After opening its Global Flagship Store at Orchard Central in 2016, UNIQLO will welcome its second largest store in Singapore on 11 April 2019, as it sets foot in the iconic Jewel Changi Airport. Aspiring to showcase its LifeWear ethos to the world, UNIQLO aims to leverage Jewel – a choice lifestyle destination that will draw in both locals and visitors globally – to share its brand experience that champions Simple Made Better through constant innovation.
Tag: Japan
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Starbucks Reserve Roastery in Tokyo opens
Starbucks opens a four-story fully-immersive Starbucks Reserve Roastery in Tokyo today.
Located in the Nakameguro neighborhood, the new venue offers more than 100 unique coffee and tea beverages and merchandise exclusively available in store. It will be the fifth Roastery globally, home to the largest Teavana Bar in the world and Japan’s first Princi Italian bakery.
It also introduces Starbuck’s first Amu Inspiration Lounge, a full floor dedicated to community gathering – and is planned as Starbucks’ first Specialty Coffee Association certified training location in Japan in the near future.
“As the first international market outside of North America, Starbucks Japan has contributed 23 years of innovation for the company globally,” said Starbucks CEO Kevin Johnson. “The opening of the Tokyo Roastery will further amplify what Starbucks Japan has done across all stores in the market for more than two decades – innovating and delivering the finest quality coffee one person, one cup and one neighbourhood at a time.”
“The Roastery will amplify and inspire coffee passion across all Starbucks stores, and will serve as a catalyst for a new wave of growth centered on the customer experience and passion for coffee and service,” added Starbucks Japan CEO Takafumi Minaguchi. “Beginning with the ‘Make it Yours’ campaign that will commence at every store in Japan upon the opening of the Roastery, customers will be invited to experience the first Starbucks coffee roasted exclusively in Tokyo, for Japan, and available in a variety of coffee beverage styles.
“The Roastery signifies our commitment to fostering moments of human connection over a cup of coffee and using these moments to create positive social impact in the communities we serve.”
The Starbucks Reserve Roastery in Tokyo is the only one designed in collaboration with a local architect from the ground up. Inspired by the famous cherry-blossom trees lining the Meguro River, the building’s glass walls and terraced floors fold into the fabric of the neighbourhood, bringing visitors eye-level with the cherry blossoms and the four seasons of the river to reflect the natural beauty and sense of harmony found across Japan.
The coffee journey at the Starbucks Reserve Roastery in Tokyo is an immersive experience and education in coffee, and its process – from green bean to cup – which begins at the Main Bar on the first floor. The open floor plan draws customers into the immersive experience, introducing them to the art of roasting, brewing and hand-crafting beverages. The terraced third floor features Starbucks Japan’s first cocktail bar, Arriviamo.
Japan is the fourth largest market in terms of store count for Starbucks globally – behind the US and China – and today has more than 1400 Starbucks stores.
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Uniqlo Japan sales down
Fast Retailing Group has reported a decline in revenues for Uniqlo Japan against broader successes internationally in its first quarter.
A sharp profit decline on sluggish sales of seasonal ranges during a warm winter in Japan has given rise to disappointing results in the Uniqlo brand’s home territory. Uniqlo Japan posted revenues of ¥246.1 billion (US$2.27 billion), a decrease of 4.3 per cent year on year, with first-quarter profit before taxes of ¥111 billion ($1.03 billion), down 5.7 per cent; and profit attributable to owners of the parent firm of ¥73.4 billion ($678.4 million), down 6.4 per cent. Online sales expanded favourably in the market, however, showing an increase of 30.9 per cent.
Uniqlo International saw an operating profit far exceeding that of Uniqlo Japan, with revenues at ¥291.3 billion (2.69 billion) up 12.8 per cent.
Uniqlo Greater China and Uniqlo South Korea both reported higher sales and profits despite the dampening effect of the warm winter. Uniqlo Southeast Asia & Oceania continued to report significant revenue and profit gains.
The report said Fast Retailing’s consolidated business estimates for the financial year ending August 31 remain unchanged from the initial forecasts released last October, predicting an 8 per cent expansion in revenue and 14.3 per cent increase in operating profits.
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Japanese eatery Botejyu opens in Manila
Japanese eatery Botejyu, a restaurant chain specialising in okosoba and okonomiyaki dishes, has opened a flagship at One Bonifacio High Street in Taguig City.
The new branch is the largest of 12 Botejyu locations in the Philippines, with more outlets expected to open later this year. All branches feature an open kitchen and a private meeting room at the back of the venue.
The brand is the second concept imported by Viva International Food & Restaurants.
“Most Japanese restaurants only specialise in one item like ramen, or just tempura,” said Viva International senior VP Vicente Raphael “VR” del Rosario IV. “But for Botejyu, though we specialise in okosoba and okonomiyaki, the main selling point is that technically, we carry the best of each place in Japan.”
Botejyu is a legacy brand in Japan, credited as the first to use mayonnaise as a dressing on okonomiyaki pancakes, as well as inventing the okosoba by wrapping traditional stir-fried noodles in the okonomiyaki batter.
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Muji sues Singaporean retailer Luiga
Muji parent Ryohin Keikaku has filed a lawsuit against Singaporean retailer Iuiga alleging trademark infringement. During an interview Muji president Satoru Matsuzaki said the lawsuit was filed against Iuiga in Singapore courts in late January for “trademark infringement and passing-off under Singapore law”.
The Japanese retail giant is seeking a court order to stop the use of the Muji trademark in Iuiga’s statements, as well as compensation for damages and losses.
According to the report, the Singapore firm has used statements such as “Muji same manufacturer” and “direct from Muji manufacturer” on its e-commerce website and in its physical store.
“We requested Iuiga to disclose information on their manufacturing factories to verify their statements. However, we did not receive any response,” a Muji spokesperson said.
The Japanese firm added that its manufacturing contractors have denied manufacturing or supplying products to Iuiga.
Iuiga’s chief growth officer Jaslyn Chan said the company has “done nothing wrong”, adding that the information on its website is factually accurate and its “manufacturing processes are legal”.
She added that Iuiga works with “original design manufacturers”, and that there “is no direct ownership of the product by any single brand entity, allowing the original design manufacturers to produce for more than one brand”.
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Most Japanese firms want to expand Vietnam operations
Higher revenues have motivated almost 70 percent of Japanese firms in Vietnam to consider expanding their business here. Higher revenue was cited as the reason for expansion plans by 65 percent of Japanese businesses. Another 43 percent saw greater potential and high growth as encouraging factors. The majority of respondents also said that Vietnam has advantages in market scale and high growth, political-social stability and low labor costs.
65.3 percent of Japanese companies in Vietnam reported profit last year, up 0.2 percentage points from 2017. The ratio of businesses reporting loss went down 2.8 percentage points to 12.7 percent last year. Japanese businesses in Vietnam seem to be most confident in their prospects this year among the Asia countries JETRO surveyed. 58.7 percent of businesses in Vietnam expect their profit to increase this year, while this figure is only 47 percent in Thailand, 44.7 percent in Malaysia and 39.5 percent in China.
However, the ratio of businesses reporting profit last year is lower than other countries in Asia, including Indonesia at 65.5 percent, Thailand 67.2 percent, and Malaysia 68.9 percent. Japanese businesses also said that the top risks in the country were increasing labor costs, an incomplete legal system, lack of transparency in law enforcement and complicated tax and administrative procedures.
They said that Vietnam has a high rate of employee turnover, with 36.2 percent of respondents mentioning this as a problem, higher than in Thailand at 33.2 percent and India at 32.5 percent.
Labor costs account for 20 percent of total costs in Vietnam, higher than the Philippines at 16.8 percent and Indonesia at 16.5 percent.
The localization rate in Vietnam remains low, the Japanese respondents said. Only 14.4 percent of Japanese businesses said they bought material and parts from local businesses last year, lower than in Indonesia at 19.5 percent, Malaysia 20.4 percent, and China 41.6 percent.
This is the 32nd year that JETRO has surveyed business conditions of Japanese firms in Asia and Oceania.
The survey polled 787 Japanese businesses operating in Vietnam in October and November last year.
Japan was the largest foreign direct investor in Vietnam last year, with a total registered investment of $8.59 billion, accounting for 24.2 percent of the total, according to the Ministry of Planning and Investment.
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Pokemon Center Singapore unveils Jewel Changi plans
Pokemon Center Singapore has unveiled a mock-up of its Jewel Changi store set to open next month. Pokemon Center Singapore is expected to be smaller or about the same size as Pokemon Center Kyoto, which is currently one of the smallest Pokemon Centers in Japan.
The store has the same look and feel as the Japanese outlets. A giant statue of Lapras, Pikachu, and Celebi, the Pokemon characters featured on Pokemon Center Singapore’s official logo, greets visitors at the entrance.
Green wallpaper is mixed with bamboo and wood decorations around the store, to match with the lush greenery in Jewel Changi, home to thousands of trees.
There will be a space allocated for events such as Pikachu and Eevee meet and greets, video-game tournaments, and Pokemon TCG tournaments.
The Pokemon Company’s subsidiary Pokemon Singapore has been seeking staff for the store since January and plans to open the same day as the new mall.
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Rakuten using Red Hat technologies in mobile rollout
Japan’s Rakuten announced it has arranged to use open source technologies provided by Red Hat in its upcoming end-to-end cloud native mobile network.
The network, which is scheduled to launch in October, will use Red Hat’s open hybrid cloud technologies, Rakuten announced at this week’s Mobile World Congress in Barcelona.
Rakuten Mobile Network has built an NFV based network supported by Red Hat Enterprise Linux, the Red Hat OpenStack Platform and Red Hat Ceph Storage software-defined storage solution.
The deployment will support the planned launch of 4G mobile services, and leave Rakuten Mobile Network well placed to roll out 5G services subject to government licensing approval.
“Our vision is to build a network that innovates at the speed of software and scales at the speed of cloud, and with a culture founded in technical and operational innovation, we are uniquely positioned to achieve that. We are excited to work with leading partners from around the world such as Red Hat as we work to create the world’s first end-to-end fully virtualized cloud-native network,” Rakuten Mobile Network CTO Tareq Amin said.
“End-to-end automation for both network and services is a pillar of our systems building strategy, and by using Red Hat’s open source technology we can achieve automation and auto-scaling, enabling more productive operations and allowing us to provide cost-effective services to our customers.”
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Laox lets Chinese tourists Flying to Japan pre-order duty-free
Tokyo-based duty-free operator Laox is allowing Chinese tourists to Japan to do their tax-free shopping online in advance of their visit.
The duty-free goods will be listed on an Alibaba-hosted website, allowing consumers to purchase their goods online and pick them up at Laox locations of their choice within Japan up to a month following the transaction. Travellers will need to show purchase records on their phone and present their passports to be eligible for tax exemption.
The number of goods available for purchase on the website is expected to grow to about 5000 items from the roughly 100 currently available already.
The service is launching during a period of stagnation in the Chinese tourist market, as Japanese retailers face intensifying competition.
Laox’s strategy is intended to spare shoppers the inconvenience of hunting for the products they want within physical stores. It is the first such scheme hosted on an Alibaba site.
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AirAsia X fits Fukuoka as destination into its network
AirAsia X launched its fourth Japanese route from Kuala Lumpur (KUL) on 28 February, beginning a four times weekly service to Fukuoka (FUK). The carrier already flies from the Malaysian hub to Osaka Kansai, Sapparo Chitose and Tokyo Haneda in Japan. The airline will operate the 4,545-kilometre route using its fleet of A330-300s, with it being the only carrier to fly the airport pair.
“More than 156,000 seats per year will be available on this new route, providing guests with the opportunity to book low-cost travel to yet another amazing destination in Japan,” commented Benyamin Ismail, CEO of AirAsia X.
“This new service signifies our commitment to accelerating our growth story in Japan, and we’re confident the route will deliver a significant boost to the local economy. We wish to thank our airport, tourism and local government partners and authorities for making this new route a reality.”
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Canada Goose revenues surge more than 50%
Canada Goose Holdings announced its financial results for the third quarter, highlighting a surge in revenues after new store openings both physical and online. For the quarter ended December 31, 2018, the North American outdoorwear company said total revenues increased by 50.2% to $399.3m from $265.9m, or 49% in constant currencies.
Direct-to-consumer sales totalled $253.3m from $131.7m last year, driven by the strong online and in-store sales. Canada Goose said it opened five new stores during the quarter and an online store.
Wholesale revenue increased to $164m from $134.2m, on the back of higher order values from existing partners, coupled with earlier shipment timing relative to last year.
The Toronto-based company reported net income came in at $103.4m, or $0.93 per diluted share, compared to $63m, or $0.56 per diluted share. The 64% increase was due to higher operating income and a lower effective tax rate, said Canada Goose.
Adjusted EBITDA was $151.1m, compared to $94.7m.
“Fiscal 2019 is shaping up to be another year of impressive results. In our peak selling season we continued to deliver when and where it matters most, while also strengthening our foundation for future success on the global stage,” said Dani Reiss, Canada Goose President & CEO.
“We have successfully entered new markets, introduced new product, and increased capacity to meet growing demand in both channels. We remain deeply confident in the long runway we have ahead.”
Looking ahead for 2019, annual revenue growth is projected to be in the mid-to-high thirties on a percentage basis, compared to at least 30%.
Annual growth in adjusted net income per diluted share is now predicted to be in the mid-to-high forties on a percentage basis.
Founded in 1957, Canada Goose is today one of the world’s leading makers of performance luxury apparel. The Made-In-Canada advocate employs more than 3,400 people worldwide.
In Asia, the Canadian brand has flagships in Tokyo, Beijing and Hong Kong.
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Starbucks Reserve® Roastery Tokyo opened door
This week, Starbucks celebrates the opening of the Starbucks Reserve® Roastery Tokyo, a four-story tribute to premium coffee quality, innovation and human connection. This will be the fifthRoastery globally, opening to the public on Thursday, February 28, at 7 a.m. JST, reaffirming the company’s 23-year commitment to Japan. The Roastery pays tribute to the important role that Starbucks Japan has played in shaping the foundation of the Company’s international growth. The Roastery introduces customers to more than 100 unique coffee and tea beverages and merchandise, as well as a menu of artisanal Princi Italian fare for the first time in Japan.
It also celebrates the Japanese culture of connection and craftsmanship through the first AMU Inspiration Lounge –from the Japanese “amu,” meaning “knit together”–to host community gathering events and is planned to become Starbucks first Specialty Coffee Association certified training location in Japan.
“As the first international market outside of North America, Starbucks Japan has contributed 23 years of innovation for the company globally,” said Kevin Johnson, CEO, Starbucks Coffee Company.
“The opening of the Tokyo Roastery will further amplify what Starbucks Japan has done across all stores in the market for more than two decades—innovating and delivering the finest quality coffee one person, one cup and one neighborhood at a time.” Takafumi Minaguchi, CEO, Starbucks Japan, added, “The Roastery will amplify and inspire coffee passion across all Starbucks stores, and will serve as a catalyst for a new wave of growth centered on the customer experience and passion for coffee and service. Beginning with the “Make it Yours” campaign that will commence at every store in Japan upon the opening of the Roastery, customers will be invited to experience the first Starbucks coffee roasted exclusively in Tokyo, for Japan, and available in a variety of coffee beverage styles.”
Collaborative Design Highlights Japan’s Natural Beauty
Located in Tokyo’s vibrant and creative neighborhood of Nakameguro, the Roastery’s enchanting design was inspired by the famous cherry blossom trees lining the Meguro River.
The building’s glass walls and terraced floors seamlessly fold into the fabric of the neighborhood, bringing visitors eye-level with the cherry blossoms and the four seasons of the river to reflect the natural beauty and sense of harmony found across Japan.
The Tokyo Roastery is the only Starbucks Roastery location designed in collaboration with a local architect from the ground up.
The exterior was brought to life in collaboration with renowned Japanese architect Kengo Kuma. Envisioned by Liz Muller, Starbucks chief design officer and lead designer for all five Roasteries globally, the Roastery highlights the work of local craftsmen and women to create an enchanting destination for coffee exploration and discovery.
The Tokyo Roastery merges traditional and modern design to deliver a unique and inspired experience across all four floors. Upon entering the Roastery, customers are greeted by the world’s largest Starbucks Roastery coffee cask, four-stories and over 55 feet of blush-tinted copper adorned with hand-crafted copper cherry blossoms, which changes hues throughout the day in different lights.
The expansive cask was built using the technique of tsuchime, a tradition of copper beating, where each person involved in the building of the Roastery was offered the chance to hammer a portion to create its texture and pattern. The cask’s unique color is balanced against the light wood which has been carried into the interior to give the store a brightness found throughout traditional Japanese architecture.
Throughout the Roastery, local craftsmen and women were brought together to incorporate their expertise and traditional craft into the design elements.
The wood-tiled ceiling was inspired by the art of origami, providing a stunning visual experience. The light and airy space carries the light wood used on the exterior to the inside, giving the experience an enchanting aura.
The wood, sourced locally, has been treated throughout with a traditional technique which prevents it from aging, ensuring the brightness is maintained inside and outside in the years to come.
Enchanting Immersive Coffee, Tea and Mixology Experience
The coffee journey at the Reserve Roastery Tokyo is an immersive experience and education in coffee, and its process—from green bean to cup—which begins at the Main Bar on the first floor.
The open floor plan draws customers into the immersive experience, introducing them to the skilled art of roasting, brewing and hand-crafting beverages. The Reserve Roastery serves the freshest cup of coffee and it is here on the first floor that customers can taste Reserve coffee beverages such as Barrel-Aged Cold Brew.
The Princi bakery serves handcrafted, authentic artisanal Italian fare that is baked fresh in the Roastery throughout the day. For the first time in Japan, customers can enjoy freshly-baked breads, cornetti, focaccias, pizzas, salads and more.
An airy staircase leads to the second floor, where customers will be transported into the tradition of Japanese tea at the world’s largest Teavana Bar.
Exclusive tea beverages, such as the Pop’n Tea Sakura Jasmine, featuring a vibrant hibiscus and cherry popsicle atop a floral jasmine tea, will delight customers with their charming appearance, Japanese ingredients and unique flavor combinations, modernizing the tea experience. On the terraced third floor, Starbucks Japan’s first cocktail bar, Arriviamo™, puts innovation, mixology and cocktail craft on full display.
The two walls of spirits bring together the Arriviamo menu, featuring coffee and tea-inspired cocktails only available at the Tokyo Roastery, including the Nakameguro Espresso Martini made with chestnut liqueur, crème de cacao and espresso, then paired with decadent chocolate from Nakameguro’s “green bean to bar CHOCOLATE” brand. Wine, beer and classic mixology beverages will also be available.
Conversations with an Impact
Starbucks Japan has more than two decades contributing to the communities it serves.
The fourth floor of the Starbucks Reserve Roastery Tokyo is home to AMU Inspiration Lounge–a dedicated space for the community to gather for hosted social impact conversations. The concept of “AMU,” which means “to knit together” in Japanese, is founded on human connection and passions coming together, something Starbucks has long believed in. For the first time at any Starbucks location in the world, this intimate space will serve as a platform to host change-makers and creative thinkers from across Japan. The first event in April will celebrate the role of women leaders in Japan.
The Roastery is planned to become Starbucks first certified Specialty Coffee Association (SCA) location offering training for coffee professionals in the near future.“We believe that where passions connect, the future is sparked, and we will offer the Tokyo Roastery as a gathering space to spark new ideas and create an impact,” said Minaguchi.
“The Roastery signifies our commitment to fostering moments of human connection over a cup of coffee and using these moments to create positive social impact in the communities we serve.”
With more than 37,000 partners who proudly wear the green apron across Japan’s 47 prefectures and 250 at the Roastery itself, Starbucks Japan will amplify coffee craft and innovation by freshly roasting small-batch coffees from around the world every day in Tokyo and introducing new beverages, concepts and inspiration to all 1,400 stores across Japan. This amplification will begin with Tokyo Roast coffee, a Starbucks Japan-exclusive coffee, available throughout the market on opening day.
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Tokyo stocks close lower after Indian air strike reports
Tokyo stocks closed lower on Tuesday following media reports saying Indian warplanes crossed into Pakistani airspace over the ceasefire line in Kashmir and dropped payloads. The benchmark Nikkei 225 index, which opened higher, lost 0.37%, or 78.84 points, to end at 21,449.39 while the broader Topix index was down 0.23%, or 3.67 points, to 1,617.20.
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Japanese “Yama style” goes global
The “made in Japan” words on the label, for many people, have always been a guarantee of high quality. Even after the economic downturn and natural disasters, Japanese still keep their quality and try their best to differentiate themselves through the attention to details. Their perseverance, loyalty to their country and respect for their traditional culture, have always been their strength.
Unfortunately, today’s fashion industry pursues speed and high productivity. Thus, Japanese’s persistence seems to be easily overlooked. Although this is an irreversible condition in a money-orientated world, there are still some people who appreciate and value the spirit of the craftsmanship in Japan.
Despite the fact that Japan is a modern country focusing on economic development, Japanese also focus on the pursuit of spirituality. There are Buddha followers, but also those ones who believe in gods behind the natural elements, such as mountains.
In terms of geography, 70% of land in Japan is hill and mountains. Since the ancient times, fishermen regarded the hills as navigation coordinates. And for people who lived in the mountains, they saw mountains as resources for their lives, harvesting and hunting were their major activities to live on. Through worship of mountain gods, Japanese express their fear of nature as well as pray for peaceful life.
Today, the Japanese government still shows respect towards mountains. In 2016, the government announced the Mountain Day, 11th August, as public holidays providing a chance for people to get closer to the mountains via hiking.
Functional and practical with bright and unique colors
Whenever a craze sweep the country, Japanese will always concoct and create the relevant peripheral products and accessories. As a result, the “mountain fashion” was developed, which is the so-called Yama Style (Yama means mountain in Japanese), referring to the clothes that is suitable for hiking.
Yama style emphasizes on integration with the natural environment, usually designed in gray black, dark green, yellow-brown and other earth tone colors. Additionally, it comes with an oversize coat or shawl in relatively bright color, to create a unique style.
Integration of Art and Technology
On the other hand, while Korean pop culture has been in the limelight internationally in recent years, the Japanese brand is still leading the world due to a number of Asian representatives who have a pivotal position in the high fashion.
Since the 1980’s, Japanese have established a position in the international fashion trend, rooted their perception of fashion and influenced over the global fashion industry deeply.
Due to the fashion industry values on materials, design, and details, Japanese fashion style still has their charm, followed by a lot of people around the world. Thus, many international fashion brands still love to work with Japanese brands, and launched a series of collaborations.
In the recent years, Loewe, which has been known for its excellent quality, also seems to be paying tribute to Japanese culture and tradition. The new “Eye/Loewe/Nature” menswear series is inspired by nature, offering a range of clothes designed for outdoor activities with both practical and functional features as their selling points.
Obviously, the design deliberately takes the ideas from the Yama style. Not only replacing the traditional outdoor clothing’s dark color with bright colors, but also having a great variety of styles and different layers. Thus, customer may easily match their outfit with different kinds of clothes and practice different outdoor activities.
In terms of accessories, the brand even changes the place of production from Spain to Japan, in order to combine their traditional craftsmanship with advanced technology.
Undoubtedly, they see the advantages and market in the Japanese Yama style to feed fashion industry with a new touch.
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Nintendo makes comeback in Korea with Switch
Nintendo, the Kyoto-based game company, returned to Korea. After almost disappearing over the past decade in the storm of mobile and online games, it is returning to the market with Switch, a retro console that marries the latest technology with old favorites, like Pokemon. A 41-year-old surnamed Kim, a father of three, recently found his new favorite hobby: playing Switch. His two favorite games are Diablo 3 and Legend of Zelda: Breath of the Wild, both of which he used to enjoy years ago at attending university.
He now plays the latest versions.
“To advance to a higher level on smartphone games, I have to spend a lot of time and money, so I lost interest,” said Kim. “As for Switch, it’s like the games I played when I was younger. Just like arcade games, I can save the game and can continue playing it where it ended whenever I want. Also, the game itself is not too difficult.”
Plenty of people seem to agree with Kim.
Global sales of Switch from its introduction in March 2017 through late 2018 totaled 32.27 million units, according to a report from Nintendo. On average, 33.5 Switch consoles have been sold per minute. A total of 163.61 million Switch titles were bought during the same period.
The Switch ended 2018 as the year’s best-selling hardware platform both in unit and in dollar sales terms, according to a report from NPD Group, a U.S.-based market-research company. Both in units and dollars, the Switch was the best-selling game since Sony PlayStation 4 in 2015.
The Switch boom is evident in Korea, where consoles are not generally very popular. The product has been generating 51 percent of game sales at Emart, the main marketing channel for Switch.
According to a report from Korea Creative Content Agency (Kocca), the size of the console game market in Korea grew by 42.2 percent from 2016 to 2017. Sales of Switch – which totaled more than 110,000 units in the first month of its release in Korea in December 2017 – and the rise of the related software sales were major contributors to the game market expansion, the report argues.
Revival of Retro
Nintendo, which was founded in 1889 as a playing-card company, most recently became an icon of innovation around year 2000 when it introduced Nintendo DS and Wii. Each sold more than 100 million units, and the strong sales in Korea led to the development of similar games locally.
The success was short lived. The market began to change around 2010 as smartphone games started to develop and lead the market. In 2011, Nintendo experienced its first annual earnings loss since it was listed on the stock exchange in 1983.
The company sought a rebound the following year with the Wii U, but only 13 million units were sold.
Nintendo suffered losses for three years, and its presence in the console game market gradually waned with the dominance of the Sony PlayStation 4 and Microsoft’s Xbox. Nintendo’s share price dipped to as low as 8,060 yen ($73) from its November 2007 peak of 70,500 yen. The company’s weak performance continued until 2016, when Nintendo shook the game world with Pokemon Go, its wildly popular augmented-reality smartphone game.
The comeback was confirmed with the release of Switch the following year.
Popular with young and old
Nintendo’s timing couldn’t have been better. It released Switch just as the newtro trend was gaining ground. Newtro, a portmanteau of new and retro, is reviving many long-dormant styles and products.
The most popular titles in the early days of Switch – Super Mario Odyssey, Legend of Zelda and Pokemon: Let’s Go, Pikachu! – are the latest versions of classic games that people now in 30s and 40s used to enjoy when younger.
“Switch looks very similar to the portable arcade games that people now in 30s and 40s first used in their childhood,” said researcher Jang Min-ji from Kocca. “As the generation that grew up with these games now has purchasing power, similar games are bought by people in that generation.”
“Even younger people – those in their teens and 20s – who have never experienced these games, are finding Switch refreshing in that unlike smartphone and traditional console games, users can carry it around and play it while in bed, not to mention connect the games to television. Such charms of Switch have captivated people across age groups,” Jang said.
The global newtro trend was evident at Consumer Electronics Show (CES), held in Las Vegas in early January. Though many people gathered to experience Sony’s state-of-the-art games with virtual reality and augmented reality, bigger crowds gathered at booths for classic games, like Street Fighter II and Double Dragon.
“It has become a new trend for people in their 30s and 40s to reminisce about their past, while the younger generation fulfills their fascination for the newtro style,” said Kim Gyeong-geun, a merchandiser at a local toy seller, Toy Friends.
Growing tired of mobile games
Another key contributor to the growing demand for classic games is the gradual loss of interest in mobile games, which dominated the local market over the past several years. Players are growing tired of the free-to-play model, which is employed by the majority of mobile massively multiplayer online role-playing games (Mmorpg).
With free-to-play mobile games, players can download the game either for free or at a low price, but they are compelled to spend more to improve the gaming experience.
In a report on the success of Switch, Lee Taek-su from KB Research wrote, “In the past, most people did not agree with the idea of spending money on console game software that costs between 50,000 won [$44.40] and 60,000 won, since they could easily play mobile games for free or for around 1,000 won to 2,000 won. But as a growing number of players start to have the experience of spending much more cash on mobile games, their perceptions have started to change.”
The diversity of games that could be interesting to people of different ages and gender, and the fact that these games can be enjoyed by multiple people at once through the connection of hardware, are few reasons Switch is gaining popularity.