Tag: Japan

  • Struggling furniture retailer Otsuka Kagu forms tie-up with Yamada Denki

    Struggling furniture retailer Otsuka Kagu forms tie-up with Yamada Denki

    Struggling Japanese furniture retailer Otsuka Kagu has entered a partnership with electronics retailer Yamada Denki. The two firms have pledged to exchange sales knowledge in their respective industries as well as explore potential corporate sales opportunities. Otsuka Kagu will also sell 13.11 million new shares at ¥290.11 in an effort to raise ¥3.8 billion (US$34.39) in fresh capital. Funds will be earmarked for warehouse automation and optimising stores for e-commerce.

    Otsuka Kagu lost ¥3.24 billion ($29.32 million) last year, its third consecutive year of net losses.

    The company attracted attention over the past decade for its high-profile leadership struggle between brand founder Katsuhisa Otsuka and his eldest daughter Kumiko Otsuka, with their competing visions for the brand’s way forward.

  • Japanese megastore Don Quijote to open its first Hong Kong store

    Japanese megastore Don Quijote to open its first Hong Kong store

    Don Quijote Hong Kong is set to make its debut in the middle of this year. The Japanese discount merchandise retailer – which has three stores in Singapore and also plans to make its Thai debut in Bangkok this year – has leased a 15,000sqft space in the basement of Mira Place Two on Nathan Road in Tsim Sha Tsui.

    In Japan, most of the company’s 160 discount stores trade 24 hours, but this is unlikely in Hong Kong.

    Helen Mak, senior director and head of retail services at Knight Frank said the basement location would appeal to local consumers and tourists.

    “Don Quijote’s Tsim Sha Tsui location can attract mainland tourists who travel via the high-speed rail and mega bridge. Instead of shopping for luxury items, these same-day visitors usually spend money on cosmetics, health care items and food, products that are most celebrated at [Don Quijote].”

    According to the SCMP, Don Quijote will pay HK$1 million (US$127,000) a month for the space, with the fitout expected to be complete by July.

    Besides its general merchandise and fresh food offer, the Don Quijote Hong Kong store will feature a cafe.

  • Uniqlo opens Manchester flagship, expands beyond London

    Uniqlo opens Manchester flagship, expands beyond London

    Japanese retail chain Uniqlo is expanding its store network internationally, announcing the opening of its latest store in the UK. Opening in the city of Manchester, Uniqlo is returning the British city after leaving Manchester back in 2004, not long after it entered the UK market. Uniqlo revealed the news this week on its Instagram: “Uniqlo Manchester – opening spring 2019. Tokyo heads up North. Register for updates on our Manchester store opening at the link in bio.”

    The post also gave location details, revealing the store is slated for Manchester Arnadale at 57 Market Street. The address is the former-space of closed down UK retail chain BHS, which shuttered on Market Street in August 2016, after 35 years of service on the city’s main shopping strip.

    The new store will occupy a 22,690 square feet and will sell Uniqlo’s full range of core items for men, women and kids, as well as jeans and t-shirts.

    The retailer said that the expansion north of London was an important step in its UK growth.

    “The launch of Uniqlo in Manchester represents another major milestone for us in the UK, as we continue to expand our presence in this important market for the company worldwide,” Uniqlo chief executive Taku Morikawa said.

    “We are very excited to be able to offer Uniqlo LifeWear to the people of Manchester and surrounding areas for the first time and show how our high quality, comfortable and functional clothing can help improve their everyday lives.”

    It is hoped that Uniqlo Manchester will fair better than BHS, and in turn compete strongly with fellow fast-fashion brands Primark and H&M, which are currently set up in the millennial-heavy city.

    Uniqlo first launched 20 stores in the UK, but then closed 15 sites outside of London three years later, including two in Manchester.

    It currently operates nine stores across London, one in Kent at Bluewater shopping centre and another in Oxford at Westgate.

    In its most recent earnings update, Uniqlo Europe said that in the year up to August 31, 2018, profits rose from €673,000 to €6.3million on a turnover of €533million, up from €410million.

  • New air purifier from Japan debuts in Korea

    New air purifier from Japan debuts in Korea

    Balmuda, a Japanese high-end home appliance maker, is introducing a new air purifier in Korea today ahead of the rollout in Japan, where the launch date has not been set. Balmuda CEO Gen Terao emphasized the importance of the Korean market during the company’s first press conference in Korea Tuesday as he unveiled The Pure air purifiers.

    “We chose to unveil our air purifiers in Korea in light of the fine-dust problem and Balmuda’s growing brand awareness here,” Terao said at the conference in Yongsan District, central Seoul.

    “While Japan’s air purifier market is decreasing every year, it’s been growing in Korea. We sell 10 times more air purifiers here.”

    Several new features make it an upgrade from the AirEngine, the company’s older 2013 model.

    One of the key innovations is that The Pure allows users to see how much dust the machine sucks in. The purifier has a rectangular hole cut out in the bottom installed with lighting, making it easy for users to see the dust and particles that go up into the filter above the hole.

    The Pure’s HEPA filters can trap 99.97 percent of particles as small as 0.3 microns and eliminate odors. The machine releases up to 7,000 liters (1,850 gallons) of cleaned air per minute.

    The Pure will be available at department stores and online and offline electronic retailers from today. They are priced at 749,000 won ($666).

    Terao also discussed Balmuda’s The Light, a desk lamp for children launched last December.

    Addressing the growing problem of short-sightedness among children, Terao said he developed advanced light technology together with medical surgery light manufacturers.

    Terao called out Xiaomi’s air purifiers for copying Balmuda’s AirEngine design.

    “When I saw this [Xiaomi] product, I wondered when we had built it because it had the same size, silhouette and structure as the AirEngine,” Terao said. “But the fact that others are copying us is proof that our products are good.”

    Balmuda, founded in 2003, posted over 10 billion yen ($90 million) in annual sales last year. The company currently generates around 30 percent of its total revenue in Korea.

  • Cle de Peau Beaute debuts in Thailand

    Cle de Peau Beaute debuts in Thailand

    Japanese luxury skincare brand Cle de Peau Beaute has opened its first location in Thailand. Launching in the Helix building, Emquartier, the new store expects to cater to the brand’s cult following in the market. The venue is designed to reflect the luxurious lifestyle of modern women, with a ‘Radiance Wall’ illuminating the entire retail space and a gallery with storied details of selected products.

    The launch is being marked with the announcement of the brand’s new influencer, actress, artist and director Manasnan Panlertwongskul, and the unveiling of its latest lipstick.

  • Japan’s Zozo expects profit fall, cuts outlook

    Japan’s Zozo expects profit fall, cuts outlook

    Online fashion store Zozo reported its firs-ever profit decline since its launch, adding to the announcement that it plans to discontinue its innovative Zozo suit, as it moves away for custom-fit fashion. One of Japan’s fastest-growing start-ups, Zozo said it expects full-year for the fiscal year ending March 2019 to fall 12%, dipping to 17.8 billion yen ($164 million).

    Zozo said it expects full-year operating profit of 26.5 billion yen, down around 19% from a year earlier. It previously forecast profit to rise to 40 billion yen.

    Sales are still predicted to reach double-digit growth, up 20% to 118 billion yen. However, that’s much lower than an initial forecast of 247 billion yen.

    By category, private-brand revenues are forecast to total 3 billion yen, just 15% of the 20-billon yen prediction made last year. Profits at the new apparel brand will also be negative, registering a loss of 12.5 billion yen.

    Zozo holds close to a 50 percent share of Japan’s e-commerce market for mid to high-end fashion. The Tokyo-based retailer had tried to branch out by launching its private brand and a made-to-measure service. Dubbed the ‘Zozosuit’, a black-and-white spotted body suit that allowed user to take and upload personal body measurements, the suit was overhauled after complaints on how long the suits took to arrive, with some customers complaining the suit did not fit, causing more delays.

    “By distributing the ‘Zozosuit’ for free so that people could take measurements, we were hoping to create demand for the Zozotown business, including the private brand. But the impact did not have the scale that we had hoped for,” the company said in a statement.

    Zozo said it now expects to pay a year-end dividend of 10 yen per share instead of an original forecast of 22 yen.

  • Vogue opens first Tokyo wedding dress salon

    Vogue opens first Tokyo wedding dress salon

    International fashion magazine Vogue has opened its first wedding dress salon. Facing Aoyama Kotto-dori in Tokyo’s Omotesando district, the salon has hired specialist staff to offer tasteful suggestions not only with regard to dresses and accessories but also extending to hair, makeup and photography services.“The biggest single keyword for contemporary today’s weddings is ‘diversification of values’”, said Vogue Wedding creative director Mayumi Nakamura. “Now is a time for brides who embrace different values to rejoice in their individuality.

     

    “At Vogue Wedding Salon, in addition to traditional wedding dresses, we have prepared a wide variety of more adventurous styles. These items include stunning bridal gowns from popular designer brands that will be familiar to readers of Vogue such as Alexander McQueen, Giambattista Valli, Oscar de la Renta, Sergio Rossi, and so on. I hope that at Vogue Wedding Salon you will enjoy choosing a stylish dress that is not bound by existing rules.

    View the gallery below (4 images) :

    In addition to traditional wedding dresses, visitors can expect to encounter a variety of fashionably styled modern dresses selected by Vogue and created by top international designers based in the world’s fashion capitals beginning with Paris, New York, Milan, and London. Visitors will find a lineup of popular luxury bridal gown brands, as well as a selection of brands that are available exclusively from Vogue Wedding Salon.

    The salon is also equipped with a photo space where aspiring brides and grooms can take advantage of Vogue’s wedding photography services.

    In addition to wedding dresses, an extensive range of eveningwear and luxury brand shoes and accessories are available. The salon can also offer customers a luxury shoe brand custom order service.

  • D&G opens boutique in Osaka Japan

    D&G opens boutique in Osaka Japan

    Luxury brand Dolce & Gabbana has opened a new D&G Osaka store. The two-level, 905sqm #DGLovesOsaka boutique at Midosuji is designed to reflect the unique local features of Osaka while still representing the brand’s heritage, with red marble and pink onyx finishings touched off by pink rugs and wallpaper. A large baroque-styled mirror is a centrepiece of the decor.

    The #DGLovesOsaka boutique stocks ready-to-wear collections and accessories for men, women, and children.

  • Miniso teams up with cartoon network’s Adventure Time

    Miniso teams up with cartoon network’s Adventure Time

    Miniso has teamed up with Cartoon Network to present an epic 264-item collection of Adventure Time products in its stores across 62 territories around the world. From Europe to Asia, and Africa to North America and South America, the retailer is stacking its shelves with items featuring iconic characters including Finn, Jake, BMO and Lumpy Space Princess.

    Launching this month as part of a phased global rollout, Adventure Time fans will be able to enjoy an immersive in-store experience with the collection, which will be comprised of plushies, stationery, gifts and accessories such as backpacks and cosmetics. In the near future, the collection will add even more items as well as expand to additional territories.

    “The scale of this range demonstrates the popularity and enduring qualities of the Adventure Time franchise globally,” said Vikram Sharma, Vice President of Cartoon Network Enterprises, Asia Pacific.

    “Miniso has been a great partner for us. And when they wanted a brand that could provide young fans with an instantly-recognizable and fun association, Adventure Time was the obvious, mathematical choice!”

    Meanwhile, a new wave of merchandise from We Bare Bears – another Cartoon Network property – will also be in stores alongside Adventure Time.

    After impressive sales during the initial collaboration during 2018, more than 200 new and refreshed Bears’ items will be available in Miniso stores this month.

  • Shiseido opens a new factory in Fukuoka

    Shiseido opens a new factory in Fukuoka

    Shiseido Company, Limited has decided to build a new production site, Shiseido Kyushu Fukuoka Factory in Kurume City, Fukuoka Prefecture, Japan. The new factory, which is slated to start its operation in fiscal 2021, will mainly manufacture skincare products for Japan and overseas markets. The investment is expected to be approximately 40-50 billion yen.

    Shiseido has been making concerted efforts as a whole toward the realization of even greater growth to accomplish the medium-to-long-term strategy VISION 2020 and to “Be a Global Winner with Our Heritage”.

    As part of its production strategy, Shiseido is pursuing the establishment of a supply chain strategy from a global perspective in line with its Group-wide marketing strategy, and progressing in the creation of a flexible operational structure at each of its factories around the globe by taking into account various elements such as costs, lead time, inventories and procurement of raw materials.

    Amid such, the company has concluded that it is vital to establish a stable and sustainable production system from a medium-to-long-term perspective in order to respond to growing demand for cosmetics inside and outside Japan and secure further business growth in the future.

    To this end, Shiseido has decided to build another new factory following Nasu Factory and New Osaka Factory (tentative name) which are currently under construction. Investments in the production base including factories currently under construction, establishment of the new Kyushu Fukuoka Factory and reinforcement of existing factories are expected to exceed 170 billion yen.

    The new factory will focus on the production of skincare products which are growing in demand, and provide safe high-quality products in compliance with ISO 22716 international standards.

    As a next-generation factory, it will utilize cutting-edge facilities and advanced technologies such as IoT in the creation of innovation. Furthermore, through the inheritance of long-standing production technologies and expertise which are Shiseido’s strength, we will realize the new factory as people-friendly with high productivity.

    It will operate in an environmentally friendly manner while being able to support our business continuity plan (BCP), aiming to exist in harmony with the surrounding environment including mountains and rivers.

  • More about Japanese label HYKE

    More about Japanese label HYKE

    HYKE enjoys a massive following in its native Japan, slowly developed since its inception in 2013. Over the past six years the label, led by married designers Yukiko Ode and Hideaki Yoshihara, has cultivated a horde of Japanese devotees attracted to HYKE’s neutral color palettes, tweaked militaria and effortless elegance. This following has garnered stockists that include some of the nation’s largest department stores, like Isetan, UNITED ARROWS and the Japanese branch of Barneys New York.

    Despite the independent brand’s commercial and critical success in Japan, HYKE remained an obscurity to even the most fashion-savvy shoppers outside of Asia. That was until the brand’s collections with The North Face received such international acclaim that the partners created a dedicated Instagram page and website exclusively for the ongoing collaboration.

    Behind the covetable technical collaborations, however, the underappreciated Japanese label has quietly advanced its singular vision with a laser focus.

    In 1997, Ode and Yoshihara launched a vintage clothing store, dubbed “bowls.” “We would go buy only the best clothes overseas and then put our favorite items on display in the shop,” the designers told the Woolmark Company in August 2016. “When we found clothes we liked, we didn’t want to sell them to anyone else. We decided that we would instead make clothing that contained the essence of what we liked, and that’s how our first brand, green, started.”

    Veterans of two different Japanese fashion schools, Ode and Yoshihara spent time as a stylist and patternmaker, respectively, before opening the store and launching green a year later.

    Guided by the philosophy of beauty through functionality, green offered simple yet thoughtfully-crafted, vintage-inspired womenswear in an era that was not known for understated clothing. Though minimalist fashion is de rigueur now, early 2000s style was rife with loud party dresses, flashy logos and gold accents.

    Thus, green’s fur-trimmed parkas, relaxed denim and muted trench coats seem even more prescient when reexamined 20 years later. A growing demand encouraged Ode and Yoshihara to introduce a brief men’s offering alongside the more expansive womenswear line, eventually taking green to the runway for the label’s final season, Spring/Summer 2009.

    Following green’s tenth anniversary, Ode and Yoshihara shuttered the label in October 2009; by then green had ballooned from a small side project to one of Japan’s pre-eminent womenswear brands. The couple retreated from fashion altogether, taking several years off to reformat their approach to design and raise their two children. In doing so, the duo shifted bowls from a vintage boutique to a management company before debuting their new flagship label, HYKE, in 2013.

    HYKE thrived almost immediately, thanks to its appreciably clean, minimalistic designs and the accumulated green fanbase. Ode and Yoshihara aim “to evolve fashion history by our heartstrings,” recreating militaristic garments with custom fabrics. Though some clothes sport playful fringe or deep pleats, the basis of each collection remains the same: the couple sources key vintage pieces for inspiration — be it a classic M65 jacket or fishtail parka — deconstructs the garments to study patterns, threads and craftsmanship, before piecing them back together via contemporary pattern-making. Using simple, versatile colors and unparalleled craft, HYKE’s consistently wearable offerings prove reliably popular. This consistent demand encouraged both Mackintosh and adidas Originals to join forces with HYKE in 2014.

    The one-off Mackintosh collaboration yielded a workmanlike approach to reimagining the British heritage brand’s signature outerwear, with HYKE serving up four muted, militaristic iterations of three classic coats for both men and women. Meanwhile, the adidas Originals partnership continued until Fall/Winter 2016, with each season gradually expanding HYKE’s design ethos. A quick comparison of the first drop — minimalist Trefoil hoodies, army green pullovers and velcro-strapped adilette runners — to the final release — monochrome Seeulaters, faux croc skin adidas clutch bags, sporty capes and occasional snakeskin patterns — makes the evolution all the more dramatic. The success of these lines, as well as the continuing growth of the main line, helped Ode and Yoshihara win the 35th Mainichi Fashion Grand Prix in 2017.

    Both the Mackintosh and adidas collaborations received global releases, but the reception was muted in comparison to HYKE’s headline-stealing collaboration with The North Face. The collection debuted during HYKE’s Spring/Summer 2018 runway, immediately establishing an ideal marriage of HYKE’s minimalist taste with The North Face’s utilitarian gear, informed by the Japanese label’s desire to combine “the functionality of outdoor sports wear with the sensitivity of HYKE.”

    HYKE’s preferred army green, black and white color palette returned for the collection, along with playful snakeskin patterns and signature garments, like the cropped Bolero Jacket and solid-color pullovers. With each collaborative release since that first joint effort, the duo have introduced small expansions to keep the line fresh — oversized pullovers, sock-like sneakers and even menswear — while retaining much of the same elements from past drops. However, The North Face Japan’s complicated licensing prevents the collection from seeing worldwide release, despite the overwhelmingly positive international reception and the recent addition of menswear to the line.

    To make a complex issue very simple: America’s The North Face is a different company from Japan’s The North Face. In 1978, outdoors company Goldwin began distributing The North Face in its native Japan, eventually purchasing the exclusive Japanese (and partial Asian) TNF license from the American branch. This exclusive license still remains in Goldwin’s possession; thus, American The North Face products can’t sold in Japan and Goldwin’s The North Face goods can’t be sold outside of the island nation. Since HYKE x The North Face is produced by Goldwin, that means that distribution will likely never expand beyond Asia, unless the Japanese The North Face strikes a deal with its American counterpart, as Goldwin recently did with THE NORTH FACE PURPLE LABEL.

    Regardless of legal qualms, HYKE maintains a massive following in its native Japan, with a developing influence throughout Asia as Korean and Chinese retailers take note of the brand’s adaptable designs. And more The North Face collections will only aid HYKE in increasing its global presence. Although the license quagmire will keep those collaborations from being sold overseas, HYKE could potentially bring its in-house creations abroad. If savvy Western retailers snap up the Japanese brand’s minimalist wares, it may open the floodgates for future expansion — possibly even bending the rules for The North Face.

    After six years back in fashion, Ode and Yoshihara remain unflinching in their dedication to realize the identity they established with the launch of HYKE. With no desire to cut corners (or prices) on its detail-oriented Japanese expertise, the designers are in no hurry to broaden its global footprint, or even create a proper menswear offering. Next up for the brand? Perhaps HYKE will finally open a Japanese flagship store, a hard-won focal point in service of clientele who appreciate the label’s unwavering commitment to independence.

    HYKE x The North Face Spring/Summer 2019 drops February 6 exclusively at The North Face Futakotamagawa and Isetan Shinjuku before hitting other Japanese TNF outposts on February 16.

  • Nintendo launches flagship store in Tokyo

    Nintendo launches flagship store in Tokyo

    Nintendo is opening a Tokyo flagship store, marking the iconic Japanese company’s first-ever domestic retail outlet. During Nintendo’s latest Corporate Management Briefing, the president of the Nintendo, Shuntaro Furukawa, announced the game company would be opening a store in the Japanese capital in 2019.

    The executive said that plans are set for Nintendo Toyko to be located in the tentatively named ‘Parco’, which is yet to be opened and will bow in the Shibuya district. The Nintendo store in Japan will have its own floor in a new department store and is targeted at teens and commuters.

    “We are hoping [the store] will be a new point of contact between consumers and Nintendo that a wide range of people, regardless of age, gender, or experience with games can enjoy,” explained Furukawa.

    The new store also hopes to attract shoppers to Nintendo Switch, which is struggling to draw a wider swath of users, according to Bloomberg. Last month, Nintendo cut its shipments forecast for the console, which can be used at home or on the go.

    “In addition to selling products such as video game systems, software and character-based merchandise, we plan to host events and offer opportunities to play games, and are preparing to make this shop a new base for communicating Nintendo information in Japan. We will announce further details on each of these initiatives at a later date.”

    Looking forward, Nintendo is also planning to open exhibits at Universal theme parks in Osaka, Orlando and Hollywood.

    Additionally, the company is looking to participate in more e-sports tournaments, where gamers get together and compete in stadiums

    Nintendo opened its first store in New York as Pokemon shop in 2005 in the city’s Rockefeller Centre, and has since rebranded as Nintendo New York.

    Nintendo Tokyo is scheduled to open in the fall of 2019.

  • Loewe launches outdoor menswear collection

    Loewe launches outdoor menswear collection

    Inspired by the great outdoors, Loewe has launched a new permanent collection of functional clothes and accessories for men. The campaign features British actor Josh O’Connor in the wilds of Cap de Creus, Spain. Loewe has launched a great outdoors-inspired collection of functional clothes and accessories for men. Featuring a wide range of vibrant colours, the collection – Eye/LOEWE/Nature – makes use of recycled materials, adding an innovative touch to conventional apparel.

    The ready-to-wear collection includes jumpers knit from partly recycled cotton fibre, parkas made of technical material, outerwear, shirts, trousers and cargo shorts.

    The accessories, manufactured in Japan, boast exclusive technology. Hand-sewn from quality canvas with calfskin trim, the Eye/LOEWE/Nature backpacks come with extra cushioning and support. There are interior zip pockets in which iPads can be stored. There are also tote bags and sling sacks for men to choose from.

  • AirAsia X Wants To Launch Flights From The US West Coast To Japan

    AirAsia X Wants To Launch Flights From The US West Coast To Japan

    Air Asia is the world’s largest and best low-cost carrier (They have won awards for the last 10 years). Air Asia X, their low-cost long haul carrier has built a route network spanning from the middle east to southern Australia. But many people in the US have never had a chance to fly on Air Asia, as the name would imply, have only ever been centered around South East Asia.

    Could Air Asia X routes from Japan to the US West Coast work?

    In a massive new rumor, Air Asia might be starting direct routes between Japan and the US West Coast onboard their fleet of brand new Airbus A330-900 aircraft. As none of the 66 new aircraft on order have been delivered yet, Air Asia X has been reluctant to place address the theory. They are however one of the first airlines to order the aircraft, and as deliveries have begun, we expect news sometime this year.

    Previously, the current fleet of older A330-300s has only been able to reach as far as Hawaii from Osaka, Japan (their range is 6,350 nmi (11,750 km)), limited by their ability to cross the Pacific ocean.

    But these new A330neo aircraft, with a range of 7,200nmi (13,334km), allow Air Asia X to reach destinations like Los Angeles and San Fransisco. This opens up a huge potential market for the company, and on the flip side, a cheap (and good) way for American’s to access Japan, and through transfer, South East Asia.

    What is the service like on Air Asia X?

    Whilst there has been no information yet on the fit out of the new Airbus A330-900 aircraft, we can hazard a guess based on their current A330-300 jets.

    There are three classes on board, a ‘premium’ business light class, a quiet zone and a normal economy class. There are also exit row seats scatted throughout.

    The business class features “flat beds” (They do not go entirely 90 degrees flat, but are more around 70-80 degrees), as well as included entertainment (via tablet), baggage allowance and food and beverages. They have around 60 inches of pitch and are 20 inches wide.

    There is every possibility that AirAsia will upgrade the seat truly lie flat in their newer aircraft.

    The quiet zone on board is a section of economy row seats at the front of the economy section that only allows adults and forbids loud noise. The economy section is laid out in a 3 by 2 by 3 configuration.

    Naturally, as it is a low-cost carrier, passengers will need to budget for seat selection, baggage, food and bring their own entertainment. The economy seats have 32 inches of pitch and are 16 1/2 inches wide.

    The real win, however, is the cost. Typically you would be looking at around $1000 USD return in economy to fly from Los Angeles to Osaka. Air Asia typically offers premium business for the cost of an economy ticket (which is well worth the upgrade) and economy for dirt cheap prices (through economies of scale). It is very likely that Air Asia will instantly undercut the market on these routes and be the cheapest to fly.

  • The world’s largest free trade blocs between Japan and EU

    The world’s largest free trade blocs between Japan and EU

    The economic partnership agreement between Japan and the European Union not only forms one of the world’s largest free trade blocs, but also sets digital and copyright rules that will serve as an international template. The EPA will ultimately eliminate EU tariffs on about 99% of imported products from Japan, and Japanese tariffs on roughly 94% of products imported from the EU. It also incorporates wide-ranging regulations on data transfer and intellectual property protection. The aim is to drive the debate on other multinational trade pacts, especially against the backdrop of rising protectionism.

    A centerpiece provision is a ban on governments forcing companies to reveal source code. Chinese cybersecurity legislation that took effect in 2017 empowers the government to request source code from foreign enterprises doing business within its borders. The law also requires “operators of key information infrastructure” to locally store personal information and important data collected and produced by their services in China.

    The Japan-EU trade deal is essentially a rejection of such digital protectionism, instead encouraging the free and secure cross-border flow of data. Companies in participating countries can operate in other members without risking mandatory disclosure of trade secrets.

    The trade deal “will become a precedent for the data field, which is becoming increasingly important, and will lay the groundwork for the creation of subsequent rules,” said Keisuke Hanyuda, partner at Deloitte Tohmatsu Consulting.

    Japan, the EU and other like-minded trading partners seek to craft similar rules for the World Trade Organization, which includes the U.S. and China. But speedy rule-making may be all but impossible at a WTO that has been criticized as dysfunctional. The alternative strategy is to first implement high-quality rules for the Japan-EU trade deal, as well as the 11-member Trans-Pacific Partnership, and bring other countries into the fold.

    Japan and the EU agreed not to levy tariffs on the transfer of data between the two sides. Copyrights on literary works will expire 70 years after the death of the author. Alcoholic-beverage and food brands tied to a region of origin will be mutually protected as well. Authorized producers of Kobe beef and Champagne would be shielded from imitations, for example.

    The EPA covers 27.8% of global gross domestic product by 2017’s number, and 36.9% of worldwide trade. The TPP-11 — formally the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — accounts for 13.3% of global GDP. Japan sees the EPA and the TPP-11 together adding 13 trillion yen ($119 billion) to its real GDP and creating 750,000 jobs.

    “On top of the short-view effect of stimulating consumption, the inflow of services and investment from the EU will increase competitive pressures inside Japan, and we can expect the effect of prices going down,” said Junichi Sugawara, senior research officer at the Mizuho Research Institute.

    Tariff elimination is expected to have a significant economic impact. EU exports to Japan could jump as much as 34%, while European companies will save an annual 1 billion euros ($1.15 billion) on duties, the EU estimates. Hopes are particularly high for expanded food and agricultural exports to Japan.

    The EPA lowers tariffs on Camembert and other soft cheeses — something Japan did not do for the TPP-11 — up to a certain quota. Japan will eliminate soft-cheese duties for in-quota imports altogether in year 16. Other items, such as European wine, will immediately become duty-free, resulting in a wider selection and lower prices for Japanese consumers.

    Many see the EPA and its benefits as a counterweight to the Trump administration’s anti-globalism. “This is an act of enormous strategic importance for the rules-based international order, at a time when some are questioning this order,” European Council President Donald Tusk said last July, when the agreement was signed. “We are sending a clear message that we stand together against protectionism.”