tag:blogger.com,1999:blog-38805377149195755382024-03-05T23:10:30.858+09:00Carpediemjapan.comWhat is really happening in Japan in SNS, fashion, retail, and more?
Find out here.Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.comBlogger101125tag:blogger.com,1999:blog-3880537714919575538.post-84517638416142798702017-08-24T17:57:00.001+09:002017-08-24T17:57:26.445+09:00Yamato Teams Up with Fashion e-Tailor to Deliver to Parcel Lockers<div class="separator" style="clear: both; text-align: center;">
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In a joint press release, Yamato Transport Co., Ltd. and Start Today Co., Ltd., the operator of Japan's largest fashion e-commerce platform, <a href="http://zozo.jp/">ZOZOTOWN</a>, announced that commencing August 23, 2017, ZOZOTOWN has become the first e-commerce site in Japan to enable customers to designate PUDO station parcel lockers as their delivery destination at point of purchase. PUDO station lockers are made and operated by Packcity Japan Co., Ltd.<br />
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1.Background of <a href="http://www.packcity.co.jp/">Packcity Japan</a></h3>
Packcity Japan is a joint venture formed in May 2016 between Yamato and Neopost Shipping with Yamato owning 49%. The company aims to install approximately 3,000 PUDO locker stations in train stations and other public locations by March 2018, focusing on the Tokyo metropolitan area.<br />
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2. A Solution to Yamato's Ongoing Overflow Woes?</h3>
This announcement also comes in amidst Yamato's ongoing problems of having too much business to the point where their employees are overworked and even outsourcing is a challenge. With the announced price hikes of September just around the corner, Yamato has been holding negotiation meetings with their major clients including amazon and Rakuten. From what I have personally seen, the price increase Yamato is proposing of its most heavily discounted customers is an average of 20%.<br />
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In response to such requests, amazon has secured an alternative supplier for its same day deliveries, TMG, and I have been receiving a number of announcements from companies like <a href="http://www.1101.com/store/techo/pc/ja/2017/" target="_blank">1101.com, makers of the popular "Hobonichi" diaries</a>, that they have shifted their supplier from Yamato to Japan Post.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihnUBhVQyZSmFig2enCBeO4oqnV79sxN161d5Je1oWXvJM20HjuprmTXj_fOLu2EPBBgCN3s8pWbJvVI8cOihGFWj7L6RE2ji-tkXsSpUwgqBP3_MPZPvF5DnEljG-pRYzEh_H3X_6A1o/s1600/Webmail____%25E3%2580%2590%25E3%2581%25BB%25E3%2581%25BB%25E3%2582%2599%25E6%2597%25A5%25E3%2582%25B9%25E3%2583%2588%25E3%2582%25A2%25E3%2580%2591%25E9%2585%258D%25E9%2580%2581%25E4%25BC%259A%25E7%25A4%25BE%25E5%25A4%2589%25E6%259B%25B4%25E3%2581%25AA%25E3%2582%2589%25E3%2581%25B2%25E3%2582%2599%25E3%2581%25AB%25E6%258E%25A8%25E5%25A5%25A8%25E7%2592%25B0%25E5%25A2%2583%25E3%2581%25AE%25E3%2581%258A%25E7%259F%25A5%25E3%2582%2589%25E3%2581%259B.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="530" data-original-width="726" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihnUBhVQyZSmFig2enCBeO4oqnV79sxN161d5Je1oWXvJM20HjuprmTXj_fOLu2EPBBgCN3s8pWbJvVI8cOihGFWj7L6RE2ji-tkXsSpUwgqBP3_MPZPvF5DnEljG-pRYzEh_H3X_6A1o/s320/Webmail____%25E3%2580%2590%25E3%2581%25BB%25E3%2581%25BB%25E3%2582%2599%25E6%2597%25A5%25E3%2582%25B9%25E3%2583%2588%25E3%2582%25A2%25E3%2580%2591%25E9%2585%258D%25E9%2580%2581%25E4%25BC%259A%25E7%25A4%25BE%25E5%25A4%2589%25E6%259B%25B4%25E3%2581%25AA%25E3%2582%2589%25E3%2581%25B2%25E3%2582%2599%25E3%2581%25AB%25E6%258E%25A8%25E5%25A5%25A8%25E7%2592%25B0%25E5%25A2%2583%25E3%2581%25AE%25E3%2581%258A%25E7%259F%25A5%25E3%2582%2589%25E3%2581%259B.jpg" width="320" /></a></div>
This email, that went out to all 1101.com members was particularly striking in that it specifically says that "Yamato has officially informed us that they would like to <b>stop doing business with us</b> as of end November 2017." The company has a turnover of approximately 3.8 billion yen ($34.75 million USD), of which 70% is its diaries. 60% of the 610,000 diaries it sold in fiscal 2016 (period ending August 2016) was sold online. The company listed on the Tokyo Stock Exchange on March 16, 2017. This is just a shift of 427,000 parcels, the majority of which is shipped from September through January each year, but it is proof that Yamato was not joking when it said it was going to reduce its volumes and trim back its large volume shippers customer base.<br />
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3. How the ZOZO- PUDO system will work</h3>
(1)When a customer makes a purchase, the customer can choose to change the delivery address to a location that is open 24/7.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWPtQr5rkW3SH1is8NCURsoHKpVyfb-wy4FCAde8kaSzrvoAPLMOQW474Pn-n8WX6l8Bq5aUoGv53r23vVzTOp4edy5lsVIzEt-G68Id4RaXJPA0bTEiQ3db6WLBGKPDN0EU6jg0pF6-E/s1600/%25E6%25B3%25A8%25E6%2596%2587%25E5%2586%2585%25E5%25AE%25B9%25E3%2581%25AE%25E7%25A2%25BA%25E8%25AA%258D_-_ZOZOTOWN.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1046" data-original-width="1600" height="209" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWPtQr5rkW3SH1is8NCURsoHKpVyfb-wy4FCAde8kaSzrvoAPLMOQW474Pn-n8WX6l8Bq5aUoGv53r23vVzTOp4edy5lsVIzEt-G68Id4RaXJPA0bTEiQ3db6WLBGKPDN0EU6jg0pF6-E/s320/%25E6%25B3%25A8%25E6%2596%2587%25E5%2586%2585%25E5%25AE%25B9%25E3%2581%25AE%25E7%25A2%25BA%25E8%25AA%258D_-_ZOZOTOWN.jpg" width="320" /></a></div>
Once, the icon is selected, the consumer is invited to type in the 7-digit postal code to locate the nearest convenience store or locker.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigzQHSwmUfPm9iDsg1zYrLF9Qt3Z16VPBwXOpEWzgf8QlCTw1Ez8S9rATuD6oDsgFI6BruMmQOPQA6CyhDkOUOQ7s4BWKdUdILenL1xVbW9jkIKZB0y_AoLGy17auY4rCGonfweua01gk/s1600/%25E5%258F%2597%25E5%258F%2596%25E3%2582%258A%25E5%2585%2588%25E5%25BA%2597%25E8%2588%2597%25E3%2583%25BB%25E3%2583%25AD%25E3%2583%2583%25E3%2582%25AB%25E3%2583%25BC%25E3%2582%2592%25E9%2581%25B8%25E6%258A%259E_-_ZOZOTOWN.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1346" data-original-width="1392" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigzQHSwmUfPm9iDsg1zYrLF9Qt3Z16VPBwXOpEWzgf8QlCTw1Ez8S9rATuD6oDsgFI6BruMmQOPQA6CyhDkOUOQ7s4BWKdUdILenL1xVbW9jkIKZB0y_AoLGy17auY4rCGonfweua01gk/s320/%25E5%258F%2597%25E5%258F%2596%25E3%2582%258A%25E5%2585%2588%25E5%25BA%2597%25E8%2588%2597%25E3%2583%25BB%25E3%2583%25AD%25E3%2583%2583%25E3%2582%25AB%25E3%2583%25BC%25E3%2582%2592%25E9%2581%25B8%25E6%258A%259E_-_ZOZOTOWN.jpg" width="320" /></a></div>
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Once a delivery location is designated, a map pops up with all the suggested locations flagged. I also now see a parcel locker at the JR station showing up on my options. </div>
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(2)Once the item is delivered, Yamato will send out a delivery confirmation email from mail@kuronekoyamato.co.jp. In the email will be details of how long the item will be held in the locker and which locker it is in.<br />
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(3)Service availability<br />
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This service is available to all ZOZOTOWN registered users (guests not included) and it is not limited to Kuroneko Members, who are registered with Yamato.<br />
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(4)Fees<br />
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There is no surcharge or any other fees levied to use this service.<br /><br /><br />
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In Summary</h3>
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Yamato and Rakuten tried a time-limited offer to reward Rakuten users who received their parcels on the first delivery attempt with extra Rakuten loyalty points. But since there was no major announcement and no repeat campaign, I am guessing it was not that well received and it was not enough to drastically remedy the woes of failed first-time delivery attempts.<br />Rakuten already has a My Calendar feature, where users can set their preferences to have deliveries to their homes automatically scheduled to the next "favoured day and time of the week." For example, if you want your deliveries to arrive on Saturday mornings regardless of when you place your order, you can set your preferences to this end and all Rakuten sellers will ship accordingly unless you specify otherwise. I sometimes forget I have set this option and get frustrated and restless when my purchases do not arrive on the next day, which is the norm. But overall, it is a win-win for me and the delivery people, and there are hardly any items that really need to reach me the following day.</div>
Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com1tag:blogger.com,1999:blog-3880537714919575538.post-35361104907019248752017-08-01T17:36:00.003+09:002017-08-01T17:36:58.598+09:004 Billion Parcels and Labor Shortage Shed Light on the Dark Side of the Most Convenient Economy in the WorldJapan may now be the world's third largest economy in the world, but it is undoubtedly the most convenient economy in the world. We have mobile phones that act as wallet, train pass, and TV. Shopping and dining could mean spending some extra time inside the train station where we have access to UNIQLO, Starbucks, and a wide assortment of restaurants. Convenience stores enable us to rush out at 1 am to buy underwear if we realize we are out of fresh ones and it is not a great hour to start doing laundry. We even have toilet seats that stay warm and shower our bums. And same day or next day delivery of our online shopping items is not a premium service we pay extra for - it is the cost of doing business in Japan thanks to amazon, Askul, and anyone else whose online stores have loyal clientele.<br />
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Thanks to such convenience, Japan's small parcels delivery is showing no signs of decline as the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced on 27 July, 2017.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyedFmsXXNr2hoQG5ZizgRxOjzmp2xGODRdrLMJ0QKBCw1iuGMbd5o-SD16X1zSG6W2R5DZYyxLit5uaIE1FfjpbxUbGr7lZuP5QafiSiSDWuvKnzV6GFXCEO-oqH5HKG2nlVEGrUJSL0/s1600/2016small+parcels+volumes.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1058" data-original-width="732" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyedFmsXXNr2hoQG5ZizgRxOjzmp2xGODRdrLMJ0QKBCw1iuGMbd5o-SD16X1zSG6W2R5DZYyxLit5uaIE1FfjpbxUbGr7lZuP5QafiSiSDWuvKnzV6GFXCEO-oqH5HKG2nlVEGrUJSL0/s640/2016small+parcels+volumes.jpg" width="442" /></a></div>
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MLIT statistics indicate that small parcels traffic in Japan grew 7.3% year-on-year to 4.02 billion parcels, exceeding 4 billion for the firs time in history. </div>
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Broken down, ground transport items were 3.98 billion pieces and air transport items were 40.8 million pieces. The steep growth and high volumes of ground transport parcels is attributed to the growing popularity of online shopping.<br />
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The Big 3 - Yamato, Sagawa, and Japan Post (Yu Pack), amount to a total of 93.4%. Add two more larger players and their share total is 99.8%. This is not a highly diversified industry and Yamato, if anyone, should be benefiting most from economy of scale.<br />
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Yamato's Pain and Punishments </h3>
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4.08 billion parcels is not all good news for the delivery companies. </div>
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On 23 June, Yamato Holdings Co., Ltd., the parent company of Yamato Transport Co., Ltd. who offers the Ta-Q-Bin service, held its annual general shareholders' meeting. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu9o8lNhyphenhyphenLzD1YTrma3bQ2JOUm2OTgZAnWmNrqe7Td1e3B7XNsOfD8s_k8k-5n1zpVtnUikNePOromH5pIykc6rVoCigAd5Vynrvj-Sroq0Z0Xxj1-_oNB7Gp5NFZiOm1bcMnc5hrk7WA/s1600/yamatoHDAGM.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="450" data-original-width="394" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiu9o8lNhyphenhyphenLzD1YTrma3bQ2JOUm2OTgZAnWmNrqe7Td1e3B7XNsOfD8s_k8k-5n1zpVtnUikNePOromH5pIykc6rVoCigAd5Vynrvj-Sroq0Z0Xxj1-_oNB7Gp5NFZiOm1bcMnc5hrk7WA/s320/yamatoHDAGM.jpg" width="280" /></a></div>
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<a href="http://www.excite.co.jp/News/economy_g/20170731/Keizaikai_25982.html" target="_blank">It is reported</a> that at the opening, Masaki Yamauchi, CEO of Yamato Transport Co., Ltd. led his fellow management team to bow for 5 seconds in an apology for the significant loss Yamato reported as a result of having to pay two years of compensation for unpaid overtime owed to its employees. </div>
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Yamato Holdings posted provisions for unpaid wages of 23.0 billion yen, bringing down the consolidated net profit by 54% over the previous period to 18.0 billion yen. Yamato anticipates its performance to continue to suffer from this ordeal with a 6% decline in net profit in fiscal 2017 to 17.0 billion yen. They plan to install a new system to more accurately manage actual working hours.</div>
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The Yamato saga began in November 2016 when a man in his 30s who claimed to be a sales driver for Yamato in one of its Yokohama operations centers held a press conference at the Ministry of Health, Labor, and Welfare to publicly accuse Yamato of forcing him and his colleagues to work illegally long hours and then denying them compensation for it. The said man had left Yamato prior to the press conference in autumn of 2016, and had been explaining the illegal working conditions to his local Labor Standards Inspection Office. </div>
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Following the press conference, Yamato's own labour union began to request changes to their long working hours and compensation for unpaid overtime, towards the end of 2016 and the beginning of 2017. </div>
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Yamato's Strategy and PR office says, "since the summer of 2016, we have seen demand for our Ta-Q-Bin services grow exponentially. Then, the end of the year gift giving season put further pressure on our operations as the growth did not slow at all. The Labour Union began to collect requests from its members that the Union must demand management to remedy the long working hours and to pay for the unrecognized overtime work. This led to both the Union and management to work together to uncover the facts."</div>
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Yamato launched an internal investigation from around February this year to collect facts and data. This led to understanding the full extent of their problem and Yamato worked to remedy its ailment. <a href="http://www.nikkei.com/article/DGXLASDZ28H3V_Y7A420C1000000/" target="_blank">On 28 April, Yamato Holdings announced such punitive measures for Yamauchi and his management team</a> as a 30% cut in pay for several months for causing its employees to work such long hours, and that the company will pay for unpaid overtime up to 23.0 billion yen. </div>
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But Yamato is just a tip of the iceberg. Yamato's Strategy and PR office explains that "the logistics industry in general is now suffering from a structural shortage of labor. The effective job to applicant ratio in fiscal 2016 was said to be 1.22 jobs for every applicant, but when it comes to driving jobs, it was 2.33, which is double the average ratio. To drive trucks, one must have a driver's license but less and less youths are opting to get licenses these days, much less for larger vehicles like trucks. As a result, it is becoming extremely difficult for us to secure the manpower we need."</div>
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In <a href="http://www.yamato-hd.co.jp/news/h29/h29_07_01news.html" target="_blank">the announcement of 13 April, whereby Yamato announced its vision in revising its working environment and the way its employees work</a>, Yamato also announced that it will commence negotiations with its large customers like amazon, to increase the steeply discounted delivery fees.</div>
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And the problems are not just Yamato's alone. Japan Post, whose Yu Pack small parcels service only began to be included in MLIT's stats from October 2016 is also seeing similar challenges. It even won <a href="http://blackcorpaward.blogspot.jp/2016/12/2016_23.html" target="_blank">a Special Judges Award for 2016 on the Most Evil Corporation of the Year Award</a> alongside Dentsu, who won the Grand Prize as one of its employees committed suicide from being overworked. </div>
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Network Saturation Is a Reality in Japan</h3>
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When I attend conferences in Shanghai, Singapore, or Hong Kong that covers first and last mile services for e-commerce deliveries, and I ask the question about network saturation, everyone looks at me like I am crazy to put a damper on the sky high business potential presented to delivery business by e-commerce growth. Non-Japanese operators seem to not even fathom that their infrastructure could quickly become overwhelmed by the growth that is happening.</div>
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The only other "organism" that I can think of, that grows so fast that it kills the very infrastructure that nurtures it is cancer. When I had cancer, it was explained to me that the cancer cells are not themselves poisonous or dangerous in that they directly cause pain or malfunctions. What makes them malicious is their ability to grow so fast that it overtakes the other "healthy" cells and inhibits their functions. I was also told that in a place like the skull, where space is limited, once the cancer grows enough to put pressure on the brain, that is when various symptoms happen. </div>
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As unpleasant as it is, this explains what is happening to the delivery industry in Japan right now. We have only so much capacity to deliver. We can even imagine the delivery network like blood vessels. And in a healthy person, the amount of blood that flows in our veins is probably maintained at a healthy level. But if our system for some reason, began to produce so much blood than can be held in the veins, I would imagine that some of the liquid would have to seep through the vessels into other body tissue. And if blood continued to increase...??? This is scarier than a Stephen King movie.</div>
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But that is where we are at.</div>
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Yamato is hoping that by raising prices, it can control the amount of parcels coming into its system. But what we are seeing is that amazon, who is estimated to ship <a href="https://carpediemjapancom.blogspot.jp/2017/06/amazon-japan-enlisting-10000-private.html" target="_blank">300 million parcels</a> (by the Nikkei) a year, has changed suppliers, and now I see a different face at my door and he seems just as exhausted as the Yamato guy and the Sagawa guy who also come to my door, but less often. </div>
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Has knowing this led me to shop less on amazon and Rakuten and more in real stores? Not really. </div>
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Am I being charged delivery fees more than before? I think so. But I feel my tolerance for accepting delivery fees is increasing, too, because I am still as time poor as before and e-commerce is becoming even more convenient. And I do find that if the shipping cost doubles my purchase price, then I decide to live without the items.</div>
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So, we have yet to see where this leads. </div>
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And whether consumer behavior will change or will the share of wallet just change. </div>
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Labor Shortage Results in Bankruptcy for Taxi Company</h3>
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Another industry that competes for drivers with delivery companies is the taxi industry. Japan's taxi market is very heavily regulated and even domestic businesses like Kyoto's MK Taxi, whose policy is to keep their prices lower than their competition has faced legal challenges to hike prices in line with everyone else. <a href="https://www.bloomberg.com/news/articles/2016-10-23/uber-turns-its-strategy-upside-down-in-japan" target="_blank">While Tokyo is estimated to be the world's largest taxi market at $17 billion USD, share riding like Uber is not allowed to operate in the key metropolitan areas.</a> </div>
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Near Tokyo, Naganuma Kotsu, a taxi company based in Inage city of Chiba Prefecture (which is where Narita International Airport and Disney Land are actually based) was announced bankrupt in December 2016 by the Chiba Regional Court. Its inability to hire enough drivers forced their operations to shrink to the point where the company became unsustainable. </div>
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In April, Kyoto trucking company, Minobe Unso went bankrupt. The company cites price pressure from its clients and the lack of drivers as its two main woes. </div>
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Other industries that are struggling to secure workers is construction, food & beverages, and convenience stores. </div>
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<br />Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-68335898517371121382017-07-19T10:58:00.001+09:002017-07-19T11:56:35.451+09:00Yamato vs Sagawa vs Japan Post: New Rates from September ComparisonWhen Yamato's labour union asked management to stop accepting additional business, shockwaves hit the nation because Japan has now officially become the first market in the world to reach full parcel deliveries capacity, it seems.<br />
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As at end March 2017, <a href="http://www.yamato-hd.co.jp/news/h29/h29_03_01news.html" target="_blank">Yamato announced that it delivered a total of 1,867,563,562 parcels for the financial year</a>. If it still has 48% of the market, <b>the total number of parcels delivered in fiscal 2016 would be estimated to be just under 4 billion, or approximately 50 parcels a year for every Japanese person aged between 15 and 64. </b>As an avid e-commerce fan, I probably receive at least double that, and it is certainly enough for me to wish there was a more frequent collection of used cardboard boxes than the current once a month. (We have to sort our rubbish in Japan, and waste to be recycled has designated collection days each month by category. For cardboard, it is once a month where I live, on the last Wednesday of the month.)<br />
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And since the Yamato announcement, we have seen postings by a courier insider blowing the whistle on the inhumane working conditions at a courier, and more recently, Nikoniko published interviews of staff at a courier depot and an amazon depot, in which the courier staff claims that his work hours are from 8 to 28, or 8 am to 4 am the following day. There is also mention of how the legally mandated one-hour lunch break is cut back to as little as 15 minutes during peak times, and management insisting that drivers continue to deliver after midnight if he has not emptied his truck, despite the last delivery slot being up to 9 pm.<br />
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Against this harsh backdrop of too much growth killing the industry players like a voracious cancer eating its way through the host, price hikes are coming into play from September 2017. Yamato is raising its published rates for the first time in 27 years, and will officially become the most expensive courier of the big 3.<br />
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Sizes are determined by the total measurement of the box: Height + Width + Depth. </div>
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The table shows that Sagawa has already introduced new weight surcharges above the thresholds. Previously, as in the case of Yamato and Japan Post, the weight limit for the standard prices was 20kg across the board. But now, Sagawa charges surcharges based on the different weight limits for each size.<br />
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In addition to the price hike, Yamato has announced that it will reduce the different delivery time slots from the current 6 slots to 5, doing away with the 12pm to 2 pm slot. </div>
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Also, Yamato currently allows recipients to call for a 2nd delivery attempt up to 8 pm on the day of the attempted delivery, but is cutting that down to 7 pm for same day delivery of the initially failed delivery attempt.</div>
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There will also be discounts of 50 yen for electronic shipping labels and a further 50 yen for deliveries being picked up at Yamato's directly operated delivery stations.<br />
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No Sign of Decline in Volumes for Yamato at This Time</h3>
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Yamato's volumes are showing no signs of declining despite its reduction in business with amazon, whereby amazon is being forced to farm out its same-day delivery parcels and other deliveries to one of its five new delivery partners who aggregate small and medium sized local delivery agents.<br />
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According to its press releases, Yamato's volume since April are as follows:</div>
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<ul>
<li>April 2017: 143,361,077 (103.4% over previous year)</li>
<li>May 2017: 149,033,220 (107.3% over previous year)</li>
<li>June 2017: 158,455,390 (104.6% over previous year)</li>
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<br />Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com2tag:blogger.com,1999:blog-3880537714919575538.post-61280879453599773322017-07-06T16:07:00.001+09:002017-07-06T16:07:54.141+09:00Instagram Monetized through Image Search on SNAP by IQONFashion shopping online can be fun, but it can also be the most frustrating thing in the world, because when you like something you saw in a magazine, paparazzi photo, or on Instagram and you go looking for it, finding a needle in a hay stack would be easier.<br />
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How many times have you seen things on Gigi or Lady Gaga that you absolutely wanted but have no clue where to find it or something like it?<br />
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It is one thing when it is as simple as trying to find a pair of sleek black skinny jeans and pointy toe ballet slipper a la Kate Moss. But it is quite another when you want to find something a bit more designed, textured, and colorful.<br />
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Putting Words to Styles is SO HARD!</h2>
For example, say you like that green skirt and (what color IS that???) pink/red fluffy bag in this photo. How would you go about shopping for these things?<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgX4RUvd5XBYRGvFKzS-oy-pd8uQ5wohPvWK6txNultJ7RbA1x0gi7liigjEXvsuSdayPU2NPM_wGaXKGmtmbrxkct8vA5OLTbYevSLbRQLKlj6EB1C2lIw0OOFdQGmwhTWVotJxkcBtk8/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.29.17.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1112" data-original-width="760" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgX4RUvd5XBYRGvFKzS-oy-pd8uQ5wohPvWK6txNultJ7RbA1x0gi7liigjEXvsuSdayPU2NPM_wGaXKGmtmbrxkct8vA5OLTbYevSLbRQLKlj6EB1C2lIw0OOFdQGmwhTWVotJxkcBtk8/s400/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.29.17.png" width="272" /></a></div>
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After hours of searching images on Google or in Polyvore, you might just need to run into ZARA to see if you get lucky? If only it was not 1 am, the peak e-commerce time in Japan.</div>
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So, comes a savior to save women with an e-commerce platform where pictures are worth a thousand words, literally.</div>
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<a href="https://snap.ne.jp/" target="_blank">SNAP by IQON</a>, launched in March 2017, is using its Instagram account to monetize Instagram like no one else.<br /><br /><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGt936_NuCGm9wniD_Va-p8AbK2d57Wz8C0GcL6PezbT_lRm5ynhedUc1FcqG7qwQ5zfEYlgxIwqx0H0V5bKGGeJ6hwbnAEtv9UomEeg1PH8nDvivzKr06ri4rrgaNNj8DNvKu-2MTmbY/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.26.16.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="679" data-original-width="1600" height="168" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGt936_NuCGm9wniD_Va-p8AbK2d57Wz8C0GcL6PezbT_lRm5ynhedUc1FcqG7qwQ5zfEYlgxIwqx0H0V5bKGGeJ6hwbnAEtv9UomEeg1PH8nDvivzKr06ri4rrgaNNj8DNvKu-2MTmbY/s400/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.26.16.png" width="400" /></a></div>
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The company who operates the site and account, VASILY, Inc. has rounded up approximately 60 models and style icons who are popular on Instagram. When these Instagram fashion icons post images, they appear on SNAP's account. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCunYpW6BqEA8qbXmgjVQQ29abj3a3yaQSJrd6vEoqrAwN1QdMvn1lby9MGGOf27SQczbF4f6GE4HtXfq9Clv58RfgRISBCJL0-5SX_Uq3vMFCXKo6ComWbmiPX86rtb_EF_99nfYOSp8/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.35.33.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1086" data-original-width="1114" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCunYpW6BqEA8qbXmgjVQQ29abj3a3yaQSJrd6vEoqrAwN1QdMvn1lby9MGGOf27SQczbF4f6GE4HtXfq9Clv58RfgRISBCJL0-5SX_Uq3vMFCXKo6ComWbmiPX86rtb_EF_99nfYOSp8/s320/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.35.33.png" width="320" /></a></div>
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SNAP analyzes the images using AI (artificial intelligence), and makes recommendations on the various items it detects be it a dress, bag, shoes, a T shirt, skirt, or trousers. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXXZd65fXaPnwo3iLePp2QS5G7SOJTRfLlP1oWzivAOboMbaK2sJR1wq-llApggpNw7fE-hMKqY5TTKy-4TvwsKJcvp9AvTgA8WoL4wiFJ2oC4Xz62UeItx0-wFhX4PXblTQbFTkC25dU/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.08.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1076" data-original-width="1506" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXXZd65fXaPnwo3iLePp2QS5G7SOJTRfLlP1oWzivAOboMbaK2sJR1wq-llApggpNw7fE-hMKqY5TTKy-4TvwsKJcvp9AvTgA8WoL4wiFJ2oC4Xz62UeItx0-wFhX4PXblTQbFTkC25dU/s320/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.08.png" width="320" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgev7fKpKpcajuIJ_Kkmgt0oltoqOjE8zDdbn2BCefhWk90UWMbE_GCw_m1EyDAvd4NZasoAA-JxQAIBiCpQM9XkqrJm-F9S20GaTh6KwR7aiAG_aaQNNrENqi-EHH-F8047TtmDKmVNbo/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.16.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1062" data-original-width="1518" height="223" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgev7fKpKpcajuIJ_Kkmgt0oltoqOjE8zDdbn2BCefhWk90UWMbE_GCw_m1EyDAvd4NZasoAA-JxQAIBiCpQM9XkqrJm-F9S20GaTh6KwR7aiAG_aaQNNrENqi-EHH-F8047TtmDKmVNbo/s320/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.16.png" width="320" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWf8Vh3htUweEDies7b0Uvc6RP2I5ZW_I5m6_vJkABVA-mC3zQq5V8ow9q6IjrQlyafhk07eyFk82T9cmVB_pvbPrm7CZcnzFVR4FDQ7o_s5hga2BNQIPS45WdMu6lT1W2kVWFc-Qj9AE/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.24.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1012" data-original-width="1512" height="214" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWf8Vh3htUweEDies7b0Uvc6RP2I5ZW_I5m6_vJkABVA-mC3zQq5V8ow9q6IjrQlyafhk07eyFk82T9cmVB_pvbPrm7CZcnzFVR4FDQ7o_s5hga2BNQIPS45WdMu6lT1W2kVWFc-Qj9AE/s320/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.24.png" width="320" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDw1Go0Si5jU8uBdiCHmlKerc3JwVRE18k0AizbYMv0bDdjAJ8uPTfJeh1W5M2T_ukuKgSwtJxXGpJgkGjR3Dv_sM5rXpWFI7buRqCnZqWr24JNhRTS_PAA0HeuW98Eh_gTgY7uWf7zMU/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.32.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1510" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDw1Go0Si5jU8uBdiCHmlKerc3JwVRE18k0AizbYMv0bDdjAJ8uPTfJeh1W5M2T_ukuKgSwtJxXGpJgkGjR3Dv_sM5rXpWFI7buRqCnZqWr24JNhRTS_PAA0HeuW98Eh_gTgY7uWf7zMU/s320/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.28.32.png" width="320" /></a></div>
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The recommendations are pulled from over 200 different e-commerce sites that VASILY is affiliated with. And thus, is able to offer a wide range of prices as well. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv6En6CRo0RhfJQbcXfb5q6rswiXbj8bOvmBfafjt_pBL944mUfAu1FpRa3JjEI2K9nQX_bif1kMQU8S5j1xZT6ASkQr6c7eOdQHTQbx2i-z-z8C_3wJICcVzMza2BN0FEbaO90blT0yI/s1600/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.58.27.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1152" data-original-width="748" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv6En6CRo0RhfJQbcXfb5q6rswiXbj8bOvmBfafjt_pBL944mUfAu1FpRa3JjEI2K9nQX_bif1kMQU8S5j1xZT6ASkQr6c7eOdQHTQbx2i-z-z8C_3wJICcVzMza2BN0FEbaO90blT0yI/s320/%25E3%2582%25B9%25E3%2582%25AF%25E3%2583%25AA%25E3%2583%25BC%25E3%2583%25B3%25E3%2582%25B7%25E3%2583%25A7%25E3%2583%2583%25E3%2583%2588+2017-07-06+15.58.27.png" width="207" /></a></div>
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Now that Instagram and apps like Starttoday's WEAR is changing the way the fashion conscious are gathering information on what to wear and how to wear them, fashion magazines alone are not the "go to" destinations. And while fashion catalogues are becoming more sophisticated, they are restricted by lead times and print runs.<br /><br />The real trends happening now linked to buy now platforms are accelerating the demand for such services as SNAP by IQON.<br /><br />UNIQLO has also released an image search function in their app, where customers can upload a photo onto image search from their smartphones and UNIQLO will find items on their site that are similar to the items worn in the photo. The images to be uploaded do not need to be of UNIQLO clothing, but UNIQLO will find something UNIQLO that is closest to the image. </div>
Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-44699013809481308242017-06-22T09:04:00.003+09:002017-06-22T09:04:55.832+09:00Amazon Japan Enlisting 10,000 Private Couriers in Tokyo for Own Delivery Network<div style="background-color: white; color: #333333; font-family: "ヒラギノ角ゴ Pro W3", "Hiragino Kaku Gothic Pro", "MS Pゴシック", sans-serif; font-size: 15.36px; line-height: 1.2; margin: 0px 0px 5px; padding: 0px;">
The Nikkei published on 22 June 2017 that it has learned that amazon Japan has enlisted 10,000 private couriers to create its own delivery network in response to Yamato's pulling away from amazon business. </div>
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<span style="font-size: 15.36px;">According to the Nikkei report, amazon Japan is aiming to secure 10,000 private couriers in the Tokyo Metropolitan area alone by 2020. Their focus is on private couriers who specialize in same day deliveries. This is in response to No.1 private courier Yamato Transport Co., Ltd. pulling out of the service, leaving amazon to switch to Plan B. This move by amazon is anticipated to be welcomed by the private couriers that are used to absorb overflow by such major players as Yamato and rival Sagawa during peak times, as it would boost their overall volumes and hopefully, provide steady work throughout the year. </span></div>
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The Nikkei estimates that amazon ships approximately 300 million parcels per year. This is the equivalent to just under 10% of overall domestic small parcels delivery volumes in Japan. If amazon starts to spread more volume to small and medium sized couriers, this would help towards leveling the playing field for e-commerce deliveries, which, to date, is a stronghold for the big three: Yamato, Sagawa, and Japan Post. </div>
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In Tokyo, by far the largest destination, <a href="http://www.momotaro.co.jp/company/about.html" target="_blank">Maruwa Unyu Kikan Co., Ltd.</a>, a delivery company offering "Momotaro Bin" services predominantly for online supermarkets and is listed on the 1st Section of the Tokyo Stock Exchange, has brought together private couriers. Maruwa has already commenced services within the 23 wards as the contracted delivery agent for same day deliveries for amazon.</div>
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<span style="font-size: 15.36px;">Maruwa's objective is to keep a close eye on the working hours of the drivers while guaranteeing a steady volume and thus income for them. Maruwa plans to offer dormitories, fuel subsidies, as well as training. Where necessary, Maruwa is also prepared to lease light-weight vehicles that are easier to maneuver through the central business district to encourage newcomers into the business. </span></div>
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Maruwa has already prepared several hundreds of light-weight vehicles for the job. The plan is to expand to 1,000 vehicles within this year and to secure 1,000 and more drivers. By 2020, the objective is to expand to 10,000 vehicles and 10,000 drivers so that same day delivery service can be realized in the major neighboring cities to Tokyo. Depots will be added to its network and the overall investment is estimated to exceed 10 billion yen, funded by Maruwa's own money. </div>
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According to the Ministry of Health, Labour, and Welfare, in 2016, there were 2.01 job openings for every driver for delivery service drivers including truck drivers. This is much higher than the national average of 1.25 jobs per applicant, clearly indicating that it is a seller's market lacking resources. The reason is that the job is tough while the pay is light. </div>
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<span style="font-size: 15.36px;">Delivery services by light-weight vehicle requires owners to register their vehicle with the Ministry of Land, Infrastructure, Transport, and Tourism, and the business can be launched with just one vehicle. As at March 2016, the number of such registered businesses was 154,842. Many couriers are contractors to the large and medium sized delivery companies, but their business tends to rely on peak periods with very limited volumes in between. </span></div>
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Amazon has its own warehouse and delivery hubs in more than ten locations throughout Japan. They have been offering same day delivery to mostly the urban areas excluding the most remote islands. Such deliveries have been handled by Yamato and japan Post, but Yamato has begun to cut back on same day delivery services with an eye on pulling out of the service all together. Yamato has already been forced to cut back its service offering by removing the 12:00 pm to 2:00 pm delivery time slot due to rising costs and overtime work, and in the need for higher efficiency. </div>
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Many e-commerce businesses are heavily dependent on Yamato, and as a result, they, too, are having to reduce their time certain delivery options. Online stationery and office supplies seller, <a href="http://www.askul.co.jp/" target="_blank">ASKUL Corporation</a> (whose name ASKUL means "delivered tomorrow") has revised its time certain delivery options on 20 June to align with those of Yamato. The same has been observed for major fashion retailer <a href="http://zozo.jp/" target="_blank">ZOZOTOWN</a>, operated by Starttoday Co., Ltd. </div>
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In response to inquiries by the Nikkei, ASKUL has revealed that they plan to enhance its delivery services for its SOHO and consumer business. </div>
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Japan's largest online marketplace, Rakuten, has also announced plans to establish its own delivery service while in response to the Yamato shock, <a href="http://www.nikkei.com/article/DGXLASDZ14IGF_U7A410C1EA6000/" target="_blank">in April, Rakuten ran a campaign to offer 3x more loyalty points</a> (1 point = 1 yen) to customers who successfully receive their purchases on the first delivery attempt. </div>
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Japan Post is also running a campaign from April through September whereby consumers can earn Ponta points (convenience store chain Lawson's in-store loyalty program) and other benefits if they opt to receive their parcels at post offices or via parcel lockers. </div>
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Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-17841743922821182712017-06-02T09:11:00.001+09:002017-06-02T09:12:17.850+09:00Sagawa Tests Deep Learning AI Parcels Diagnostics Solution<div id="NewsArticle" style="background-color: white; font-family: メイリオ, "MS Pゴシック", "ヒラギノ角ゴ Pro W3"; font-size: 14px; margin: 0px; padding: 0px;">
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Sagawa Express and artificial intelligence solutions developer Automagi collaborate to develop a Deep Learning AI Solution that measures and evaluates parcels.</h2>
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<a href="http://www.e-logit.com/loginews/2017:053102.php" target="_blank">Sagawa Express</a> and <a href="https://prtimes.jp/main/html/rd/p/000000014.000012535.html" target="_blank">Automagi</a> announced on 31 May 2017 that they undertook the testing of a solution that uses deep learning AI (artificial intelligence) to not only measure parcels but to distinguish its shape, the presence or the lack thereof damage, and handling of parcels, a project approved by the Ministry of Economy, Trade and Industry and awarded to NTT Data Co., Ltd. </div>
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Objective: a solution to help suppliers keep up with the growing demand of parcel deliveries</h2>
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When it came to light in February 2017 that <a href="https://www.linkedin.com/pulse/yamato-union-asks-less-business-jules-takagishi" target="_blank">Japan's No.1 parcel deliveries company, Yamato Transport Co., Ltd.'s Union was asking management to reduce the number of parcels the company was taking in</a>, shockwaves hit Japan. In no other country has domestic parcels delivery demands have grown to a point where service providers physically experienced saturation and overflow. Yamato has been trying desperately to keep up with surging demand by hiring more staff and outsourcing where necessary. But when reports of suicide from overworking and pressure and hours of unpaid overtime work would not stop, even management had to say, enough is enough. </div>
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Against this backdrop, NTT data proposed that the labor-intensive operational processes in parcel delivery get some help from AI-driven automation. The company believes that by applying the latest deep learning AI engines, such tasks as acceptance into the warehouse, sorting, and even loading and unloading trucks can be automated as just a start with many more applications to be developed thereafter. </div>
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Image Diagnostics Tested at Sagawa Sorting Center</h2>
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Sagawa's role was to install the proposed image diagnostics device in its sorting center. The company hopes that in the near future, such solutions will enable it to reduce manpower at sorting centers as securing staff has become and will increasingly be more difficult as demand continues to grow rapidly.</div>
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At the front line of parcels logistics, the diversity of the shapes and sizes of parcels that are handled has traditionally made it a challenging, or daunting, segment to automate. NTT Data's solution can automatically identify up to 1,000 different types of parcels for size, shape, how they are to be handled (fragile, "this side up," and so on), volume, and whether they are damaged or not. To date, such "diagnostics" of parcels is predominantly done by human beings. Once the parcels can be correctly identified, such data can then be applied to create automated processes for loading and/or offloading, inspecting, and packing, says NTT Data, and thus, will lighten the burden on the drivers. </div>
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Meanwhile at Yamato...</h2>
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Yamato's Chronogate already has a robot arm that offloads parcels from cages (0:30 ~) and 3D scanners that scans parcels as they move on conveyer belts (the cross belt sorter 2:01~) that automatically sorts them.</div>
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Youtube Video: Daily Cargo published 1 October 2013</div>
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Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com2tag:blogger.com,1999:blog-3880537714919575538.post-1082626367087963962017-05-30T19:42:00.001+09:002017-05-30T19:44:36.581+09:00Amazon Japan to Stop Enforcement of MFN After Fair Trade Investigation<h1 class="cmn-article_title cmn-clearfix" itemprop="name" style="background-color: white; color: #333333; font-family: "ヒラギノ角ゴ Pro W3", "Hiragino Kaku Gothic Pro", "MS Pゴシック", sans-serif; font-size: 15.36px; line-height: 1.2; margin: 0px 0px 5px; padding: 0px;">
<span class="cmnc-middle JSID_key_fonthln" style="font-size: 19.2px;">Nikkei Reports Amazon Japan to Stop Enforcement of MFN Status After Investigation by Japan's Fair Trade Commission </span> <span class="cmnc-small JSID_key_fonttxt" style="font-size: 15.36px;"></span><br /><span class="cmnc-small JSID_key_fonttxt" style="font-size: 15.36px;"></span></h1>
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<span style="font-size: 15.36px;"> Amazon Japan will stop enforcing MFN (most favoured nation status) on its suppliers of e-books and for Market Place sellers, whereby they must guarantee the same price and merchandising assortment on Amazon as with other competing sites. Japan's Fair Trade Commission investigated Amazon in August 2016 over this clause in their contracts to determine whether it would be an infringement on the Anti-Monopoly Law. A similar investigation was underway by the EU Commission as well. </span></div>
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Japan's Fair Trade Commission was investigating Amazon because if the absolute market leader forces their suppliers to offer them the most favorable trading terms, that could become a major impediment for competing businesses to enter the e-commerce market. </div>
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If suppliers and consumers were forced to have no other options to sell/shop but Amazon, the Fair Trade Commission was preparing to rule that they were infringing on the Anti-Monopoly Law. However, as Amazon has now chosen to self-regulate, it is now anticipated that the Fair Trade Commission would delay their ruling indefinitely. </div>
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Regarding Amazon's FMN clause in their contracts, the EU Commission is investigating its legality on digital books while other Fair Trade Commissions including that of the UK are looking into the practice in online travel agencies. In Japan, the investigation on Amazon is the first in terms of MFN. </div>
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Amazon Japan's PR Manager declined to comment to the Nihon Keizai Shimbun (Nikkei) when contacted on 30 May 2017. </div>
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According to sources who know the Amazon warehouses well, Amazon is planning to delete the MFN clause from the contracts for publishers supplying e-books and Amazon Market Place sellers.<br />
The EU Commission closed its investigation on 4 May when Amazon.com of the US submitted a revision plan and a pledge that it will stick to the revision plan for five years. </div>
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Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-80283742021604035842017-05-30T18:14:00.000+09:002017-05-30T18:14:04.537+09:00Yamato CEO on New Rates: The Lifetime Cost of Shipments Are the New Standards for Pricing<h2>
Yamato Holdings Co., Ltd. CEO Masaki Yamuchi to Nikkei: if customers decide to leave us, then that cannot be helped. </h2>
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Yamato has announced that it will be hiking prices as at September 2017. I have first-hand knowledge that the proposals they are presenting to high volume customers is for increases of around 20%. I also see that already, Amazon.jp deliveries have been handed over to <a href="http://www.tmg-group.jp/" target="_blank">TMG Group</a> and Japan Post - at least to my neighborhood. </div>
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Yamato has been in the spotlight for some time now, ever since the Union asked for less business and more decent working hours and conditions this past spring, along with allegations that employees have committed suicide from overwork. The company is having to make changes and fast changes under the spotlight, as Yamato Holdings Co., Ltd. is a publicly listed company on the 1st Section of the Tokyo Stock Exchange. <br />
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e-commerce is not going away and B2C parcels are increasing at an alarming rate. Yamato's trucks and distribution centers are operating at maximum capacity and more at peak times, and employees have been working long hours without pay. Yamato's senior management blames "the unprecedented pace of growth in e-commerce related parcel traffic," "lack of manpower," and "changes in social insurance and other welfare legislation" as the combined cause of their woes. </div>
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<span style="color: #333333; font-size: 14px;">But can senior managers at a 1.46 trillion yen ($13.3 billion USD) company just blame external causes for the mess they are in and get away with it?</span><br />
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<span style="background-color: transparent; font-size: 14px;"><a href="http://business.nikkeibp.co.jp/atcl/report/16/030300119/052600008/" target="_blank">Nikkei Business Online managed to interview CEO Masaki Yamauchi</a> to find out.</span> </div>
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Here is the gist of the interview:</div>
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<b>Why did Yamato wait 27 years to raise prices?</b></div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span><span style="background-color: transparent;">:We have noted that utilities like water and gas have gone up by approximately 30%, Tokyo city bus fares by 30%, and taxis have gone up by 40% since we last raised prices.</span></div>
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<span style="background-color: transparent;"> But at Yamato, we have been absorbing rising costs by increasing productivity and enhancing efficiency while offering more value-added services and convenience to our customers. We pride ourselves on providing what has now literally become a social infrastructure to people not just in Japan, but overseas as well.</span></div>
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<span style="background-color: transparent;"> Yet recent times have thrown us straws that broke our camel's back. For example, we are now subject to much higher costs of taxes and costs due to some legislative changes. Of course we have anticipated this changes and planned to adjust to them, but the pace of change is much faster than our pace of adapting to them. We are struggling to secure enough people to handle our volumes and have reached a point where efficiency and productivity alone cannot cope with the market's growth.</span></div>
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<span style="background-color: transparent;"> We want to stay relevant to customers and continue to offer the services our customers have become so used to using. But to do that, we need to raise prices as we look further into the future at more growth and more challenges.</span></div>
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<span style="background-color: transparent;"> It just so happens that we took the decision to change our rates at this time and it is the first time to do that in 27 years.</span></div>
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<span style="background-color: transparent; font-weight: bold;">Consolitaed Operating Profit has not grown for more than 10 years since you hit 60 billion yen ($541 million USD) in March 2006. If the pricing was right, one would think that operating profit should grow with your volume, but why has this not happened? </span></div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span><span style="background-color: transparent;">:Part of the problem is our heavy discounting for high volume customers, but the other cost boosting problem is that e-commerce traffic tends to have a high rate of failed first time deliveries due to customers not being at home. Or, there is a high concentration of deliveries for the evening time slot, which has changed the profile of our deliveries significantly. e-commerce related shipments are growing much faster than the overall market, and as a result, we are seeing a particular segment of our shipments grow exponentially and out of balance with the rest of our business. As a result, these e-commerce related shipments forced us to take on more costs and did not contribute to our bottom line as much as we had hoped.</span></div>
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<span style="background-color: transparent;">Buying Market Share: an addictive and not productive process</span></h3>
<b>You offer heavy discounting for high volume customers like Amazon Japan. What was the management logic behind allowing such practices?</b><br />
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<span style="background-color: transparent;"><span style="color: #165e83;"><b>Yamauchi</b></span><span style="color: #333333;">:Part of the reasoning behind it was that we were following a legacy policy of increasing market share through discounted pricing. This is exactly what we are in the process of rooting out right now, but it has become an industry rule, if you will, for parcel companies to offer steep discounts to customers who give us large volumes of shipments. This is because, in the past, when we looked at our costs for collection at the first mile, long-distance line haul, and then last mile delivery, there was no one segment that stood out from the rest other than that the first mile costs were on the heavy side. Therefore, if we only needed to make one stop to collect many parcels, we would offer discounts based on the volume as there was a benefit of scale to be had there. </span></span><br />
<span style="background-color: transparent;"><span style="color: #333333;"> However, with the rise of e-commerce, the last mile costs have been growing rapidly and exponentially, due to failed delivery attempts and re-direction requests. Therefore, any efficiencies achieved at the first mile is not impacting our costs positively, and thus, the logic behind offering discounts for large volumes no longer exists. </span></span><br />
<span style="background-color: transparent;"><span style="color: #333333;"> Of course, we are not ignoring the economy of scale realized by high volume customers on the first mile. There are efficiencies in fuel and personnel to be enjoyed. But </span><span style="color: blue;"><b>we need to look at the lifetime value of our shipments to see for whose parcels high-cost issues of failed delivery attempts and re-directing occur most often. Yamato now believes in "total pricing" or total lifestyle pricing</b>. </span><span style="color: #333333;">This is where we are right now. </span></span><br />
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So the heavy discounts for high volume customers came at a time when your business was predominantly C2C based on the efficiencies gained in the first mile? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Yes, that is correct. That is how it was for us when we first started with Ta-Q-Bin. It was a time when there were more than 30 players in the parcel delivery market. At the time, I believe the management's decision to approve of the heavy discounts was so that we could gain market share by securing such high volume customers.<br />
But times have changed now. Market share is not our top priority. We focus more on offering a convenient and high value-added services to our customers and we have been investing to offer more of that.<br />
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This time, Yamato announced that you will cap the volume of parcels you receive, which is a powerful message that it is not about market share for you. When did this change in emphasis on market share come about as a management mandate? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:This is extremely difficult to answer. We went to buy market share when it mattered and the market was very competitive. But today, the rivals of yesteryears are merged as in the case of Nittsu's Pelican service and Japan Post. </div>
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Did Yamato specifically feel a sense of urgency when Japan Post was aggressively pursuing market share leading up to their IPO? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:No, not by then. There was a time leading up to that time when we felt that Japan Post was aggressively pursuing market share to show that they were growing. Around that time, we began to see prices fall in the market and the causing much confusion. We deliberately made a decision to distance ourselves from that.<br />
For customers who want to cut costs to increase their competitive edge, there is nothing we can do if they decided to use other suppliers based on cost alone. On the other hand, we have customers who want to offer better service and products to grow their business.<br />
At the moment, Yamato is focusing on servicing the latter group with our best efforts, and we are openly honest with the former group to say there is only so much we could do for them. And if price is all they care for, and they choose to move away from us, we feel there is nothing we could do about it.<br />
The Yamato brand is built on the strong commitment to ongoing delivery of good service. This is what we believe in at Yamato and this is how we will serve our customers. <br />
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You have made public announcements that you will pay retroactively for unpaid overtime and will implement measures to increase the number of staff. Was the implementation of such measures delayed due to the misguided anticipation that productivity was on the rise in your operations? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:As you can see from the volume growth trends for Ta-Q-Bin, we have implemented a wide range of measures to improve productivity in response. That is exactly why we managed to grow our volumes to the levels we see today and have been able to manage our operations efficiently to date.<br />
There is no mistake that productivity is on the rise. Just a quick look at the number of parcels handled per driver per hour is a clear indication of this. Productivity increase was realized through our full time drivers, the use of part time staff, and by implementing various innovative solutions over time. <br />
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Don't you think that part of the productivity increase was the result of staff not reporting their overtime work accurately?</div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Productivity is measured by using the number of recognized active manhours and parcels processed. We monitor such activities through portable devices used by our staff, so if there were manhours we failed to capture, then such miscalculations may have occurred. We have identified areas where we failed to accurately capture necessary data, and that is why we are implementing the work style enhancement programs to steer it back to accurate figures.<br />
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<h2>
No Consistency in Hiring Plans </h2>
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When we look at your hiring trends, we fail to see consistency in your hiring plans. </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:I agree that our number of new hires fluctuate between financial years, but there are times when we hire more people in anticipation of volume growth and get too far ahead on overhead as a result of actual growth being more mild than expected. We also have the team collection initiative that has boosted productivity. Such factors may influence the number of new hires for the following year to be smaller. <br />
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In the period ending March 2016, the total number of Ta-Q-Bin business employees have declined. Why did this happen? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Sometimes, even if we plan to increase staff, we cannot hire accordingly. We did not plan to reduce employees, but that year saw our numbers fall not by planning, but as a result of many things. Because of this, we increased the amount of outsourcing to correspond with the growth in volumes.<br />
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Can't you increase salaries and hourly wages to secure the number of persons you need? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:I doubt that alone would be sufficient. For example, if we could triple or quadruple the hourly wages, there would be people who welcome that. But we have cut up the work hours into small blocks like mornings and late evenings. In some areas, it is difficult to find people who are willing to work those hours and agree to other conditions, too. Such issues result in the inevitable imbalance of hiring when comparing areas and regions.<br />
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At what point did you and your management team realize you had a crisis on hand?</div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Both management and the head of the Union are constantly monitoring what goes on in the front lines. For example, discussions on how to reduce work hours was a joint initiative with the Union.<br />
We announced that we would make an extraordinary payment to staff for reported unpaid overtime, but as I mentioned earlier, the point when we began to realize that reality was beginning to move farther and farther away from plans is around the summer of 2016. We abruptly began to face difficulties in hiring staff and our manpower was insufficient to maintain our business operations. <br />
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How did your operations people see the way things were up to last summer? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Up to about 18 months ago, we were having no difficulty in hiring part time staff in all regions. However, from around last summer, we started seeing an obvious drop in responses to advertisement.<br />
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At the press conference, you said you were "too late in noticing" the crisis. Do you feel there were ways you could have caught it earlier? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:It is not that we did not notice, but rather, we saw a dramatic change come on abruptly and we were scrambling to respond. However, there is the fact that the change was much faster than we had anticipated. You can say that was an oversight on our part in retrospect. </div>
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We understand that volume increases started as early as 2013 and operations staff were under much pressure since then. </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:I am not sure how to respond to that other than that it is true that our volumes began to grow fast and we began to see an increase in the number of failed delivery attempts as well as concentration in the late night time slot. I believe this coincides with the growth in e-commerce related parcels volumes. However, it is not until less than a year ago that we began to feel that our operational staffing was insufficient for the volumes. </div>
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How did you monitor the failed delivery attempts? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:We did not actually capture it as a data point and thus, it was not as visible. We began to feel that the number of failed delivery attempts were on the rise especially in urban areas as e-commerce related deliveries rose significantly. However, we only began to capture data the last two years. We also came to understand that as same day delivery began to be more popular, failed delivery attempts also began to increase. </div>
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Yamato has been investing a total of 200 billion yen ($1.8 billion US) in such mega logistics facilities as the Haneda Chronogate and Atsugi Gateway. The concept of non-stop logistics was endorsed to operate gateways in Atsugi, Chubu, and Kansai 24/7x365 where core channel transport were to be transformed into frequent shuttle operations. However, as the mega facilities operate nonstop and bulk shipments become more frequent, your front line operations for Ta-Q-Bin have remained unchanged. Isn't this gap causing the additional burden on your front line staff?</div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Based on the traditional business model, perhaps it is easy to conceive that as e-commerce shipments increase, bulk line haul should also increase. But with e-commerce shipments, there are localized, regional warehouses, so shipments actually increase within that region and not across regions. At present, Yamato sees the potential for bulk line haul growth in B2B traffic. With B2B, there is the issue of holding inventory and inventory being in transit. So by increasing the bulk line haul, we are assisting in reducing the inventory in transit.<br />
I urge you not to think that our mega facilities are there for e-commerce business. Yamato is focusing on this B2B channel as one of our future pillars. And we expect volumes in this channel to increase. When that happens, the gateways at Atsugi, Chubu, and Kansai will really become effective as will our bulk line haul network.</div>
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For the period ending March 2017, your operational profit target was 90 billion yen ($8.1 billion USD), but for the past ten years, your performance has been around 60 billion yen ($5.4 billion USD). What is the cause of the gap between your target and actual performance? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:We had not anticipated the vast growth of e-commerce shipments and changes in tax laws at the time of creating our medium-term business plan. Also, we have our Value Networking Strategy, which is to promote international and B2B logistics, but we are facing some delays on that front. </div>
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Did you expect BtoB logistics to grow more? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:BtoB logistics requires our customers to migrate from their existing platforms to ours, which takes one to two years to execute. The sales process is also longer and the lead times requires is longer than we had expected. </div>
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In the world of BtoB logistics, it is said that customization of logistics systems for each individual client is key. Do you see limitations in realizing B2B logistics on your existing Ta-Q-Bin platform? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:We want to create a platform and offer it as a standard to the entire industry to help boost efficiency across the board. If we build a system that is good for a particular customer only, that would be beneficial to that particular client, but such a system may be challenging to use for other clients and especially small and medium sized businesses. Yamato wants to create a platform that is accessible and easy to use for small and medium sized businesses. </div>
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How much does B2B contribute to your overall parcels traffic at this time? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:When seen in the overall picture of all of Ta-Q-Bin, approximately 10% of everything that we receive is from individual consumers and the other 90% originate from businesses. Of the 90%, B2C is 50%, and B2B is about 40%. Our target for the Value Networking Strategy is still very small at this point. </div>
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As your Value Networking Stragety with BtoB logistics at its core is delayed, why did you not think of increasing volume you take on from high volume customers like Amazon Japan to increase the volume going through Haneda Chronogate and other gatweays? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:That was never in the equation. If we did that, that would finish us. The beauty of Chronogate is in offering high value-added logistics services, not just pushing volume through. </div>
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The history of Ta-Q-Bin has been the history of creating new demand. As e-commerce thrives and grows, do you feel that Yamato is being challenged to change the way you manage your business? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Ever since we began offering Ta-Q-Bin, we indeed have a history of creating such new services as golf Ta-Q-Bin, ski Ta-Q-Bin, and Cool Ta-Q-Bin that were made possible by management focusing on the needs of our shippers. However, what we now need to focus on is enhancing the trust we gain as a social infrastructure.<br />
The challenges we are facing now is even giving management a sense of crisis that the trust we have built to date may be compromised or destroyed. That is why we have to shift our management focus now on our employees, who are the people who meet our customers to build and maintain that trust. </div>
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When you say "now" are you referring to the unpaid overtime pay issue? </div>
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<span class="speaker01" style="background: transparent; border: 0px; color: #165e83; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Yamauchi</span>:Yes. We have to once again respond properly to the changing environment and establish an operations base that enables us to sustain our trusted service offer to our customers. The only way we can succeed is through our people. We have to get back to being a company where our employees enjoy working with us. And to realize this, we have to reduce the volume we take in temporarily and we are seeking support from customers who can understand that.<br />
Customers who are only making deicisons based on price will leave us and that cannot be helped. First and foremost, we have to get back to where we were. Then, we will proceed with our Value Networking Strategy and other strategies to face new frontiers. Utilizing new technology will enable us to expand our shipping volumes. We have no intention of shrinking our volumes forever. </div>
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<span style="font-size: xx-small;">###</span><span style="font-size: x-small;"> Masaki Yamauchi Profile ###</span><br />
<span style="font-size: x-small;">Yamauchi joined Yamato in 1984 and became an Executive Officer in 2005. In 2008, he became CEO of Yamato Logistics Co., Ltd. and then CEO of Yamato Transport Co., Ltd. in 2011. In 2015, he was promoted to CEO of Yamato Holdings Co., Ltd. </span><br />
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The original interview was published on Nikkei Business Online on 29 May 2017 in Japanese only.</div>
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<a href="http://business.nikkeibp.co.jp/atcl/report/16/030300119/052600008/" target="_blank">Original article written by Takahiro Onishi and Tsuyoshi Otake</a><br />
Excerpt by CarpeDiemJapan</div>
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Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-65272742212778904172017-05-24T15:32:00.000+09:002017-05-24T15:32:19.912+09:00Nikkei Favorite Stores Survey: Sweets for Tween Men; Household Items for women top lists with Seven Eleven being King<div class="separator" style="clear: both; text-align: center;">
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The Nikkei Marketing Journal released the survey results of its joint survey of "Stores I Want to Recommend." Approximately 230,000 people responded to the survey and rated 348 store brands in 22 different categories.<br />
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Surprises were abundant in the findings...<br />
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Tween Men Prefer Baskin Robbins and Mister Donut Above All</h2>
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The results for tween men shows that they are not shy to go into sweets shops alone or with friends, unlike their older counterparts. </div>
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Their favorite stores that they would recommend to friends were:</div>
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1. <a href="https://www.31ice.co.jp/" target="_blank">Baskin Robbins</a> (ice cream shop) 47.9%</div>
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2. <a href="https://www.misterdonut.jp/" target="_blank">Mister Donut</a> (donut shop) 47.3%</div>
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3. UNIQLO (casual fashion and accessories) 46.8%</div>
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4. Seven Eleven (convenient store) 43.1%</div>
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5. <a href="http://www.donki.com/" target="_blank">Don Quijote</a> (discounted supermarket) 43.0%</div>
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6. Godiva (specialty chocolatier) 41.9%</div>
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7. <a href="http://mos.jp/" target="_blank">Mos Burger</a> (fast food) 40.3%</div>
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8. Loft (stationery and household goods) 39.8%</div>
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9. Family Mart (convenient store) 39.5%</div>
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10. Tokyu Hands (sationery, DIY, and household goods) 38.9%</div>
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Overall Ranking Has Seven Eleven Topping List</h2>
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The results were presented by generations, but the overall ranking list looks like this:</div>
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1. Seven Eleven (convenient store) 40.6%</div>
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2. <a href="https://www.daiso-sangyo.co.jp/" target="_blank">Daiso</a> (one-dollar shop) 40.0%</div>
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3. Mos Burger (fast food) 35.8%</div>
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4. UNIQLO (casual fashion and accessories) 35.5%</div>
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5. MUJI (household goods, casual fashion, and stationery) 35.1%</div>
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6. Godiva (specialty chocolatier) 34.4%</div>
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7. Starbucks Coffee 33.8%</div>
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8. Lawson's (convenient store) 32.8%</div>
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9. <a href="https://www.aeon.info/" target="_blank">Aeon</a> (supermarket) 32.6%</div>
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10. Tokyu Hands (household goods, DIY, and stationery) 31.4%</div>
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11. Family Mart (convenience store) 31.2%</div>
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12. <a href="https://www.nitori-net.jp/store/ja/ec/" target="_blank">Nitori</a> (household goods) 30.5%</div>
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13. <a href="http://www.komeda.co.jp/" target="_blank">Komeda Coffee</a> (cafe) 30.4%</div>
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13. <a href="http://www.seria-group.com/" target="_blank">Seria</a> (one-dollar shop) 30.4%</div>
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15. Baskin Robbins (ice cream store) 30.2%</div>
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Seven Eleven enjoys a whopping 57 months of consecutive, month-on-month revenue growth on existing store basis. And Seven Eleven was the only brand that ranked among the top 10 for all age groups in both genders. The chain has had ongoing relaunches of such staples as rice balls and pre-cooked food as well as limited editions in beverages, frozen foods, and prepared food.<br /><br />Mister Donut is not just a donut shop, but offers noodles, fried rice, and dumplings in addition to their signature bottomless cups of coffee and cafe lattes. Two donuts and a cup of coffee comes under 500 yen ($5 USD). Combined with endless refills of coffee, it is a more cost-effective destination than Starbucks or fast food chains. </div>
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Though Mos Burger is not the cheapest or largest fast food chain, for both men and women in their 40s, Mos Burger topped the list. For more than 30 years, the chain has been buying vegetables directly from its over 3,000 contracted farmers and displays the names of the farms the vegetables came from in every store. The chain is also famous for its founder and CEO insisting that all executive officers including himself, spend one day a year working in a store. The CEO himself flips burgers for a day in a kitchen in an actual store. He is also very hands on when it comes to developing new menu items and will personally taste test all proposals.<br /><br />Consumers have commented "If I go to Mos Burger, I feel I can eat more vegetables," and the Nikkei reports that the chain is seeing its clientele of older men growing as they become more health conscious. Mos Burger by far outweighed McDonald's. </div>
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Fashion Seems Doomed</h2>
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What struck me was that not one fashion brand made the top 10, except for UNIQLO and MUJI. For women in their 60s and above, department store Takashimaya came in 9th with 33.7%, but for younger women in their 20s, 30s, and 40s, UNIQLO coming in 4th at 54.9% for tweens and MUJI coming in 2nd (53.0% for 30s) and 6th (39.1% for 40s) are the only fashion and apparel related brands. </div>
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Even popular cosmetics brand Jill Stuart came in 140th in overall ranking. The results obviously show that Japanese consumers are spending on food and beverages, household items, and a "third place."</div>
Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-73358958199368841662015-09-11T22:29:00.003+09:002015-09-11T22:29:58.715+09:00Yamato Strikes Again - Cat Building Box Video Goes Viral to Promote Small Packets Courier Service<div class="separator" style="clear: both; text-align: center;">
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Remember when couriers advertised their services by promoting attributes like:</div>
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reliability</div>
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security</div>
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being on time</div>
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delivering when they say they will deliver?</div>
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Remember "It is so easy even a MBA can do it?"</div>
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Well, Yamato just topped that. </div>
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They claim that their small packet business is so accessible and easy to use that even a cat can do it. <a href="http://www.kuronekoyamato.co.jp/campaign/compactcmp/" style="color: #8c68cb; text-decoration: none;">http://www.kuronekoyamato.co.jp/campaign/compactcmp/</a></div>
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And yeah, of course their video is going viral!</div>
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AND, they are running a photo contest for cats with boxes as well as calling for auditions for a cat ambassador for the service!</div>
Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-19957943117655423032015-09-10T23:10:00.001+09:002015-09-11T00:01:51.422+09:00Japan's Splurging Seniors: Enjoying the Fruits of "Saving Up for Old Age"<div style="font-family: 'Helvetica Neue'; font-size: 14px;">
Now 10% of the population, Japan's "Swinging 70s Women" outspend not just men, but younger women on beauty, socializing, and clothes.
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KEY ANALYSIS
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Over 14 million women, or more than 10% of the 127 million Japanese people are aged 70 or above. There are 1.4 times more women in that age group than men, and these women are outspending their younger counterparts in fashion apparel, social dining, and beauty services and products.
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WHAT’S HAPPENING
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<li>Japanese women’s average lifespan announced in July 2015 is 86.61 years old, an increase of 0.21 years over the previous year. Blessed with good health and free of the financial burden of raising children and caring for their aged parents, these women outspend women in their 30s and 40s in fashion apparel, beauty services and cosmetics, and socializing. </li>
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<li>The governments’ household spending survey shows that for skirts, for example, women in their 20s spend 2,997 yen; women in their 30s spend 3,641 yen; and women in their 70 and above spend 6,749 yen. </li>
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<li>In the same token, women in their 20s spend 22,237 yen on beauty treatments (including hair cuts and styling); women in their 30s spend 34,301 yen; and the septuagenarians spend 39,299 yen. </li>
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<li>Mitsukoshi Department Store Nihonbashi Store (the group’s flagship store and known for its wealthy clientele including members of the Imperial family) opened a upmarket multi brand boutique named Re-Style Lady in September 2014, targeting women aged 64 through 74. To accommodate the older clientele, the store is fitted with twice as many fitting rooms as other boutiques within Mitsukoshi, and also includes a socializing corner. According to Mitsukoshi Sales Manager Takumi Odajima on the Nikkei Marketing Journal (12 July 2015 issue), the boutique has exceeded sales targets to date, and some months in double-digits.</li>
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<li>Fast Nail, a nail salon chain with 31 salons, is seeing approximately 20 regular customers who are in their 70s at one of their flagship salons, Nails Unique Ultimate in Toshima-ku, Tokyo. According to Chihiro Yamawaki, Store Manager, in an interview with CarpeDiemJapan, “while the average customer in her 20s and 30s spend around 10,000 yen per visit, the older customers spend at least 12,000 yen because they have no restrictions for designs due to work. They are happy to have more decorative nails. They also come here for the socializing. Spending a couple of hours chatting to our manicurists is something they enjoy and look forward to. "</li>
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<li>Yuko Yuko, a travel publication targeting seniors, is now delivered to 1.2 million households and 1.5 million subscribers. <a href="http://www.yukoyuko.co.jp/service/">http://www.yukoyuko.co.jp/service/</a> The bimonthly publication not only offers information, but is full of vouchers that offer special packages at hotels and restaurants, as well as discounts. 33% of all voucher users are over the age of 70 and 70% of them are women. “The average price for a lunch is in the higher 2,000 yen range, but readers seem to choose their destinations not by price, but by atmosphere and quality of the food,” comments YukoYuko Senior Management Strategist, Hiroki Utsumi. (source: YukoYuko advertising brochure)</li>
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<li>Iki Iki is a magazine for 50+ readers whose subscription base is 47% septuagenarians. Their e-commerce site: <a href="http://www.e-ikiiki.jp/ec/">http://www.e-ikiiki.jp/ec/</a> proves that the older customer is just as responsive to trends as younger women. For example, oil supplements and oil drinks is a popular health trend among younger women. The same products are popular on Iki Iki as well. “Our readers are particularly responsive to trends in healthcare products,” says Junichi Tsuchiya, Executive Officer of Iki Iki. (source: CarpeDiemJapan interview)</li>
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<li>Egao Shashinkan <a href="http://egao-shashinkan.jp/">http://egao-shashinkan.jp/</a> is a photo studio for older people that opened in March 2014. They offer a make over and photo shoot package at 19,800 yen and 2 hours a session that is popular. According to Akiyoshi Ohta, Representative, approximately 75% of the clientele are over 70 and 90% are women. While many customers choose to have photos taken as funeral portraits, most come in groups with friends. The photo studio is run entirely by men and the female customers enjoy being pampered by them. The studio currently enjoys over 80 bookings a month since the beginning of this year. (source: the Nikkei Shimbun)</li>
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<li>At El Viento Flamenco Studio in Nara, <a href="http://www.elviento-flamenco.com/index.html">http://www.elviento-flamenco.com/index.html</a> , there are classes for women aged 70 and above that is extremely popular. The school offers classes to students of all ages, but the two classes for these older women have the lowest turnover with approximately 20 students. The school hosts a major performance for all its students on a biannual basis, and the older students are the most lavish when it comes to costumes. Some will actually travel to Madrid, Spain to order one and the others don’t buy ready-to-wear, either. When the school hosts special lessons by inviting teachers from Spain, the senior women are usually the most committed to these extracurricular programs that run every day for a week or 10 days. “I love the dance, I love doing it with friends who share the same passion. Sometimes, I feel more comfortable being with them than being with my husband who has been working long hours for more than 40 years since we spent little time together - we were both busy. I was busy with the children and he was working,” says Emiko Wada, 75. (source: CarpeDiemJapan interview)</li>
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<li>According to a survey by Hakuhodo DY Media Partners, Hakuhodo HABIT 2013, septuagenarians on average have 53,000 yen per month that they can spend freely vs. 35,100 yen for their working age counterparts. And while men tend to spend more time at home, women are more active. They grew up as the Japanese economy was picking itself up after World War II. They enjoyed themselves during the Bubble Economy, and they are keen to stay active and are not shy to spend. </li>
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THOUGHT STARTERS
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The Japanese senior consumer has long since parted with stereotypes about age and how senior citizens should dress, act, and spend. They spent the last 40 or so years “saving up for old age” and now they are cashing it in. Women aged 70 and above are now 10% of the population, but by 2050, they will be 18% - or, one out of every five Japanese person will be a woman aged 70 or higher. Is your brand/product really just for younger adults? Have you prematurely excluded seniors as a potential target without exploring the possibilities with this affluent consumer group?
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<b>Retail</b></div>
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Department store Matsuya has started offering higher quality premium products at a 10% discount on the 15th day of every even month - the day pensions are paid. As a result, they are seeing year on year growth of 10% or higher on those days. Other potential services septuagenarians appreciate in retail is the interaction with the sales staff. More staff and more rest areas (couches and benches) and creating a seniors friendly environment is a powerful differentiation factor. </div>
Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-2575382330971240262015-02-08T15:56:00.002+09:002015-02-08T15:56:38.532+09:00A New Wealth - Celebrating the Mundane with "Unseen" Luxury<div style="color: #4d4f51; font-family: Helvetica, Arial, sans-serif; font-size: 16px; line-height: 24px; margin-bottom: 30px;">
$100 for a box of tissues... $300 for a coat hanger... $30 for an ear cleaner... $100 for eight rolls of toilet paper. These are among the best selling luxury items in Japan today, many of which are doubling sales over the previous year. Combine the words "luxury" "daily items" and "gifts" at Rakuten or Yahoo, and the list includes $70 packages of 20 disposable masks (a must-have during winter and pollen allergy season), $90 plastic umbrellas, and $10 tooth brushes as well. </div>
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<a data-mce-href="http://www.fuwafuwa-roll.com/products/hanebisho.html" href="http://www.fuwafuwa-roll.com/products/hanebisho.html" rel="nofollow">"Hanebisho" toilet paper, by Mochizuki</a>, and its fans say "you only need to try one roll to understand the difference." Launched in 2007, the luxury toilet paper is made of the finest materials and treated in the clearest of waters. The company spends five to ten times the average time to dry the paper, conducts rigorous testing, and only 30% of what is produced makes it as final products. In the first five years, such extravagance appealed to only a handful few, but once the product began to appear on TV shows as "the ultimate toilet paper," sales began to take off, and 2014 sales doubled that of 2013, according to Mochizuki. </div>
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<a data-mce-href="http://www.daishowa-first.com/products/detail.php?product_id=35" href="http://www.daishowa-first.com/products/detail.php?product_id=35" rel="nofollow">Daishowa Shiko's "Juni-Hitoe"</a> tissues, $100 a box, is another such item. The 4-ply tissues are made of much thinner paper than your standard "soft tissues," and the vivid twelve-colour selection is in accordance with its name, which is actually the traditional costume of Heian Era princesses and the ladies of the court whereby women layered 12 garments to create one outfit. The boxes are also scented with traditional incense, gift wrapped accordingly (as per the image above). Launched in 2014, the company has sold approximately 1,000 of the goods in the first year. </div>
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Women are not the only big spenders on luxury daily goods. Luxury wooden coat hangers maker <a data-mce-href="http://www.nakatahanger.com/?_ga=1.213723799.26885644.1423375981" href="http://www.nakatahanger.com/?_ga=1.213723799.26885644.1423375981" rel="nofollow">Nakata Hanger</a> has a loyal following of men. </div>
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<img class="center" height="237" src="http://www.linkedin.com/mpr/mpr/p/5/005/0b6/1fb/02c9ea4.png" style="display: block; height: auto; margin-bottom: 15px; margin-left: auto; margin-right: auto; max-width: 100%; text-align: center;" width="588" />Priced at $15 to $300 a piece, Nakata initially sold hangers to boutiques and fashion companies. But started selling directly to consumers from its showroom eight years ago. In 2014, showroom sales grew 20% over the previous year and 50% online. The majority of Nakata's clientele are men. </div>
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In an interview with the Nikkei Marketing Journal, a 28-year old man said, "I like to buy it as a reward for myself when work goes well." He spends around $5,000 a year on clothes and is now the proud owner of seven Nakata hangers. He says that when his clothes are hung on good hangers, "my favourite clothes look good and I love the feel of wood. Even when I am not wearing my clothes, seeing them hanging in good form makes me happy."</div>
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In Japan, we have always had the element of "dressing up the unseen sides of kimonos" in our genes. The "haura" or the lining of the kimono coat is a key element when creating and dressing in kimono for men. </div>
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Women also took care in choosing the motifs and colours of the lining of kimono as well. It is not just about what you show, but what is there; and taking care of the unseen with such care. Once upon a time ago everything made in Japan and Japanese master craftsmen were about such details. We seem to have lost a lot of that in the name of economic competition and "development." While we have been surpassed by China as the world's second largest economy, we may finally have begun to enter a new phase of "wealth" - a society where people are not feeling guilty to indulge on the unseen for themselves in their daily lives; and not just saving the best silver for special occasions, but rather, we are celebrating our daily lives in small ways. And of course, it is only elegant if one does not brag that one wipes one's behind with $100 toilet paper!</div>
Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-64400975685729237542014-05-24T08:37:00.001+09:002014-05-24T08:37:32.681+09:00Same Day Delivery Now Cost of Doing Online Business in JapanJapan is a small country - only 1/25 the land mass of the US of which only 28% is arable, which results in a high concentration of population that creates mega metropolises like Tokyo and Osaka, so even B2C delivery is not as geographically challenging as in the US, but that only means that consumers are willing to pay less - or nothing for same day delivery. And if one cannot offer it, then you may not even make it on the playing field here.<br />
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It has been a while since amazon.co.jp offered same day delivery of goods in their warehouse where we could order by 11 am and receive the items at 17:00 the same day. To realize this, they have built their own warehouse network throughout Japan, and hold Sagawa and Japan Post to contracts that guarantee delivery times.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7A7482OEy6pF1kMCDe_UJTSnrGfCPlLNQU0LXdbGqAshWeZz8m0WF_YmkA-Bu93_h4zX0Qyl5hnPtKL2mFJGi8t_sEV9hF1rUEvl-H54CW9bM1DsUv9eFSIZpHyByAo1VFuyeIRlQAW4/s1600/amazon+logistics+centers.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7A7482OEy6pF1kMCDe_UJTSnrGfCPlLNQU0LXdbGqAshWeZz8m0WF_YmkA-Bu93_h4zX0Qyl5hnPtKL2mFJGi8t_sEV9hF1rUEvl-H54CW9bM1DsUv9eFSIZpHyByAo1VFuyeIRlQAW4/s1600/amazon+logistics+centers.jpg" /></a></div>
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Image from NHK broadcast on 19 February 2013</div>
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Stationery specialists Askul is thus named because the goods come "kuru" tomorrow "asu." Askul's consumer services site (Askul is for businesses) LOHACO, a jointly operated business with Yahoo Japan, has commenced same day delivery as well, and now enjoys three peaks in the course of the day for transactions - once during the traditional online retailer peak of late evening; once between 7 am and 10 am - deadline for same day delivery; and early evening when commuters shop on trains via smartphones. 55% of their customer base is women, many who work full or part time. This is unusual as most "general store" type malls have a higher ratio of male clientele. They now enjoy a turnover of 1 billion yen a month (just under USD 10 million).<br />
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Yodobashi Camera (who actually sells a lot more than cameras these days) offers free delivery, but if one is willing to pay a premium, delivery as fast as three hours from time of order is possible so if your PC or phone or TV happens to break down, you won't be without them for long. Some people have ordered suit cases because they needed it for a trip the following day. The three-hour service is realized through the hiring of a chartered truck, but their ordinary deliveries are controlled by in-house specialists who monitor the weather and traffic conditions and plan to ensure peak performance at peak times.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj03hUWC1ES7KkGIlcTFVM2fMhLDUpXLywBm3-3QPYNBal7nVEhhb1soIkG_vSQ4MO16LBx-1taChmgWFinS566FfUlmGCLlme7Fm6a_ETZ21N8OhSJk7KQVHFzrFpVa3ehi1p9V3YUEpI/s1600/yodobashi.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj03hUWC1ES7KkGIlcTFVM2fMhLDUpXLywBm3-3QPYNBal7nVEhhb1soIkG_vSQ4MO16LBx-1taChmgWFinS566FfUlmGCLlme7Fm6a_ETZ21N8OhSJk7KQVHFzrFpVa3ehi1p9V3YUEpI/s1600/yodobashi.JPG" height="171" width="320" /></a></div>
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Online fashion mall, ZOZO TOWN, who does not charge for delivery, is aiming to offer same day delivery for 40% to 50% of their goods by end of 2014. </div>
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They found that 80% of their customers choose the earliest delivery slot when given a choice, so it was a logically derived conclusion that most customers want same day delivery - free of charge, of course. </div>
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Size of selection and price are still powerful drivers that bring traffic to e-commerce sites, but such elements are becoming less and less effective to realize differentiation. </div>
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Unlike some other markets, where faster delivery can fetch a premium or additional fees from consumers, in Japan, where convenience is a powerful currency, same day delivery is becoming a cost of doing business in the big league.</div>
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<br />Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-16490940833630571192014-01-28T11:57:00.002+09:002014-01-28T11:57:47.176+09:00Japan is Becoming "the Land of the Free" AgainI am not talking about the freedom of speech or the freedom to meet... but that businesses are turning to the one tactic that helped spread mobile phone ownership lightning fast - FREE MOBILE PHONES - to other business areas now.<br />
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Namely, Yahoo has announced that merchants will no longer need to pay to sell on Yahoo! Shopping and Yahoo! Auctions.<br />
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There is a lot of controversy around this since it was announced:</div>
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On the one hand, advocates believe this will give Yahoo! a badly needed boost to catch up with front runners Rakuten and Amazon.co.jp</div>
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Antagonists are convinced that this will fill up the space with lots of crappy merchants and chase good business away to the very people Yahoo! hopes to conquer; the theory that bad gold will chase away good gold.</div>
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The verdict is still out, but Yahoo is busily promoting away. </div>
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Another interesting FREE campaign is cable service provider J:com's 100,000 free tablets giveaway campaign. </div>
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They seem to have teamed up with Huaway for the free 100,000 units. (Users can choose SONY as well, but that won't be for free.)</div>
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Of course there is a catch, that one must sign a one-year contract, but we are all familiar with these thanks to the mobile phone companies, one of which has a strong tie-up with J:com, au.</div>
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<br />Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-8160996164153241392013-09-10T13:22:00.000+09:002013-09-10T13:22:09.031+09:00Next Logistic Wave: Shared Logistics Services by Newly Independent Subsidiaries of Manufacturers?It is said that one of the reasons why 3PL services in Japan have not done as well as expected is because most major manufacturers and retailers have their own logistics companies as subsidiaries. Still, according to ongoing research by an Industry Publication from 2005, 3PL services have been growing at an average rate of 9.45% per annum from the start of the survey. <br />
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However, it is now believed that their main source of growth, dedicated distribution centers for large retailers, have now come to hit a ceiling. According to Masahiro Oya, Publisher of Monthly Logitsics Business, there is no decline in the number of orders received, but each project is getting smaller and smaller. He also points out that existing centers are suffering from a fall in volumes. <br />
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He analyzes that the 3PL service providers need to go upstream to the manufacturers to continue to grow. But the large manufacturers have their own subsidiaries that specialize in providing logistics services. <br />
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The key difference in the way 3PL has been growing in Japan vs. that in Europe is in that while European manufacturing businesses opted to outsource non-core operations in the form of endorsing 3PL, the Japanese market has grown in quite the opposite direction. It was not the manufacturers, but retailers who wanted to take advantage of their purchasing power by collating all their purchases in a warehouse, and then break bulk and ship to their various stores efficiently that embraced 3PL. <br />
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But that has all now come to a head, it seems...<br />
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So, will manufacturers be able to cut their logistics subsidiaries loose so that they can go ahead and offer their services to competitors as well?<br />
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Will such former subsidiaries, once cut loose, become prime acquisition targets for the likes of Sagawa and Yamato? - Maybe not as especially Yamato likes to build everything in-house.<br />
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Japan Post tried acquisition and learned the hard way that service disruptions due to tatty integration processes are a much higher price than it wanted to pay. <br />
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Either way, a new trend will emerge in the Japanese 3PL market because not having one is not an option if the industry wants to continue to grow. Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-91470912833712795272013-09-06T13:29:00.000+09:002013-09-06T13:29:04.720+09:00New Trend? EXTREME CommutesAn Australian friend who works as a mountain climbing guide in Nepal told me once that the extremely hard core climbers are usually Japanese... Doing something in the extreme, in a way, is a Japanese trait. Why else would we be known as the market with the most demanding consumers in terms of quality, convenience, and hospitality?<br />
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EXTREME Commuting is a hash tag on Twitter that is gaining popularity. <br />
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The idea is to play first and work later - on week days - and tweet about it. <br />
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Let's look at a day in the life of self-proclaimed leaders who spearheaded the hashtag/trend. They are two men, aged 29 and 34. <br />
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At 5:20 am, the duo meet up at Kita Kamakura Station, some 50km outside of Tokyo. Takahiko Shiina, aged 34, has left home at 4 am. His partner, Sota Amatani, aged 29, left Tokyo the night before and spent the night at a manga kissa, or coffee shop that specializes in providing private space and lots of comic books. <br />
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They head to an old Zen temple, Enkaku Temple. It is the first time for Amatani.<br />
Their EXTREME Commute on this day started with a one-hour zen meditation.<br />
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Then, they moved on to Yuigahama beach just after 7:00am. Shiina rolls up his trouser legs and Amatani strips down to his boxer shorts and the two splashed about for around 5 minutes, though they claim "it felt like half an hour of fun!" They progress to using Shiina's tie as a blind fold to try to break a watermelon with a baseball bat - a traditional summer beach picnic event. <br />
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They manage the break the watermelon open on the fifth round of trying and lap up the fruit like a pair of hungry dogs, according to a Nikkei reporter who was with them and who reports on their EXTREME Commute of the day. <br />
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"I feel like I am at the extreme opposite position of a white collar worker right now!" proclaims Amatani. <br />
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Though the clock is ticking, the pair insist on wrapping up their excursion with a bowl of ramen noodles. They rush into a noodle shop before 8 am and devour their meals in under 5 minutes to catch the 8:12 train to Tokyo. <br />
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The rule is to play hard and never be tardy for work, they say. <br />
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Their EXTREME Commute started as a fun discussion over drinks. Now, they may have up to 10,000 followers checking their tweets on their latest adventure with other people sharing their EXTREME Commutes. <br />
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From 2 through 6 September, the duo called out to their followers to participate in an EXTREME Commute-athon. More than 100 groups have joined so far.<br />
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"It is more refreshing than taking a day off" because every minute counts and there is no dilly dallying around, it seems. And another important factor is to "try" and "challenge onself" to do new things. Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-80635885752074323652013-09-05T13:25:00.002+09:002013-09-06T00:10:41.186+09:00Cool Geeks Have Deep Pockets: 3-Months Target Achieved in 5 Days - Domino's Pizza x Hatsune MikuIn March 2013, Domino's Pizza launched an app that enables customers to place orders using the vocaloid software Hatsune Miku; take AR (augmented reality) photos with the popular vocaloid character, and have her perform live using the delivered pizza box as a stage: <a href="http://youtu.be/gW2D_Votd2Y">http://youtu.be/gW2D_Votd2Y</a><br />
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They achieved their 3-month target in 5 days.<br />
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Until then, Domino's, like many other national brands, focused on securing popular TV animation characters from such mega hits as Pokemon and One Piece.<br />
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The collaboration with Hatsune Miku was the first time they went for a niche and a deep dive - which paid off. <br />
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They have launched an upgrade and a second campaign since, and continue with their success. <br />
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<strong>It is Cool to Be a Geek</strong><br />
When Dentsu ran a survey of 10,000 youths aged 15 ~ 39 in 2012, 49.9% of teenagers said they are "Otaku" or a geek. <br />
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The survey in dicated that the younger the group, the higher the tendency to be proud to be a geek, which clearly shows that there is no stigma attached to geekhood for teens.<br />
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"They obviously see the expression 'Otaku' to mean that 'I am really passionate about something' rather than for it to mean anything negative," says Yuichi Yanagida, Strategic Planner at Dentsu who oversaw the survey. <br />
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The "ultimate geek fest," the Comic Market (a.k.a. "Komike") showed that there are less traditional geek types and more "normal" kids who are just passionate about animated films and manga. <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOHFbs3H_Z9QEpQwGM5TFQR19bh_OfZA84mpu_fEjaViHYAoVSvt4xAun0jJsAACb7Und7Vu8l7b1buiNOIagGVqo484K26TI9kaMDnAEsciQoMlIeeGm2Sq4pHiuHuY60ccbNfW2u-HU/s1600/270px-Comicmarket62_00.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOHFbs3H_Z9QEpQwGM5TFQR19bh_OfZA84mpu_fEjaViHYAoVSvt4xAun0jJsAACb7Und7Vu8l7b1buiNOIagGVqo484K26TI9kaMDnAEsciQoMlIeeGm2Sq4pHiuHuY60ccbNfW2u-HU/s1600/270px-Comicmarket62_00.jpg" /></a></div>
Held twice a year, Komike boasted a whopping 590,000 visitors in three days from 10 through 12 August 2013. <br />
<br />
This year, it was such a popular event for exhibitors, that it was said that only 60% of applicants actually got to exhibit. <br />
<br />
Microsoft, Yukijirushi (Snow Brand), and Suntory were among the national brands that participated this year. <br />
<br />
While some die hard Komike fans had a chilly reaction to having such brands and companies come to Komike, many said "it is OK so long as they team up with someone on the inside who is cool (as in the case of Yukijirushi and Suntory, they joined forces with Pixiv and had fans submit drawings of pretty girls for labels. Komike became the place where the winners were announced)."<br />
<br />
Convenience Store Chain LAWSON'S has a reputation for being geek friendly with their promotions that attract approximately 30,000 viewers when it comes to time to announce them. They have offered such services as "wake up calls in popular animation character voices," among others. <br />
<br />
These promotions are created by an internal committee of geeks who really are in the shoes of the target audience. <br />
<br />
There has been a lot of talk of "bid data getting personal," but these are examples of targeting a very obvious niche and diving deep into their pockets. Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com1tag:blogger.com,1999:blog-3880537714919575538.post-64075637587011762902013-06-13T22:55:00.000+09:002013-06-13T22:57:34.273+09:00Mixi's New CEO - Is He Too Late To Bat?As of 25 June, founder of Mixi, Kenji Kasahara will step aside from the helm and become Chairman, passing the baton to Yusuke Asakura, 30. Once synonymous with social networking, Nomura Research Institute estimates in its report released in November 2011 that approximately 9.7 million consumers have left Mixi, of the 23 million who they believe have used Mixi at least once in their lives.<br />
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1qY5YPvwuyDv1uQBtdtrvdhU6hH99sof-KI1fSaYT1lP2iM7aXlI19rr_Ph844bOsB0uriYhRwYbFUU3j7j1KhZ50KqY7Yek1MLDiar57iJpDeRItFvjS23Q8RpZdF38zlMpuTXmMX6M/s1600/mixi.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1qY5YPvwuyDv1uQBtdtrvdhU6hH99sof-KI1fSaYT1lP2iM7aXlI19rr_Ph844bOsB0uriYhRwYbFUU3j7j1KhZ50KqY7Yek1MLDiar57iJpDeRItFvjS23Q8RpZdF38zlMpuTXmMX6M/s320/mixi.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Last I checked, Mixi was for humans, <br />
but at the moment, their home page is full of pets!</td></tr>
</tbody></table>
<br />
Nomura estimates that there are 21 million FB users (active and non-active combined), while the figure for Twitter is 20.7 million. Compared to these "foreign players," Mixi definitely remains the biggest. Yet, as at end March 2013, Mixi posted a 5% decline in revenue due to stagnant advertising revenue growth.<br />
<br />
At the May Strategy presentation, Asakura announced that there will be three strategic pillars for Mixi in the immediate future: (1) Increasing revenue both in and outside of the SNS Mixi; (2) Aggressive investment activities into external business opportunities; and (3) Nurturing entrepreneurs from within.<br />
<br />
Currently, 90% of Mixi's revenue comes from the SNS Mixi, and about this, Asakura says, "Mixi has been making money on advertising revenue for mobile phones (pre-smartphones). That market is fast disappearing. It is obvious to everyone that there is a massive shift towards smartphones, but on the one hand, the smartphone advertising market is not as big as we had hoped it would become."<br />
<br />
"Instead of waiting for the market to grow, it is imperative that we first build services that users are happy to pay for."<br />
<br />
Mixi has announced that it will launch 50 apps by March 2014. At the moment, half of their paid-for apps revenue comes from games.<br />
<br />
"There is still much more room for games to grow," says Asakura. But if we look to a slightly longer term future, we can see that as with (recipe site) Cook Pad, consumers will pay if they feel that the service features are of value. Mixi plans to release apps that are relevant to people's every day lives, too."<br />
<br />
Asakura also says that Facebook and other SNS are not the only competition. "Be it the weather forecast or apps that help users find trains and make connections - whatever app is on the top screen of a smartphone is competition."<br />
<br />
Asakura explains that the founder, Kasahara, is also undertaking a mission to create new businesses within Mixi. "The goal is not for us to increase our revenue from the current 12 billion yen to 15 billion yen. We want to grow exponentially and we hope to be able to create three or four new services that will be bigger than Mixi in the process," he says.<br />
<br />
A 29-year old office worker looks back 7 years ago when she had just graduated from university and says, "When I was in college, everyone was using Mixi. But ever since I have begun to work, I continued with my public diary for a couple of years and kept in touch with classmates and friends, but "eventually, I was connected to too many people and that began to restrict what I could write."<br />
<br />
Another woman, aged 33 says, "One of the reasons why I stopped using Mixi is because my friends stopped."<br />
<br />
A man in his 30s says, "I have begun to use Facebook and could not see why I also need Mixi."<br />
<br />
The Nikkei MJ summarizes that people who used Mixi to enhance their real life relationships have moved on to Facebook and LINE.<br />
<br />
A marketer with a brand that has a Mixi page says, "At the moment, when we discuss online marketing, we start out by plotting what to do on Twitter and Facebook. We continue to update our Mixi page, but we question whether Mixi is the right platform to establish the kind of sticky relationship we hope to have with our customers on SNS."<br />
<br />
Some analysts say that Mixi lost its edge when it failed to launch new services that fueled loyalty among its users. But others point out that the more than 100 million users is still a force to be reckoned with and it is not too late for Mixi to get back on track.<br />
<br />
Mixi launched its Innovation Center in August 2012, and such services as the online album creator, Nohana, has come of it. However, there is yet to be a service that could be bigger than Mixi itself, and the market is split on whether Mixi actually has it in them to do it.<br />
<br />
As mentioned by Asakura himself, the smartphone market seems to be reaching a plateau at the moment, and certainly, LINE and its wanna-be's have changed the landscape in that smartphones are phones only in name, and that they are more of a connectivity device.<br />
<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFrZAyXFpmqEpgizLYYjyndXN_A9ourvB3WbUrcK9cLIG1AEDDbZpka4pM7Nk2FLVHJkAWgsXQ56LJKkDt2Ics2ey8s-0nsCUQ5G-wGE3Wf8MczdjLPUX9rwyjVBDdyJFSzJo5XiKZSn4/s1600/IMG_4369.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFrZAyXFpmqEpgizLYYjyndXN_A9ourvB3WbUrcK9cLIG1AEDDbZpka4pM7Nk2FLVHJkAWgsXQ56LJKkDt2Ics2ey8s-0nsCUQ5G-wGE3Wf8MczdjLPUX9rwyjVBDdyJFSzJo5XiKZSn4/s320/IMG_4369.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">This was taken in the "no mobile phones car"<br />
of a train... Who said only the youths are addicted to<br />
being on their mobiles?</td></tr>
</tbody></table>
Using Facebook messenger, LINE, Comm, and Viber makes email addresses obsolete. As Japan is not a GSM market where texting is dominant, mobile email was _the_ killer app for mobile phones, in addition to games. But now, all one needs is a phone number or Facebook account to chat and talk to friends.<br />
<br />
A survey showed that mobile phone and smartphone users spend 50% of their time using the phones on games and SNS, but the other time is split among shopping, reading the news, listening to music, and watching TV (one seg).<br />
<br />
Will Asakura and Mixi be able to come up with something in addition to the above? Or is Mixi already a thing of the past?<br />
<br />
###<br />
Reference: Nikkei MJ 12 June 2013 interview with Yusuke AsakuraJules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-57633834685404916122013-06-12T09:03:00.001+09:002013-06-12T09:03:43.275+09:00100 Billion Yen Market: Japan's Booming Fragrance Market Leaves Perfumes in the DustIn around the year 2000, the market for perfumes and scented fabric softener was around the same size, but now, the latter is double the size and Kao predicts that the market will hit the 100 billion yen mark in 2013.<br />
<br />
I have heard repeatedly from the CEOs and COOs of major European luxury cosmetics brands that unlike the western markets, only around 8% of total revenue comes from perfumes in Japan. Some surveys indicate that Japanese women are very fickle when it comes to perfumes and cologne; that they change their fragrance every season. Others show that Japanese women tend to avoid perfumes from the 1990s, or after the burst of the bubble economy, citing that we have been in a "no fragrance" era.<br />
<br />
Sure enough, Kao's chief perfumer, Shigeru Sawamura is quoted in the 3 June 2013 issue of the Nikkei MJ as follows: "There was a long time when adding even the slightest fragrance to products meant across-the-board rejection from consumers," looking back at his 36 years on the job. But he says now, "we can't seem to put enough fragrances into products!"<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaxX6qmeXFNTYiii_sH1SsYgSwAfj99HAHdrN242Zmzt-b5SR36mBOOAJsljgA_HvKqt9AgjdlCVhes-AmqC9kHr9103nsZX86jVv6JqevqCn5Y2pT_vwxgMYsPQBLb-NOG7rpZA3O3gI/s1600/IMG_4350.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaxX6qmeXFNTYiii_sH1SsYgSwAfj99HAHdrN242Zmzt-b5SR36mBOOAJsljgA_HvKqt9AgjdlCVhes-AmqC9kHr9103nsZX86jVv6JqevqCn5Y2pT_vwxgMYsPQBLb-NOG7rpZA3O3gI/s320/IMG_4350.JPG" width="240" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Supermarket shelves are filled with scented fabric softeners</td></tr>
</tbody></table>
Kao's research shows that one out of every user of fabric softener has at least two different products on hand at all times, even in single-person households. This is because consumers are changing their fabric softeners depending on their mood or what they wash.<br />
<br />
In some homes, each family member has his/her favorite fragrance. Yoriko Hashimoto (47) says, "My daughter insists on a fresh floral scent while my husband wants his clothes to smell like soap. I use a (rich) romantic fragrance or fresh citrus fragrance depending on my mood."<br />
<br />
Yuko Hashimoto, 41, has eight different scented fabric softeners on her shelves. She lives with her three daughters and husband, and each have their own fragrance. Not only that, but whenever a new scented fabric softener comes out, they get one and the entire family evaluates it.<br />
<br />
Among the eight items, Hashimoto has created her original blends as well, combining aroma therapy oils with citric acid, and other ingredients with unscented products. In fact, she is such a scent fanatic that she is now the "Aroma Guide" on the information site, All About, responding to numerous queries about fabric softeners.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRmOcjbyTJhg7bjNhN8bSvG98NNTmoy6q11A-ohKxOeFFaACbioG0UDuPEfuhl6gO8_s9GifJVMpmE2oTZPT7V1tQRCp7WZmbBG-dzAfDgkjQepvTohC91Gd5MtYXjpQeltWZ7aieyPNY/s1600/Downy.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRmOcjbyTJhg7bjNhN8bSvG98NNTmoy6q11A-ohKxOeFFaACbioG0UDuPEfuhl6gO8_s9GifJVMpmE2oTZPT7V1tQRCp7WZmbBG-dzAfDgkjQepvTohC91Gd5MtYXjpQeltWZ7aieyPNY/s200/Downy.jpg" width="200" /></a></div>
P&G's Downy is said to have kicked off this scented fabric softener trend from around mid-2000, when mothers and home makers in their 40s who remember the Bubble Economy of the 1980s jumped on its sweet fragrance.<br />
<br />
<b>Double the Price, Triple Sales - Fafa</b><br />
NS FaFa Japan Co., Ltd. (previously named Nissan Sekken), took it further by developing a range of "fragrances to be worn on clothing" concept. On top of that, the concept behind Fafa is "not one fragrance for the entire family, but individual fragrances for individual people."<br />
<br />
The Fafa range has fragrances for everyone now - shown below are Fafa Baby, Fafa Dubai, Fafa Fine Homme, and Fafa Fine Beaute, among others. It was test launched online in autumn 2009, and has been steadily increasing fans since through word of mouth and online promotions.<br />
<br />
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<img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4gycvArJrfPr2oO8QvBiM6IthxaJ1jvg32CAMbb2quEds66phOqAsFvopJBOuXyd6o6-v_Yv-1pLIqRau24RncqdGIYwvzGZZXi-OcHD5rfPBpuIk94pWolAu-12ggOe1Q6J-AK_FjLo/s1600/fafarange.JPG" /></div>
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Fafa's retail price starts at around 700 yen for a 600ml bottle which is almost double that of major brands. Yet, its sales have been tripling every year. </div>
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<b>The Next Step - Customize Your Own Fragrance</b></div>
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P&G is now taking scented fabric softeners to the next level - customization.</div>
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With Lenor, it has launched the Lenor Happiness Make Your Own Fragrance site:</div>
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<a href="http://myrepi.com/lenor/kaorideco/aromajewel/">http://myrepi.com/lenor/kaorideco/aromajewel/</a></div>
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Customers can adjust the amount of fragrance and blend fragrances through the site. </div>
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Perfumers would probably seldom let amateurs take matters into their own hands to blend oils and fragrances, but with fabric softeners, that is the next stage in Japan. </div>
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###</div>
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Reference: The Nikkei MJ 3 June 2013</div>
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<br />Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com2tag:blogger.com,1999:blog-3880537714919575538.post-86777248669554350672013-05-10T16:49:00.001+09:002013-05-10T16:49:00.181+09:00Earning Points Is the Surest Way to Increase Spending PowerPoints are now a currency and no one does that better in Japan than Culture Convenient Club's T-Point Japan who boasts a whopping 44.5 million members.<br />
<br />
As at end March, 2013, T-Points can now be earned with 155 brands and 52,981 stores, and in this age of the thrifty-as-a-virtue-again consumers, one way to increase one's spending power is to make sure every yen goes to earn points, which are usually awarded at much more favourable rates than interest on cash.<br />
<br />
And though once upon a time not so long ago, T-Point only accepted one brand/company per product category as partners, they have become less discriminate of late and has just announced that commencing on 21 May 2013, T-Point card holders can earn points for every 200 yen they spend online with Expedia.co.jp, according to the press release on 8 May 2013.<br />
<br />
It is obvious that the very entrepreneurial and savvy Mr. Masuda saw no reason to build a ceiling in the blue sky of potential members and their point-earning universe, and lifted the early restrictions that justified the high premium T-Point demanded of its corporate partners to have the privilege of accessing their members and exposing them to ads at points of consumption to cross-sell. (When I was running a flash sale site, the first promotion proposal I received from Cultural Convenience Club, the owner of Tsutaya and T-Point, was for a 2-year exclusive deal at $1 million. And they told me that once the two years were up, they will open up to other flash sale sites like Gilt.)<br />
<br />
Remembering that Japan has a population of 130 million, 44.5 million members means T-Points are being collected by 34% of the total population.<br />
<br />
Once earned, T-Points can be exchanged for goods, tickets, and of course, be used to pay for CD and DVD rentals at sister company Tsutaya's outlets (Japan's version of Block Busters, in a nutshell).<br />
<br />
T-Point also launched a service whereby members can donate their points in the wake of the 3.11 Great East Japan Earthquake and Tsunami, which was a novel way to collect donations and a further confirmation - if any are needed - that points are indeed a currency.<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibSbjqHDdZvcPaycKRCB2rFgcTmG8OYe3oICkXFlfvCjv621k4nLZ3y7zr4KsQyNPKTMX5W4z3R9IhSohBGs4jvje9N2nXyX3x1mNfG0tV0Ydm6hQIPKReJIn6c1Oppgm5XVwWI2owycU/s1600/Tpoints.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="315" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibSbjqHDdZvcPaycKRCB2rFgcTmG8OYe3oICkXFlfvCjv621k4nLZ3y7zr4KsQyNPKTMX5W4z3R9IhSohBGs4jvje9N2nXyX3x1mNfG0tV0Ydm6hQIPKReJIn6c1Oppgm5XVwWI2owycU/s320/Tpoints.JPG" width="320" /></a></div><b>The Biggest Difference Between Rakuten and Amazon</b><br />
One thing Rakuten does but amazon.co.jp refuses to do is award points for purchases.<br />
<br />
Rakuten Super Points can be used in lieu of cash at an exchange rate of 1 point = 1 yen.<br />
<br />
Rakuten offers favourable rates for Rakuten credit card users and vendors on the portal are invited to offer 5x, 10x, and higher rates of points for certain promotional periods and items instead of cash discounts.<br />
<br />
Rakuten also has a system whereby miles earned on ANA flights or banking points earned at banks other than Rakuten Bank can be converted to Rakuten Super Points as well.<br />
<br />
Rakuten uses points to get registered users to respond to questionnaires for research and to help their clients build up mailing lists by offering points for giving up your name and other personal details.<br />
<br />
One thing I found interesting is that I can actually order a pizza with Domino's Pizza and elect to pay via Rakuten even if I am paying cash to the delivery person. This enables me to use my Rakuten points against my pizza order and earn more Rakuten points for the order itself. Since I go directly to the Domino's site or use the Domino's iPhone app because of incentives to do so (like buy one get one free or special discounts for ordering online), I often wonder what Domino's gets for this. It is almost like giving up your customer to Rakuten even though I am an acquired Domino's customer no thanks to Rakuten. Perhaps it is done in the hopes of ensuring that I stay loyal to Domino's and don't wander off to competition, but from where I am standing, it looks like a win for Rakuten and a lose for Domino's... But maybe I am missing something.<br />
<br />
<b>"Not Accumulating Points Is Like Throwing Money Away"</b><br />
Points have become such an integral part of the way we spend and consume that a 44-year old friend says, "Now that I use my Rakuten credit card as my main card and earn points, all my utility bills are paid for on points alone. It's great! I buy things I would buy anyway, and the points are such a bonus."<br />
<br />
A 60-year old entrepreneur who is very cash rich and still cash savvy says, "When I need to buy a book, I do my search on amazon but I buy it on Rakuten. I book my business trips and those for my staff on Rakuten Travel, and then use the points to buy other things. It is a really good system. I think amazon does a great job recommending things to me, but I will only buy on amazon if I cannot find the item on Rakuten."<br />
<br />
Another entrepreneur, 42-years old says, "Whenever I see a great deal on bonus points for a credit card or site, I concentrate my spending on that card or site. It is foolish not to do that today because it is like throwing money away. Taking a little time to search and check for points creates money out of thin air!"<br />
<br />
<b>Free Mobile Phones Every 3.5 Years?</b><br />
According to Garbagenews.net who visualizes government data into graphs, the average period a Japanese subscriber uses a mobile phone has declined to 3.5 years in 2012, from 2011's 3.6 years. The top reason for changing phones in 2012 was "to upgrade" (42.8%) - most likely to a smartphone; which was much higher than "due to the phone needing repair" (32.2%).<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizj16BDlrTFRqK2oWzt48t1zfHOsb5Z7nbSms27z6jGH3evS8AR-195iooP8c5EHcd2C2dC-_Ujwn1wkIDjhxFh2NQ1-06g7yFRUs-8MY3Tz8RAvhTKoKCNkizZZhQQmutFi5DWOxxtcM/s1600/exchanging+phones.gif" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="261" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizj16BDlrTFRqK2oWzt48t1zfHOsb5Z7nbSms27z6jGH3evS8AR-195iooP8c5EHcd2C2dC-_Ujwn1wkIDjhxFh2NQ1-06g7yFRUs-8MY3Tz8RAvhTKoKCNkizZZhQQmutFi5DWOxxtcM/s320/exchanging+phones.gif" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">The number of years before users get new mobile phones in Japan<br />
(Data based on Cabinet Office Report)</td></tr>
</tbody></table>Phone companies also award points for every yen spent on their services, and my parents never pay cash to get a new phone, but rather, use their points. I have personally put them on the cheapest possible plans that meet their usage profiles, so combined, they spend less than 7,000 yen per month on their mobile phone bills. And still, every three or four years, they both manage to get new phones on the points they earn.<br />
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Japan managed to get mobile phone ownership to spread like wildfire in the early days when hardware was given away for 0 yen (because the retailers were given cash backs on the subscriptions the consumers took out). We still see a few 0 yen phones on the display cases, but consumers don't seem to mind the price tags much, because they just use their points to get what they want.<br />
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I am a heavy data user who has the largest fixed data plans and hardly use the mobile to have conversations except when we are on SKYPE or LINE. But my last upgrade on both the BlackBerry and iPhone were paid for by points with Docomo and Softbank accordingly after less than three years of usage.<br />
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<b>Earn Frequent Flier Points With Banking</b><br />
ANA, a member of Star Alliance, is an airline, but it also has its <a href="http://www.surugabank.co.jp/ana/" target="_blank">own branch with Suruga Bank</a>.<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYfPhkUyam0zyBky21_YmRsKKjQOfqrILCWFAd8x1zlMeHtpl6hBD4PEAkY6fSYPorJkzh6DPUh1sw0ll3RoLqe7l5k9ZfRZChXyKctecJLJoVLsHQVj2X5fvTYFD9ql3bgIDpVREpWG4/s1600/Suruga+ANA.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYfPhkUyam0zyBky21_YmRsKKjQOfqrILCWFAd8x1zlMeHtpl6hBD4PEAkY6fSYPorJkzh6DPUh1sw0ll3RoLqe7l5k9ZfRZChXyKctecJLJoVLsHQVj2X5fvTYFD9ql3bgIDpVREpWG4/s320/Suruga+ANA.JPG" width="320" /></a></div><br />
Account holders can earn frequent flier miles in addition to interest for all their banking activities with Suruga Bank and purchase products like a term deposit with additional interest and miles.<br />
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As with Rakuten Bank, extra points are awarded to the account holder just for designating their account to receive their monthly salaries or to link automatic debit payments of utilities and subscriptions to the account.<br />
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While Rakuten Bank is an e-bank, Suruga has a retail network, though the ANA Branch is a virtual branch.<br />
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<b>No Income Tax, No Inheritance - So Far</b><br />
So far, the Japanese tax man has not demanded that points be declared as income, but rather, focus on collecting consumption tax, which is soon to go up, regardless of mode of payment.<br />
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While mobile phone points may be shared among family members and award tickets bought on frequent flier points can be booked for family members, there is no "inheritance tax" associated with the movement of points at this time. (I will need to do more research to find out, but I believe once the natural person owning the accounts pass away, I believe his/her points expire and cannot be transferred to another person be it a spouse or other family member.)<br />
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But points are definitely here to stay and is a real currency and that through which banks now compete with an airline and virtual cash is created even through brick and mortar transactions.Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-16176263512460821622013-05-10T11:36:00.000+09:002013-05-10T11:36:55.889+09:00Chinese Noodles, Issey Miyake, and Hokkaido - The Reasons Why 70% More Thais are Visiting JapanAccording to the Nikkei Marketing Journal dated 10 May 2013, Japan saw a 70.1% increase over the previous year of Thai tourists in the month of March. They are making up for the decline in Chinese tourists due to the Senkaku Island dispute and other elements increasing their anti-Japanese sentiment.<br />
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<b>The Kamakura-Yokohama-Tokyo Tour</b><br />
A journalist joined a tour from Thailand with 10 participants who were in a wide range of occupations from agriculture to banking.<br />
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The tour first took them to Kamakura, where the strongly religious Thais visited the famous sitting Buddha.<br />
"Thai Buddhas are made of gold and shiny, but Japanese Buddhas are more toned-down. Their austerity makes me feel more serene as I visit them, " one participant said.<br />
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Next, they went to the <a href="http://www.raumen.co.jp/" target="_blank">Shin Yokohama Ramen Museum</a>, which has seen a 57% increase over the previous year of Thai visitors. This restaurant complex is set in a retro, mid-1950s interior and just about every tour from Thailand includes this spot. (A quick look at the official site shows Thail as a language option to navigate the site as well as both simplified and traditional Chinese and Korean.)<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOkNUVAzPgWUfCo_iSZ8c9p9bW4yDwndMhPQVkAO586DgwPiqw2iZaqtz6zedA3_rCXGZ80i2fBL4VcoT9vrSgaa6LgeuRA0X7EbWfcUnVYRjw9uo1mBoK_qRerZ11-VdFnmnQe1GrPro/s1600/yokohama+ramen.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="258" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOkNUVAzPgWUfCo_iSZ8c9p9bW4yDwndMhPQVkAO586DgwPiqw2iZaqtz6zedA3_rCXGZ80i2fBL4VcoT9vrSgaa6LgeuRA0X7EbWfcUnVYRjw9uo1mBoK_qRerZ11-VdFnmnQe1GrPro/s400/yokohama+ramen.JPG" width="400" /></a></div>
Staff at the Ramen Musem claims that the majority of Thai visitors prefer the "tonkotsu" or soup made of pig bone marrow noodles, which is a specialty of the Kyushu region.<br />
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The highlight of the tour is a visit to the Issey Miyake flagship store in Aoyama, in Tokyo. In particular, the Bao Bao Issey Miyake bags were in high demand because it is renowned that the Queen has one.<br />
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"One of the key objectives of joining this tour this time was to buy one of these bags," says a 37-year old man who got one for his girlfriend. "I am delighted that it was cheaper than I had expected it to be," he added.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqKzCeY6zXAse_4aHI_qjdMT3nFYL-8dTDWoH6zDfNo4M22mSJookgrFd6HeZRfuZ3C-VU51jqM4vLJZNbBlYZC1vXa2KD5cLlKJpgKjtC2jGc8WitCJGXWC7cAQgpFtDH5E78R0JXFqQ/s1600/Babobao.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqKzCeY6zXAse_4aHI_qjdMT3nFYL-8dTDWoH6zDfNo4M22mSJookgrFd6HeZRfuZ3C-VU51jqM4vLJZNbBlYZC1vXa2KD5cLlKJpgKjtC2jGc8WitCJGXWC7cAQgpFtDH5E78R0JXFqQ/s320/Babobao.JPG" width="288" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Image from <a href="http://farfetch.com/">Farfetch.com</a> </td></tr>
</tbody></table>
That night, the tour stayed at a hotel in Ikebukuro's Sunshine City. After checking in, the tourists were given free time, which they took full advantage of, by visiting such popular shopping destinations as Tokyu Hands, Matsumoto Kiyoshi, and ABC Mart.<br />
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A 46-year old lady who was on the tour with her husband splurged on 30 packs of a Shiseido face cleanser.<br />
"I cannot get this in Thailand," she said. "I did my research online before this trip so I am so happy I could get this."<br />
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The tour guide for the group commented that most of the tour participants stay out until the shops close to shop.<br />
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Businesses who receive these Thail tourists have commented as follows:<br />
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1) LAOX (Electric appliance store chain): Thail tourists like Japanese watches like those by SEIKO and available duty free. Prices vary from around 10,000 yen to 300,000 yen, and most buy for themselves, not as gifts.<br />
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2) JTB (Travel Agent): Unlike Chinese visitors who chose to visit Japan as their first overseas destination, Thai tourists are experienced travelers who have visited neighboring countries before, so they are not as interested in shopping as the Chinese. Instead, they are very interested in the changing seasons of Japan and like to visit locations where they can enjoy cherry blossoms and Japanese maple in their best seasons. In terms of souvenirs, they like sweets like "Tokyo Banana" that are only available in certain places.<br />
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3) Takashimaya Shinjuku Store (Department Store): In addition to the European brands, Thai customers like Issey Miyake's Bao Bao. Because it is widely known that the Queen has one, they sell very well. Average purchasing value by Chinese customers is around 100,000 yen and visitors from Southeast Asia, including Thai customers, is around 95,000 yen.<br />
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4) Seibu Ikebukuro Main Store (Department Store): There was a 40% gain over the previous year for duty-free sales from 1 through 14 March this year. A significant contributor to that growth is Thai customers. The core spending value is between 600,000 yen and 800,000 yen in Hermes goods. Thai customers do not speak much English, but they are very polite and a pleasure to serve.<br />
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<b>Highly Coveted Destination - Hokkaido </b><br />
Hiroshi Masuda, the head of the Japan National Tourism Organization, in Bangkok is quoted as saying that "Japan as a destination is becoming increasingly popular with Thai travelers, and in particular, Hokkaido." The organization has a customer inquiry desk for people who want to travel alone to Japan, and the desk receives inquiries about Hokkaido almost daily.<br />
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The boom started in 2009, when a popular model was photographed at various locations in Hokkaido in summer with lots of flowers. Ever since then, "Hokkaido has become an aspirational destination for the flower-loving Thais," says Masuda.<br />
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This was further boosted when a direct flight between Bangkok and Chitose Airport of Hokkaido commenced operation in October 2012. Thai Airlines, who operates the flight, had initially expected 50% of travelers to be Japanese, 40% Thai, and 10% from neighboring countries, but thanks to the weakening yen, 60% of the travelers are Thai since January this year.<br />
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CEO of Bangkok based Asahi Travel Service who offers tours to Japan, Jiro Mimoto, says, "from May onwards, trips to Hokkaido are so popular, it is becoming difficult to secure seats on direct fligthts, " with surprise.<br />
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<b>"A frozen lake? I have never seen such a thing in my life."</b><br />
In Kushiro city, Hokkaido, a couple visiting snow covered Lake Akan said, "We could never experience this in Thailand. Families and young people would love this!"<br />
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They are actually journalists invited by the local tourism association. As the decline in Chinese visitors became obvious, the association targeted Thailand.<br />
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The journalists visited the newly build Snow Park next to the ski resort situated alongside Lake Akan.<br />
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"The Thais love snow! It is not so cold in April and yet, we can still play in the snow. I think if advertised right, this could become more popular than the Snow Festival (in February)."<br />
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Reference: Nikkei Marketing Journal cover story for 10 May 2013Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-66111469282697292772013-05-09T17:28:00.001+09:002013-05-09T17:28:44.942+09:00There is Cloud for Computing and "Clean and Store" for Virtual Closet Space in a Country Where the Average Apartment Is 25 sqm or LessCloud computing has made its mark to expand your digital storage space both at home and work. In a country where the average apartment for singles is 25 sqm or less, according to a questionnaire by popular young adults free publication R25, there is virtual closet spaces you can hire "for free" when you get your boots, futons, and coats cleaned.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><img height="239" src="http://amd.c.yimg.jp/amd/20110418-00005951-r25-001-1101-thumb.jpg" style="margin-left: auto; margin-right: auto;" width="320" /></td></tr>
<tr><td class="tr-caption" style="text-align: center;">A typical one-bedroom apartment is 21 to 25 sqm and costs around 60,000 yen per month to rent</td></tr>
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Some companies call it <a href="http://www.e-closet.com/" target="_blank">e-closet, as in the case of Kikuya</a>, a professional dry cleaning service chain, and others have more analogue names.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhp5Yb98JyrOGrvKe51uO_dYiJfSZ7WPY0LgDgjh4Al0segx8RzKclmq26vd3TcisUgoxW7efcpsdjBolKRzNjxDBo_L_jsSy4XbeeG9JE7_xx5xjdnuPuzqu0Rzt5Gh6vymvOfky2ZyM/s1600/ecoloset.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhp5Yb98JyrOGrvKe51uO_dYiJfSZ7WPY0LgDgjh4Al0segx8RzKclmq26vd3TcisUgoxW7efcpsdjBolKRzNjxDBo_L_jsSy4XbeeG9JE7_xx5xjdnuPuzqu0Rzt5Gh6vymvOfky2ZyM/s320/ecoloset.JPG" width="187" /></a></div>
The idea is basically the same: send for a box or bag for your boots, futon, coats and other garments, have them dry cleaned and they will store it for you until next season at no extra charge! Yes, you read it right - consumers pay for the dry cleaning, which is anywhere from 1,000 yen to 5,0000 yen, depending on the item and the number of items you send - and storage up to 6 months is thrown in for free!<br />
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Professional storage not only helps ease up space in the cramped abodes, but also reduces risk of mold and other unpleasant incidents during the off season.<br />
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With public transport being the main mode of commute for most urban dwellers in Japan, dry cleaners large and small offer free pick up and delivery. With dry cleaning prices being so low - a business shirt can be cleaned and pressed for under $2.00 per item - the overhead for the pick and delivery must be a huge drain on the bottom line but a cost of doing business.<br />
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And cleaners are not the only ones in this game. Shoes and bags repair chain <a href="http://wol.nikkeibp.co.jp/article/trend/20130305/147287/" target="_blank">Mr. Minute has also launched a repair, clean, and store service for boots</a>. They offer three courses:<br />
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<ol>
<li>Clean and store</li>
<li>Clean, repair and store</li>
<li>Clean, recolour and store</li>
</ol>
Prices start from 1,980yen for a woman's smooth leather shoe/boot.Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-15825371946252779612013-05-02T14:10:00.003+09:002013-05-02T14:14:39.998+09:00Research Report: Time Limited Sales Effective for Acquiring New Customers And Customers Compare Prices Both On Site and At Other Sites Before BuyingJust System Inc's online survey service Fastask released <a href="http://selectbox.shoeisha.jp/article/278" target="_blank">a report on findings on consumer behavior and attitudes towards Time Limited Online Sales</a>.<br />
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A total of 750 responses were collated from people who have actually shopped at an e-commerce site offering time limited sales; 150 each from each age group from those in their 20s through to 60s.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjP6roGNwdB6KceRtIAqlNgbe-mzhowt8NUvQWgncRH6tfpKyApgdYcTeJMgwhzJgNpH0rhhfGSX2UZVW-LfWwYj3G5yr8myXXm8BxusM1EGUtm0wQ6P4QohSXiGSV3W72Jt4En-kB_kCk/s1600/Time+Sales+Galore.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjP6roGNwdB6KceRtIAqlNgbe-mzhowt8NUvQWgncRH6tfpKyApgdYcTeJMgwhzJgNpH0rhhfGSX2UZVW-LfWwYj3G5yr8myXXm8BxusM1EGUtm0wQ6P4QohSXiGSV3W72Jt4En-kB_kCk/s320/Time+Sales+Galore.JPG" width="320" /></a></div>
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Overall, 77.5% of respondents actively seek out time limited sales information on one or more e-commerce sites.<br />
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Their preferred mode of acquiring that information is by registering for e-mail updates (78.0%) as well as regularly visiting the sites (68.2%).<br />
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In terms of the now popular "Big 3 SNS services" of Facebook, Twitter, and LINE, 12.0% said they are fans of their favorite companies on Facebook, 10.2% follow the official Twitter accounts, and only 7.2% said they befriend the brands on LINE. <span style="color: blue;">This may merely be a reflection of the take up of the services by the brands and companies themselves. LINE's official accounts are far fewer than those for Twitter or Facebook. </span><br />
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<b>Time Limited Sales Attracts New Loyal Regulars?</b><br />
Interestingly, for e-commerce sites that the respondents used for the first time through time limited sales, only 20.4% said they will not or are likely to not go back to the site to shop at other times. 60.8% said that they will go back to the site to see if they are offering time limited discounts again in the future.<br />
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<span style="color: blue;">Combine this finding with the preferred method of gathering information on time limited sales, and it is obvious that such events enables a site to beef up their mailing list. </span><br />
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Furthermore, 63.6% said that if they shopped for the first time at a site through a time limited sale, they are likely to go back to that site to shop even when there are no such time limited offers available.<br />
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<span style="color: blue;">Is this percentage worth the "cost" of acquiring these customers?</span><br />
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In terms of sites that they are familiar with, 53.3% said that if they take advantage of time limited sales on that site, they may visit that site more frequently in the future. Only 21.9% said that shopping at time limited sales on such sites means that in the future, they are likely to only shop while such offers are available on that site.<br />
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<b>53.5% Say Securing Bargains is Worth Sharing on Social Networks</b><br />
Asked if they tend to share the excitement about buying something at a time limited sale, 12.3% said they "strongly agree" and 31.2% said they "somewhat agree." 21.3% were neutral and 35.2% said they tend not to share or that they do not share such information with friends.<br />
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<span style="color: blue;">Not surprisingly, sharing tendencies were higher among those in their 20s and 30s (see below)</span><br />
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<b>Purchase Drivers - The Time Left or Quantities?</b><br />
According to the responses, the amount of time left and the quantities of goods left are equally impactful as purchase decision drivers.<br />
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The pie charts below show the overall average responses, but it may be worth noting that for those in their 20s and 30s, they are 38.7% and 38.0% accordingly, more likely to purchase something if the time left or quantities available become sparse at a time limited sale, which is higher than the other age groups. (The percentages are a total of those who said "strongly agree" and "somewhat agree" for these age groups.)<br />
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<b>What Do They Expect/Want in a Time Limited Sale?</b><br />
1) Does a time limited sale imply to them that the goods are more discounted than otherwise?<br />
75.7% said yes.<br />
And 69.7% said they would actually check other sites for the prices of the same goods before deciding whether to buy at that site or not.<br />
75.7% said they would check the regular selling price (not the recommended retail price), i.e. the price at which the goods are sold when the time limited sale is not on, before making the purchasing decision.<br />
<br />
<span style="color: blue;">Note that transparency is king here, and note that the consumers have a tool that enables them to do the necessary research in only a few clicks.</span><br />
<br />
2) Do they use these time limited sales to acquire goods to re-sell at auctions?<br />
69.6% said no.<br />
<br />
<br />
3) Do they want shorter sales periods in exchange for steeper discounts?<br />
46.6% said yes and 37.6% said they were netural about that.<br />
<br />
4) Are time limited sales "unfair" because the only variable is timing?<br />
29.3% said yes, and 39.5% said they feel neutral.<br />
<br />
5) Would they accept additional discounts in exchange for paying COD (cash on delivery) or making an electronic money transfer payment directly from their accounts in advance?<br />
33.9% said yes and 26.1% were neutral.<br />
<br />
<span style="color: blue;">Perhaps it is very characteristic of Japan that more than 30% of buyers are comfortable with paying in advance or paying COD. It may be worth noting that COD handling charges are often passed on directly to the consumer. Private courier Yamato's collection service starts at 315 yen per transaction for lower priced items under 10,000 yen; then goes up to 420 yen for shipments priced 10,000 yen to under 30,000 yen; and so on. Amazon Japan's COD charges are much steeper to discourage this payment method, however. </span><br />
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<a href="http://www.yamatofinancial.jp/en/service/por/index.html" target="_blank"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPn4gGme0v428s1bjnS3FiIn_vbf8TT1WnjcX57nXHYlallol8isSjbrnMI8d2DdXuzp86Z5AEZj3WuXx9vDxGpk1PMM_0e2_KF_Gjr7SXtg_1Zgc1dqWvUsseRaMZBFNAPTu8THOyVMA/s400/Yamato+COD+fees.JPG" width="397" /></a></div>
<span style="color: blue;"><br /></span>
<span style="color: blue;">For more details see: </span><a href="http://www.yamatofinancial.jp/en/service/por/index.html">http://www.yamatofinancial.jp/en/service/por/index.html</a><br />
<br />
<br />
6) Would it be attractive to be able to secure an item for 24 hours before making the purchase?<br />
<span style="color: blue;">(A service quite common in brick and mortar stores)</span><br />
59.5% said yes and 21.3% said they are netural to this.<br />
<br />
7) If the last remaining item at a time certain sale was available on auction starting from 0 yen, would that be appealing?<br />
63.2% said no, and 23.9% said they are neutral to this.<br />
<br />
8) Of the currently available discount items, what do you find attractive? (multiple answers)<br />
1. Outlet sales and second rate quality discounts 72.0%<br />
2. 10x, 5x and other additional loyalty points sales 68.1%<br />
3. Discount coupons 59.2%<br />
4. Limited period sales that last more than 24 hours 56.1%<br />
5. Time limited sales that are under 24 hours 57.9%<br />
6. Free shipping over a certain purchase value 54.5%<br />
7. Discounts based on promises to write reviews after purchase 41.7%<br />
8. Limited quantities only sales 39.9%<br />
9. Multiple purchase sales (purchasing more than one item) 29.2%<br />
10. Mobile phone only sales 11.9%<br />
11. None of these appeal to me 2.7%<br />
<br />
9) Of the items chosen in 8) above, which is THE MOST attractive discount practice for you?<br />
1. Outlet sales and second rate quality discounts 31.0%<br />
2. 10x, 5x and other additional loyalty points sales 21.1%<br />
3. Discount coupons 13.0%<br />
4. Limited period sales that last more than 24 hours 8.1%<br />
5. Time limited sales that are under 24 hours 7.7%<br />
6. Free shipping over a certain purchase value 7.3%<br />
7. Discounts based on promises to write reviews after purchase 5.3%<br />
8. Limited quantities only sales 4.2%<br />
9. Multiple purchase sales (purchasing more than one item) 1.9%<br />
10. Mobile phone only sales 0.4%<br />
11. None of these appeal to me 0%<br />
<br />
<span style="color: blue;">There were no variances among age groups for 9) above up to number 3, but perhaps it is worth noting that for those in their 30s and 40s, "discounts based on promises to write reviews after purchase" rated 5th and 4th accordingly and free shipping ovr a certain purchase value rated 4th or 5th for those in their 40s, 50s, and 60s.</span><br />
<br />
<b>Food and Beverages are the Most Popular Purchase Items at Time Limited Sales</b><br />
In the multiple answers section for items purchased, food and beverages ranked highest at 46.0% of respondents having purchased such an item.<br />
<br />
The other items rated as follows:<br />
2. Fashion Items 37.6%<br />
3. Sundry goods 37.2%<br />
4. Electric appliances 30.4%<br />
5. Computers and accessories 29.2%<br />
6. Cosmetics 14.9%<br />
7. Sports and outdoor goods 12.4%<br />
8. DVDs and CDs 12.0%<br />
9. Books and magazines 11.1%<br />
10. Others 6.1%<br />
<br />
Once again, it is worth noting that for those in their 20s and 30s, fashion items rank the highest at 54.0% and 50,0% accordingly.<br />
<br />
It is also interesting to note that for those in their 60s, food and beverages rated 61.3% and was by far the highest with sundry gods at 38.0% and computers and accessories at 29.3% ranking at distant numbers 2 and 3.<br />
<br />
<br />
In the future, items they want to purchase rated as follows:<br />
<br />
1. Sundry goods 54.5%<br />
2. Food and beverages 53.5%<br />
3. Electric appliances 51.3%<br />
4. Computers and accessories 46.5%<br />
5. Fashion items 43.3%<br />
6. DVDs and CDs 29.7%<br />
7. Books and magazines 28.9%<br />
8. Cosmetics 25.5%<br />
9. Sports and outdoor goods 20.3%<br />
10. Others 3.3%<br />
<br />
###<br />
Reference: Original Japanese report PDF download page: <a href="http://selectbox.shoeisha.jp/article/278">http://selectbox.shoeisha.jp/article/278</a>Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-3966048159125692252013-04-12T15:48:00.000+09:002013-04-12T15:48:42.019+09:00"Girl" is the Buzz WordFirst, it was ELLE, who launched ELLE Girl<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEip25h5miUv4udWs8n28iriyw9TQn5kaMAqKwUl9aMSUKXYaDHdBnfLKMNlpYxQ2DTurScjt_qXmq9tKTQXkJ57pPo4uEm_Gfc4gYAXd5RiX_HmTWXhjiRVJvk6Ad89_1N_aPIb7-ynjJY/s1600/Elle+Girl.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEip25h5miUv4udWs8n28iriyw9TQn5kaMAqKwUl9aMSUKXYaDHdBnfLKMNlpYxQ2DTurScjt_qXmq9tKTQXkJ57pPo4uEm_Gfc4gYAXd5RiX_HmTWXhjiRVJvk6Ad89_1N_aPIb7-ynjJY/s1600/Elle+Girl.jpg" /></a></div>
<br />
Elle Girl always has an overseas celebrity on its cover.<br />
<br />
Before Blake, it was Kristen Stewart, and before Kristen, it was Taylor Swift.<br />
<br />
Obviously, the selction for the cover girl shows the target age group.<br />
<br />
Next came VOGUE Girl...<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLcPlfmgaU47rDH9VW2eXAABXCogHdqV0-SfEQBJUzyv66QOe-vNhBI0YuFd5rG9X53ogGx1vAVpTGXeroDOD5rbfd2cE2qESPShmSela1WygHMmwT-u67Re7HY_6hRuISdifXxEFvpRQ/s1600/vogue+girl.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLcPlfmgaU47rDH9VW2eXAABXCogHdqV0-SfEQBJUzyv66QOe-vNhBI0YuFd5rG9X53ogGx1vAVpTGXeroDOD5rbfd2cE2qESPShmSela1WygHMmwT-u67Re7HY_6hRuISdifXxEFvpRQ/s1600/vogue+girl.jpg" /></a></div>
<br />
VOGUE has been casting Japanese models and actresses on its cover.<br />
<br />
But the target age group is the same as those for ELLE Girl.<br />
<br />
And today, I received a copy of Peach John Girl.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhALEqMg9VjbfhecjD0JWUyq9ZtT0RHmPtR1PxqaGNd7i9XINKXmX_L9uhZbbVzkiJql-vglHPdJVYANjV3MV8JXnsgVf6pvNcV5M60DJq38bAYP89C9cua1arpzqw-lPP0lG40qlHfxW0/s1600/IMG_3951.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhALEqMg9VjbfhecjD0JWUyq9ZtT0RHmPtR1PxqaGNd7i9XINKXmX_L9uhZbbVzkiJql-vglHPdJVYANjV3MV8JXnsgVf6pvNcV5M60DJq38bAYP89C9cua1arpzqw-lPP0lG40qlHfxW0/s320/IMG_3951.JPG" width="240" /></a></div>
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And given that Peach John is the "Victoria's Secret of Japan,"</div>
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<br /></div>
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it is easy to see that "Girl" is the buzz word du jour.</div>
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<br /></div>
<h2>
<b>Girl is a State of Mind, not Age</b></h2>
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Though the cover girls speak volumes about the target age group and lifestyles/fashion preferences, once inside the cover it is obvious that Girl is actually a state of mind and not necessarily an age group.</div>
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<br /></div>
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Sure, the publications do not talk about anti-aging remedies and cosmetics, but the advertisers are not always the second line and VOGUE often features "high and low styling" where they match up haute couture brands with more up and coming ones like CHANEL x Acne.</div>
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I was quite impressed that the health related articles in VOGUE Girl went into some very serious advice on sensible and healthy eating, like "choose whole grain rice over bread and pasta to prevent blood sugar levels from rising too quickly."</div>
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Japan seems to forever be the market where youth and a "girly mindset" remain not only acceptable, but even preferred or seen as aspirational. Initially, I was inclined to think "and this, despite the rapidly aging population and there being more dogs than kids under the age of 15," but then again, perhaps it is more accurate to say that it is because of this that youth and being girly are so desirable. </div>
<br />Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com0tag:blogger.com,1999:blog-3880537714919575538.post-36705857355309076512013-04-08T13:47:00.000+09:002013-04-08T15:22:50.771+09:00Affordable Same Day Delivery is Coming - Yamato Holdings CEO Interview "We Aim to Be No.1 Not the Only One" Yamato Holdings CEO Makoto Kigawa spoke to the Nikkei Marketing Journal.<br />
<br />
Yamato has continuously upped the ante for home parcel deliveries while keeping prices reasonable. It is no exaggeration to say that they have made date and time certain, refrigerated and frozen goods parcel deliveries a part of the "universal service obligation" of anyone who wants to do home parcel deliveries - including Japan Post (who now offer date and time certain deliveries at no surcharge and refrigerated and frozen parcels deliveries as well).<br />
<br />
They have number one market share and they still lead in such areas as offering pre-advice to registered "Kuroneko Members" by email with a link for them to change the date and time of delivery of the expected parcel(s).<br />
<br />
Kigawa and Yamato now have "same day delivery" that costs the same as a normal next day delivery parcel in scope, among other services and remember - they don't keep their innovations confined to the more than 3,000 islands of Japan. They have international aspirations and will bring affordable value-added home parcel deliveries to your market soon!<br />
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<br />
### From the Nikkei Marketing Journal 8 April 2013 ###<br />
<br />
Yamato Holdings delivers close to 1.5 billion TaQ-Bin parcels a year. Their greatest strengths is in new product development that is driven by innovation. "Cool TaQ-Bin" (refrigerated and frozen parcels delivery) and date and time certain deliveries are now the norm. New services include next day delivery of e-commerce goods ordered in the early hours of the night in limited areas. Such consumer needs driven services are boosting sales. The overall parcels market feels as if it has come to a stagnant growth stage, but Yamato always seems to be one step ahead. The Nikkei Marketing Journal spoke to CEO Makoto Kigawa to find out what their secret is to continuously develop new services that consumers want.<br />
<br />
(The byline of the article is Toru Shimoharaguchi)<br />
<br />
Nikkei MJ: The small courier parcels (TaQ-Bin) market saw negative growth from 2008 to 2009. Has the market reached saturation point?<br />
<br />
Kigawa: The shrinking population and other elements contribute to a sign of slow growth, but we continue to secure positive growth. Small packet logistics is recovering as the shipping lots get smaller and frequency of shipments increase. The driver is e-commerce. Japanese e-commerce enjoys a very good reputation for quality. It is a role model for other overseas markets.<br />
<br />
Nikkei MJ: Yamato has always created new businesses, but are you able to differentiate yourselves from your competition in the e-commerce market?<br />
<br />
Kigawa: If we were not in business, I doubt Japanese e-commerce would have enjoyed such a great reputation. Our home delivery system, the "cool TaQ-Bin," speed of collection, returns and payment processing and other value-added services that we created has contributed to the rapid growth of e-commerce, I believe."<br />
<br />
<b>Expansion of "Same Day Delivery" among Tokyo, Nagoya, and Osaka Areas in Scope</b><br />
Nikkei MJ: The growth of e-commerce and the evolution of parcel delivery services in Japan have changed the way our consumers shop.<br />
<br />
Kigawa: The golden time for e-commerce is in the late hours of the night. Thanks to the proliferation of smartphones, orders have also increased during commuting times and lunch hours. Such lifestyle changes are rife with new real consumer needs. What is important for us is to get very serious about creating convenient services that meet such requirements.<br />
<br />
Our TSS (Today Shopping Service) is a new service whereby goods ordered in the late hours of the night can be delivered the next day at 8 am. We offer this in limited areas only at this time. The shortest lead time to delivery is four hours. Consumers have indicated that this is very convenient for them, but what is more, the sellers are delighted by it.<br />
<br />
Because the goods are delivered quickly, the buyers have little time to change their minds. And this means there is significantly less returns. Returns are significant costs. It requires people to manage it and space to process it. By reducing returns, sellers can increase the products they offer and this brings more customers."<br />
<br />
Nikkei MJ: Yamato is famous for next day delivery, but now you are evolving into same day delivery.<br />
<br />
Kigawa: We are probably the first to actually name the product as a "same day serive" or "Today Shopping Service." TSS is a system that enables sellers to operate e-commerce with same day delivery as their unique service offering. This changes the way customers perceive them and shop; and the sellers can promote their service with this unique attribute more and more. As this gets more exposure, it will need to be more than the current limited areas only service, so we will evolve our network.<br />
<br />
Nikkei MJ: We understand that you endeavor to start same day TaQ-bin services between Tokyo-Nagoya-Osaka areas in fiscal 2016.<br />
<br />
Kigawa: In August this year, we will establish a logistics center we call a gateway base for the Kanto area in Atsugi city of Kanagawa prefecture. We will show you this year how the network that will enable same day delivery in the Tokyo-Nagoya-Osaka areas will look like. First we will set up the system for the Tokyo area, and then expand it to the Chubu and Kansai regions. Fiscal 2016 is the last year of our current medium-term plan, and by then, we will be able to operate same day deliveries on a stable basis."<br />
<br />
Nikkei MJ: It seems there is no end to service evolution.<br />
<br />
Kigawa: Whether or not services will become popularly used is dependent on cost. Even today, if you really want to do same day delivery, you can get that if you pay 15,000 yen or more. What is imperative is to create a same day service that is priced at the same as what we charge for TaQ-bin today."<br />
<br />
<br />
<b>Empowered Front Line Managers Create the Seeds of New Services</b><br />
Nikkei MJ: How do you actually look for new services to develop?<br />
<br />
Kigawa: In the front line, our people focus on understanding what is inconveniencing our customers. We have 60,000 delivery people meeting customers every day and listening to them. What makes Yamato unique is that we are focusing on service development from the perspective of the recipients. We speak to the consumers and try to understand how we could solve their problems.<br />
<br />
The "seeds" that are collected by our front line staff is first tended to by the creativity of our branches and outlets. The front line managers are empowered to do this.<br />
<br />
Whenever they solve a problem or inconvenience for a customer, it is shared in the "Solutions Lab" in our database. Twice a year, good solutions are shared at the regional companies basis and then taken to headquarters for further discussions and development. We then standardize them so that they can be rolled out as services or products on a company wide basis."<br />
<br />
Nikkei MJ: What is the most important thing when it comes to creating a product?<br />
<br />
Kigawa: There is no way to develop a hit product by taking what we can do today and pushing it to our customers. That creates a gap between what the customer needs and what we can offer. I think it is common to say 'create a product only you can deliver,' but if you just want some self-gratification, it is easy to create new products.<br />
<br />
Nikkei MJ: Even if you create a new product that responds to a real customer need, competitors are quick to follow.<br />
<br />
Kigawa: Because they follow, the product or service quickly becomes more than a niche. Yamato aims to be the absolute number one in these markets. We don't aim for the only one, but to be number one is what is important.<br />
<br />
Nikkei MJ: Yamato has a successful history in leveraging deregulation to generate new growth. Are there any particular areas you are looking at, at this time?<br />
<br />
Kigawa: When deregulation is realized for pharmaceutical and medical supplies sales, there will be a great market opportunity. This is an area where the citizens of Japan have many challenges and inconveniences. And the distribution system for medical supplies is archaic. Even if prescriptions can be made remotely and delivered to homes, that would create new demand throughout Japan. I have no intention of saying that the express parcels market in Japan is saturated."Jules Takagishihttp://www.blogger.com/profile/07314260604489876970noreply@blogger.com6