Hiroshi Mikitani, Rakuten CEO
Start-up, stop Three top CEOs on the danger of entrepreneurship in Japan spluttering to a halt
ALSO INSIDE //
No country is an island Is Japan becoming more insular?
Swedish smoking solutions Where there’s smoke there’s ire
03
2010
THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE IN JAPAN
8 Cover photograph Benjamin Parks
COVER
FOCUS
8 Start-up, stop?
14 No country is an island
Three of Japan’s best-known businessmen tell Justin McCurry that Japan must do more to encourage entrepreneurship. > Hiroshi Mikitani, Rakuten > Sachio Semmoto, Emobile > Miki Watanabe, Watami
CHAMBER SPOTLIGHT 4
March 2010
With relatively few Japanese studying abroad, dogged opposition to immigration, and foreign firms “bullied” out of Japan, is the nation becoming more insular, asks David McNeill?
18 A grey area Parallel imports, also known as grey imports, are a delicate problem for many European companies in Japan, reports Christopher Thomas.
22 The French Chamber of Commerce and Industry in Japan (CCIFJ) is the longest established foreign chamber in Japan.
18 20 50
28 COLUMNS 7 From the Editor 20 Talking EURObiZ Roger Neckelius, Chairman of the EBC Retail and Wholesale Committee takes aim at some “myths” about the Japanese consumer, and tells Alena Eckelmann how even an economic crisis can provide a business opportunity.
30 Special advertising section
48 Executive Notes
Relocation services in Japan
The Economist Group’s Dan Slater says, don’t give up on Japan.
32 Investing in Japan Swedish company Smoke Free Systems makes door-less smoking cabins. Ty Holland hears how Japan’s high smoking rate and concern over passive smoking offer a business chance.
24 Event Report
34 In Committee
How can Japanese and European firms address the Chinese challenge? Kai Kurosawa reports from “Overview and Prospects for the EU-China and Japan-China Trade Relations” at the EU-Japan Centre for Industrial Cooperation, 1 February 2010.
Too many foreign companies and their employees are still tangled up in red tape. Geoff Botting talks to the EBC Human Resources Committee.
25 Upcoming Events Europe and Japan business-related events.
28 Q&A Takuya Fukumoto, Chairman of the Japan Business Council in Europe, tells Julian Ryall how the EBC’s counterpart helps Japanese companies in Europe.
37 Green Biz Hokkaido-based Homatherm sells innovative German insulation technology. Martin Koelling learns how the company’s patient efforts to break into Japan’s closed construction industry have paid dividends.
49 Culture Shock Chief designer at Roppongi’s famous U.Goto florist, Hans Damen combines Japanese and Western flower design.
50 Lens Flair The annual “Colors of Japan through Diplomats’ Eyes” project features the photos of 61 diplomats from 39 countries.
52 Work Place Mark Dytham and Astrid Klein are the founders of Tokyo’s Klein-Dytham architecture.
38 Who’s Who Directory Education in Japan
The Mission of the European Business Council To promote an impediment-free environment for European business in Japan.
March 2010
5
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Contributors David McNeill asks if Japan is turning inwards – page 14
Eurobiz.jp is a multimedia online magazine with articles from the magazine, photos, streaming video and a regularly updated blog. A variety of advertising opportunities are available. Many formats are supported including still, animated,
David writes for The Independent and Irish Times newspapers, and is Japan/Korea correspondent for The Chronicle of Higher
Ty is a freelance reporter and editor from the United States who has worked in media for the past 20 years. Having reported for TV Guide magazine for nine years in Los Angeles before moving to Tokyo in 2003, his writing interests range from business and politics to culture and travel. “I’ve never been a smoker so I felt equal measures of scepticism and anticipation researching this story. I came away pleasantly surprised. Any business that
Education. He also contributes regularly to several other publications, including The Japan Times. He is a coordinator of the e-journal www.japanfocus.org and teaches a course on media and politics at Tokyo’s Sophia University. “I too come from an island nation buffeted by economic storms and with a reputation for being all washed up. But at least the food is better in Japan than Ireland.”
Ty Holland learns about Swedish solutions for passive smoking – page 32 works towards making the environment a cleaner and safer place is worthy of a closer look.”
rich media and video. We can even help you develop your own online media campaign. For more information or to request a media pack contact us on eurobiz@paradigm.co.jp
Benjamin Parks photographs Hiroshi Mikitani – page 8 Benjamin is a Canadian photographer based in Tokyo. He specializes in corporate and
editorial portraits, as well as fashion and dance photography, and has worked for publications such as The Japan Times, In Style, Idealog, Columbia Law School Magazine, Simply You, Signature and Colors. “Photographing Hiroshi Mikitani was a great experience. It’s always interesting being around someone so driven and passionate about what they do, and trying to capture that passion in a photograph.”
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F rom the E ditor
Blowing in the wind As I write this, I’m waiting for the haru-ichiban – winds heralding the start of spring – to rattle the windows of the EURObiZ office. This month’s magazine also takes a sniff at the winds of change – but find they have been sorrily weak of late. David McNeill writes how Japan’s doors have been bolted against immigration and, how inbound foreign direct investment lags far behind much of the developed world. In short, the island nation of Japan is becoming even more insular. For our cover feature, Justin McCurry meets three of Japan’s top businessmen, who are united
by their concern for the future of entrepreneurship in Japan. As Rakuten’s Hiroshi Mikitani puts it: “We’re moving in the opposite direction to countries like India and China.” On a more positive note, Martin Koelling finds a German company in Hokkaido that has managed to break into Japan’s mammoth home construction market. And Ty Holland investigates Swedish smoking cabins that make life more pleasant for smokers and non-smokers alike. Our CEO interviewees also offer a little optimism. Miki Watanabe of the Watami restaurant chain argues that
Japan is more open than ever to new business ideas – domestic or foreign. Sachio Semmoto of EMOBILE reminds us that perfect localisation is the key to success in Japan. Lastly, Geoff Botting finds that red tape is still tripping up foreign firms in Japan. But see his article for a nifty tip on how to both ditch your gaijin-card and dodge the queues at Narita.
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Benjamin Parks
A recent survey helped confirm what many have long feared: Japan’s start-up culture is in trouble. The poll, by the Nomura Research Institute, found that an increasing number of young people prefer a stable job with a major company to starting a business. Of greatest concern for Japan, as it wrestles with a shrinking population, competition from China and, more recently, a brand tarnished by safety scandals, is the revelation that the most risk-averse group is teenagers. While the country’s new government has talked at length about the need to rediscover the entrepreneurial spirit of the post-war years, young Japanese are clearly not convinced. A mere 35% of poll respondents said they wanted to set up their own company,
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March 2010
down from 49% in 1997. Among teens, just 27% saw themselves as budding entrepreneurs The environment for start-ups is grim. Last year only four new firms listed their shares on the Tokyo Stock Exchange’s Mothers market for start-ups, compared with 56 in 2004. Yet without fresh input from technology start-ups and more vigorous involvement in expanding markets in Asia, Japan risks being consigned to the status of an economic also-ran.
S tart - up, stop ?
Start-up, STOP? Three top CEOs tell Justin McCurry why Japan desperately needs to support entrepreneurship
No one knows more about the obstacles facing young businesspeople than founder and chief executive of Rakuten, Hiroshi Mikitani. Since launching Japan’s biggest online shopping mall in 1997 with just six employees, the former investment banker has seen his business grow to include banking, credit card, brokerage and travel services. The Rakuten group now has a stable of more than 31,000 online merchants and 60 million individual members. “At the start of the decade we saw many younger people trying to start new businesses, but for the last several years there haven’t been many strong initiatives,” say Mikitani. “In general, younger people are less competitive, partly because of the shrinking population, which in turn means the market is less competitive. We’re moving in the opposite direction to countries like India and China.” Other start-up pioneers agree that Japan faces a stark choice between entrepreneur-led innovation and terminal
decline. They call for a new assault on regulation, the education system and collusion between established members of corporate Japan. “As a nation we are less hungry than we once were,” says Sachio Semmoto, founder and CEO of the mobile telecom firm EMOBILE. “When you are rich and can have almost anything you want, it becomes harder to retain that hunger for success.” In 2004, EMOBILE’s parent company, eAccess, became the youngest-ever independent company to be listed on the First Section of the Tokyo Stock Exchange, a mere five years after its founding. EMOBILE, launched in 2005, has become a major player in Japan’s mobile telecom market, with around two million subscribers. But despite identifying clear potential for expansion in the domestic broadband market, Semmoto had to look beyond Japan’s shores for support in his venture’s early days.
March 2010
11
S tart - up, stop ?
“Risk money is always difficult to find in Japan,” he says. “We had to look overseas for support, because the supply sources here, particularly banks, are unwilling to take risks. “That kind of trend still exists today in Japan, which is very unfortunate. That’s why the creation of new startups is very low. Today, Japan is facing a critical time. The question is, can we really recover, or do we simply die a slow death?” While inward investment could provide the impetus Semmoto says is palpably lacking from domestic ventures, would-be investors from overseas find themselves stifled by government regulation and an over-protective corporate culture. But Miki Watanabe, founder and CEO of the Watami izakaya chain, believes Japan is receptive to innovative business concepts, regardless of their origins. Watanabe, who opened his first Watami restaurant in 1992, now runs an izakaya empire of well over 600 outlets in Japan, and 30 outlets spanning Taiwan, Hong Kong, China and Singapore, while plans are afoot for expansion into the United States and Europe. His “Big Idea” was to transform the image of izakaya as “salaryman” drinking holes into family-friendly eateries serving fresh, organic produce that wouldn’t look out of place on the dining table at home. “The Japanese market is more open for foreigners than people looking in from the outside seem to think,” says Watanabe, whose company has also branched out into the nursing care and farming businesses. “We operate overseas, and I would admit that compared with other countries, Japan has more idiosyncrasies. If a company sets up here and Watami – transformed the image thinks only about the bottom of izakayas line, while ignoring consumer demands and employee welfare, it will fail. But if you can take those issues into account, you can succeed in Japan.”
Mikitani agrees that resistance to foreign products and services is often overstated. “Legally and in the strict business sense, I don’t think there are any substantial obstacles in the way of European, American or Asian companies coming to Japan, except in some heavily regulated sectors,” he says. “Yahoo is strong, Google is strong, although, unfortunately, you don’t see many strong IT brands from Europe. “There is also a custom among Japanese companies to stick to existing business relationships, but that obstacle applies to Japanese start-ups as much as foreign ones. And that is also changing.” All three were critical of the view, entrenched in Japan’s compulsory education system, of entrepreneurship and risk-taking as somehow undesirable. “We have real potential in technology and human resources, but in the 1980s and 1990s we somehow lost the risk-taking spirit and started looking inward rather than at the world around us,” says Semmoto. “If you look at Google and other start-ups in the United States and UK, you’ll find that they always look at the big picture. From day one, they have a global view. So we have to re-educate our younger generation to think in a similar way.” They were united, too, in their scepticism towards government promises to encourage start-ups. Semmoto says: “The new government should give more opportunities to
The Japanese market is more open for foreigners than people looking in from the outside seem to think. Miki Watanabe, Watami
March 2010
13
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S tart - up, stop ?
Rakuten, Inc
Watami Co., Ltd
EMOBILE Ltd
Online shopping Founded: February 1997 No. of employees: 8,000 Market cap: ¥900 billion Website: http://en.rakuten.co.jp/
Dining and catering Founded: May 1986 No. of employees: 4,130 Market cap: ¥67 billion Website: www.watami.co.jp/ir/english/
Mobile communications Founded: May 2005 No. of employees: 771 Market cap: ¥240 billion Website: www.emobile.jp/en/
entrepreneurs, but at the moment it appears more conservative and protective towards incumbents. That worries me very much.” Mikitani, however, believes that politicians are more aware of the need to adopt a more hands-on approach towards nurturing new businesses capable of competing in the global market. “The one thing we know is that the Japanese market in relative terms is shrinking,” he says. “Politicians understand that. And at home it is clear that in some areas we need to loosen up, especially in heavily regulated industries such as broadcasting and telecoms. “Rakuten as a company and I as an individual have a vision – we like independence, we like the free economy and we like deregulation. So we will be very explicit about our attitude when we talk to the government. In the internet business in particular, we need to fight against conservative attitudes and open our markets.”
Regulation aside, Japan’s reputation as a tough nut to crack owes much to misunderstandings about the country’s famously demanding consumers. “Japanese consumers don’t hate foreign products, but they want very highly tuned, quality products and the complete localisation EMOBILE USB wireless internet device of business,” says Semmoto. “Mercedes-Benz and BMW have succeeded because they paid special attention to the local market.” “Customers here are very choosy, and will let you know quickly if the product is not of sufficiently good quality or value,” says Watanabe. “In that respect, Japan is perhaps the toughest market in the world. And that absolute insistence on quality and price can be an obstacle to newcomers.” Rakuten’s internet ventures in Taiwan and Thailand have taught it important lessons about tweaking business strategy – from advertising and hiring to payment methods – to suit local consumers. That knowledge will soon be put to the test in China, where it has agreed a US$50 million joint venture with Baidu, the country’s top search engine. Cultural tweaking aside, the same principles apply to any successful venture, regardless of its location, Mikitani said. “You need to be ambitious and to have a vision, to understand where society and business are going. “The one message I want to convey to younger people is that if you work hard, you can make it happen. Business is important in itself, but it is also a means to change society for the better.”
We had to look overseas for support, because the supply sources here, particularly banks, are unwilling to take risks. Sachio Semmoto, EMOBILE
March 2010
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No country is an island Is Japan becoming more insular? Text David McNeill
F
or some, it was a sign that Japan was again turning its back on the world. Last year, as recession bit down on the industrial town of Hamamatsu, the local government made a coldhearted offer to Latin American immigrants: it would pay them to go back home – as long as they agreed not to work in Japan again. Some had invested 20 years in the country and had children who knew nothing about Brazil or Peru. “It showed that Japan is still uncomfortable with foreigners and with the realities of the modern world,” lamented Hidenori Sakanaka, director of the independent think tank Japan Immigration Policy Institute. Not that long ago, two competing versions of Japan vied for analytical supremacy. One, “Japan Inc.”, referred to the insular, protectionist regime that came under heavy fire during Ronald Reagan’s America. The other was the transformation model: the notion that Japan was becoming “more like us” as 16
March 2010
it converged with the West and embraced the world. Where is that debate today? Certainly, two decades after the old Japan tottered along with the nation’s overheated stock and land markets, the balance seems to have shifted decisively towards transformation. The world’s second-largest economy is vibrant and internationalised. Japanese corporations are heavily investing abroad – $78 billion in foreign acquisitions in 2008 alone. Foreigners, in turn, have splurged on Japanese stocks for much of the decade since local firms began dumping crossshareholdings. At one stage in 2006 they owned about a quarter of all Japan’s stock – though they have since sold some of their holdings. And according to the Japan External Trade Organization, net foreign direct investment hit a record high of $24,550 million in 2008, albeit from a very low base. Even critics accept that the days when trading with Japan was mostly a one-sided affair are gone. Japan’s trade balance fell to a deficit of ¥725.3 billion in the year through March
N o country is an island
34,000 Japanese students went to American universities in 2007 – far fewer than, say, THOSE FROM South Korea with less than half Japan’s population. 2008. Although plummeting global demand was the main factor, the country’s first fiscal-year loss in 28 years shows that times have changed, say analysts. “Japan is now one of the most open countries in the world because, with the exception of rice and agriculture, they are one of its biggest traders,” says Martin Schulz, senior economist at the private think tank Fujitsu Research Institute. “A lot of the old models need to be revised.” Yet, on closer inspection, the world’s second-largest economy still has its dark corners. Despite the rise in foreign direct investment, Japan’s FDI in 2008 was just 2% of GDP, the lowest in the OECD. Likewise, trade with the EU is remarkably limited considering the size of the Japanese economy, especially compared to the United States, China, South Korea and India. As of 2009, the number of foreign-owned companies
Lowest in the OECD New Zealand
58%
Canada
37%
Ireland
27%
France 10% Japan 2% 0%
10%
20%
30%
40%
50%
60%
UNCTAD World Investment Report 2008
FDI as % of GDP
listed on the Tokyo bourse had dived to 15, down from a high of 127 recorded in 1991, and several foreign investment companies have been, in Schulz’s words, “bullied out” of Japan. Among the best-known cases is Steel Partners Japan Strategic Fund, which was blocked in 2007 from a hostile takeover attempt of Bull-Dog Sauce. Bull-Dog’s defence strategy, later supported by the Tokyo High Court and Japan Supreme Court, has since been copied by hundreds of listed firms in Japan, according to Nomura Securities. The reason, says Schulz, is simple: doing business here can still be a trial. And Japan is wary of foreign takeovers, especially by companies it feels are looking for a quick buck. “Japanese corporations are concerned about firms that just want to make a profit – that sounds almost wrong to Japanese ears. In Japan business is about stakeholders, including employees and pensioners, not just stockholders.” Signs of retreat from the world don’t stop at the economic. Take the fall in the number of Japanese students going abroad, which has been declining since 2004. Roughly 80,000 Japanese students are studying outside the country, according to 2005 figures by the Ministry of Education, Culture, Sports, Science and Technology. The fall has been particularly sharp in the United States. According to the Institute of International Education, 34,000 Japanese students went to American universities in 2007, down from 47,000 in 1997 – far fewer than, say, those from South Korea with less than half Japan’s population. March 2010
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N o country is an island
Glen S. Fukushima Airbus Japan, President & CEO Is Japan bucking the trend towards more open, globalised economies? It is true that Japan has become more insular in recent years. Some Japanese say that many younger Japanese simply want to stay in Japan and not go abroad, where they would have to speak foreign languages, contend with unfamiliar and uncertain situations, and deal with peoples and cultures they don’t understand. Japan is lagging behind most other Asian countries in its acceptance of tourism, inward foreign direct investment, and use of English. Airbus has reportedly struggled in Japan – what particular difficulties has it encountered? Airbus is a newcomer to Japan compared with our competitor, which has a long-standing relationship with Japan of nearly 60 years. This is not likely to
change overnight. We are optimistic that, over time … our aircraft will be fully appreciated in Japan as in the rest of the world, where we have a 54% market share in sales. We consider Japan to be a key country for Airbus, both as a market for aircraft sales and as a partner for industrial co-development and co-production. Does the blame for the relatively low level of Japan-EU trade lie with Tokyo, or Europe? Japan tended to focus on the United States market. Since a decade or so ago, there has been a shift to place considerable emphasis on trading with, and investing in, Asia. Europe has also put its priorities on the United States and, more recently, mainland Asia. But the EU appears to be reassessing the importance of Japan, especially in the
“Japanese are less eager to study or work abroad than 20 or 30 years ago,” agrees Glen S. Fukushima, CEO of Airbus Japan. He says many Japanese prefer staying at home, where life is clean, safe and secure, and that the country is becoming more insular. Then there is immigration. Despite a string of signals from the business and political worlds that a looming population crisis will force immigration policy past its tipping point, the government shows no sign of taking the padlocks off fortress Japan. Roughly 2% of the population is foreign, far below most OECD countries. And the Hamamatsu case, while isolated, seems to show that the state might take away the welcome mat when the economy darkens. On trade, there is also plenty of room for improvement, argues Anne Lanigan, head of Enterprise Ireland in Tokyo. She points out that Japan only accounts for a tiny percentage of European exports. “Ireland is actually the biggest EU exporter to Japan in per-capita terms. Between 2000 and 2008, only two [Finland and the Netherlands] of six surveyed countries increased their exports to Japan, and growth was small – 4.1% and 3%. British goods to Japan were just 1.1% of their total exports in 2008.” Unlike some, however, Lanigan blames both sides for the imbalance. “Europe is just not that interested in Japan – there are 27 countries there, so it’s a huge market by itself.” She says that with new Japanese regulations in industries such as biotech, pharmaceutical and medical devices mirroring
context of a potential FTA [Free Trade Agreement], EPA [Economic Partnership Agreement], or EIA [Economic Integration Agreement] between the EU and Japan that could significantly benefit both sides. What could be done to make Japan a more open, vibrant economy? (1) Provide scholarships for more foreign students to study in Japan; (2) place graduates of such programs in Japanese companies; (3) relax immigration restrictions on foreign professionals; (4) increase tourism to Japan; (5) dramatically improve English-language education so that Japanese can actually use English for oral communication and discussion rather than for just reading and writing; and (6) actively promote greater inward foreign direct investment.
European not American rules, “there is a huge opportunity for growth of trade with Europe.” Fukushima agrees. “Both sides share some responsibility. Japan tended to focus on the United States market in the second half of the 20th century. But we are seeing some potential for changes. The new Japanese government of Prime Minister [Yukio] Hatoyama has stated his desire to have a more ‘balanced’ relationship with the world.” In a speech last October at the British Embassy in Tokyo, however, the UK’s Secretary of State for Business, Innovation and Skills Peter Mandelson, took a pot shot at that old enemy – non-tariff barriers – for the poor showing of British companies in Japan. “For too long, the growth of our trade has been hampered by regulatory restrictions,” he said. “We really need to … commit to a new EU-Japan vision of commercial ties, of trade and investment. But the catalyst has to be regulatory reform and the rolling back of restrictions in Japan.” One outcome of the current downturn will be a renewed commitment to Mandelson’s vision, predicts Lanigan. “In terms of trade, there is going to be a stronger Japan-Europe relationship, but I think Japan will drive that.” “Internationalisation is going to come slowly and incrementally, and at Japan’s own pace.” Whatever happens, however, don’t expect Japan to embrace mass immigration any time soon. “Japan is not going to go down that road,” says Schulz. “It doesn’t like what it sees elsewhere.”
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A grey area The problem of parallel imports
T
hey can be found all over Japan: stores offering deep discounts on imported clothing, accessories, watches, food, liquor and other luxury goods. They dot the shopping districts of Ginza, Akihabara and Shinjuku. Magazines like Brand’s Off and Brand Joy carry ads pointing consumers to discount outlet stores and “brand recycle” shops. Meanwhile, a profusion of websites offer original foreign brand goods for a fraction of their usual retail prices. They are selling parallel imports, sometimes called “grey market” goods,
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Text Christopher Thomas
brought into Japan outside authorised distribution channels. With the strong yen and equally strong demand for such goods from Japanese consumers, parallel importers can import from a low-cost country into Japan and turn a tidy profit even after discounts of 50% or more. Unlike pirated goods or knockoffs, parallel imports are identical to legitimate products, although they are usually packaged differently and may lack the original maker’s warranty. In Japan, parallel importing is mostly limited to foreign luxury brand goods such as clothing, accessories, watches and liquor. Though smaller than it was, Japan’s market is still one of the biggest in the world for these goods. Parallel importing is not illegal in Japan, but nevertheless causes considerable damage to foreign companies here by eating into sales and degrading their products’ carefully nurtured brand image.
It’s hard to assess how much all this unauthorised importing costs producers, but Benoit Chauvel, president of food-and-beverage importer Nichifutsu Boeki and chairman of the EBC Food Committee, reckons it costs him 5-10% of sales. “But the main problem is that it disrupts the pricing, reduces margins, and breaks down all your marketing efforts,” he says. Building a brand is expensive in Japan, notes Laurent Dubois, a lawyer based in Tokyo and chairman of the EBC Patents, Trademarks & Licences Committee. “Companies spend a lot on marketing and advertising, setting up dealer networks and shops, staff training, aftersales service, and so on. Parallel importers take a free ride on all this investment,
A grey area
there are two ways to deal with parallel imports: getting the supplier to maintain strict control of its distribution channels, and pricing appropriately. Benoit Chauvel, president of Nichifutsu Boeki benefiting from it without contributing to it, and the degradation of image leads consumers to disregard the brands.” Their activities can do real damage to the original producer. In fashion, the “value environment” in which the goods are sold is critical for establishing the products’ image. Presenting Gucci watches or Chanel perfume tossed in a supermarket bin causes serious damage to their luxury image, making them look like discount brands and
undermining the company’s ability to price its products appropriately and sell them through its own outlets. Parallel importing in Japan dates from the 1980s, a time of trade imbalance between Japan and the West, and the then-Ministry of International Trade and Industry (now Ministry of Economy, Trade and Industry) was under pressure to boost access to the Japanese market. One step it took was to liberalise imports of foreign brand goods. “This was a mistake on their part,” says Dubois. “The brand owners never had a problem accessing the Japanese market, so MITI was wrong to step in.” Limited recourse Companies that feel they’ve been wronged by parallel importers have little in the way of recourse, in Japan at least. In contrast to the EU and the United States, which are starting to take steps to condemn parallel imports, the Japanese government has shown little interest in addressing the issue, not wanting to be accused of constraining competition and free trade. As one luxury brand executive, who preferred not to be named, put it, “This is something we fight systematically, all the time. But it isn’t illegal, so we have no right to say anything against it, since it’s authorised by law.” So manufacturers and distributors who lobby the government to tighten regulations come up against a wall of indifference. The parallel imports issue is tricky, since these
are genuine goods, generating sales for the maker, while the consumer benefits from lower prices. But the damage to the image of the products, and therefore their value in the eyes of consumers, is also genuine. Notes Dubois, “The issue is free competition versus protection of the brand owner. If the parallel importer is breaking trademark law, such as by using the maker’s logo, they can be warned to desist, and taken to court if they don’t.” But the importing itself can continue. Masami Kamikawa, vice president for government relations and compliance at Johnson and Johnson KK Vision Care Co., says, “There’s little we can do. It’s very difficult to protect our brand without regulatory action on the part of government.” Chauvel is resigned to some amount of parallel importing. “In my business, food-and-beverage importing, there are two ways to deal with parallel imports: getting the supplier to maintain strict control of its distribution channels, and pricing appropriately,” he says. “You need an effort by the supplier; if they want to tighten up channels and stop people from reselling their goods, they usually can, to some extent. And the margins have to be fair; if they’re huge, people will take advantage. If you price appropriately, there’s little room for parallel imports.” But having said that, “the strong yen brings the parallel importers out. A lot of these firms were quiet for a long time, but suddenly we’re seeing them again, as the gap in currencies widens.”
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Roger Neckelius Chairman of the EBC Retail and Wholesale Committee Interview Alena Eckelmann Photo tony mcnicol
F
inding smart solutions to fit market requirements, yet not compromising on one’s principles is a difficult balancing act anywhere. But in Japan, to do that, you have to sort out the must’s from the maybe’s amongst all the business “rules” and myths about consumer behaviour. In 2003 I was asked to join IKEA’s Tokyo team. By then I had worked for the company for 14 years, but actually I have known IKEA for much longer. I was born and grew up not far from where it all started in Småland in the south of Sweden, and I remember my mother taking me to the opening of the very first IKEA store when I was five years old. After graduating from university with a degree in software engineering and software development, I worked in IT consulting for a major Swedish
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retail bank, Svenska Handelsbanken, and for Ericsson in the telecom sector. In 1989 I joined IKEA at their hometown in Älmhult where at first I was responsible for developing and implementing new software for the company’s distribution function; later I joined the group staff management team, and in 1997 I became the first CIO of the company. My first assignment in Tokyo was dealing with the import of IKEA goods, distribution channels and in-store logistics. In the process I learned a great deal about local laws and standards, especially on labelling and product certification, as well as how to securely install our huge storage racks to withstand earthquakes. It was very important to have good Japanese advisors from the same industry to be able to manoeuvre these tricky waters smoothly. It is a “must” to get legal requirements right and to follow the
Japanese rules or else you can get into enormous trouble. This experience and knowledge helps me now in my work at the EBC, tackling the many unresolved issues of product labelling and certification. While certain market conditions cannot be changed easily, some others are actually not set in stone as one is made to believe. I was told that a low price would not work in Japan, as it would be associated with poor quality. IKEA’s principle is to sell low-priced, well-designed home furniture. There seemed to be a conflict, but look what is happening now: every retailer is competing on low prices. People like a good deal, the Japanese are not different from consumers anywhere else.
Ta l k i n g E U R O b i Z
Interview Rob Gilhooly Photos Tony McNicolthat I was told
a low price would not work in Japan, as it would be associated with poor quality … but look what is happening now.
If the price is low enough, and the quality is right, Japanese customers are prepared to compromise, and what they sacrifice is extra service and beautiful packaging. It was a great eye-opener for our customers when they realised how little the actual goods at our stores cost, but how much special packaging or delivery and assembly would add. Many Japanese competitors bundle service prices such as delivery and assembly with the cost of the product itself, and create a package that hides these costs. Transparent pricing is educational for consumers; they start asking if they really need all those services they’d taken for granted. Given the choice, most consumers seem to opt for a low price and saving money on services. East and West A business advantage can come from an unlikely source, such as an economic crisis. Surprisingly, last year, IKEA’s sales were at the same level, or even better than, the
year before. It seems that consumers are shifting their expenditures from, let’s say, travelling or buying a new car to spending on home furnishings. As people spend more time at home in order to save money, they pay more attention to how things look around them. In the past, spending on home furniture was very low in Japan compared to other parts of the world, but now it is gradually picking up. Currently, I am heading commercial process development to make sure that all functions work together smoothly. What I will take away from Japan is a strong impression of my Japanese colleagues’ commitment. Once we have agreed on something, I do not need to worry about implementation. In my free time I enjoy being with my wife. We live in a fifth-floor apartment, in Tokyo’s Sendagaya district, which contains IKEA items as well as Asian furniture. As at work, in our home too, we seek a smart way to combine the best of East and West.
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French Chamber of Commerce and Industry in Japan Chambre de Commerce et d’Industrie Française du Japon (CCIFJ) Iida Bldg, 2F, 5-5 Rokubancho, Chiyoda-ku, Tokyo 102-0085 Tel: 03-3288-9624 Fax: 03-3288-9558 E-mail: direction@ccifj.or.jp
www.ccifj.or.jp
Executive Committee Narvik
President: Reykjavik
Bernard Delmas, Nihon Michelin Tire
ICELAND1st Vice-President: Michel Théoval, Thales Japan
2nd Vice-President: Hisataka Nobumoto, Akebono Brake Industry 3rd Vice-President: Philippe Dalpayrat, Dalpayrat Foreign Law Office, Tokyo 4th Vice-President: Serge Villatte, Rhodia Japan
The oldest foreign business chamber in Japan, the French Chamber of Commerce and Industry in Japan (CCIFJ) is second in size only to the American chamber.
5th Vice-President: Christian Polak, KK SERIC
Trondheim
Umea
SWEDEN
NORWAY
General Secretary: François-Xavier Lienhart, Saint-Gobain Isover Japan (MAG) Treasurer:
Stockholm
François Jackow, Air Liquide Japan
A historic relationship
DENMARK
Gdan
Dublin
Cork
As well as being the oldest foreign business chamber, the French Chamber of Commerce and Industry in Japan (CCIFJ) is second in size only to the American chamber. Founded in
Berlin
UNITED KINGDOM
Poznan
NETHERLANDS
BELGIUM
PO GERMANY
Prague
LUXEMBOURG
CZECH REP.
Paris
Brat Vienna AUSTRIA SWITZERLAND
Ljubljan
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A sanofi-aventis site in Kawagoe
PORTUGAL 1918, its first members were French silk trading companies. Today the chamber has 552 members, including 45 sponsor companies. Lisbon “There is an old relationship between our countries,” says Honorary President Michel Lachaussée*. “Many Japanese are
SPAIN
Sevilla Palermo
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Malaga
Algiers
Tunis
Valletta
C hamber S potlight
France is the second largest investor in Japan * Michel Lachaussée (left) was succeeded by Bernard Delmas as chamber president on 19 February 2010.
MCDecaux’s bike sharing scheme in Toyama (Cyclocity)
Francophile or Francophone,” he adds, noting that France tends to be associated with its cultural exports such as luxury goods, fine food and fine wine. “We want to keep this image, but also develop the image of industry, such as nuclear energy and high-speed trains. France is the second largest investor in Japan.” The chamber’s membership covers those sectors and more. “We have a little bit of everything,” says Lachaussée. “We have the luxury brands, the big French banks, food, pharmaceuticals and car
Michelin-star chef Patrick Jeffroy
equipment manufacturers.” One member of note is insurer AXA, with about 10,000 employees the largest French employer in Japan. Another major member is Eurocopter, which has 50% of the Japanese civil helicopter market. “Even the emperor uses a European helicopter,” says Lachaussée. French companies like AREVA are involved in Japan’s large and advanced nuclear industry. Other prominent members include Danone, MCDecaux and sanofi-aventis. The chamber organises 90 or so events annually, in which last year 5,000 people took part, including 650 guests at a gala dinner in November. The menu was overseen by Michelin-star chef Patrick Jeffroy, while entertainment came from Patrick Bruel, a French singer and actor. Solid support The CCIFJ offers a range of support to French companies seeking to invest in Japan. “The biggest problem for companies is non-tariff barriers,” says Lachaussée. “Then there is understanding the distribution system, the language barrier, the specific Japanese standards and norms, and coping with the demanding quality expectations of Japanese customers. “When you start your company, recruitment is the problem. Japanese employees hate risk so they want to work for a famous Japanese company or large well-known foreign companies, not normally a small, relatively unknown foreign company.” To help, the chamber maintains a database of more than 1,500 bilingual and trilingual candidates.
Danone’s popular Bio yogurt
The recession badly affected automobile and electronics companies among the chamber’s members, many of whom supply Japanese car companies. “Like all the chambers, last year in April and May we were very afraid of what would happen before the end of the year,” says Lachaussée. But the membership numbers remained stable, no doubt thanks to the chamber adjusting its services to a recession environment: offering special seminars on HR, advice on managing staff, and advice on downsizing when necessary. “We are here to help our members, to be close to them and answer their needs,” stresses Lachaussée. He describes the French chamber as a “very strong supporter” of the EBC. “Japan is the only country in the world where national European chambers delegate their lobbying activities for better market access to a joint chamber that they created,” he notes. “It is a fantastic solution. “Our recent EBC presidents have raised the European chamber’s profile to the same level as the US chamber. It is not something that even the large chambers can do by themselves.”
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EVENT REPORT
The Chinese challenge
EU-China and Japan-China Trade Relations 1 February 2010, EU-Japan Centre for Industrial Cooperation, Tokyo Text and photo Kai Kurosawa China represents a trade challenge: exactly how do you encourage the world’s third-largest economy to play fairly? China is now Japan’s largest and in recent years has become the European Union’s second-largest trade partner after the United States, yet foreign companies entering its markets still face obstacles. At an EU-Japan Centre for Industrial Cooperation seminar, speakers from Europe and Japan outlined their strategies for trade relations with China. Helena König, head of Unit Trade Relations with the Far East, Directorate-General for Trade at the European Commission, explained the EU’s Partnership and Competition trade strategy towards China. “We want our companies to have the same opportunities as Chinese companies do in Europe,” she said. According to König, European companies are hampered by investment restrictions, non-tariff barriers and discriminatory practices. One example is the China Compulsory Certification, or as the speakers dubbed it, the “China-only standard.” The safety certificate burdens foreign companies with additional high costs and requirements to surrender sensitive information to Chinese authorities. Hideto Akiba, director of the Northeast Asia Division, Trade Policy Bureau at the Ministry of Economy, Trade and Industry said he could understand China’s guarded stance. He compared it to Japan’s policies during its period of rapid growth.
But understanding is not agreeing and, he argued, China’s stance is “not the correct path.” If China wants to encourage investment it will need to reduce trade restraints and tackle issues such as intellectual property rights enforcement. Similarly, China’s export restraints on commodities such as rare earth elements and metals need to be reduced. So how do you get China to listen? According to König, the EU has engaged China on numerous fronts that “minimise confrontation”. It has adopted technical bilateral dialogues, such as the High Level Economic and Trade Dialogue and plurilateral dialogue, including the World Trade Organisation’s (WTO) Doha Development Agenda. At the same time, the EU is taking legal action through the dispute panel at the WTO. By approaching China through a legislative body, the EU hopes to avoid the kind of conflict marring recent US-China relations. Japan, on the other hand, is engaging China in high-level bilateral and multilateral political dialogue, as well as through working groups. Indeed, with China acting as the “driving engine of the global economy,” Akiba stated that the aim is “to correct each other.” He did, however, approve of the EU’s approach and suggested that in the future Japan and the EU could be stronger by “joining hands” when dealing with China. Only time will tell which approach has the greater impact on Asia’s growing economic giant.
services €20.1 EU exports to billion China 2008
inward €4.5 EU investment to billion China 2008
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services €14.4 EU imports from billion China 2008
inward €0.1 Chinese investment to billion EU 2008
events
Upcoming events Belgian-Luxembourg Chamber of Commerce in Japan
German Chamber of Commerce and Industry in Japan*
www.blccj.or.jp/
www.japan.ahk.de/en/home/index.html
B2B Networking lunch*
Transfer pricing audits in Japan: a living nightmare?
10 March, 11:30-13:00 Venue: Tokyo Chamber of Commerce and Industry, Yurakucho or Hibiya Stations Fee: ¥3, 000 (BLCCJ members only) Contact: info@blccj.or.jp *Joint event with Tokyo Chamber of Commerce and Industry
Breakfast meeting with H.E. Yves Leterme, prime minister of Belgium 8 April, 8:00-9:00 Venue: Hotel New Otani, Edo room, Akasakamitsuke Station Fee: TBD (BLCCJ members only) Contact: info@blccj.or.jp
French Chamber of Commerce and Industry in Japan www.ccifj.or.jp/
Senpai dinner 24 March Speaker: M. Pierre Baudry, President, SBA Consulting Venue: Restaurant le Pré Verre, GYRE 4F, 5-10-1 Jingumae, Shibuya-ku, Tokyo Contact: www.ccifj.or.jp/vie-de-la-chambre/ agenda/detail-evenement/news/480.html
Japan-France symposium – “How the private sector in the pharmaceuticals industry helps developing countries” 15 April Speakers: Dr Hatsuo Aoki, President, Japanese Pharmaceuticals Association, and Vice President, Astellas Pharma Inc.; Son Excellence M. Philippe Faure, French Ambassador to Japan; and Dr Tatsuo Kurokawa, Advisor for Pharmaceuticals Product Safety at the Ministry of Health, Labour and Welfare Venue: Nikkei Hall, Kudanshita Station Contact: www.ccifj.or.jp/vie-de-la-chambre/ agenda/detail-evenement/news/574.html
18 March, 9:00-10:30 Speaker: Ex-Tokyo regional tax bureau senior official Venue: GCCIJ Fee: ¥3,150 (members), ¥4,200 (nonmembers) Registration: events@dihkj.or.jp *Insights into audit process & update on 2010 Tax Proposals
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Guest speaker’s evening – overview of Diageo and its brands 31 March, from 19:00 Speaker: Jason Lucas, Commercial Director, Diageo Japan Venue: Hearn Room, Embassy of Ireland 4F, Hanzomon or Kojimachi Stations Contact: www.ijcc.jp/
Norwegian Chamber of Commerce in Japan
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Norwegian club evening 6 April Venue: Masukame Izakaya, Kanda Contact: Stein Saugnes, 090-2936-6491
CSR seminar 7 April Venue: The Royal Norwegian Embassy, Hiroo Station Contact: Stein Saugnes, 090-2936-6491
Enoshima Norway-Japan friendship yacht race
Swiss Chamber of Commerce and Industry in Japan www.sccij.jp/
Luncheon at Hotel Okura 16 April, 12:00-14:00 Speaker: Loic Rethore, Nestlé Nespresso Japan Venue: Hotel Okura Tokyo, Kensington Terrace Fee: ¥8,000 Contact: sccij@gol.com
18 April Venue: Enoshima, Kanagawa prefecture Contact: Stein Saugnes, 090-2936-6491
March 2010
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PROMOTION
Do you have a cracked tooth? What you can do to avoid a dental emergency
M
any people go to a dental office to have their teeth checked and cleaned. They know that doing so is the best way to maintain a healthy and radiant smile. Most people also are aware that tooth decay (caries) should be treated before getting too big and becoming an abscess. Or they can look out for bleeding gums, which is a sign of inflammation and unhealthy gums. But many people may not be aware that they have a cracked tooth. When you bite down in a specific way, you would feel a small discomfort or dull pain. It does not happen all the time and the pain can quickly disappear. Perhaps you ignore it. You may even avoid certain foods or chew only on one side of your mouth. Does this sound familiar? If so, you may have a cracked tooth. A tooth can crack due to a variety of factors • Chewing on ice or hard candies • Accidental blow to the mouth (during sports) • Weak tooth due to large fillings • Weak tooth due to root canal treatment • Stress on the tooth • Uneven chewing pressure • Grinding and clenching your teeth How can you tell if a tooth is cracked? It is difficult for the average person to tell if the tooth is cracked or not. The tooth will start to hurt after the pressure of biting causes the crack to open, thereby irritating the nerve inside the tooth. You may start feeling more sensitive to temperature, indicating possible irreversible damage to your pulp. Depending on the size and location of the crack, treatment may vary from bonding to root canal treatment. If the crack extends to the root, you may not be able to save the tooth. Your dentist will determine the best treatment for you. 28
March 2010
Cracks are not uncommon. You can decrease the risk of a cracked tooth by not chewing on ice or hard candies, wearing a mouth guard when playing sports, treating a structurally weak tooth, and balancing your bite to avoid the downward force concentrating on a specific tooth and, most importantly, visiting your dentist on a regular basis. The field of dentistry is moving toward Wellness Evaluation. Only based on those risk evaluations can a custom-made treatment recommendation be provided. For example, have your teeth changed in the last five years, become shorter, thinner or worn? Are your teeth crowding or developing spaces? Do you have many chipped or broken teeth or crowns? If so, the likelihood is high for bite problems. A dentist’s task is to find a way to decrease the level of risk. Have your dentist evaluate the risk associated with 1. decay (caries); 2. gums (periodontal disease); 3. bite (function); and 4. smile (dental esthetics)? Ask your dentist what can be done to decrease the risk, so you can keep your teeth and that irresistible smile.
Hirokazu Enatsu DDS, United Dental Office
US trained and licensed dentist Direct provider for
CIGNA International Expatriate Benefits
Hirokazu Enatsu DDS
2-3-8 Azabudai Minato-ku, Tokyo Tel: 03-5570-4334 www.uniteddentaloffice.com
Get
COMMITTEES
> Aeronautics,
Space & Defence
involved
> Airlines > Animal > Asset
Health
Management
> Automobiles > Automotive
Components
> Banking > Business
Aviation
> Construction
Some 300 of the over 2,500 affiliated local European companies and individuals participate directly in one or more of the EBC’s 29 industry committees covering a wide variety of economic sectors.
> Cosmetics > Environmental
Technology
> Food > Human
Resources
> Insurance > Legal
Services
> Liquor > Logistics
& Freight
> Materials > Media
& Communications
> Medical
Diagnostics
> Medical
Equipment
> Organic
Products
> Patents,
Trademarks & Licences
> Railway > Retail > Shipping > Tax > Telecommunication
Carriers
> Telecommunication
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
Japan-biz
Europe Julian Ryall meets Takuya Fukumoto, secretarygeneral of the Japan Business Council in Europe Photos IVAN HUGO
Secretary-general of the Japan Business Council in Europe (JBCE) at the tender age of 36, Takuya Fukumoto has been based in Brussels for 18 months. The JBCE represents Japanese companies in Europe, and this year the non-profit organisation celebrates its 10th anniversary. What are the aims of your organisation? Our aims and objectives have not really changed since the JBCE was set up, namely, to represent Japanese businesses in Europe and reflect their views, especially in the public-policymaking process. Key tasks include finding out about regulatory issues, and assessing the implications for our members. How does the lobbying process work? Broadly, our work starts when a committee of experts and representatives of research institutes is formed to carry out preliminary research. Before legislation can be drafted, technical input is needed from experts in the field – including Japanese experts – and we contribute to that. Throughout the process, we communicate with the commission at the director level and with experts who are drafting the legislation. We visit their offices with our own experts from specific fields and explain the various technologies available. What legislation are you working on now? We’re very busy at the moment because the 2003 Restriction 30
March 2010
of Hazardous Substances (RoHS) directive is now in the review process. The European Parliament has proposed drastic amendments and wants to add new chemical substances to those restricted or banned, and generally widen the scope of the legislation. Would you say that Europe is more concerned with environmental standards than Japan? From a legislation point of view, Europe is very advanced; but in the implementation of technology, Japan seems to be more advanced. It would obviously be ideal to combine the best elements of the two because environmental issues account for about 70% of our members’ interests. What other European legislation is causing concern? Of the environment-related legislation, our members from the chemical industry are concerned about the Registration, Evaluation, Authorisation and Restriction of Chemical Substances (REACH) law, because it directly regulates the industry. They also worry that this extremely tough
Q&A
Europe and Japan have very similar values, systems and legislation.
legislation will be applied to other sectors using chemical substances in their products. There are also concerns about energy efficiency legislation. Is there support among your members for a trade agreement between Europe and Japan? Yes. Having seen the EU-South Korea Free Trade Agreement that was signed in November, Japanese companies want a trade deal as soon as possible. The EU-South Korea agreement will be ratified in the European Parliament soon – and that is a big motivator for Japanese companies. What is standing in the way of a deal? Japanese companies are very keen to reach an agreement on the issue of high tariffs, but many European companies are much less aware of the need for a deal. And certain industries, such as the auto industry, oppose a trade agreement, just as they opposed the EU-South Korea FTA, because they want to protect their own industry. The political situation in both Japan and Europe at the moment is unfortunate, especially with the change of government in Japan. The new DPJ government has said how it wants its trade relationships with the United States and Asia to change and grow, but has made no specific mention of Europe. How does Europe see Japan? From the European side, China is of great interest but also a major headache. China has become the main focus of European trade policy. With Japan there are no serious
disagreements or problems; not like 10 years ago, when there were disagreements over dumping in the electronics industry. But that just shows how European policymakers are looking at the relationship. Some sectors in Europe are very interested in Japan, and want to foster and improve the business relationship, but trade issues with Japan are not the top priority for Europe as a whole. How can you make Japan a priority? The JBCE supports the Economic Integration Agreement, which is often described as an FTA-plus. We are trying to find support for this agreement among policymakers and industry as a first step. We believe that both governments should at least start negotiations, and we have been to speak to officials of the Ministry of Economy, Trade and Industry here in Tokyo. They are aware of our position on this. Are you optimistic about the future business relationship between Europe and Japan? If we look at the Europe-Japan relationship in isolation, then we can see many differences between the two sides. But when you compare the two sides with the rest of the world, it becomes very clear that Europe and Japan have very similar values, systems and legislation, and the directions of our societies are similar. So I believe we could quite easily bring our business positions into harmony. Europe and Japan can contribute to the global discussion and make doing business easier for everyone. March 2010
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Special advertising section // Relocation services in Japan Asian Tigers Premier World Wide Movers
Time to Say Goodbye Again?
Address
Nakata Mac Toranomon Bldg. 6F, 1-1-10 Atago, Minato-ku Tokyo 105-0002
Tel
03-6402-2371
Fax
03-6402-2305
sales@asiantigers-japan.com
Web site
www.asiantigers-japan.com
Asian Tigers Premier Worldwide Movers specialises in professional packing and forwarding of office and household goods shipments. We offer secure warehouse and storage services. Full Relocation services are available through Asian Tigers Mobility. With offices throughout Asia, we are also shareholders of OMNI – Overseas Moving Network International – comprising carefully selected companies in over 70 countries. We are a member of FIDI – Federation of International Furniture Removers – comprising 600 companies in over 100 countries who adhere to stringent criteria. Such an affiliation allows us to choose the best partners for any destination, providing our clients access to the best quality-conscious moving companies. We pride ourselves on being a trusted and reliable service provider to multinational companies and government organisations moving personnel to and from Japan. Our operational personnel are experienced in handling any specific requirements for a successful international move. Please contact us for a no-obligation free estimate and more information about our services.
Crown Relocations Japan
Address
Crown Worldwide K.K. Teiken Tokyo Bldg. 2F, 2-17-13 Takanawa, Minato-ku, Tokyo 108-0074
Tel
03-5447-2301
Fax
03-5447-2309
tokyo@crownrelo.com
Web site
crownrelo.com/japan
Crown Relocations is a leader in mobility management providing relocation professionals with tailored solutions. We deliver domestic and international moving and relocation services to employees, expatriates, diplomats and other private customers, and provide office and industrial moving services. Experienced in all aspects of domestic and international relocations, Crown’s staff ensure the shipment and storage of personal belongings are handled professionally and carefully. Crown uses the highest quality packing materials. With facilities in 52 countries, a Crown professional is available at “both ends of your move.” Our services include expense management, policy consulting and program administration, online tracking tools, storage, transit protection, home and school search, intercultural services, and partner support program. Crown Worldwide Group operates from over 250 locations in 52 countries. Divisions are Crown Relocations, Crown Fine Arts, Crown Records Management, Crown Logistics and Crown Wine Cellars. Established in 1965, the Group is a privately held company with global headquarters in Hong Kong.
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March 2010
Address
2F EXOS Ebisu, 1-24-14 Ebisu, Shibuya-ku, Tokyo 150-0013
Tel
03-5449-7220
Fax
03-5449-5830
InfoRequest@relojapan.com
Web site
www.relojapan.com
At Relo Japan we are professionals at helping people. Our international team of experienced, multi-lingual consultants is dedicated to providing the highest level of relocation support available. Our relocation service programs are designed to alleviate the burdens of international assignments, so you can focus on the things which are most important to you. We aim to go beyond what is expected, and more importantly, we are your first friends in Japan. Relo Japan is part of The H&R Group. The H&R Group offers complete coordination of any move to Japan, with support targeting not only the assignees and their families, but also the companies for which they work. Personalized and reliable service, clear communication, and cost-effective service programs set us apart as the leaders in Japan’s relocation industry. The H&R Group provides a wide range of real estate, relocation, and life-enrichment services, ensuring an easy transition to life in Japan for all of our clients..
Santa Fe Relocation Services
Address
No. 2 AB Building, 6th Floor , 1-17 Roppongi, 3-chome, Minato-ku
Tel
03-3589-6666
Fax
03-3589-0420
santafe@santafejapan.co.jp
Web site
www.santaferelo.com
Santa Fe Relocation Services is a leading relocation company operating throughout Asia, providing high-quality relocation services to individual and corporate clients. As a full-scale relocations services provider, Santa Fe provides home and school search, tenancy management, familiarisation programs, settling-in assistance, visa and immigration services, household-goods moving and much more. Each year Santa Fe handles in excess of 10,000 relocations throughout the world, and is proud to be a major player in the global relocation industry. For all your relocation needs, Santa Fe can cover the world. As an Asian specialist, we stick to one simple philosophy in delivering services globally: create and maintain partnerships with the best providers outside of Asia. We know who the best partners are – which is one of our greatest strengths – and our clients benefit from their proven quality. Santa Fe owes much of its success to our focus and dedication to quality, and is firmly committed to the ISO and FAIM standards. We are recognized as the industry leader in terms of our investment and commitment to quality systems across all service areas. The mission of Santa Fe is simple: To provide premium relocation service to corporations and families in a manner that minimises the negative impact on the environment.
March 2010
33
Special advertising section // Relocation services in Japan
Relo Japan K.K.
Active on passive smoking Swedish smoke cabins Text Ty Holland
T
he day is burned into his memory when Jacob Laurin went out for a late lunch and realised what it means to be a non-smoker in Tokyo. “I sat down at a table in a non-smoking area and waited 10 minutes for my food,” remembers Laurin. “But while I was waiting the no-smoking rule changed and I was suddenly surrounded by smokers.” 34
March 2010
As Japan country manager of Swedish company Smoke Free Systems, Laurin believes his company holds the key to preventing such olfactory offences. In September 2008, Smoke Free Systems K.K. was established in Tokyo, setting up shop within the Swedish Embassy business offices. Along with Laurin, the company also brought in a demo version of its flagship product, a door-less smoking compartment. Instead of trapping
smoke and smokers behind a closed door and walls, Smoke Free Systems’ cabins use the surrounding air to force the smoke through layers of filters before it disperses. “The idea was to create a unit that was much better than a smoking room, meaning that it doesn’t smell when you go in and it doesn’t smell on your clothes when you come out,” says Laurin. “Maybe, most important of all,
I nvesting I n J apan
smoker-friendly society with some care for non-smokers. I think that was one of the biggest merits.” Among the difficulties, however, was trying to introduce a new product to a populace often sceptical of anything unfamiliar. “I wasn’t sure the products would be accepted in the Japanese market,” says Tomonori Sato, recalling his first days as Smoke Free Systems’ sales account manager back in December 2008. But when Sato and his potential customers saw the cabins in action, those doubts were whisked away. The open design of Smoke Free Systems’ cabins creates an airflow of up to 1,230 cubic meters per hour in the standard model, capturing and pushing any smoke through five layers of filters. Even while standing near or just within the cabin boundaries, a quick test of the model cabin set up at the Embassy Smoking males over the age of 15 60%
China
53%
South Korea
44%
Japan
37%
Germany UK
37%
France
37%
Spain
36% 33%
Italy
28%
Australia
26%
USA Sweden 0%
10%
20% 20%
30%
40%
50%
60%
World Health Organisation (2005)
a place where you don’t shut smokers off. They are in the open so you can have communication between smokers and non-smokers … We tried to take away the smoke, not the smoker.” Established 20 years ago in Sweden, Smoke Free Systems originally sold smoking rooms in Europe that were similar to the enclosed compartments common in Japan now. Ten years after the company launched, disappointment in its units and smoking rooms in general convinced the company to try its current approach. Today Smoke Free Systems in Europe has about 2,000 major customers and 5,000 of its cabins operating in 12 countries, the majority in Germany, the Netherlands and Sweden. One of the keys to success in Europe was the company’s streamlined business model. Of about 120 people working for the company, only 20 are directly employed; the others are sales agents and service representatives under exclusive contract. Laurin’s goal is to expand the network in Japan in a similar way and prepare Tokyo as a headquarters for possible future expansion in Asia. Market research on Asia spearheaded by the Swedish Trade Council concluded that Japan offered the best mix of factors favourable to Smoke Free Systems’ entry into the region. “Japan has a very high smoker rate, but it’s not too high,” says the Swedish Trade Council’s product leader, Sonny Söderberg, whose latest figures on Japan put the percentage of male smokers over 20 years old at 40%. “You have a relatively high frequency of those who care for non-smokers and that tendency is getting stronger,” he explains. “It’s a
TY HOLLAN D
One of the Swedish guys who’s been here a long time said, ‘Jacob, [business in Japan] is like swimming in syrup, but don’t stop and don’t give up.’ Jacob Laurin
confirms that nary a whiff of burning tobacco can be detected. Designed primarily for offices, the SF6000, the main model currently being sold in Japan, takes about three square meters of floor space and stands over two meters tall. A small table in the centre has an ashtray receptacle for discarding cigarette ends and ash into a non-flammable bag housed in a support column underneath. A sensor in the roof of the cabin detects when a person enters and immediately powers up the fans, then downshifts and stays on standby mode if no movement is detected after 30 seconds. The ashtray also has suction, so an abandoned cigarette has its noxious fumes safely sucked away. However, Laurin knows that even a superior product doesn’t guarantee success in Japan, particularly if it’s introduced just as the world economy goes into a tailspin. “One of the Swedish guys who’s been here a long time said, ‘Jacob, [business in Japan] is like swimming in syrup, but don’t stop and don’t give up.’ ” Nevertheless, the company is determined to establish a foothold in Japan with an initial commitment of at least three to four years. Laurin concedes it has been a battle to gain traction in Japan, not made easier by a 40% scaling back of personnel and other expenses. But if all goes well this year, they plan to move out of the Embassy’s offices and into their own office, perhaps by summer’s end. The company has 20 cabins installed in the greater Tokyo metropolitan area and 12 customers. Laurin and his sales staff confirm there are several other verbal agreements on deck, with the goal in 2010 to have 100 cabins in operation. The company installs the units, has a service contractor collect the ash and cigarette ends, and changes the filters every three months, under a monthly rental contract, signed typically for three-year periods. In Europe, satisfied customers have renewed their contracts at an 85% clip. Laurin is convinced that success can be duplicated in Japan, as long as anti-smoking laws don’t become more restrictive – as they have, for example, in the United States. ”Smokers [end up] near the toilets or the archives, creating fire risks. We’ve seen it all.” March 2010
35
Human Resources// Red tape tangle Text Geoff Botting
R
ichard Mason has a secret, and it’s to do with a little plastic card. The new card, he says, makes leaving and re-entering Japan a breeze for foreign residents. “Going through Narita is almost as easy as using a PASMO card,” confides Mason, a member of the EBC Human Resources Committee, referring to the mass-transit smart card. That means no more queuing up at airport immigration counters for foreigners with Japanese working visas. “You just stick the card in an electronic wicket and it comes out the other side.” And the secret? The “residence card,” as it’s called, has been available for a while, even before an official announcement by the Justice Ministry – “but only for those people who have heard about it on the 36
March 2010
grapevine,” Mason adds with a wink. Mason, HR director at TÜV Rheinland Japan, and his fellow HR Committee members are pleased about the card’s introduction, as well as a series of other recent improvements in immigration processes, changes that have come after years of advocacy efforts by the committee with Justice Ministry officials. Immigration is one of two key areas of focus for the HR Committee. The residence card is part of a new visa system, passed in July 2009 and slated for implementation by mid-2012. Another of the changes is to extend the period of working visas, which many corporate expats hold, from three to five years. “In addition, the residence card will be issued with the visa, so you don’t have to go to your local city office,” says Steve Burson, the committee’s new chairman. The IC cards are already available from the Immigration Bureau in Tokyo.
Mason says, “You can have your biometric data pre-registered on the card, and then you can go in and out of Japan quickly and easily.” What’s more, there’s no need to present your passport. The same wicket that swipes your card is equipped with a scanner that records your passport details. “The wicket is at the far end of the counters. Hardly anyone uses it, so it’s locked sometimes. You just knock on the glass, and a guy in uniform will come out and open it for you,” Mason explains. The second main area of concern for the HR Committee is the public pension system. Members have had numerous meetings with government officials in a bid to wrangle a fair deal for foreigners forced to pay into those programs. Contributions to the system are mandatory, and workers qualify only after a minimum contribution of 25 years. A lump-sum payment is available
I n C ommittee
for the many who return to their home countries short of a full quarter century, but the amount is capped at a measly three years’ worth of contributions. The committee is thus calling for a full reimbursement of contributions. The mandatory national health insurance program poses another problem. The Justice Ministry has announced that it intends to make enrolment a condition for obtaining or renewing working visas. But Burson, president of H&R Consultants, sees a double standard in this. “A lot of Japanese are not on the system because it’s not being enforced for them. However, to enforce it for foreigners is a form of discrimination,” he says. A common frustration is the many grey areas that crop up when the government rolls out new policies and procedures. Committee members are often left scratching their heads due to ambiguous language or inadequate
Japan is the only advanced industrial nation to regulate the movement of foreign residents through a dual visa and re-entry system
details. “Sometimes when you call up the immigration office, they don’t really give you a clear answer. They say your visa could be ready in four weeks – or maybe eight weeks. You just don’t know.”
The new visa system is a case in point. When the Diet passed the legislation in 2009, it was supposed to be implemented at some point during the next three years. But it hasn’t happened yet, and when it will is anyone’s guess. The re-entry permit, which must be applied for and obtained just to be able to exit and re-enter Japan without voiding one’s visa, remains a particular concern. The committee sees this little passport stamp as a fairly serious impediment for foreigners, especially ones whose jobs require frequent travel. “Japan is the only advanced industrial nation to regulate the movement of foreign residents through a dual visa and re-entry system,” the EBC White Paper points out. “As soon as the re-entry visa really does disappear,” says Mason, “we’ll open up a bottle of champagne and celebrate at the EBC office.” March 2010
37
38
G reen B iz
Housing insulation biz heats up Homatherm Text Martin Koelling
W
Fisheries, as well as Hokkaido prefecture. “We were pushing at an open door,” says Mosler. The key to their success, he believes, is the product itself. Their woodfibre slabs not only insulate better than conventional rock wool insulation, but also store much more humidity without losing their insulation properties or developing harmful mould. Plus, they are easier to use. But what really attracted Japanese bureaucrats was the product’s ability to revive local forestry by providing a demand for wood. First, however, they had to choose a business model. After procuring the services of ECOS consulting, a German consultancy specializing in small and medium-sized enterprises entering the Japanese market, they opted for a licensing system. A local partner would be the principal licensee of the In fact, the market entry of Homatherm, makers of wood-fibre insu- technology, while Homatherm would get royalties and provide technological and lation slabs, into the notoriously closed Japanese construction industry is a small managerial support. Next, they had to find the right wonder in itself. For a foreign construcpartners. They chose the Natural Energy tion materials manufacturer to succeed Research Center (NERC) because in Japan is a rare feat, but for a small of its links with science, ministries European company to make a meaningful impression on Japan’s huge construc- and the local industry. The head of NERC, Norio Ohtomo, a professor at tion market of wooden houses is almost Hokkaido University, in turn set up unheard of. a company, Wood Fiber (Kinoseki), After years of visiting trade fairs and with local partners. Among them was building contacts, Homatherm and Nakayamagumi, a leading construction its local partner, the Natural Energy Research Center, gained not only approval company in Hokkaido. Their third, and ongoing, challenge to produce their insulation material in is to sell the material, says Mosler. Japan, but also substantial subsidies Fortunately, the potential is huge, to set up the €25m plant from the not least because Japanese construcMinistry of Economy Trade and Industry, tion material is so far behind that of the Ministry of Agriculture Forestry and hen a fire abruptly shut his wood-fibre insulation plant in Germany, Homatherm president Horst Mosler really began to appreciate his Japanese partners. In a flash, the just-established plant in Hokkaido ramped up production and supplied its German sister plant. “They jumped from one shift to three shifts in just one week,” Mosler recalls. “It is amazing what is possible in Japan.”
Germany. Mosler keeps wondering why the Japanese, who relentlessly pursue quality in many other fields, settle for outdated technology in their homes. Single-glazed windows are still standard, whereas in Germany triple-glazed windows are becoming the norm (and are cheaper than Japanese double-glazed windows, even when imported to Japan). But he knows that success will need a change of thinking by the construction industry. The conventional wisdom among builders, mirrored in construction standards, is to wrap a wooden building in plastic geomembrane, to keep out mould-inducing humidity, the number one enemy of wooden houses. Humidity is our friend But that betrays a lack of understanding of modern building physics, claims Mosler. “With our material, humidity becomes our friend,” he says. German homes allow humidity to permeate walls, but remain airtight and warm, even in winter. Special smart films, that change the direction of the humidity flow according to the seasons, are already available – even in Japan. Despite the good start, Mosler is modest: “It would be a little much to say we have established ourselves.” Their one plant can only supply enough insulation for 10,000 homes, a tiny fraction of the huge Japanese market. But the Tokyo Home & Building Show last year suggested plenty of potential. In three days Wood Fiber collected 400 meaningful contacts and was approached by 100 companies that want to try out the insulation. March 2010
39
Who’s Who
Education in Japan
40
March 2010
Who’s Who // Education
Advanced placement
A Passport to International Learning
M
any families considering university outside of North America mistakenly assume the International Baccalaureate Diploma (IB) is the only preparation accepted by international colleges. In reality, the Advanced Placement (AP) program is currently accepted by over 600 universities in 60 countries outside of the United States. One of the common misperceptions is that the AP program is only useful for those going to US and Canadian colleges, while the IB is for European and other international universities. In fact, IB scores are recognized in many universities across the US, and AP exam scores are recognized around the world, such as by UK universities and 15 other European university systems. For example, in recent years, students from The American School in Japan (ASIJ), where AP exams are offered in over 25 subject areas, have been accepted at Cambridge, Durham, Edinburgh, London School of Economics, University College London, St Andrews, Imperial College, Parsons School of Design (Paris), Université Paris Diderot, Franklin College Switzerland and Ecôle hoteliére de Lausanne. Overall, 23% of graduates attend non-US universities including colleges in Japan such as Waseda, Keio and Sophia. Both the AP and IB offer students a rigorous course of study in their last few years of high school, which culminate in external exams administered by the College Board and International Baccalaureate Organization, respectively. Both programs provide advanced courses that promote deep analysis and critical thinking skills, help students develop the study habits that will prepare them for success in university and beyond, and allow them to demonstrate they are ready for college-level work. Students who earn good scores on AP or IB exams may also receive credit and/ or advanced standing at their university. The real value here (in addition to the potential cost savings) is that such students often start off in smaller, more advanced classes in college, putting them in a good position to take advantage of internships and high-level working opportunities later in their college years. A major difference between AP and IB is the flexibility the AP program affords to students. For instance, a student with a passion for science could, during 11th and 12th grade, take year-long AP courses in Biology, Chemistry, Physics, and
Rick Weinland High School Principal The American School in Japan
… studies have shown that participation in extracurricular activities correlates strongly with academic performance in college, as well as success in life. Environmental Science. A student who wanted to specialize in Social Studies could take AP European History, US History, and Economics. In reality, however, most students take a range of AP courses across the curriculum. A real benefit of the AP is that students can take as many AP courses as they can reasonably handle, in areas of interest to them, and still have room in their course schedule to pursue a passion in a particular subject area and take advantage of the many sports, fine arts, performing arts, and community service activities offered. Numerous research studies show that taking AP courses has a positive effect on a student’s achievement in college, and increases the likelihood of finishing university in four years. Other studies have shown that participation in extracurricular activities correlates strongly with academic performance in college, as well as success in life. A strong AP program, together with a vibrant co-curricular program, allows students to take full advantage of everything that is offered, while opening doors not only in North America, but also in hundreds of universities in Europe, Japan, Australia and many other countries.
March 2010
41
Who’s Who // Education
Why can’t we move to Japan? W
hen a company is forced to pass up bringing key personnel to Tokyo, for any reason, that company is unable to tap its best assets and compete at the highest level in Asia’s major business capital. Frequently in the past, the reason for staying out of Tokyo was because that person’s son or daughter had no educational alternative outside of the conventional curricula offered by the large international schools. As little as five years ago, exceptional students had no options anywhere in Tokyo. Today, that is definitely not the case as there are a number of alternatives, including support groups and entire schools dedicated to students with special learning needs. With each year, the number of people diagnosed with learning difficulties increases, estimated numbers are anywhere from 2-5% of the world population. Studies show that this number will increase by at least 10% over the next 15 years. If companies want to stay competitive and continue to place the most qualified people in overseas positions, they need to find alternative means of educating such dependants of these employees. In Tokyo, that requires being informed about the networks and schools who are willing and able to work with these special needs’ students. Such information is sometimes still difficult
42
March 2010
to come by, as many groups have little-to-no advertising budget. But the number of people who are dedicated to these students is increasing and so is the availability of information about these schools, organisations and professionals. The belief that each child is entitled to receive a proper education is not as simple a matter as it once was. In order to meet the needs of every student, there must exist a large collaborative network of educators, specialists and doctors dedicated to staying current in their practises and providing for the varied types of learners who inhabit the world of education today. Fortunately, such a network does exist in Tokyo, and a group of 30 of them meet biannually to discuss ways in which to offer more support for these types of students. There is a large workshop being planned for professionals and parents to learn more about strategies in meeting the needs of these students. Many schools are accepting students with varied levels of learning needs, as well as a school dedicated to accepting students who are unsuccessful at the larger, more established international schools. Employee satisfaction is paramount to the success of a business. Not enabling personnel to expand their horizons and hold positions abroad because they have a child with special
Royce Jacobs Principal, International Secondary School
Should a person be passed over for an assignment to Japan, it affects not only the business, but also family life.
learning needs can negatively impact job satisfaction. Should a person be passed over for an assignment to Japan, it affects not only the business, but also family life. Losing out on opportunities for career advancement because of how an employee’s child learns is a terrible burden to place on the family. Human Resources departments should get to know what services now are accessible. It may be time to update policies on bringing families to Japan in order to take advantage of the improved education resources available in Tokyo.
Who’s Who // Education
IB option? What’s right for my child
I
n 1968, 147 high school students from seven schools in six countries sat the first International Baccalaureate (IB) Diploma Programme examinations. Today, in 138 countries, nearly 800,000 students ages 3 to 18 are following in these early pioneers’ footsteps and are enrolled in one of the three IB programmes. Over the past 10 years, the pace of growth of the IB has been phenomenal and continues with no signs of abatement. In addition to international schools, its traditional constituency, the IB has been adopted by an increasing number of local schools in countries around the world. Thanks in large part to this growth, many internationally mobile families have some familiarity with the IB. But is an IB school the ‘right’ choice for your child? To begin to address this question, one needs to understand the ways in which the IB is different from other curricula. The IB was developed from a philosophical approach to international education and a foundation of good practice from several different national education systems. From the outset, the IB has been global in outlook and free from political or religious affiliation. On the practical side, the rapid growth of the IB has made it easier to transfer from one IB school to another. IB students can, and often do, transfer easily into the national systems. Such acceptance is attractive to many international families. With its international ethos – and embrace of good practice and the latest educational research – the IB curriculum framework is ideally suited for promoting what educators refer to as ‘21st-century skills’: providing
students with a balance between content knowledge and the learning skills that this generation of digital native students require. The IB also has developed a reputation for academic rigour, with university admissions officers looking very favourably upon IB Diploma Programme graduates. In many cases, students earning an IB diploma can receive up to a full year of university credit. Furthermore, in keeping with its philosophy, the IB is not simply about academics. It requires that students complete community service, for example; and, as one might expect, IB students are challenged throughout their studies to develop a global perspective on life. In major urban centres around the world, there can be a variety of educational options open to foreign families. National curriculum schools of the host country are an option, though language can often be a barrier for foreigners seeking to enter these types of schools. Other options can include home-country national curriculum schools in an international context, and international schools offering an international curriculum, such as the IB. Each choice has its advantages and disadvantages, and the IB is certainly not for everyone. For example, students enrolled in schools using a national curriculum often have stronger ties to that country’s culture and should be able to seamlessly make the transition between schools within that system. They also may have greater opportunity to study in their native language. As an internationally mobile parent, you should take into account many different considerations when seeking to choose the best academic path for
James MacDonald Deputy Headmaster, Yokohama International School
… what kind of academic programme will best position my children for success in a globally interconnected world and what type of school will help them fulfil their human potential as responsible global citizens.
your child. Some considerations in arriving at the best choice are practical while some are philosophical. As an international educator, and a father of three, I think the chief ones are what kind of academic programme will best position my children for success in a globally interconnected world and what type of school will help them fulfil their human potential as responsible global citizens. Though there is no ‘right’ answer, these may very well be the right questions to ask.
March 2010
43
Who’s Who // Education The American School in Japan Address
Chofu Campus: 1-1-1 Nomizu, Chofu-shi, 182-0031; Early Learning Center: 6-16-5 Roppongi, Minato-ku, Tokyo, 106-0032
Tel
Chofu: 0422-34-5300; ELC: 03-5771-4344
Fax
Chofu: 0422-34-5303; ELC: 03-5771-4341
info@asij.ac.jp
Web site
http://community.asij.ac.jp
Number of Students
1,550
Grades
N-12
Co-ed
Yes
Uniform
No
Curriculum/diploma
American
Transportation
School buses, train
School year
August-June
Serving students from over 40 countries, The American School in Japan operates on two campuses and has offered a coeducational, international college-preparatory program since 1902. Internationally recognized Advanced Placement (AP) courses provide diverse learning opportunities that open the gateway to higher education around the world and 2009 graduates were accepted by top-tier universities in the United States, Canada, the United Kingdom, Australia and Japan. ASIJ offers 50 levels of Japanese, in addition to Spanish, French and Chinese, and an extensive program of over 100 K-12 extra-curricular activities complements classroom learning and includes many service opportunities. Excellent facilities on the 5.5ha main Chofu campus and at the Early Learning Center are complemented by 150 highly qualified faculty, who provide a challenging academic experience designed to “develop compassionate, inquisitive learners prepared for global responsibility.” Over 60% of the faculty hold advanced degrees and average over 20 years of teaching experience each.
International Secondary School Address
4-17-26 Mita, Minato-ku, Tokyo 108-0073
Tel
03-5730-1331
Fax
03-5730-1332
iss@isstokyo.com
Web site
www.isstokyo.com
Number of Students
50
Grades
5-12 (2010-11 academic year)
Co-ed
Yes
Uniform
No
Curriculum/diploma
International and American
Transportation
School bus, train and public bus
School year
August-June
International Secondary School is a non-profit, grades 5-12, coeducational school providing a customised international education for exceptional, diverse, and at-risk students in the greater Tokyo area. ISS has been very effective working with, and supporting, students who have had challenges limit their experiences and achievement in other schools. One of our strengths at ISS is our ability to develop individualised programmes that cater to each student while providing small classes, highly trained teachers and a warm learning environment. ISS gives every student the respect, support and encouragement necessary to grow and succeed. Graduates of ISS go on to colleges and universities both here in Japan and abroad. Come visit our website for more information about our school, as well as information about our April 24-25 workshop on supporting people with autism. ISS also will hold an open house on March 22.
44
March 2010
Address
Yebisu Garden Place Nibankan 1F, 4-20-2 Ebisu, Shibuya-ku, Tokyo 150-0013
Tel
03-5791-2105
Fax
03-5791-2106
pips@poppins.co.jp
Web site
www.poppins.co.jp/pips/
Number of Students
18
Grades
12 months - 47 months (3 years old)
Co-ed
Yes
Uniform
No
Curriculum/diploma
British-based
Transportation
Train
School year
Sep-June (Summer program July & Aug)
Who’s Who // Education
Poppins International Pre-School
At Poppins International Pre-School we are proud to provide a safe, loving and educational English-language environment where students explore early learning through a multitude of different stimuli and make the basis of development socially and linguistically. Our beautifully designed, purpose-built facility in the heart of Yebisu Garden Place in Ebisu is bright and spacious, offering children a calm and aesthetically pleasing place to learn. We strongly believe that young children need to be exposed to a variety of different learning experiences to grow and develop at their own pace. Our truly holistic education is based on the British Early Years Programme and Foundation Stage Curriculum. Our team of skilled teachers and Early Years practitioners possess a true passion for teaching. We at PIPS believe in a strong sense of communication and community with our students’ families. This approach, coupled with our high teacher-to-student ratio, means that all our students receive ample support and attention to ensure that they can get the most out of their experience.
St. Mary’s International School Address
1-6-19, Seta, Setagaya-ku, Tokyo 158-8668
Tel
03-3709-3411
Fax
03-3707-1950
michelj@smis.ac.jp
Web site
www.smis.ac.jp
Number of Students
930
Grades
RP (Pre 1st) – Gr. 12
Co-ed
N/A
Uniform
Yes
Curriculum/diploma
American College-Preparatory Curriculum International Baccalaureate
Transportation
School bus, public transportation
School year
August-June
St. Mary’s International School has served Tokyo’s international community since 1954; accepting boys aged 5 to 18. The school has close to 950 boys from approximately 55 different countries. This international student body, rich in cultural and religious diversity, contributes greatly to the unique educational experience offered. St. Mary’s follows a U.S. curriculum and provides a collegepreparatory program including International Baccalaureate for the 11th and 12th grades. The school also has an English as a Second Language program. In addition to the core programs, specialist teachers and facilities are available for art, physical education, aquatics, vocal and instrumental music, and information technology, as well as Japanese and several other languages. St. Mary’s sport teams and fine arts programs are first rate, winning local and international honors. Our academic and activity programs are specifically designed to meet the educational and developmental needs of boys.
March 2010
45
Who’s Who // Education Tamagawa Academy K-12 Address
6-1-1 Tamagawa Gakuen, Machida, Tokyo 194-8610
Tel
042-739-8601
tamagawaib@tamagawa.ed.jp
Web site
www.tamagawa.ed.jp
Number of Students
3,000
Grades
K-12
Co-ed
Yes
Uniform
Yes
Curriculum/diploma
ISO14001 certified, IB MYP certified
Transportation
Public transportation
School year
April-March
Tamagawa Academy K-12 was founded in 1929, and is renowned as one of the finest private schools in Japan. Through its Zenjin philosophy, Tamagawa seeks to develop young people to their full potential. Unique to the Tokyo region, the school offers a co-educational, bilingual MYP Programme, as well as a superscience high school. The campus is located among the rolling hills of Machida City, west of Tokyo. The school’s 12 principles of education include providing an international education. An integrated approach to the three levels of elementary, middle and high school encourages high academic performance, a nurturing of personal interests, and the development of professionals. The faculty provide quality education that taps today’s advancements in information technology and knowledge.
Tokyo YMCA International School Address
2-2-20 Toyo, Koto-ku, Tokyo 135-0016
Tel
03-3615-5632
Fax
03-5635-1023
maxfield@tokyo.ymca.or.jp
Web site
http://tokyo.ymca.or.jp/tyis
Number of Students
90
Grades
K-6
Co-ed
Yes
Uniform
Yes
Curriculum/diploma
American
Transportation
Bus
School year
August-June
Tokyo YMCA International School serves the needs of the international community of Tokyo and provides an alternative education option for parents wanting their children to pursue English-language-based learning. TYIS also provides a highly structured English Enrichment Program (EEP) for those students needing extra assistance in this area. Small class size, together with a caring, nurturing staff, ensures a positive learning experience that is truly student-centered. All students at TYIS benefit from the rigorous, North American-based academic program, as well interactions with other students and teachers from different cultures. At TYIS we strive to give students our very best. Our teachers are diligent, caring, experienced professionals who, through positive interaction both in and out of the classroom, make a special effort to help students reach their full potential and develop healthy academic, interpersonal and leadership skills. TYIS is accredited by the Western Association of Schools and Colleges (WASC).
46
March 2010
Address
258 Yamate-cho, Naka-ku, Yokohama 231-0862
Tel
045-622-0084
Fax
045-621-0379
admissions@yis.ac.jp
Web site
www.yis.ac.jp
Number of Students
725
Grades
pre-K - 12
Co-ed
Yes
Uniform
No
Curriculum/diploma
International Baccalaureate
Transportation
Public transportation
School year
late August - mid-June
Who’s Who // Education
Yokohama International School
Yokohama International School is an independent, not-for-profit, co-educational day school for children ages 3–18. Established in 1924 as a pioneer in international education, the school offers a rich cultural mix, exciting learning environment, and excellent academic programme. At the same time, we emphasise the social and emotional development of our students, and offer an extensive range of co- and extra-curricular activities. We have great students, dedicated faculty and staff, and supportive parents and alumni. A genuinely friendly atmosphere and sense of community are YIS hallmarks. An IB World School, YIS is accredited by the Council of International Schools and New England Association of Schools and Colleges.
Yoyogi International School Address
1-15-12, Tomigaya Shibuyaku, Tokyo 151-0063
Tel
03-5478-6714
Fax
03-5478-6713
info@yoyogiinternationalschool.com
Web site
www.yoyogiinternationalschool.com
Number of Students
165
Grades
18 months - 6 years old
Co-ed
Yes
Uniform
No
Curriculum/diploma
International
Transportation
Public transportation
School year
End August - mid-June
The mission of Yoyogi International School is to nurture, yet challenge the talents of each individual child. Established in 1999, we are committed to providing children of the international community in Tokyo a high-quality early childhood education. We are now the most reputable international preschool/kindergarten in Tokyo with an enrollment of 165 students from 30 countries. We offer classes to 18-month-old to 6-year-old children. Our program is based on a grade-school preparatory international curriculum that prepares our children to make a smooth transition to both British and US education systems. Children also are introduced to Japanese culture, words and expressions through Japanese-language classes. We provide children from all over the world an opportunity to gain a sense of international awareness through mutual respect and understanding. We are a member school of the Council of International Schools, which confirms the quality and dedication we possess for educating children.
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Who’s Who // Education
Changes in the industry A
fter almost two years of job losses and contraction, the situation in some major developed countries is starting to turn more favourable, and many people are more hopeful. This historical downturn has important implications for educational institutions in terms of both executive education and master’s programs, such as the Master of Business Administration (MBA), which have seen a surge in applications over the past two years. The past two or three years have seen a very rapid change in the needs of companies and organisations in terms of the skill sets – and, in fact, the mind sets – of their employees, both at the executive level and deeper down into the organisation. Companies also have been forced to undertake massive reorganisations and restructurings in the face of vanishing revenues and profits. A much harsher business reality has emerged in which credit markets have tightened or closed completely. This makes organisational success dependent on the capability and innovation of the employees and management, rather than access to underpriced credit. Successful managers and employees of the very near future will need to be able to demonstrate their understanding and innovative capability in real business, rather than their acumen in exploiting inexpensive financing. The Desautels Faculty of Management of McGill University has been out ahead of these new demands by making its MBA curriculum more integrative in approach. This helps students see how the different disciplines of management work together to create value for customers, employees, investors and other stakeholders. This type of integration and re-orientation of programs is an improvement that should help these graduates, as they become business leaders, to frame business challenges and opportunities with the entire organisation and its stakeholders in mind. Business schools also are bringing in seasoned business people as faculty to impart the skills, mindsets and behaviours needed to deliver fresh, innovative products and services to the market. The driving force of all growing economies is entrepreneurship, which develops real and valuable products and services. MBA programs that can impart entrepreneurial skills will
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Executive and Advanced Business Education
Philip O’Neill Director, McGill MBA Japan Program, Desautels Faculty of Management of McGill University certainly be creating value for their students, as well as the wider community. In the executive education field, companies have begun to demand training and education in the specific challenges facing their businesses. In particular, companies are looking to academic institutions and professors for unbiased analyses and insights, rather than, as before, providing a general business education. This is an important change in that executive education programs now are being asked to improve business performance and drive results – rather like a learning curve for the enrolled managers. University faculties are in a better position than business consultants to provide intelligent and thorough analyses, recommendations and training. Faculty are clearly delimited in their field of expertise and are not under pressure to constantly expand their mandate, another advantage over business consultancies. Today’s challenge for faculty is not only to understand the theoretical basis of their field, but also to become deeply familiar with the structure, operations, challenges and possible solutions for the client companies. A level of responsiveness is also now demanded from both professors and executive education centers. Executive education at McGill and other leading universities brings together both practitioners and proven business leaders – who have started, built, run and sold successful businesses – into the classroom to offer their insights and wisdom. Executive education providers who are able to respond to these new demands, while offering the highest level of unbiased advice, should be able to prosper even in these very difficult economic times.
Address
Hilton Tokyo, Room 2001, 6-6-2 NishiShinjuku, Shinjuku-ku, Tokyo 160-0023 03-5215-1383 Tel 03-5215-1383 Fax inquiry@mcgillmbajapan.com Email www.mcgillmbajapan.com Web site 80 Number of Students Curriculum/Diploma Master of Business Administration (MBA), Post-MBA Certificate, Executive Education Master’s Level of Degree(s) June-May School year Bachelor’s Degree, TOEFL, GMAT, 5-years’ Prerequisites work experience Weekend Participation Hilton Tokyo; Montreal, Quebec, Canada Campus Location(s) 18 months Program Length ¥4.8 million Tuition TRADITIONS OF EXCELLENCE For almost 200 years, McGill University has distinguished itself as one of the world’s great public universities, renowned for outstanding students, professors and alumni, for achievement in teaching and research, and for its distinctive international character and reach. The McGill MBA Japan program brings those rich traditions of excellence, in addition to the over 100 years of business education and management expertise, to Tokyo in a unique format that meets the needs of working business professionals. New Format The McGill MBA Japan program is a 51-credit program delivered to the same standards as the full-time MBA program offered on McGill’s Montreal Campus in Canada by the Desautels Faculty of Management. The weekend format, however, lets you continue to work full-time so that you can convert new knowledge directly into creative solutions to help you reinvent your work, your ideas, and your future, right from the very first class. The 51-credit format allows you to complete the program in as little as 18 months.
Temple University, Japan Campus Address Tel Email Web site Number of Students
Curriculum/Diploma
2-8-12 Minami-azabu, Minato-ku, Tokyo 0120-86-1026 tujinfo@tuj.ac.jp www.tuj.ac.jp 2,300 (including non-degree programs, but excluding corporate education program) American
Level of Degree(s) School year
BA, BS, MBA, LLM, MEd, EdD Jan-Apr, May-Aug, late Aug-Dec. rolling admissions Bachelor’s Degree, TOEFL, GMAT, 5-years’ Prerequisites work experience Full-time/Part-time Participation Minami-azabu and Mita Campus Location(s) 2-4 years (for degree-programs) Program Length Temple University, Japan Campus (TUJ), is the oldest and largest foreign university in Japan. Founded in 1982, TUJ is now a nationally recognized institution offering an extensive range of educational programs. In addition to its core undergraduate program, TUJ offers graduate programs in law, business, and education; Academic English Program; continuing education courses; and corporate education classes. TUJ takes pride in its top-quality, English-language education and in providing a unique opportunity for students to obtain American degrees without leaving Japan. Students come from over 60 countries, and this diverse student body helps make TUJ a rich, dynamic, and stimulating institution. TUJ is the first in Japan to be recognized as a Foreign University, Japan Campus by the Ministry of Education, Culture, Sports, Science and Technology. This status allows TUJ to sponsor student visas, enabling international students to study at TUJ on either a short-term (one or two semesters) or a long-term (a full four-year program) basis.
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Who’s Who // Education
McGill MBA Japan Program: Desautels Faculty of Management of McGill University
EXECUTIVE NOTES
Don’t panic! Why Japan is still a safe bet “Help!” The Beatles song was rattling around my head as I heard the news today from an Economist Corporate Network (ECN) member who belongs to a major advertising group. Corporate resources are being transferred out of Japan into the booming markets of China, India, Vietnam and Indonesia, she told me. Another member was casting around in some desperation for information to help him negotiate with his head office about funding for acquisitions opportunities in Japan. In fact, as any real investor knows, the best time to double your money is to invest when everybody is getting out. Just like patsies shun the stock market when it’s cheap, so it’s misguided to shun Japan because of its current problems. Deflation may be an ugly word – but remember this is not the crushing asset deflation we had after 1991. What we are getting now is a continuation of the deflation that has been bringing Tokyo prices in line with the rest of the world. Real estate, especially the practice of paying non-returnable deposits, still has some way to fall, I believe. Food is extraordinarily cheap and good, but there are plenty of other areas where efficiencies have not yet made themselves felt. So you should welcome deflation – embrace it with open arms. Deflation rewards those companies which are – quite simply – more efficient than their peers. The brands of companies which can meet the challenge are flourishing. We all know the examples of UNIQLO, 50
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Nittori, H&M, Zara, IKEA, and so on. But they should alert us to the fact that companies with the right business model are hoovering up cash in Japan. Given how muddled and inefficient Japan’s service industries are (and they make up 72% of Japan’s GDP!), this is a golden time to invest in Japan. That is precisely why I am organising a series of seminars for our most senior members on the issue of “How do you sell Japan to HQ?” In the meantime, over in China, we are being reminded that the cuddly panda is returning to its primal bearish nature: imperious and aggressive. Foreign companies have been taken aback by the change in tone. Personally, I was horrified by the recent execution of a British passport holder for drug smuggling. Despite evidence that he was mentally disturbed, Beijing refused to examine him. The reason I was so shocked was that I was in China for 11 years from 1996 – a golden time for foreigners with “rich nation” passports. Everybody in China got the message from on high: be nice to these bearers of foreign capital and technology. And they were nice, at every level. In fact, the lower levels bordered on the servile. So the execution was all the more disturbing. I called my German business friend, a China veteran. He is on the point of marrying a beautiful Shanghainese woman, and doing up a huge colonial mansion in the city centre. He stoutly denies any suggestion that China is getting less welcoming to foreigners. He points out
you should welcome deflation – embrace it with open arms. that when the USAF mis-read its maps and wiped out the Chinese embassy in what was then Yugoslavia in 1999, and when a United States spy plane crashed into a Chinese jet fighter in 2001, there was a similar cooling of temperatures. Maybe he’s right. But this same individual also candidly admitted to me that the Beijing branch of his small IT company was ruthlessly plundered by his local staff – one of whom (I met him) was a top Beijing University graduate. An interesting role in all this was played by his finance manager. He trusted her, and she generally looked after his interests, but did not think it worthwhile to tell him that a large percentage of his yearly growth was illegally going to his managers. Have you heard about this kind of thing happening in Japan? I didn’t think so. That’s because Japan is not an emerging market, but benefits from the rule of law. You make a lot less money over the short term, but you could end up in front over the long term. Keep the faith. Text Dan Slater, The Economist Group
C ulture - S hock
A flourishing career Text Kai Kurosawa Photos Tony McNicol
“Never give up. If you believe in your style, do it over and over again and just hope it becomes a success,” says Hans Damen, chief flower designer at Roppongi florist U. Goto. During a 16 year career, the Dutchman has become renowned for his hybrid of modern European and traditional Japanese flower designs. Hans’s clients have included visiting celebrities and local VIPs, such as Spanish tenor Plácido Domingo and several of Japan’s prime ministers. He has sold both individual flowers for a modest sum, and decorated entire houses and hotel rooms for up to hundreds of thousands of yen. But when Hans arrived in Japan, European flower design was only just starting to take root. He joined U. Goto, founded in 1892, company’s first foreign designer. “I had complete freedom,” he recalls. “My boss was really open to new designs and new techniques.” Yet some things about the Japanese flower industry surprised Hans. “It was like stepping back 10 or 20 years in flower history,” he remembers. Japanese designs were very traditional, unlike more modern styles in Europe at the time. And whereas flowers in Europe were mass-produced, the Japanese flower industry was based on many small growers. “You have a much greater variety of flowers in Japan and it’s spread across the country, from Hokkaido to Okinawa,” says Hans. Some Japanese flower traditions were a challenge. There were times when, in a particular motif, he wanted to use four flowers, an unlucky number in Japan. And at first there was a little resistance to including fruit or vegetables in arrangements, something quite common now.
U. Goto is particularly busy at holiday times, such as Valentine’s Day and Christmas. “Mother’s day is hell,” he says, laughing. “We get maybe 2,000 orders in a week.” To cater to Japanese tastes Hans often slips peach blossoms and sakura branches into his spring arrangements, albeit with a modern touch. He is also a devotee of ikebana, Japan’s flower arranging philosophy.
peach blossoms and sakura branches Hans commutes nearly two hours each way from Kanagawa Prefecture. He enjoys visiting ikebana exhibitions and is also a fan of taiko drumming. When at home, however, he makes sure to spend time in his garden. “I like to be outside and just stick my fingers in the soil.” See all the photographs at www.eurobiz.jp
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Through diplomats’ eyes Wabi sabi
This year’s annual “Colors of Japan through Diplomats’ Eyes” project features the photos of 61 diplomats from 39 countries. Focusing on the theme of wabisabi, the photographers capture not only the traditional Japan of temples and gardens, but also scenes of modern life. Wabi-sabi is a term from Japanese aesthetics that refers to tranquil simplicity (wabi) and beauty found in impermanence (sabi). A selection of diplomat’s photos are on display at the Foreign Correspondents’ Club of Japan until 2 April. See all the photographs at www.eurobiz.jp
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1 Yasuhisa Kawamura, Japanese Ministry of Foreign Affairs 2 Peteris Vaivars, Latvia 3 Franz-Michael Skjold Mellbin, Denmark 4 Yury V. Saplin-Silanovitsky, Russia 5 Ali Siam, Palestine Mission 6 Norma Polski, Argentina 7 Paulo Chaves, Portugal 8 Lisbeth Richardson, European Delegation
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W ork P lace
Astrid Klein and Mark Dytham are the European founders of Tokyo-based Klein Dytham architecture. They have designed buildings, interiors, public spaces and installations for almost two decades. Photo Tony McNicol
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