Facts of Japan
Land & People
Area: 377,835 sq km
Population (July 2007 est.): 127.43m
Capital: Tokyo
Language: Japanese is the official language. Many Japanese are able to understand English to a certain extent since it is the foreign language that everyone must learn as part of compulsory education.
GDP (2006 est.): $33,100
Located in eastern Asia, Japan is an island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean peninsula. Japan’s closest neighbours are Korea, Russia and China. The Sea of Japan separates the Asian continent from the Japanese archipelago. The country has four major islands — Hokkaido (northern island), Honshu (main island), Shikoku (smallest island), and Kyushu (southern island) — surrounded by more than 4,000 smaller islands.
Japanese terrain is mostly rugged and mountainous and the landscape includes coastlines with varied scenery, towering mountains and valleys. Several of Japan’s mountains are active volcanoes as the country lies on a major earthquake fault line. Much of Japan’s population is crowded into a few cities along the coast. Tokyo, Yokohama, Kobe, Osaka, Kyoto, Hiroshima, Sapporo and Nagasaki are among the major cities.
Japan’s 47 prefectures include Aichi, Akita, Aomori, Chiba, Ehime, Fukui, Fukuoka, Fukushima, Gifu, Gumma, Hiroshima, Hokkaido, Hyogo, Ibaraki, Ishikawa, Iwate, Kagawa, Kagoshima, Kanagawa, Kochi, Kumamoto, Kyoto, Mie, Miyagi, Miyazaki, Nagano, Nagasaki, Nara, Niigata, Oita, Okayama, Okinawa, Osaka, Saga, Saitama, Shiga, Shimane, Shizuoka, Tochigi, Tokushima, Tokyo, Tottori, Toyama, Wakayama, Yamagata, Yamaguchi, and Yamanashi.
Useful addresses
- Japan National Tourist Organisation, 10th Floor, Tokyo Kotsu Kaikan Building, 2-10-1Yurakucho, Chiyoda-ku, Tokyo 100-0006. Website: www.jnto.go.jp
When to go
Visiting Japan can be enjoyable in every season of the year. Seasons include winter (December-February), spring (March-May), summer (June-August) and autumn (September-November). Central and northern parts of the country are renowned for winter sports whereas southern Japan is comparatively mild and pleasant during the season. The cherry blossom is at its best in the Tokyo area between the end of March and the beginning of April. Summer is when interesting festivals and other events are held throughout the country. In addition to offering splendidly coloured landscapes, autumn is also the season for exhibitions, music concerts and sports tournaments in the country.
Getting around
Public transportation is available in both cities and suburbs. Visitors who expect to change trains several times a day can go for a ‘one-day ticket’ or other discount tickets. The subway networks facilitate enormous travel in cities such as Tokyo, Osaka, Kyoto, Nagoya and Sapporo.
The JR trains are more convenient for travelling to the main spots in Tokyo such as Shinjuku, Shibuya, Ueno and Akihabara along the Yamanote or Chuo Lines. Known as the ‘Bullet Train’, the Shinkansen is a high-speed intercity train and links most major cities on the islands of Honshu and Kyushu.
There is also a vast highway bus network throughout Japan. It’s ideal to rent a bicycle if you want to travel extensively between towns and view all the scenery. Bike rentals are available not only in sightseeing spots, but also in big cities such as Tokyo and Osaka.
Tipping
It is not common to pay a tip in Japanese restaurants, though it is polite to say ‘gochisosama deshita’ (‘thank you for the meal’) while leaving.
Plenty of options
Several major international airlines fly to the country. Japan’s leading airlines — Japan Airlines (JAL) and All Nippon Airways (ANA) — serve a broad range of international destinations.
The major international airport is Tokyo’s Narita Airport, followed by Osaka’s Kansai Airport, Nagoya’s Central Japan Airport and Fukuoka Airport.
It’s also possible to arrive in Japan by sea from a number of nearby countries, particularly South Korea.
A yen for the yen
The Japanese economy is in its longest post-war expansion after more than a decade of stagnation.
Situated in north-eastern Asia between the North Pacific and the Sea of Japan, the Japanese archipelago has more than 1,000 islands and diverse living environments.
From the snowy mountains in the northern island of Hokkaido to the bustling cities of Tokyo, Kyoto and Osaka, and the tropical rice paddies in southern Kyushu, Japan’s mountains, hills and forests cover two thirds of the country, while residential and industrial area account for less than 10 per cent of land area.
As a country, Japan values tradition and history and upholds the principles of free society. Its culture is greatly influenced by the four relatively distinct seasons and the Japanese have always been keen, throughout their long history, to regard their current season as part of their lives.
Strongest economy
The Japanese economy is one of the strongest in the world. Close government-industry cooperation, a strong work ethic, and mastery of high technology have helped Japan advance with extraordinary speed to become the second-largest economy in the world. Japan’s main export goods are cars, electronic devices and computers, while its most important import goods are raw materials such as oil and wood. With only 15 per cent arable land, Japan’s agricultural economy is highly subsidised and protected. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy.
According to figures released by the Japan External Trade Organization (JETRO), Dubai, “Japan’s exports grew 8.2 per cent year-on-year in 2006 to reach $647.3 billion (about Dh2,380.8 billion), while imports rose 11.7 per cent to $579.3 billion (about Dh2,130.6 billion). Japan’s net outward Foreign Direct Investments (FDI) grew 10.3 per cent year-on-year to $50.2 billion (about Dh184.6 billion) in 2006, topping the previous record set in 1990.”
The Japanese economy is now in its longest post-war expansion after more than a decade of stagnation. The economy saw signs of strong recovery in 2005 and the GDP growth for that year was 2.8 per cent, with an annualised fourth quarter expansion of 5.5 per cent, surpassing the growth rate of the US and European Union during the same period. Unlike previous recovery trends, domestic consumption has been the dominant factor in leading the growth and the Japanese government predicts that recovery will continue.
Business hub
A survey of overseas companies in Japan conducted by JETRO in early 2006 indicated that one in five of these companies sees Japan as a centre for research and development and as a base for business activities in Asia. Today, increasing numbers of companies around the world are partnering with Japanese companies to develop products and services, create innovative technology, and conduct research and development projects.
There are several factors that make Japan an ideal place for investing — consumers who stay on the cutting edge of latest technology, make this an ideal test market for new products and services Japan’s technology-based industries offer a multitude of opportunities for foreign companies looking to partner with Japanese firms at all stages. Foreign-affiliated companies have long found their partnerships with Japanese companies to be one of loyal. Japanese companies emphasise product development and manufacturing efficiency, making Japan the ideal arena for innovation. Japan has a rapidly growing broadband society and its environment market has expanded since the second half of the 1990s due to the government’s advancement of environmental laws. Japan’s population over age 65 will be growing in the coming decades, creating demand in various sectors, such as biopharmaceutical foods, senior care services and others. In addition to this, the country’s national labour market has abundant highly skilled workers.
Banking, insurance, real estate, retail, transportation and telecommunications are major industries in Japan. It is also home to some of the largest and most technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals.
Japan is home to three major financial groups — the Mitsubishi UFJ Financial Group, the Mizuho Financial Group and the Sumitomo Mitsui Financial Group. Multinational companies such as Sony, Sumitomo, Mitsubishi, and Toyota are also industrial heavyweights.
According to Yoshio Minagi, Managing Director of JETRO, Dubai, “The field of biotechnology is also growing in Japan. The mobile penetration rate is very high, and the telecommunication industry is booming. A strong middle class, good education system, and creation of new businesses like the internet business and a new retail network have all led to the development of Japan. The country also has a very well developed environment technology and conducts research in the area of solar power generation and other energy saving areas.”
Family focus
The Japanese often think of themselves as a homogeneous society, with a strong sense of group and national identity. The country is currently facing the problem of an ageing population. According to media reports, one out of five Japanese are over the age of 65, making Japan one of the oldest populations in the world. Japan’s impressive healthcare systems and healthy lifestyles have allowed seniors to live fuller lives.
The family is an important tight-knit unit, and although family roles have changed in recent years (with the growth of the nuclear family), it is believed in Japan that children should live close enough to carry over a bowl of hot soup for parents and grandparents.
Despite the preference of Japanese youth for western food, rice remains a staple. To the Japanese, rice goes down best with a bowl of miso soup, which differs in tastes and ingredients depending on the region. Bread in Japan is thought of as part of a light meal, so it is often eaten at breakfast or as a snack. The younger the child, the more likely they are to prefer western food, thereby indicating a slow drifting away from the traditional Japanese cuisine of sushi, tempura or suki-yaki. Curried rice, however, remains one of the most popular meals in Japan.
Life, Japanese style
A blend of changing customs and unchanging values characterise the Japan of today. Company employees are working fewer hours, and modern electric appliances have made household chores less time-consuming. Interestingly, disposable income, formerly dedicated to acquiring more things, is now being used for travel, and other activities that bring a sense of satisfaction.
Baseball is one of the most popular sports. And while Kabuki is still one of the best forms of traditional entertainment for ordinary citizens, there is a whole area of popular culture that is slowly emerging. Old hobbies are evolving with the help of the latest technology. Karaoke is one example. Magazines report increased sales of music and video software. Bowling alleys have become popular and social networking is on the rise. Computer games and UFO Catcher machines found in game centres are also popular with Japanese youth.
The other attraction at game centres is Purikura. These machines, immensely popular with the girls, take their picture and then compose it in a graphic frame and print out a set of 16 to 20 of them as stickers. Many girls carry a Purikura photo album with them and any time they are out they make new Purikura with their friends.
Highway to success
Japanese vehicles are a common sight both on and off-road in the UAE. Automobiles comprise about 40 per cent of the total exports from Japan to this country.
The year 2006 had mixed results for the Japanese auto industry, which includes important automakers such as Toyota, Honda, Nissan, Mitsubishi, Suzuki and Daihatsu.
According to Fuijo Cho, Chairman, Japan Automobile Manufacturers Association (JAMA), in his New Year’s message to JAMA members, automobile production in Japan was buoyed by robust overseas demand and consequently topped 10 million units for the fifth consecutive year.
Domestic demand, however, dropped by 1.9 per cent from 2005 to 5.74 million units, the second straight year-on-year decline.
The dropping domestic requirement, explains Yoshio Minagi, Managing Director, Japan External Trade Organisation (JETRO), Dubai, is linked to Japan’s ageing population and dropping birth rate.
“As a result of these factors, the automobile sector is seeing no new demand. New car sales have therefore, gradually decreased,” he says. Minagi, though, reiterates the findings of JAMA, and says that the country’s automobile export market has definitely expanded.
According to JETRO’s figures, auto exports were responsible for driving more than half of the increase of exports to the US in 2006. According to Takumo Hatano, the Japanese Ambassador to the UAE, automobiles also comprised about 40 per cent of the total exports from Japan to the UAE in 2006.
Crossing borders
The good news, Minagi adds, is that overseas production rates have also gone up, and car manufacturers have shifted their production bases elsewhere to growing markets such as China, India, Russia and even the US. “Today, Toyota is the largest exporter in Turkey, with a production rate of 150,000 units per year. Nissan has also started production in Cairo with 15,000 units per year,” he says.
The Middle East, and the UAE in particular, is a popular destination for Japanese car exports. Not only is the region an important hub to access other important markets, the domestic demand for Japanese cars is high here. Sports utility vehicles such as the Nissan Patrol and Toyota LandCruiser are considered the best vehicles to tackle the UAE’s sandy and rugged terrain, and are among the top-selling vehicles in the region. Japanese passenger cars — in all segments — are also doing well. In fact, according to manufacturers and dealers, the market share of Japanese cars in the UAE is almost 70 per cent.
High performance
This trend is clearly linked to factors such as fuel economy, high resale value, good performance and value for money — all of which are now synonymous with Japanese cars. Ambassador Hatano agrees. “Japanese cars have a good reputation because they are priced reasonably, offer good performance, and are fuel efficient, durable and have excellent maintenance services,” he says.
These factors have also given Japanese cars an advantage over their western counterparts. Roger Ghosn, Marketing Manager, Al Habtoor Motors, exclusive distributors for Mitsubishi in the UAE, says, “In my opinion, the dominance of the Japanese automotive sector is due to the low-cost technology used compared to the European or American cars. In fact, if we make an analysis based on quality, technology and price, the value for money and high resale price makes them better than their competitors.”
Guy Edmunds, General Manager Honda, Trading Enterprises, an Al-Futtaim Group company and exclusive distributor of Honda in the UAE, says that innovations introduced by the Japanese car manufacturers have also given them an edge.
“Just-in-time supply mass production allowed good quality cars to be produced at lower costs, and this was the start of Japan’s success in the automotive sector, and it continues even today. Engineering skill and prowess seen in examples such as the VTEC engine (variable valve timing and lift electronic control) engines and hybrid cars is another key factor. Another crucial reason for their success is that the Japanese are good at finding out about what people want in their cars and then building them,” he says.
The availability of original spare parts at a low cost, new trendy models and futuristic designs are also among the innovations offered by Japanese car manufacturers, says Ghosn.
Brand strength
These factors have also helped Mitsubishi build a strong brand image in the UAE. “Mitsubishi has been performing very well, especially for the last three years, and we are expecting to hit a higher target than what we have set during 2007. For two years we have been ranked number two on the automotive market chart. All of our Mitsubishi models are selling well, but we have to give due credit to our two heroes — the Lancer and Pajero,” says Ghosn.
Mitsubishi has also launched the new Galant in the UAE. “The car is completely refurbished. We also launched new models of Pajero, Lancer EX and the Outlander this year,” says Ghosn.
Automobile giant Honda’s success in the region can also be attributed to the excellent products supplied in terms of design, performance and prices, says Edmunds. He adds that Trading Enterprises professionalism in dealing with customers in the showroom and the workshop has also helped the brand.
Honda sales in 2006 increased by 30 per cent compared to the figures for 2005. Edmunds says that 2007 will also see similar figures. He adds that Honda’s highest-selling models in the UAE are the Civic, Accord and CRV. Honda also launched the new CRV late last year. The vehicle is doing well in terms of sales.
One of the world’s leading automakers in terms of revenue and volume, Toyota, is very popular in the UAE. Along with its brands, Toyota and Lexus, the company also has a stake in Daihatsu Motors. In the UAE, Toyota’s models are available through exclusive distributors, Al Futtaim Motors.
Latest entrant
At the September launch of the new FJ Cruiser — the latest SUV to join the Toyota range, Simon Frith, Managing Director of Al-Futtaim Motors announced that 2006 was a very important year for the Toyota brand and Al-Futtaim Motors. He said that they had also launched the Camry, Yaris Sedan, Aurion V6, RAV 4 and the new Previa during the year.
“The addition of these new models has helped us achieve an outstanding sales performance in 2006, with Toyota sales up 25 per cent over 2005. Strong customer demand for our vehicles has continued into 2007. In the first eight months of this year, Toyota sales were up 29 per cent on the same period last year.”
Automobile manufacturer Nissan has also created a strong niche for itself in the region. According to Monal Zeidan, General Manager of GCC Marketing, Nissan, “The GCC is one of the fastest growing auto markets today. Nissan was one of the first Japanese auto brands to land in the Middle East in the early 1950s. We were the first Japanese automaker to open a regional office in the Middle East in 1990s with its own product planning, sales, marketing and after-sales functions. All of this to ensure the right product for our customers in the GCC.
“Over the last 50 years we have built a reputation that is based on product quality and after-sales excellence. Our vehicle line-up has also expanded from pick-ups and SUVs to include vehicles in all segments. We have the largest SUV line-up in the Middle East.”
The Nissan Patrol, in particular, is considered one of the best vehicles for off-roading in the region. “Our line-up also includes small and medium sedans such as the Tiida, Sunny, and Altima. Among our range of passenger vehicles, the Nissan Tiida is one of our top selling models in the region. The Infiniti range is doing very well in the luxury segment and is the fastest growing Japanese luxury brand in the region. In addition to this, our success is also linked to our strong distribution network in the region,” says Zeidan. He adds that Nissan has seen double-digit growth in 2006 and this growth is likely to be similar in 2007.
Strong sales, however, are not just slated for distributors based in the region this year, the auto industry in Japan is also expected to do well in 2007. In his New Year message, JAMA Chairman Cho said that sustained corporate investment in plants and equipment, and continuing improvements in the employment and income environments were expected.
“Domestic demand for passenger cars, trucks and buses should total 5.63 million units, while domestic demand for motorcycles should reach 720,000,” said Cho.
These figures indicate good news for an auto industry that has achieved a clear leadership in the international auto market.
Wired for sight and sound
Cornering the global electronics market, Japanese brands are known for their reliability and cutting-edge technology.
If someone was asked to name a brand of electronics, it is more than likely that the brand they named would be Japanese. From Sony to Panasonic and Canon to Nintendo, the sheer number of electronics companies based in Japan is a reflection of the strength of the industry.
Impressive figures
In 2005 it was estimated by the Japanese Electronics and Information Technology Industries Association (JEITA) that the industry held 27 per cent of the total world share of electronics sales. It is also at an estimated 20 trillion Yen on the domestic production scale. The Japanese electronics industry is vital to the country’s economy; this importance is reflected in the various associations and exhibitions that centre on it. JEITA is one of the organisations that supports and regulates the industry.
Publications released by JEITA demonstrate its strength and promote Japanese electronics internationally. The association’s objective is to advocate healthy manufacturing, international trade and consumption of electronic products and components in order to contribute to the overall development of the industry. In 2006, JEITA reported that exports of Japanese consumer electronics totalled more than 1.6 million Yen and more than 14 million for the electronics market as a whole. For 2007, it predicted that the domestic production of electronics and IT industries is set to increase by 3.6 per cent to 21.2 trillion Yen for the second year running.
The annual Combined Exhibition of Advanced Technologies (CEATEC Japan) is a five-day exhibition that serves as a platform for Japanese electronics companies to showcase their latest technologies. This helps promote the industry internationally and harvests the trade of electronics between Japan and other countries. Every year, participating electronics and IT companies from Japan and overseas unveil the latest in cutting edge technologies and products. In 2006, there were 807 exhibiting companies and organisations. It allows visitors to experience the newest technologies and products, systems and software for the digital network age.
Advantage Japan
There are a number of factors that give Japanese electronics a competitive advantage. “The reputation for reliability and a good after-sales service at affordable prices are what distinguish Japanese electronics from other electronics worldwide,” says Shinji Tada, Managing Director at Brother Gulf, “Continuous investment in research and development also makes the demand for their products very high.”
Tada also says that the reliability of Japanese-made semiconductors (the device used in all modern day electronics) is another element crucial to the success of the industry. “The reliability of semiconductors manufactured by Japanese companies is one of their pillars of strength. Japanese electronic product manufacturers have a very strong tie-up with semiconductor manufacturers from Japan.
“This gives them advanced information on the improvements that have been achieved in terms of performance and lowered costs of semiconductor devices. The consumer electronics manufacturers are able to leverage these advantages by incorporating them into new products to be brought to market.” says Tada.
Big brother
The Brother Group is one of the global leaders in the development and manufacturing of technologies in the printing, communication and digital imaging industries for homes, SOHOs and enterprises. The company now has sales in more than 100 countries and state-of-the-art ISO 9001 certified factories in Japan, Taiwan, China Korea and the UK.
The Brother Gulf subsidiary that is based in the UAE is continuing to see impressive growth, something the company attributes to forward thinking in terms of the products that are developed in Japan. “Over the years brand leaders such as Sony, Panasonic and Brother have consistently brought innovative products to the Middle Eastern market, and have met their commitments in terms of reliability. We expect to grow at 25 per cent per annum, which is in line with our targets for the region,” adds Tada.
Leading the pack
The term ‘reliability’ comes up repeatedly when talking about Japanese electronics. The industry has a widespread reputation for being a leader in terms of the durability of its products. “Reliability, durability and excellent after-sales service is what makes Japanese electronics stand out worldwide. The industry is also ahead in terms of the latest technology that is on offer and being developed,” says Kazim Mankani, Regional Manager for Konica Minolta.
The company is a Japanese worldwide manufacturer of photocopiers, printers, medical graphic equipments and sensing meters. It formed following a merger between Japanese imagining firms Konica and Minolta in 200ß3 and is renowned for its Business Technologies company. It is known worldwide for its innovative range of Multifunctional Peripherals (MFPs), as it has invested a lot in developing forward-thinking technologies that benefit businesses.
Burgeoning markets
There is a strong demand for Japanese electronics in the UAE, and the market is open to further expansion. Ajit Nair, advertising and PR executive for Panasonic UAE says, “At Panasonic we have witnessed a steady two-digit growth over the last five years or so. Most brands have a long history in the Middle East and command loyalty from local buyers.”
Panasonic is an international brand name for Japanese electronic product manufacturer Matsushita Electrical Industries Co. The company is a household name due to its large sales of plasma televisions, DVD players, digital cameras, microwave ovens and telephones.
Nair believes that Japanese electronics are world renowned due to their superior quality. “The development of innovative ‘world first’ technology and product quality are the primary reasons for a strong presence of Japanese brands in the electronics market,” he says.
Posted by beknown 