Cross Sectoral Business Opportunities

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Arctic Deimension Japan Quick Check


Design LifestyleCross-sectoral Business Opportunities Business Opportunities Quick Check Japan

* Finpro Japan/ *

Country Facts 1GDP and information on major cities GDP : JPY 532,302 billion (2004) GPD (gross prefecture production)Tokyo: 81,843 billion Osaka:38,296 billionAichi:33,923 billionEducational levelCompulsory education (until Junior High School) : 99.98%High School : 97.30%University (include 2 years collage) : 49.00%

* Finpro Japan/ *

Country Facts 2PopulationWhole Nation : 127,687,000 (2004) Age range: 0-14: 14% / 15-64: 67% / over65: 19% Major city populationTokyo(1st): 8052000Osaka(3rd): 259400Nagoya(4th): 216900Sapporo(5th): 1806800Fukuoka(8th): 1331400Sendai(12th): 946600

Marital status division (2004) House Hold : 46,323,000 Single: 10,817,000 Parents and child (couple/parents+child/single parent+child) : 2,8060,000 Grand parents and parents and child : 4,512,000 Others : 2,934,000

- rate of late marriage is increasing in nation wide - rapid increase in rate of single especially urban area - rate of divorce has been continuously and rapidly increasing for these 10 years

* Finpro Japan/ *

Everyday lifestyleTime Consumption of daily life Living time consumption 1. Sleeping/Eating etc: 10.34h / day2. Work/Household etc: 7.00h / day3. Free Time: 6.26h / daydiscretion on Work / Household time and incretion of free time especially in 60s ageFree time time consumption Relaxing time (reading, TV) : 3.53h / day Active free time (study, hobby, sports, volunteer activities etc.) : 1.10h / day stagnation in free time activities / decrease of active activates even people wish to doLiving expenditure per household Average : 304203JPY/month 1. Education 2. Refresh (e.g. alcohol drink, pet, gardening, hobby) 3. Information (e.g. PC, Internet usage, mobile) 4. Outsourcing (e.g. prepared food, eat out, day care for child) 5. Health (e.g. health foods, faintness)

* Finpro Japan/ *

Keywords for Understanding the Life style of the Japanese peopleHealthSafety / securityAuthenticityOriginalityConcept Discriminating TasteInnovativeness (IT)

PremiumRelaxation (Healing / Calming)


* Finpro Japan/ *

Key Factor of Change and Diversification of life style in JapanRapidly increase of aging population and decrease of birth rateDiversification of Household type 3 generation family (grand parents + parents + child) 2 generation family increase in single house householdRapid increase of number of woman working outside the homeCollapse the myth of steadily and predictable increase of incomeRapid penetration of Information Technology Chang and diversification of Lifestyle

* Finpro Japan/ *

Consumption Patterns of the Japanese

Increased selectivity and polarization in consumption minimum consumption in daily life products and not much limitation in premium consumption Obsession with food freshness and quality highly concern about food safety especially recent food safety problem (BSE, Bird Flue, Pesticide residue in vegetable etc.)Increase in dining outside the home changing of life style ( increase of female employment rate / aging society)Growth in convenience shopping changing of life style ( increase of unmarried people, increase of female employment)

* Finpro Japan/ *

Recent attractive consumer targetActive Senior actively participate in society and spend time and money to enjoy their own life. Average saving for over 70s is JPY 20 millionA large baby- boomer cohort (born in between 1971 -1974) JPY 80 trillion market in 2007 because of their retirement moneyParasite Single age 20 34 : 10 million parasite singlesSix Pockets market for kids / parents+ 2 grand parents (6 pockets) spend their money to child or grand child because of decrease of child birth, parents and grand parents will be able to spend the money for grand child

* Finpro Japan/ *

Keyword for Japanese Consumer Behavior High Price Convenience Premium 37%(2000) 35%(2003) 13%18% Main customer: 40s, 50% male Main Customer : 20s, 30s unmarried Market channel : Convenience Store Male, Female Internet channel Market Channel : Female: Department Store Consumption Eagerness: weak Male: Consumer Electronics Mass Merchandisers Consumption Eagerness: Strong

weak discriminating taste strong discriminating taste Reasonable Price Exhaustive Search 40%34% 10%13% Main Customer: 60s Main Customer: 10s, 20s Market Channel : Discount Store Consumption Eagerness: Weak Consumption Eagerness: strong

Law Price

* Finpro Japan/ *

Keyword of Lifestyle Concept in Japanese MarketSlow Life Eco LOHASBrand Accessible Luxury Brand LuxeUniversal DesignTraceabilityHealing & Health business Detox / Massage / Esthetics

* Finpro Japan/ *

Trend of Lifestyle Creation in Japanese MarketLOHAS (Lifestyles of Health and Sustainability)Lifestyles of Health and Sustainability, LOHAS, is a new-coming end consumers trend in US and in Japan.

Its market conservatively estimated at $228.9 billion in the U.S., and growing. There is no statistical data for Japanese market, but estimated large scale of market segment and rapidly growth.

* Finpro Japan/ *

Trend of Lifestyle Creation in Japanese MarketLOHAS market segmentGreen building and industrial goodsRenewable energyResource-efficient productsSocially responsible investingAlternative transportationEnvironmental managementNatural, organics; nutritional productsFood and beverageDietary supplementsPersonal careEcological home and office products

Organic / recycled fiber productsEnvironmentally friendly appliancesEco-tourism and travelHealth and wellness solutionsAcupuncture, homeopathy, naturopathy, etc.Holistic disease preventionComplementary medicineMind, body and spirit products such as CDs, books, tapes, seminarsYoga, fitness, weight lossSpiritual products and services

* Finpro Japan/ *

Proposal for Life Style,Selling concept & not selling Product; Eco, LOHAS, HealthyIn some cases, environmental benefits have come to be expected, such as with energy-efficient electronics and appliances. Due to a variety of forces, such as energy blackouts, escalating fuel costs, and improved technology, buying energy-efficient appliances and electronics is now second nature to many consumers. These market forces have also been driven from decades of government involvement, through programs.

Furthermore, about two-thirds of consumers indicate a willingness to spend more on the initial purchase price for products that will save them money on their electric or water bills in the future. This shows a predisposition to invest now for future savings.

* Finpro Japan/ *

Life style creationLOHAS & Branding for Values-Driven ConsumptionMany environmentally-friendly products on the market today are attractive to consumers, even if the primary benefit is not solely environmental. Many products offer health benefits (such as natural/organic food and personal care). Others offer cost savings (as with energy efficient products and hybrid cars).

Many premium brands incorporate LOHAS values. These brands are able to sustain brand image (and price) premiums, perhaps in part because they have developed meaningful and differentiated LOHAS-related platforms.

* Finpro Japan/ *

Penetration of lifestyle concept (Medium)TV program program related LOHAS Magazine Lifestyle magazine: BRIO LEON Croissant SOTOKOTO ELLE DECO Free magazine: R25 Hot PepperEvents Lifestyle Forum (exhibition, music live, seminar type talk session) Slow Food event at Hotel or famous popular restaurant (invite famous shef / slow food menu / cooking class etc) Interior Lifestyle Event Internet site

* WEB is only available in Japanese

* Finpro Japan/ *

Recent Trends in Major Retail Store Categories 1/3Department Sore (annual sales: JPY 8.43 trillion)Seven straight years of negative growth - 1. Takashimaya (Osaka) / 2. Mitsukoshi (Tokyo) / 3. Daimaru (Osaka) / 4. Isetan (Tokyo) / 5. Marui (Tokyo) (only Japanese)General Merchandise Stores (annual sales : JPY 8.5 trillion) - Separating the winne