Tag: Japan

  • Vietnamese students turn to Japan in hope of getting good jobs

    Vietnamese students turn to Japan in hope of getting good jobs

    It seems like a win-win situation for Japanese companies looking for skilled employees in Vietnam. The number of Vietnamese studying in Japan grew more than 12-fold from 2010-2016 to around 54,000.

    They now account for nearly a quarter of international students in Japan, behind only Chinese students, who make up 41 percent but whose numbers have leveled off in recent year, citing the Japan Student Services Organization (JASSO) as saying in a Thursday report.

    The growing presence of Japanese companies in Vietnam has students and their parents thinking about studying in Japan in the hope of landing a well-paid job with a Japanese company, Itsuro Tsutsumi, director at JASSO’s student-exchange department.

    “I chose Japan for my children because it costs less than other countries and has a good education system, instilling good discipline in students,” the newswire quoted Tran Thi Quynh My, an official at the State Bank of Vietnam, as saying.

    “After studying in Japan my children will have a better chance of finding a good job when they get back to work in Vietnam since there are more and more Japanese companies investing in our country,” she said.

    Vietnam’s economy expanded by more than 6 percent for a second consecutive year in 2016, making it one of the world’s fastest-growing economies. Japanese companies are increasingly looking to Southeast Asia where incomes and consumption are likely to keep growing for years, quoting Shinobu Kikuchi, senior economist at Mizuho Research Institute in Tokyo, as saying.

    Japan is aggressively recruiting students from the region in the hope they will help enhance economic ties with their home countries in the future.

  • Japanese department store sales recover but fashion falls

    Japanese department store sales recover but fashion falls

    It may only have been a 0.7% rise but an uplift in Japanese department store comparable sales during April was welcome nonetheless. It was the first increase in 14 months and reflected data from 229 stores based on ¥452.7bn worth of sales.

    The Japan Department Stores Association said the growth was boosted by foreign tourists as sales to international shoppers surged 22.9% to a record level of ¥22.1bn.

    And cosmetics were strong with their 25th consecutive monthly jump as they rose an impressive 15.2%. Jewellery and other luxury goods grew only 1.1% and that was on the back of higher prices. But as they hadn’t risen for at least the previous year, it was good news.

    Yet there had to be bad news too and that came on the fashion front. Clothing sales fell 1.2% for their 18th drop in a row, although steady demand for spring collections helped temper the drop after March had seen a 4.6% decline.

    Meanwhile, the Japan Chain Stores Association said supermarket sales rose 0.6% last month, aided by a slight recovery in clothing sales through those outlets. They may have only risen 0.2% but that was the first rise for nine months.

  • Japan April exports rise for fifth straight month

    Japan April exports rise for fifth straight month

    Japan‘s exports rose in April to mark the fifth straight month of gains, an encouraging sign that more robust overseas demand could underpin a steady economic recovery.

    Exports rose 7.5 percent in April from a year ago, below the median estimate of 7.8 percent annual growth, finance ministry data showed on Monday. It followed a 12.0 percent rise in March.

    The data also showed Japan’s trade surplus with the United States narrowed.
    Japan’s exports are expected to continue rising as global economic growth gains momentum, but concerns about U.S. President Donald Trump’s pledges to adopt protectionist trade policies cloud the outlook for export-reliant Japan.

    The drop in Japan’s trade surplus with the United States, however, could take some pressure off Japan as it makes it more difficult for Trump to justify criticising Japan for its trade practices.

    Exports to the United States increased 2.6 percent in April from a year ago, rising for the third straight month. But Japan’s trade surplus with the United States fell 4.2 percent in April from a year ago to 586.7 billion yen ($5.27 billion).

    Imports surged 15.1 percent versus the median estimate for a 14.8 percent increase.

  • Sompo Japan to Release in Indonesia Weather Index Insurance for Farmers

    Sompo Japan to Release in Indonesia Weather Index Insurance for Farmers

    Sompo Japan Nipponkoa Insurance will start selling insurance products that compensate farmers hit by drought in Indonesia as early as this autumn.

    Earlier this month, Sompo Japan signed a memorandum to partner with BMKG, Indonesia’s meteorological bureau, to gather weather data. The Japanese insurer will provide weather index products that pay a certain amount to contract farmers when rainfalls drop below the forecast amount of the past three months.

    Such technologies and services provided by companies in disaster-prone Japan are likely to become promising exports to Southeast Asia. With an insurance premium of 50,000 rupiah ($3.76), contract farmers will be entitled to recuperate up to 500,000 rupiah if a drought occurs.

    Sompo Japan is narrowing down potential insurance agencies to partner with, such as local financial institutions. The company plans to test-run products in some areas as early as this autumn and go full swing in 2018.

    Sompo Japan started selling weather index insurance products for banana producers in Thailand in 2010 and in the Philippines in 2014. The company plans to release policies in Myanmar as soon as it gets government approvals.

    The company plans to boost its lineups of countries of sale and products to increase contracts fivefold to 30,000 in Southeast Asia by 2025.

    In the wake of increasing damage due to drought caused by unusual weather patterns, governments in Southeast Asia are taking measures to improve infrastructure, such as building irrigation facilities and providing financial coverage for damage claims.

    There are two major strategies for dealing with climate change. One is climate change mitigation, which is any action taken to reduce greenhouse gases such as carbon dioxide. The other is adaptation, which is the ability of a system to adjust to climate change to moderate any potential damage.

    The Paris Agreement, an international framework implemented to slow global warming, requires countries to set a goal of cutting greenhouse gases and taking adaptation measures. Emerging and developing countries — which are often hit by drought and heavy rains — are showing interest in the adaptation route.

    The United Nations Environment Programme, or UNEP, estimates the costs of adaptation could range from $140 billion to $300 billion a year by 2030, and between $280 billion and $500 billion a year by 2050.

    The market for adaptation solutions is expected to spread globally with the help of multinational funds and local governments. Some companies have started offering products and services catering to these demands.

    Japanese companies are well-positioned to help developing countries adapt to climate change, such as by contributing to better infrastructure, developing cultivation technologies so crops can withstand warmer temperatures, and increasing preparedness for power outages.

    However, Mari Yoshitaka, chief consultant of Mitsubishi UFJ Morgan Stanley Securities, said many Japanese companies have not shown much interest in the global adaptation business. But focusing on environmental measures needed to cope with the situation presents business opportunities.

  • Eat-in supermarkets catching on in Japan

    Eat-in supermarkets catching on in Japan

    Japanese retail group Aeon will expand dining areas at its domestic stores, aiming to capture demand from the growing ranks of seniors and dual-income families wanting to spend as little time as possible on household chores.

    Within three years, group unit Aeon Retail plans to double to around 150 its stores with spaces seating at least 50. Most of its 360 locations stores already have dining spaces, but only for 20 to 30 people.

    The plan is to create the roomy spaces at 30 or so locations each year as stores undergo renovation. Dedicated registers may be set up so that customers need not wait in the same lines as grocery shoppers. Such new items as pizzas baked to order and make-your-own salads will be gradually introduced.

    Yaoko, a supermarket operator in the greater Tokyo area, has renovated a flagship store in Kawagoe, northwest of the Japanese capital. It serves freshly made meals there for eating in-store, such as a 680 yen ($6) bowl of seafood over rice with eight toppings.

    Yokohama-based discount retailer OK runs a food court at one of its stores that serves dishes made from such supermarket-section ingredients as rice, eggs and beef.

    Supermarkets sell prepared foods at lower prices than convenience stores and restaurants. Eating on the premises spares customers from dealing with the resulting trash at home. Retailers hope to leverage these benefits to pull in more shoppers. Since foods prepared on-site carry higher margins than processed foods from manufacturers, in-store eating is seen buoying earnings as well.

    In the U.S., such major retailers as Whole Foods Market have “grocerant” — a portmanteau of “grocery” and “restaurant” — dining areas offering prepared foods for purchase by weight. These are drawing attention as a new way to lure customers. The market for prepared foods from grocers has been estimated at $10 billion a year.

  • New Balance opens Tokyo concept store

    New Balance opens Tokyo concept store

    Located in Roppongi in Tokyo’s Midtown area, the store is named after the area it is situated – Roppongi, and the year 1906, when New Balance was born. Written as ‘19: 06’, the motif is meant to look like a digital clock to express the American footwear firm’s 111-year history and how it has modernised.

    Inside, the store features warm wood panelling to create a ‘stadium’ atmosphere, and industrial concrete material construction to reflect the ‘coexistence of sports and lifestyle,’ according to the brand in a press release.

    The Roppongi 19:06 store will also offer state-of-the-art apparel and footwear, with a range of limited-edition and collaborative items.

    This includes 44 pairs of the limited edition 3D-printed MS066 shoes will be available to purchase for ¥38,000 JPY (US$335 USD). Dubbed the “Zante Generate”, the running shoes were sold ahead of the Boston marathon last year and boast a shoe upper made of a high-quality Japanese-manufactured knit, with a portion of the sole 3D-printed.

    A men’s and women’s Japanese Wholegarment apparel collection, made of an innovative seamless knit technology, will also be available at the store at a price range of ¥14,000 JPY to ¥20,000 JPY (US$123 to US$176).

    According to New Balance, the brand manufactures 4 million U.S.-made pairs of sneakers per year. Since it was founded in Boston in 1906, New Balance has made it a priority to make a certain portion of its sneakers in the U.S., giving it a point of difference of American rival Nike.

  • Asics Tiger opens in Seoul

    Asics Tiger opens in Seoul

    Japan’s Asics has taken its Asics Tiger lifestyle concept to South Korea, opening its first standalone store for the sub-brand in Seoul.

    This is the second Asics Tiger concept store to open worldwide for Asics, following the debut of the Asics Tiger Osaka Shinsaibashi store, which opened in Japan in September last year.

    Located on Garosugil Road in Seoul’s Sinsa-dong, the latest Korean store boasts Asics Tiger’s chic aesthetic via marble shoe walls and white centre tables. Being a trendy sneaker outlet, there are clear street elements too, such as mortar walls and guardrails. Other features include a graphic wall and a straight yellow accent line on the ceiling.

    The Asics Tiger brand was revived as the third Asics pillar brand back in January 2015, to target the global sports lifestyle market.

    At the time of the launch, a brand new logo was developed to appease the street-ier, youth-ier market. Complementing the original 1977 logo used when Asics was founded, the new brand logo added the word ‘Tiger’ in similar typography, and was developed together with graphic designer Alan Peckolick.

    “The new logo expresses the universal dynamism of our sports brand and the strengths that colour active lifestyles,” the company said, at the opening of their Asics Tiger Japan store in 2016.

    Essentially, Asics Tiger looks to mesh modern designs that integrate technology and fashion, with throwback designs from the 1980s and 1990s. The move hopes to shake-up dwindling revenues for Asics.

    In early May, Asics Corp. said during its first quarter ended March 31, consolidated net sales fell 4% or 1.3% using the previous fiscal year’s foreign exchange rate to 113,052 million yen ($993 million).

    Domestic net sales decreased 3.6% to 30,804 million yen ($270 million) due to weak sales of sportswear, said Asics. However, Asics’ Oceania, Southeast and South Asian regions sales increased 11.3% to 8,068 million yen ($70 million), due to continuing steady sales of running shoes and the strong sales of Onitsuka Tiger shoes.

  • DoCoMo plans major leadership shake-up

    DoCoMo plans major leadership shake-up

    Japan’s NTT DoCoMo has announced significant proposed changes to its management team as part of efforts to “further grow and develop the company.”

    The operator revealed that one executive director, one director, two audit and supervisory board members and four senior vice presidents are planning to resign, mostly to take up new positions at DoCoMo subsidiaries or affiliate companies.

    In their places there are two new candidates for the board of directors, two new candidates for the audit and supervisory board and seven new senior vice president candidates.

    The changes to the executive positions will be put up for approval at the shareholders meeting, the board of directors meeting and the audit & supervisory board meeting scheduled on June 20, 2017.

    If the changes are approved, DoCoMo’s new board will include executive vice presidents Hirotaka Sato, Kiyohiro Omatsuzawa, Hiroshi Tsujigami, Kouji Furukawa and Kyoji Murakami, as well as senior vice presidents Hiroshi Nakamura and Hozumi Tamura.

    The top leadership team will consist of president, CEO and board member Kazuhiro Yoshizawa, senior executive vice president, CIO, CISO, chief privacy officer and board member Hiroyasu Asami, and senior executive vice president for global business, corporate and CSR and board member Toshiki Nakayama.

  • Rakuten first-quarter profits surge on sales promotions, new tech investments

    Rakuten first-quarter profits surge on sales promotions, new tech investments

    Japanese e-commerce giant Rakuten said net income for the first-quarter of fiscal 2017 more than doubled for the three months ending March 31, on the back of a positive customer response to sales promotions and new technologies.

    Japan’s largest e-tailer said total quarterly net income reached 25.06 billion yen (US$220.3 million), up from 12.09 billion yen (US$104.7 million) for the same period a year earlier.

    The Tokyo-based company said its operating income rose 73.2% to 40.4 billion yen (US$355.3 million), while first-quarter sales jumped 17.6%, for a total of 212.08 billion yen (US$1.86 billion).

    The e-tailer currently offers customers up to seven times the typical rewards points, a bid to poach business from rivals Amazon.com and Yahoo.

    According to a press release, Rakuten said it has “cultivated loyal customers and conducted sales activities in order to win new users, as well as initiatives targeting greater customer satisfaction, strengthening services for smart devices and opening up the Rakuten ecosystem,” the company said.

    This incentive has increased membership in Rakuten-brand credit cards and the use of revolving balances, boosting the company’s financial business.

    “Results are on track for improvement in overseas internet services, due to contributions from the steady growth in U.S. subsidiary Ebates Inc. and other factors,” it added.

    In February, Rakuten invested $26 million in AirMap, a company working on a global airspace management platform for drones. Meanwhile, in September 2016, the company acquired Fablic, provider of the C2C marketplace app Fril.

    In the past year, it has also invested in American bot developer Run Dexter, digital content provider getAbstract AG, cross-border payment platform Currencycloud, and Japanese fintech company Folio – investments, which look to boost revenues further in the coming fiscal year.

    The firm said that for the twelve months ended December 31 it is targeting double-digit growth over the previous year.

    According to a recent report produced by JapanConsuming, e-commerce will be Japan’s largest single retail channel by 2022. In 2015, Japan generated roughly $80 billion in e-commerce sales. This compares to some $350 billion of e-commerce sales in the U.S. and China’s whopping e-commerce sales result, which exceeded $650 billion in 2015.

  • Shilla duty free opens mobile app, online mall for Japanese clients

    Shilla duty free opens mobile app, online mall for Japanese clients

    Shilla Duty Free has launched a mobile app and an Internet website mall targeting Japanese clients to offset the decline in Chinese tourists triggered by the missile defense system row between Seoul and Beijing.

    It is Shilla Duty Free’s second mobile shopping mall for foreigners after one opened for Chinese customers in 2014.
    Chinese travel agencies have in recent months suspended sales of tour packages to South Korea as part of the Beijing government’s retaliation against Seoul’s decision to station the US Terminal High Altitude Area Defense system on its soil. China believes the missile system undermines its security interest. South Korea has maintained that THAAD’s sole aim is to counter North Korea’s evolving nuclear and missile threats.

    Shilla’s mobile app store and Internet shopping mall allow Japanese customers to use Naver Corp.’s flagship LINE messenger to carry out transactions.
    LINE has become a major mobile messenger platform with more than 200 million users around the world. It has a strong presence in Japan.

    The duty-free shop will also invite 1,000 Japanese clients to a fan meeting of popular K-pop boy group SHINee, the shop’s commercial model, in Seoul on May 13. The number of Japanese tourists rose 25 percent last year from the previous year, according to the Korea Tourism Organization. The figure also surged 13 percent and 28 percent in January and February of this year from the same period in 2016.

  • ZTE completes 3D-MIMO test in Jiaxing

    ZTE completes 3D-MIMO test in Jiaxing

    China Mobile and ZTE announced they have completed the deployment and pre-test verification of Pre5G Massive MIMO technology 3D-MIMO in Jiaxing, a prefectural city in northern Zhejiang province in China.

    The testing, conducted in collaboration with China Mobile Zhejiang and the China Mobile Jiaxing Branch, included verification tests in scenarios including large-traffic scenarios in universities or 3D  in-depth coverage in high-rise residential buildings.

    It builds on the completion of the world’s first 3D-MIMO field verification conducted by the two companies in 2015.

    The 3D-MIMO technology increases downlink capacity by 3-5 times and uplink capacity by 4-6 times over traditional 4G networks, helping to address issues caused by the exponential growth in demand for traffic and growing 4G user base in dense areas such as universities.

    Using three carriers on a 3D-MIMO site downlink rates reached 1Gbps while uplink rates reached a peak of 237Mbps.

    Testing showed that 3D-MIMO increased uplink and downlink spectrum efficiency of small-packet services by 2-3 times on average compared to co-frequency eight-transmit macro base stations. The test involved up to 800 concurrent commercial users.

    The 3D beamforming technology also helped to suppress interference, enhance connections on cell edges and increases user traffic in the coverage area.

    Last year, China Mobile and ZTE completed 3D-MIMO pre-commercial verification in 29 provinces and 50 cities as part of their collaboration on the technology.

  • Japan’s FamilyMart may limit investment in Vietnam following losses

    Japan’s FamilyMart may limit investment in Vietnam following losses

    ‘We cannot continue to pour in resources,’ its president says of business in the Southeast Asian market. Japan’s second largest convenience store chain FamilyMart plans to stay focused on domestic market as it reported losses in several Southeast Asian economies including Vietnam.

    Koji Takayanagi, the chain president, said the firm is reviewing loss-making businesses in Indonesia, Thailand and Vietnam. “If we can get them to rally we will, but we cannot continue to pour in resources,” as saying Tuesday.

    The Japanese franchise has forecast operating profit to grow by more than twice to 1,000 billion yen ($8.79 billion) in four years from 412 billion yen in the current fiscal year. But as the business is profitable in China and Taiwan, it is not doing well elsewhere.

    FamilyMart came to Vietnam in 2010 and had expected to open 300 stores in collaboration with local distributor Phu Thai Group.

    But the partnership ended in 2013, with the distributor taking over 42 FamilyMart stores and turning them into B’s Mart in collaboration with Thailand’s Beri Jucker Plc.

    The brand made a comeback in July 2013 and is now operating 130 stores in Ho Chi Minh City, the nearby resort town of Vung Tau and in Binh Duong Province, aiming to expand to 150 by the end of this year.

    Takayanagi said he finds it easier to achieve results at home, where worsening labor shortage is leaving convenience stores scrambling to find workers. “We know what to do,” he told, adding that the chain is ready to offer items with added value to serve its aging population.

    He also said his company is considering starting a new business with Hong Kong-based investment holding company CITIC Ltd. and Thailand’s largest private conglomerate Charoen Pokphand.

    Details are not revealed, but he said the companies are looking at a range of opportunities beyond convenience stores.

    The chain’s diversion comes as its rival Seven & i Holdings, which owns Japan’s largest convenience store chain 7-Eleven, keeps expanding overseas, most recently in the U.S.

    The first 7-Eleven store will open in Vietnam in February 2018, adding heat to the convenience store boom with entry and expansion from many local and foreign retailers in recent years.

    Vietnam’s retail market is listed in the top five in Southeast Asia and ranked 11th globally in terms of growth rate, based on the A.T. Kearny 2016 Global Retail Development Index.

    Vietnam’s trade ministry has projected the country’s retail market to hit $179 billion by 2020, a jump of 52 percent from last year, with foreign convenience store operators already holding a 70-percent market share.

    The sector has a lot room to grow in Vietnam, where more than half of a population of nearly 92 million are young and the annual average income expected to increase very fast, the ministry said.

  • Softbank Q4 profit surges on Sprint turnaround

    Softbank Q4 profit surges on Sprint turnaround

    Japan’s Softbank has reported a twelvefold increase in net profit for the March quarter as a result of a recovery at US mobile unit Sprint.

    Profit increased to 580.5 billion yen ($5.08 billion), on the back of a nearly 2% increase in revenue to 2.32 trillion yen.

    For the full year, profit grew to a record 1.4 trillion yen, up from 474 billion in the prior financial year, as the result of the divestment of part of the operator’s stake in Alibaba and cost reductions at Sprint.

    Total revenue increased from 8.88 trillion yen to 8.9 trillion yen over the same period, partly due to the addition of revenue from recent acquisition ARM.

    Sprint’s operating income increased to $1.8 billion for the year, from just $300 million in the prior year, while total costs were reduced to $15.9 billion, representing a $3.4 billion reduction over the past two years.

    Revenue from domestic telco operations meanwhile grew to 3.19 trillion yen from 3.14 trillion yen a year earlier. The company added 360,000 mobile subs during the year to take its total to 32.4 million, with FTTH subscribers roughly doubling to 3.59 million.

    SoftBank separately announced plans to collaborate with Qualcomm and Sprint to jointly develop technologies for 5G in the 2.5-GHz band, including developing the 3GPP new radio standard for the band.

    The companies plan to provide commercial services and devices based on the development activities in late 2019.

  • Toyota’s new SUV C-HR becomes best-selling model in Japan

    Toyota’s new SUV C-HR becomes best-selling model in Japan

    Toyota Motor’s newly launched C-HR crossover sports utility vehicle grabbed the top spot in monthly domestic sales in April, becoming the first SUV to top the list in Japan since at least 2007, data from industry bodies showed on Tuesday.

    The country’s largest carmaker by volume sold 13,168 units of the C-HR subcompact crossover in the reporting month. The Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association said the model rolled out last December is the first SUV to become the best-selling model since they began compiling data in 1968 and 2007 respectively.

    The C-HR, which uses the same platform as its popular gasoline-electric hybrid car Prius, attracts fuel-cost sensitive customers with its fuel-efficiency. Its hybrid model runs 30.2 kilometres per liter of gasoline, among the best in the segment. Toyota plans to market the model in over 100 countries on the back of growing demand for compact SUVs worldwide.

    Honda Motor’s minicar N-Box came in second with 12,265, up 4.9% from the same month last year, ceding the crown to the C-HR after maintaining the No. l position for four consecutive months through March. The Move minicar of Daihatsu Motor  — Toyota’s subsidiary — was third, as sales of the minicar model more than doubled to 12,004 units in the month.

    Five minivehicle models with engines no larger than 660 cc made it into the top 10 ranking, according to the two associations, as they continue to entice customers with a relatively low tax levied on them and their fuel-economy.

    Daihatsu’s Tanto minivehicle ranked fourth with 11,926 units, up 8.5%, followed by Toyota’s Prius hybrid, the best seller in 2016, with 9,920 units, down 52.2%.

  • Uniqlo wants to double EU store count by 2020

    Uniqlo wants to double EU store count by 2020

    Uniqlo said it plans to take its European store count to 100 outlets over the next three years, in a bid to strengthen its retail presence outside of Asia.

    In doubling its current store number from 50 to 100, the fast-fashion chain will make its first foray into Spain and Italy, according to local media.

    A planned Barcelona location will mark Uniqlo’s entry into Spain this autumn, while a Milan store will open in Italy, according to a report by the Nikkei Review.

    The Fast Retailing-owned brand already operates some 50 stores in France, Russia, Germany, the UK and Belgium.

    The firm said it would be opening new locations in regional cities in some European countries too, those it is already selling in. This includes regional stores in smaller French cities such as Bordeaux and Toulouse.

    With the store openings in the EU, Uniqlo will be facing stiff competition from two global fast-fashion moguls. Namely Zara, which is operated by Spain’s Inditex, and Sweden’s H&M, both of which have a solid history on the continent and a loyal consumer following.

    The Japanese chain told the Nikkei Review that demand for its highly functional basic apparel, however, is strong enough to warrant such fast-paced and vast expansion. This is particularly apparent now, given the Japanese firm’s domestic sales growth has plateaued.

    “Overseas operations are what our growth hinges on,” said Fast Retailing CEO Tadashi Yanai.

    However, Uniqlo is heavily reliant on Asia.

    Overseas sales came to 655 billion yen in 2016, with China accounting for half of the firm’s fiscal 2016 revenues made in foreign markets.

    Yanai said Uniqlo is eyeing global sales of 3 trillion yen ($26.6 billion) by the fiscal year ending August 2020. Japanese sales lifted just 3% to around 800 billion yen in fiscal 2016. Meanwhile, the number of stores in Japan has remained steady at around 840 for several years.