authentic cuisine to Japan: la Crêperie Bretonne.

Offering buckwheat pancakes and cider, the restaurants present a democratic and new kind of French cooking: “The Breton lifestyle”.

“Respect for tradition and regional products are our guarantee of quality,” says Larcher.

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July 2011

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