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Title: Japan Market Brief MarchApril 2007


1
Japan Market Brief MarchApril 2007
  • John E. Peters
  • Minister Counselor for Commercial Affairs
  • U.S. Embassy, Tokyo

2
Whats Different?
  • Performance Then Now
  • Net Margins 0.2 (FY01) 4.8 (FY06e)
  • Free Cashflow Y8.2trn (FY01) Y25.1trn
    (FY06e)
  • Non-Performing Loans Y86trn (FY01) Y4.2trn
    (FY06e)
  • Valuations
  • Price to Earnings 68 times(1990s avg) 17
    times (FY06e)
  • Price to Cashflow 15 times(1990s avg) 5.4
    times (FY06e)
  • Price to Book 2 times(1990s avg) 1.4 times
    (FY06e)
  • Ownership
  • Crossholdings Ratio 51 (FY90) 20 (FY06e)
  • MA Cases 470 (per year, 1990s) 1,700
    (2002-2006 avg.)

Courtesy of Jesper Koll Merrill Lynch Japan
Securities
U.S. Commercial Service - Japan
3
Domestic Structural Up-Cycle Capital Investment
Capital Stock Vintage in Years All Sectors
Source Cabinet Office Merrill Lynch
Courtesy of Jesper Koll Merrill Lynch Japan
Securities
U.S. Commercial Service - Japan
4
No Lost Decade Here
Relentless Focus on Research Development
Spending (total RD spending by public and
private sector as of GDP)
Japan
US
Germany
France
Source National Institute of Population and
Social Security Research
Source NIPSSR
Courtesy of Jesper Koll Merrill Lynch Japan
Securities
U.S. Commercial Service - Japan
5
Japan Highest Patent Filings by
National/Regional Offices
These statistics are based on information
provided by national and regional patent offices.
Source World Intellectual Property Organization
U.S. Commercial Service - Japan
6
International Patent Filings
Source World Intellectual Property Organization
U.S. Commercial Service - Japan
7
Yes, A Trade Surplus with China
Japan Trade Balance With China (Peoples Republic
Hong Kong)
Source Cabinet Office
Courtesy of Jesper Koll Merrill Lynch Japan
Securities
U.S. Commercial Service - Japan
8
Japan is Back on Global Scene
Strong Balance Sheets and Profits Trigger A New
Global Investment Cycle Outward MA Accelerating
Sharply
Source Thomson Financial, Merrill Lynch
Courtesy of Jesper Koll Merrill Lynch Japan
Securities
U.S. Commercial Service - Japan
9
Toyota Expects to Build Plants
  • Toyota Motor Corp. is studying its projected
    10-year growth in the U.S. to build plants.
  • All I know is compared to today it will be
    more, said Jim Lentz, Executive Vice President
    of Toyotas U.S. sales arms.
  • Toyota could build as many as five new North
    American assembly plants in the next 10 years.
  • Toyotas U.S. Sales
  • 12.5 increase to 2.54 million
  • 5.5 increase to 2.68 million (projected)
  • New Tundra and Hybrids will drive the growth

Source Detroit Free Press, January 17, 2007
U.S. Commercial Service - Japan
10
One of the Largest ODA Contributors
  • Ranked as the worlds top ODA provider from 1991
    2000
  • (net disbursement basis)
  • Assisted 185 countries and regions
  • Total amount disbursed until 2003 US221 billion

Source Ministry of Foreign Affairs, Japan
U.S. Commercial Service - Japan
11
Cool Nippon
Do You Think This Countrys Products Are
Cool? Response By Consumers In Different Cities
Source Nikkei Note ChinaBeijin, Shanghai,
Guangzhou
Courtesy of Jesper Koll Merrill Lynch Japan
Securities
U.S. Commercial Service - Japan
12
Declining Population
Population 2006 127.7 million (2006)
2030 117.6 million (2030)
Source Ministry of Public Management, Home
Affairs, Posts and Telecommunications, Japan
Ministry of Health, Labor and Welfare,
Japan
U.S. Commercial Service - Japan
13
The Most Aged Society
65 yrs old and over 2005 26.82 million (21)
2040 35.0 million (35)
Total Population 2005 126 million 2040 100
million
Source Japan Aging Research Center
U.S. Commercial Service - Japan
14
Consumer Confidence Index(excluding one-person
households, original series)
Source Economic and Social Research Institute,
Cabinet Office, Japan
U.S. Commercial Service - Japan
15
U.S. Top Trading Partners
CY2006 Exports (Goods)
CY006 Imports (Goods)

Total U.S. Imports 1,855.4 billion U.S.
Imports from Canada 303.4 billion
(16.4) China 287.8 billion
(15.5) Mexico 198.3 billion (10.7)
Japan 148.1 billion (8.0)
Germany 89.1 billion (4.8)
Total U.S. Exports 1,037.3 billion U.S.
Exports to Canada 230.6 billion
(22.2) Mexico 134.2 billion
(12.9) Japan 59.6 billion
(5.8) China 55.2 billion
(5.3) UK 45.4 billion (4.4)
Source U.S. Census Bureau
U.S. Commercial Service - Japan
16
Japans Economy
World GDP (CY2005)
Real GDP Growth Rate
Source World Bank
Source Japanese Cabinet Office
  • Worlds 2nd largest economy
  • 2006 GDP 4,712 billion
  • Longest boom in postwar period
  • - 60 months (Feb. 2002 current)
  • - 57 months (Nov. 1965 July 1970)

U.S. Commercial Service - Japan
17
Japans Top Trading Partners
Total Japanese Imports 577.8 billion
Total Japanese Exports 647.4 billion
(December 2006 Data - Provisional) Source
Japan External Trade Organization
U.S. Commercial Service - Japan
18
U.S. Trade in Goods with Japan
Number of U.S. exporters to Japan (2005) 26,933
Source U.S. Census Bureau
U.S. Commercial Service - Japan
19
Top 10 U.S. Exports to Japan
Source U.S. Census Bureau
U.S. Commercial Service - Japan
20
CY2005 Service Exports Surplus19.5 Billion
2005 Surplus 19.5 billion
Exports Up 17.6 2005 41.8 billion 2004 35.6
billion
Imports Up 14.4 2005 22.3 billion 2004 19.5
billion
Source Bureau of Economic Analysis, U.S.
Department of Commerce
U.S. Commercial Service - Japan
21
Major U.S. Service Exportsto Japan
Source Bureau of Economic Analysis, U.S.
Department of Commerce
U.S. Commercial Service - Japan
22
U.S. Private Services Trade Balance with Japan
Source Bureau of Economic Analysis, U.S.
Department of Commerce
U.S. Commercial Service - Japan
23
Japan's Inward FDICumulative (from end of 1996
through end of 2005)
net international investment position
US leads at 251,676 million US, followed by
France and the Netherlands at 61,225 million US
and 57,635 million US, respectively.
Source Japan External Trade Organization
U.S. Commercial Service - Japan
24
U.S. Firms in Japan
1,554
1,451
390
83
(As of December 2005)
  • 1,554 U.S. affiliated firms in Japan

Source Foreign Affiliated Companies in Japan
2006 published in May 2006 by Toyo Keizai
U.S. Commercial Service - Japan
25
U.S. Firms in Japan by Industry
Manufacturing Total 381 U.S. firms
Non-Manufacturing Total 1,173 firms
80
169
118
126
107
77
102
608
19
70
22
57
(As of December 2005)
(As of December 2005)
Source Foreign Affiliated Companies in Japan
2006 published in May 2006 by Toyo Keizai
U.S. Commercial Service - Japan
26
Regulatory Reform Steady and On-track with
Significant Progress
  • U.S.-Japan Regulatory Reform Initiative (RRI)
    established in 2001
  • as key component of U.S.-Japan Economic
    Partnership for Growth
  • The 5th RRI report (June 2006) noted 85 points of
    significant Japanese progress in the ten areas
    under discussion Telecom, IT, Med/Pharm,
    Financial Services, Competition Policy,
    Transparency, Privatization,
  • Legal Systems Reform, Commercial Law, and
    Distribution
  • But there are still some lingering bilateral
    issues
  • The 5th RRI report underscores the need for
    continued efforts and progress in all areas
  • Extreme concern about postal privatization, and
    triangular mergers
  • U.S. beef imports a major bilateral issue
  • Some of Japan's acknowledged critical challenges
    are
  • - huge public debt
  • - low birth rate rapidly aging population and
    projected labor shortages
  • - income disparities protracted lack of income
    growth and weak consumer spending
  • - agricultural reform

U.S. Commercial Service - Japan
27
Major Obstacles Faced by Foreign Firms in Japan
Source Invest Japan Department, Japan External
Trade Organization
U.S. Commercial Service - Japan
28
Insurance Market in Japan
  • Changes in Japans Insurance Market
  • Japans financial Big Bang Removal of convoy
    system (maximum control, industry protection,
    administrative guidance, and before-the-fact
    adjustment) U.S.-Japan insurance agreements.
  • 2. Establishment of Financial Service Agency
    Rules-based regulatory approach,
    self-responsibility principle and ex-post
    checking.
  • 3. Changes in consumer purchasing trend
    Emerging focus on living-benefit products vs.
    death-coverage due to demographic changes in
    Japan.
  • 4. Increasing sales of variable annuities and
    third-sector products, led by U.S. insurance
    companies.
  • 5. Partial liberalization of bank sales - fueled
    variable annuity market.
  • 6. Growth of the U.S. share through purchases of
    Japanese life insurance companies in the late
    1990s.
  • Japan is the second largest market for insurance
    in the world after the United States.
  • 340 billion in JFY 2005 direct net premiums
  • U.S. insurance companies earned over 40 billion
    in life and 2 billion in non-life premium income
    a major portion of revenues outside U.S.

Major U.S. Players in Japan Aflac, AIG,
Hartford, Prudential
Sources USTR National Trade Estimate, Life
Insurance Association of Japan, Insurance
Research Institute, industry sources
U.S. Commercial Service - Japan
29
Japans Environmental Market to Reach 560
billion by 2010 (METI forecast)
  • Current Market 500 billion
  • Outstanding commercial opportunities in
  • - Asbestos abatement equipment and services
  • 40 million tons in older building
  • Japan plans removing a million tons/year
  • - Soil remediation equipment and services
  • - Industrial wastewater treatment technology
  • - Renewable energy, including biomass
    technologies
  • US passed the Superfund Act in 1980
  • Japan enacted a similar act
  • Soil Contamination Countermeasures Law in 2002

Source Ministry of Economy Trade and Industry
(METI), Japan Environment
Information Communication Network, Japan
U.S. Commercial Service - Japan
30
Major Projects in Japan
In a horizon that stretches from the spring of
2007 over the next ten years, U.S. companies will
have an opportunity to bid on construction
projects with an aggregate value approximating
5.4 billion and on the supply of goods,
equipment, or services in response to
non-construction procurements valued at an
aggregate of 18.16 billion.  The following
summary highlights this 23.56 billon
in aggregate opportunities for U.S. firms.
U.S. Commercial Service - Japan
31
Major Projects recent news
Govt To Seek Competitive Bids On 60 Of
Discretionary Contracts
  • Employ competitive bidding for some 60 of its
    discretionary contracts, or about 2.1 trillion
    yen (approx. 18 billion)
  • To raise the percentage of contested public
    contracts to about
  • 80 in terms of value
  • With plans to fully implement the change in
    fiscal 2007
  • For transparency of the process, the government
    is requiring ministries to disclose all contracts
    on their respective Web sites, as well as provide
    explanations for retaining discretionary
    contracts.
  • Nikkei News
  • January 27, 2007

U.S. Commercial Service - Japan
32
Worlds 2nd Largest Medical Device Market
  • The most important export destination for
    American medical devices
  • The sector has consistently enjoyed a sizable
    (approximately 4 billion) trade surplus with
    Japan
  • Approximately 5 billion worth of U.S. medical
    devices and supplies are sold in this market
  • American products have approximately 60 share of
    the total imports
  • The market for medical equipment in Japan remains
    strong, but
  • American companies will continue facing severe
    challenges in both pricing and regulatory matters

Source Country Commercial Guide
Source Ministry of Health, Labor and Welfare
U.S. Commercial Service Japan
33
Worlds 2nd Largest Pharmaceutical Market
  • The most important export destination for
    American pharmaceuticals
  • The value of Japanese pharmaceutical market is
    approximately 60 billion
  • The market share of American companies is
    estimated to be
  • 15-20
  • Of the 99 leading global medicines, only 60 are
    available in Japan
  • GOJ intends to accelerate the drug approval
    process and to offer incentives to develop
    innovative drugs
  • Japanese market is increasingly promising for
    innovative pharmaceuticals, although American
    companies will continue facing severe challenges
    in both pricing and regulatory matters

Source IMH Health
31 still not available in Japan
Average 5.2 years of delay
SourcePhRMA
U.S. Commercial Service - Japan
34
U.S. Machine Tools Forge Ahead of Swiss
Products, Reclaiming Lost Ground
Source Ministry of Finance, Japan
U.S. Commercial Service - Japan
35
Strong Exports of U.S. Aircraft and Aerospace
Components
Overwhelming U.S. presence attests to long-term
partnerships
  • (in million )
  • 2003 2004 2005 2006
  • Total
  • Imports 7,573 7,637 8,618 9,652
  • ( CHG) 1 13 12
  • USA 6,629 6,696 7,416 8,226
  • ( CHG) 1 11 11
  • U.S. 88 88 86 85
  • Market
  • Share

Source The Society of Japanese Aerospace
Companies (SJAC), Ministry of Finance, Japan
U.S. Commercial Service - Japan
36
Boeing Country
  • 80 civil aircraft orders for the past 10 years
    went to Boeing.
  • ANA JAL, first customers for Boeing 787s. 50
    and 30 each beginning in 2008 (approx. 9.6
    billion in total).
  • Boeing forecasts Japanese demand at 1,176
    aircraft (approx. 147 billion) for the next 20
    years.

Airframes (3,459 mil) USA, 90 EU, 3 Afrm
Parts (1,427 mil) USA, 82, EU, 13 Engines
(1,201 mil) USA, 92 EU, 5 Egn Parts
(1,964 mil) USA, 90 EU, 9 Source The
Society of Japanese Aerospace Companies (SJAC),
2005
Source Boeing Japan
U.S. Commercial Service - Japan
37
Biotechnology
(Million US)
(3.0)
(3.1)
Source Nikkei Bio Nenkan 2007
  • Key Market Segments in Japan
  • Pharmaceuticals (antibody therapeutics) and
    Diagnostics
  • Functional Food
  • Agriculture
  • Bio-informatics
  • Equipment for Biotech Research (DNA chips
    reagents, etc.)

U.S. Commercial Service - Japan
38
Opportunity in Japan
  • Event USA Pavilion at BioJapan 2007
  • Dates September 19-21, 2007
  • Venue Pacifico Yokohama (Kanagawa)
  • http//expo.nikkeibp.co.jp/biojapan/eng/

CS Contact Tamami Honda, Commercial
Specialist U.S. Embassy, Tokyo Phone
81-3-3224-5876 Fax 81-3-3589-4235 E-mail
tamami.honda_at_mail.doc.gov
U.S. Commercial Service - Japan
39
U.S. Chemical Business in Japan
  • U.S. chemical exports to Japan recovering
  • USD 5.3 billion in 2006
  • Sales of Japan-based U.S. firms show underlying
    strength
  • USD 1.5 billion in 2005

Source Dow Chemical Japan, Dupont Japan
Source Japan Tariff Association
U.S. Commercial Service Japan
40
Education International Students in the United
States
Contribution of international students to US
economy 13.5 billion or 24K per
student
(Source Institute of International Education
http//opendoors.iienetwork.org)
U.S. University Fair (IIE Fair in Japan ) for
regionally-accredited U.S. colleges and
universities 2006 Fairs Tokyo Nagoya
76 schools 32 schools 1,328
visitors 308 visitors 2007 Fairs October
21 October 20 For details and on-line
registration http//www.iiehongkong.org/fair/ufa
ir/index.htm  
U.S. Commercial Service - Japan
41
Education Japanese Higher Education Abroad
(Source Diplomatic Missions in Japan)
Note US F-visa, Australia-new enrollments on
student visa, Canada-study permits for
college/university/ESL (no permit
required if duration is 6 mos or shorter)
Source Institute of International Education
(http//opendoors.iienetwork.org)
U.S. Commercial Service - Japan
42
Education American Students at Japanese
Universities
Source Institute of International Education,
Open Doors (http//opendoors.iienetwork.org)
U.S. Commercial Service - Japan
43
Japanese Outbound Travel
17,819
17,535 (0.8)
5,368
3,672 (-5.4)
Source Office of Travel and Tourism Industries,
U.S. Department of Commerce Japan
National Tourist Organization
U.S. Commercial Service - Japan
44
Japanese Travel to the U.S.
5,368
3,672 (-5.4)
2,217
1,374 (-9)
Source Office of Travel and Tourism Industries,
U.S. Department of Commerce State of
Hawaii
U.S. Commercial Service - Japan
45
Japan U.S. Outbound Travel
5,368
3,672 (-5.4)
1,497 (40)
1,287
Source Office of Travel and Tourism Industries,
U.S. Department of Commerce
U.S. Commercial Service - Japan
46
U.S. Japan Telecommunications Equipment Mutual
Recognition Agreement (MRA) Signed on Feb. 16,
2007
  • Scope Telecommunications terminal equipment and
    radio equipment subject to certification in Japan
    regardless of location of the supplier or country
    of origin of the equipment

Telecom MRA will lower costs and speed up the
marketing in Japan of innovative U.S. telecom
products, which is the fifth largest export
market for the U.S.
U.S. Export
U.S. Import
Source U.S. Department of Commerce, U.S.
International Trade Commission
U.S. Commercial Service - Japan
47
Software Market in Japan
Software Market in Japan
  • Market Growth
  • Strong at 4 and projected to reach
  • US173 billion by 2010
  • The amount of imported software was US3.2
    billion in 2005.
  • Within imported software, the share of U.S.
    products is
  • 90.3 and the amount has reached US2.9 billion

Includes customized software, packaged software,
game software, data services, etc.
(Billion US)
US 173
  • Market Trends
  • Enactment of Japanese SOX (Sarbanes-Oxley act)
  • Growing corporate IT-related budgets
  • 46 of Japanese firms will increase IT
  • spending
  • 34.5 will increase their spending by
    more
  • than 20

US 147
Percentage of Software sales in Japan
Others 2
Data Services
8
Game Software
8
Packaged Software
2005
2010
(Source MIC Research Institute and Japan
Information Technology Services Industry
Association)
8
  • Security Software Market
  • Rising awareness of the importance of IT
  • security and related software
  • Tremendous growth at 21.9
  • Current market size is 1.2 billion
  • Projected to reach 2 billion by 2010 at 11.2
    growth

Customized Software
74
(Source METI/ Ministry of Economy, Trade and
Industry)
U.S. Commercial Service - Japan
48
Electronic Devices Market in Japan
  • U.S. plays a leading role in the
  • Japanese semiconductor industry.
  • Market share of U.S. electronic
  • devices in Japan has grown to 26
  • and reached US 5.4 billion in 2005,
  • compared to 17 and 1.7 billion
  • in 1995.
  • Total amount of imported electronic
  • devices is US23 billion.
  • Demand for electronic devices in
  • wireless applications, such as
  • WiMAX, UWB/Wireless USB, WiFi
  • and ZigBee is growing rapidly.
  • WiMAX, in particular, is projected
  • to reach US827 million by 2010

(million US)
Total Local Production
Total Export
Total Import
Source JEITA/ Japan Electronics and Information,
Technology Industries Association
U.S. Commercial Service - Japan
49
Japan Market Safety Security
Current Status
Chart 1
The market size of the Japanese security industry
has been increasing over the years. The overall
market (Chart 1) includes the sales and
installation of security equipment and security
services, such as guards. The total sales
figures do not show a sharp increase as unit
prices in general have decreased over the past
few years due to stronger competition in the
market. In security service contracts, there has
been a tremendous increase (Chart 2). According
to the National Police Agency the total sales of
security service alone amounts to US 27 billion.
1110.11 (ex.rate as of 2005)
Source Japan Security Systems Association
Future Prospect
According to a May 2006 Fuji Keizai survey,
trends in the security industry are
  • A projected market size of US 4.8 billion for
    security equipment by 2008 - a 34 increase since
    2005.
  • Emerging new sub-sectors demonstrating drastic
    growth
  • School security US 57 million (350
    increase since 2005)
  • Town security 18 million (125
    increase since 2005)
  • Regional safety 22 million (5
    increase since 2005 )
  • (Emergency alert system Mass notification
    system)

Sub-sectors expected to grow and 2008
projections Home Security Unit
US 78.6 million (50 up from 2005)
Home Security Service 418 million
(20up) School
Commuting Service 25.6 million (160up)
Community Security Service
4.3 million (600up)
Biometrics by Vein 132 million
(300up)
on-Vehicle DVR 38 million
(200up)
2008 Projection for sub-markets by equipment
type Image/monitoring market US
1.2 billion (35 up from 2005) Sensor
1.36
billion (71up) Home
security (equip. service) 755
million (17up) Access
control 920 million (11up)
Residential security service
464 million (19up)
U.S. Commercial Service - Japan
50
Japan Market Safety Security
Market Growth
  • Recent market growth is attributed to increased
    public concern for security
  • Crime related
  • Sky-rocketing crime rate including burglaries,
    arson, and child murders (Chart 3).
  • New types of crime such as credit card and
    e-mail scams, and identity theft.

There is a direct relation between major crimes
and the number of security cameras installed
(Chart 4).
  • Terror related
  • Fear of terrorist attacks is pervasive (Chart 5)
    while Mass Transportation Authorities respond by
    installing more cameras (Chart 6).

Chart 6
-Safety and security has become an important
factor in selecting products or services

-Central and local governments are making full
efforts towards a safer society in response to
public concerns.
Source Ministry of Land, Infrastructure and
Transport
U.S. Commercial Service - Japan
51
Japans Food Service Market Opportunities Remain
for Innovative Themes and Superior Know-How
Market Trends
  • Food service viewed as time-saving and a leisure
    activity
  • Demand for value-added service and unique
    concepts
  • Consolidation and diversification
  • Orientation toward healthy and safe food
  • Best Prospects
  • Fast casual
  • Alternate meal solutions (deli, takeout, etc)

Source Food Service Industry Research Center
U.S. Commercial Service - Japan
52
Opportunities in Japan's Cosmetics Market
Source Shukan Shogyo Co., Ltd., Fuji Keizai
Co., Ltd, Cosmetics Importers Association of
JapanNotes 1 Depilatories and other
perfumery, cosmetic or toilet preparations (with
a basis of oil, fat or wax) 2
Depilatories and other perfumery, cosmetic or
toilet preparations, n.e.s.
U.S. Commercial Service - Japan
53
Growth of 2x4 Housing Starts in Japan Annual
(1997 2006)
(105,390 units)
Houses based on North American 2x4 construction
methods were first introduced into Japan in 1974.
Over the past 10 years, 2x4 housing starts have
shown significant growth and exceeded 100,000
units for the first time in 2006. Exports of
U.S. building construction materials to Japan
have supported this growth, exceeding USD 1
billion in 2005.
U.S. Commercial Service - Japan
54
Jewelry Market
  • Jewelry retail market was 11.3 billion in 2005.
  • Japan is the 2nd largest overall jewelry retail
    market after the United States.
  • 1/3 of retail sales are brand jewelry.
  • Import brand Jewelry share
  • 1995 7.9 (1.7 bill)
  • 2004 21.4 (2.4 bill)
  • US is the top supplier of precious metal jewelry
    with a 24.3 share in 2006.
  • 1995 12.5 (137 mill)
  • 2005 21.7 (320 mill)
  • 2006 24.3 (385 mill)

(Source Japan Tariff Association)
Source Retail market size Yano Research
Institute Brand retail sales Japan Precious
magazine US imports Japan Tariff Association
U.S. Commercial Service - Japan
55
Six Commercial Offices in Japan --
well-positioned to assist American exporters
  • Over 40 professional staff and industry
    specialists in six locations
  • From FY 2005 until present 30 months the
    Commercial Service in Japan has
  • - logged 3,700 consulting sessions with
    2,300 clients
  • - provided successful regulatory, policy,
    and bid advocacy on behalf of U.S. trade and
    investment interests
  • - and facilitated over 800 transactions worth
    230 million for American firms from 42 states

Sapporo
Tokyo
Fukuoka
Nagoya
Osaka
Naha
U.S. Commercial Service - Japan
56
How the Commercial Service in Japan can help U.S.
Companies
  • Market Research Due Diligence
  • Product Launches Distribution Strategy
  • Partner Match Making
  • Trade Events
  • Trade Policy Advice
  • Web Postings
  • Government Procurement Advocacy
  • Industry Expertise/Business Counseling
  • Intellectual Property Protection Advice
  • Market Access Issues

U.S. Commercial Service - Japan
57
Osaka-Kansai, Shikoku and Surrounding
Prefectures
Commercial Service Osaka covers 14
prefectures Osaka, Hyogo, Kyoto, Shiga, Nara,
Wakayama, Tokushima, Kagawa, Ehime, Kochi,
Hiroshima, Shimane, Tottori and Okayama.
  • GDP 980 billion, larger than Brazil, Korea,
    India, Mexico, Russia, or Australia
  • 9-prefecture Kansai region is Japan's 2nd largest
    industrial, financial, and commercial area
  • Also the 2nd largest population center with over
    24 million people
  • Home to firms like Panasonic, Nintendo, Kyocera,
    and some of the world's largest banks
  • U.S. exports to the region up about 15 over 2005
  • Much expansion and production abroad with over
    5,600 firms having overseas subsidiaries  

U.S. Commercial Service Japan
58
Nagoya-Chubu
  • At over 8.7 million people, Japan's third largest
    metropolis
  • Nagoya (population 2.2 million) is Japan's fourth
    largest city
  • GDP 770 billion, over 25 of Japan's GDP - about
    the size of Brazil, Korea, India, Mexico, Russia,
    or Australia
  • 18 of GDP has ranked number one in shipments
    from Japan for 28 consecutive years
  • Manufacturing heartland center for aerospace,
    automotive, ceramics, and machine tool industries
  • Massive plant expansion and new investment
  • MHI, FHI, KHI key players in Boeing 787
    Dream-liner production
  • Toyota recently moved 3000 international sales
    staff from Tokyo
  • to Nagoya
  • Projected to soon exceed Kansai in industrial
    production

The Commercial Service Nagoya covers 9
prefectures Aichi, Gifu, Mie, Shizuoka,
Yamanashi, Nagano, Toyama, Ishikawa, and Fukui
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Fukuoka-Kyushu and Yamaguchi
  • Fukuoka City population 1.3 million, economic,
    educational and cultural center of Kyushu
  • Traditionally known as the "Gateway to Asia"
  • 410 billion economy 10 of Japan's GDP
  • Japan's fourth largest economic center greater
    GDP than Switzerland, Belgium, or Sweden
  • "Silicon Island" with 30 of Japanese
    semiconductor production
  • Japan's most advanced automotive production 10
    of national output
  • "Solar Island" as focus of Japanese solar cell
    activity
  • Numerous RD facilities in biotech, nuclear
    fusion, robotics, ceramics, high-speed ocean
    transport
  • Southern Kyushu hosts Japan's two space launch
    centers at Uchinoura and Tanegashima
  • Two key U.S. military facilities Sasebo Navy
    base in Nagasaki, and the Marine Corps Air
    Station in Iwakuni

The Commercial Service Fukuoka covers 7 Kyushu
prefectures Fukuoka, Oita, Saga, Nagasaki,
Kumamoto, Miyazaki, Kagoshima, and Yamaguchi
prefecture
U.S. Commercial Service Japan
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Sapporo-Hokkaido and Tohoku
  • Population 5.7 million
  • GDP 383 billion about same size as Belgium,
    Switzerland, or Sweden
  • Toyota and components firms expanding high-tech
    production in Hokkaido
  • Booming domestic and international tourism 5.5
    million tourists in 1988 now about 19 million
    tourists
  • Strong resort investment and tourism from Taiwan
    and Korea
  • The 90-minute intercity flight between Tokyo and
    Sapporo is one of the worlds busiest domestic
    route in terms of capacity, with more than 9
    million annual passengers. Sapporo has 123 fights
    daily to 18 cities outside of Hokkaido, and 48
    flights to and from Tokyo
  • Growing ties with the Russian Far East and
    Sakhalin Island
  • Tohoku regional trade with China has increased
    300 since 2001

Commercial Service Sapporo covers Aomori,
Miyagi, Iwate and Akita
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Naha, Okinawa Prefecture
  • GDP 31 billion population 1.37 million
  • Busy tourism destination with a record 5.64
    million tourists in 2006
  • Active construction sector opportunities for
    American know-how
  • Okinawa Institute of Science Technology Project
  • A front-runner as a gaming industry destination?
  • Software development and call centers growing
    employ 9,000 at 37 centers, and 2,000 at 73 IT
    firms
  • 25,000 American marines and airforce based on
    Okinawa provide security to the region U.S.
    bases are Okinawa's 2nd largest employer,
    contributing 3 billion annually to the economy

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Top Ten Tips to Successfully Marketing in
JapanTo Maximize your potential in the market,
adhere to these Top Ten Tips.
  • Recognize the strategic importance of Japan, and
    be willing to invest the necessary resources to
    capture some of the market
  • Plan, prepare and execute an effective, long term
    strategy
  • Investing in professionally translated marketing
    material is with every "yen."
  • Visit Japan Often.....Personal contact remains
    key even in the age of Webinars
  • Get "on the ground" advice from professionals
    already engaged in the market.
  • Dedicate a "Japan Champion" in the home office.
    (Compassion more important that language
    ability.)
  • Take time to structure the deal and remember due
    diligence, including IPR protection
  • Networking is key. Use contacts, including
    CS/Japan to help you meet prospective
    partners/customers.
  • Cut-throat competition is a way of life in Japan.
    Listen to you clients for greater success here
    and internationally
  • Your Agent is only as good as you are to your
    Agent. It's a partnership. Help them help you.


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Useful Links
  • Web Japan (Information on Japan)
  • http//web-japan.org
  • U.S. Embassy Tokyo, Japan
  • http//japan.usembassy.gov
  • Japan External Trade Organization (JETRO)
  • http//www.jetro.go.jp
  • Japan Statistics Bureau Statistics Center
  • http//www.stat.go.jp/english
  • American Chamber of Commerce in Japan (ACCJ)
  • http//www.accj.or.jp
  • American State Offices Association (ASOA)
  • http//www.asoajapan.org
  • Japan Federation of Economic Organizations
    (Keidanren)
  • http//www.keidanren.or.jp
  • Japanese Chamber of Commerce and Industry
  • http//www.jcci.or.jp/home-e.html
  • Trade Fair in Japan (by JETRO)
  • http//www.jetro.go.jp/en/matching/j-messe
  • The Japan Times

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U.S. Commercial Service Japan
  • Website
  • http//www.buyusa.gov/japan/en
  • Email
  • Tokyo.Office.Box_at_mail.doc.gov

U.S. Commercial Service - Japan
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