Leveraging Japan – Marketing to the New Asia

Citation

Ström, P. (2001), "Leveraging Japan – Marketing to the New Asia", European Journal of Marketing, Vol. 35 No. 5/6, pp. 765-770. https://doi.org/10.1108/ejm.2001.35.5_6.765.2

A different Japan

Japan, the mysterious giant economy in the East, has for decades been much of an enigma for the Western business society. Companies in the West saw a tremendous economic development and they encountered fierce competition on the global scale. However, economic recession hit Japan in the early 1990s and many voices have risen, speaking about the lost decade. In these turbulent times, Japan has kept its position as the second largest economy in the world, Japanese firms are still big global players and Western companies still face the same fierce competition. Also, the Japanese domestic market, with its millions of wealthy customers, has been considered a difficult market to enter and to be profitable in. There are, however, those who have managed. And in the turbulent times both Japanese and Western firms have managed to grow and stay profitable. The new economic situation in Japan has changed the old rigid economy and there are new ways of entering and performing business in Japan. Knowledge about the country that was valuable ten years ago seems to be obsolete today. This is the point of departure for the authors of Leveraging Japan.

The main frame

Leveraging Japan starts by analyzing Japan and its economic path. Here the point is to knock down some of the main myths that flourish about Japan and its economic situation. Even though the country has seen a very deep recession, everything is not painted black. The authors give examples of how both domestic and foreign companies have been able to expand their businesses and of how people seem to still be willing to spend their money, even if the media are speaking about a lack of confidence among customers.

Additionally, the book gives a picture of Japan as a country in rapid change and development, without applying Western traditions and policies, as they are, but instead fitting them into the traditional Japanese system. Many of the traditional views about Japan can today – according to the authors – be seen just as myths of the past. To just give a few examples: first, Japanese tend to favor domestic brands and companies. This is changing rapidly. More and more Western firms are able to beat Japanese competitors regarding factors such as price and customer value, due to the fact that customers in Japan today are more focused on the best buy. Second, Japanese distribution channels are impossible to enter. This changes because there are today bigger possibilities to bypass these rigid distribution channels using direct marketing and new technologies such as the Internet. Furthermore, Japanese manufacturers are losing their power of distribution channels, because of intense retailer competition. Furthermore, it is not only Japan that is discussed, but also the possibility of using Japan as a platform for expanding in other markets. According to Fields et al., those who have managed to get into the Japanese market and stay competitive will have an advantage in developing business opportunities in the rest of East‐ and Southeast Asia.

This new situation in Japan gives rise to concern for firms wanting to enter the market. To stay up to date with information is a high priority. Old facts and myths about Japan are probably the biggest hurdle for success. The changing Japan gives new possibilities to use global marketing strategies, but firms have to be careful – Japan is not Westernizing. To use the words of the authors, “Know where the analogies with the West ends”. Finally, keep pace with your customers. They tend to be more concerned about customer satisfaction, this holds for Japan, but also for many markets in Asia.

Contributions

Leveraging Japan can appeal to various readers. When reading the book, it is, however, clear that the main audience is business people either engaged in Japan or with thoughts of entering the market. Nevertheless, it would be foolish to state that the book has no contribution to make for other groups of readers. It gives a good analysis of the marketing situation in Japan, and at the same time a picture is painted of Japan, describing the economy in general. This has two big advantages for readers. First, one does not have to have specific knowledge about marketing in Japan beforehand. It is more a matter of guiding the marketing interested readers through the complex Japanese business environment. Second, the authors manage to give a very comprehensive picture of the general economic state of Japan. By using dismantling of various myths about Japan, this appears very refined. This fairly broad point of departure makes it an easy chew for readers and students wanting to look deeper into the marketing in Japan.

The book also has its drawbacks. The sub‐title “Marketing to the new Asia”, together with aspects put forward in the book, generates a belief about taking strategies from marketing in Japan and using them in other parts of Asia. In my point of view this might be true, but only to some extent. Readers without prior experience of working with Japan and East‐ and Southeast Asia may be lured into thinking of the region as very homogeneous. This might generate negative feelings from academics and practitioners knowledgeable about the region. Some strategies might work in other areas in Asia, but it is important to remember that the region is very diverse, in terms of both cultural and religious aspects. This fact generates different market conditions.

Additionally, due to the fact that the authors have chosen to create a book that can be easy to access by readers with different backgrounds, the in‐depth academic analysis is left out. The book is brilliant regarding describing market conditions and trying to give possible normative guidelines, but it sometimes lacks important problematization aspects. This is probably most annoying to the academic readers.

Overall, Fields et al. give a good overview of the possibilities that still lie ahead in the Japanese market. They manage to communicate their message clearly, emphasizing that Japan should not be neglected judging only by macro indicators. Customers and market conditions in Japan are changing, which means new possibilities for Western companies. Finally, Leveraging Japan, generates thoughts for both experienced practitioners and academics as well as for readers just curious about Japan. The former can use it for further analysis and the latter get a solid starting point for coming closer to Japan and Asia.