Japan to reach New Heights: What they would need to do
It’s weird being so abrupt, but let’s start this discussion with a look into Japan’s economy.
In Japan, there is no GAFA[1] and, truthfully, there will never be one.
Seeing new Japanese goods being accepted globally will be amazing, but it’s hard to see that reality. Why?. Increasing aging population along with a general lack to innovate are all valid reasons. But what about the past?.
In Japan, it’s common to reminisce about the 1970s ~ 1990s era. And actually, it’s unsurprising once you start to hear the numbers.
Average growth rates of 9.4% (up to 1970s), 3.8% (up to 1990s).
The growth was phenomenal – those only rivaled by that of frontier nations (at the time).
It’s no wonder, considering:
1. Massive growth in population after WW2.
2. Growth in the working population.
3. More people, more consumption, growth in domestic demand.
That was at the center of the most high-growth era of Japan. But ever since the 1990’s, the above 3 mentioned, has steadily decreased year after year. And truthfully, the chances of Japan recovering are very very slim.
So with the situation being so grim, it’s no wonder that many think “Where’s the next opportunity?”.
What else could you realistically do?. Me turning 50 soon and hopefully still working for the next 20 years, this is one thing I actively consider.
WHAT COULD JAPAN DO?
There is one opportunity…
In Japan, there are lots of businesses that are isolated from the world.
These businesses, generally, survive from niche marketing. For example, the “ludicrously expensive small fishing pole” mentioned in a past post[2].
Taking these niche Japanese businesses and pushing/sharing them to the world, that sounds like an opportunity to me. How?, because, interestingly, they are so popular around the world.
Okay, let me relate this to my own experience – of living around the world. Everywhere I go, it’s fascinating to see so many people interested in Japan. Souvenirs, accessories, things that represent Japan are so highly valued everywhere.
These items are what I entail when meaning the “Japanese Niche”.
WHAT ARE SOME EXAMPLES?
How about… Japanese traditional crafts?. Like Sensu, for example.
The fan that you see above, it’s known as a SENSU and has a 1200 year old history.
Back in the day, it was used as a prop for Traditional Japanese Dances, along with theaters like Kabuki. SENSU’s were not just something to cool you down. It was a symbol of good luck that was often gifted to others.
And Sensu, from the shape to the way it folds, is very Japanese.In a traditional Japanese house, there are these sliding doors called (ふさま). Closing these doors allows separation and creates two rooms.
Opening these doors connects two rooms into one, and makes the room bigger.
But more importantly, instead of just being a tool, they’re often decorated with beautiful patterns.
Which creates value that comes from more than just its purpose.
SIMILARITIES WITH SENSU
(ふさま）is an artistic pleasure that expands more than just it’s ability to create dividing space in an ambiguous way. And, actually, it works similar to a Sensu.
When closed, it’s convenient enough to carry around and easy to give as a gift. When opened, it spans from more than just a fan to become an artistic gift. Providing two benefits for the price of one. That is the essence of SENSU, and of course other Japanese goods. Those of what we call “The Japanese Niche”.
And, of course, other countries can replicate and create the same SENSU.
How different from other nations?
But I have conviction that replicating the 1200 year story accompanied would be difficult.
And that’s Japan’s advantage: Creating traditional crafts that have beautiful designs with long histories.
Yet these Japanese niche businesses often choose not to market. It’s usually because of these few reasons:
1). Not being the greatest with English.
2), Not wanting to seem like an appealer.
These Japanese-lie characteristics limit so much of the potential growth these niches can achieve.
And it’s not just SENSU, it’s for all Japanese Niche Businesses.
So the strategy would be to connect these niche businesses to the world. If done, they are sure to achieve massive success.
[1]. GAFA = ACRONYM FOR THE GIANT SOFTWARE INDUSTRIES IN US: (GOOGLE, APPLE, FACEBOOK, AMAZON)
[2]. IF INTERESTED, CHECK OUT FISHING POLE POST HERE: LINK