This is simply because Japan's population decline and aging will continue to progress, and therefore the domestic economy will be under further deflationary pressure.
This is not a future prediction, but it is a structural thing that cannot be turned back, and it is a fact that has already been deciphered from past and existing data.
Furthermore, the deflationary pressure is also at the highest level in the world. Therefore, if they are despising this impact, beautifying the past, hating change, short-circuiting to the masses, chasing people, not learning new things, and believing unnecessary stereotypes, the situation will be getting tougher for Japanese managers and companies who are tied up with their past, not trying to understand evolving capitalism, economy, and social environment from the past to the present, and not trying to update it.
It is clear that in following book, Mr. David Atkinson of Konishi Decorative Arts & Crafts Co., Ltd. Analyzes and explains it in a very polite and easy-to-understand manner with a hot heart and a calm head.
I feel a lot of his love for Japan and Japanese people
「日本人の勝算 人口減少×高齢化×資本主義」Translated as "Japanese Victory: population decline x aging x capitalism"
Japan has to move away from the era of population growth model and aim for productivity improvement, high added value, high income. In that era, Japanese companies can try to export more their technology, resources etc, and I feel that their services and other products are also required to be exported more and more. It must be not because their business partners are expanding overseas, not because the people around them are doing it, not because it seems that they can export somehow, not because the country supports it, not because it gives subsidies, etc, but more voluntarily with an aggressive thinking way and actual attitude.
Japan has to move away from the era of population growth model and aim for productivity improvement, high added value, high income
Many Japanese companies have been attracted to their huge domestic demand for so long, but the one-legged method there has become a complete anachronism since long ago.
Japan seems to be a large exporter, but it is actually a small exporter in terms of their GDP and per capita, not the total amount. The export potential of the Japanese economy has not been fully realized. This can be felt even more at the field level if you go to rural areas instead of the metropolitan areas of Japan.
However, it is also true that many Japanese companies are often misunderstood here.
So can any company export or do overseas business?
Of course, it's not such a sweet world.
Even if the productivity is low, there is no added value, and the profitability remains low, isn't it possible to earn money just by their business diversion?
Even without using such words, it is a fact that a considerable proportion of Japanese companies view export business and overseas business with almost similar pre-modern way of thinking.
The export business and overseas business are not just business models such as exporting and selling products manufactured in Japan. It is necessary to strategically consider and act on various methods on a case-by-case basis in consideration of business feasibility and sustainability.
Why do you export or do overseas business after not clarifying their position and situation of your company, economic, social situation, and environment? What values, strategies, resources, practical skills, new initiatives etc are actually required to do so?
As you can see from the past history, it is almost impossible for us to do our best to create and manage a business from scratch in an overseas market that is completely out of their field.
Even in the modern age of the Internet and IT, there is no change, and even large companies with abundant resources are cautious when doing business in land other than their own fields. And in many situations, they work with their external partners, experts etc to share resources, minimize risk, consider, create, and manage their business well.
Also, there are quite a lot of Japanese business owners and companies who think that it is okay if they are introduced to personal connections that seem to be important, but of course it is not that simple.
Genuine personal connections are based on the premise that they will get to know each other over the years, and connect with each other with the trust and trust in their hearts and be introduced.
Whether you approach yourself directly or someone introduces you, the more genuine you are, the more genuine people you can meet. No genuine one who work together seriously and provide only the things you need without the retained true mutual trust.
Unfortunately, the more genuine they are, the less they deal with such selfish companies and people. It is a natural psychology because it can be seen as a company that misunderstands the essence of human beings and business.
In addition, the completely misunderstood thinking way is that it is okay because we have been operating in Japan for decades, which is honestly completely useless in overseas business.
While hearing to the various factors mentioned above, the reality is that most Japanese managers and companies think that it is not a business that they bother to try if it seems to be so troublesome.
Honestly, at that point, the conclusion is that such owner or company does not have the ability or content to carry out overseas business. There is no need to pull them out by force.
Therefore now, we might be more needed to discover specific Japanese companies and managers who can understand the trends of the times, this part "Why more Japanese companies should aim for overseas markets", logically firmly grasp the essence with a hot heart and a calm mind, and humbly and honestly work on each action in fair cooperation with external organizations and people. And, we more concentrate our support and cooperation to them.
we might be more needed to discover specific Japanese companies and managers who can understand the trends of the times. We more concentrate our support and cooperation to them.
I think such way of efforts will become more important than ever not only for Japan but also worldwide.
In general, many people have short-circuited the idea that Japanese companies are slow-growing or almost no growth, but their companies continuing to provide added value to clients companies and society that are attracting the support of customers and consumers, their reputation have been continued to be rising, and it seems that there are many such growing companies in Japan.
Japan's tourism strategy these days has produced great results as one overseas business and export business (excluding the influence of corona), thanks to the efforts of all concerned parties. Of course, there is still more work to be done than that, and Japan's tourism resources are still a lot of potential remained in the world, but it is one of the familiar overseas businesses for general people living in Japan. I think there are many useful parts to be learned from it.
Very insightful piece. Thanks Hiro