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    Japan
     May 3, 2007
Page 3 of 3
Catching on to 'Japan Cool'

California, runs a thriving business designing Japanese baths, entryways, kitchens and the like for clients in the San Francisco Bay Area and other areas.

The Naples Grande Resort & Club in Naples, Florida, has integrated Japanese architecture, gardens, koi ponds and lanterns into a recent spa development to provide its clients with an "artful balance of style and substance".

Japanese tea gardens, one of many types of Japanese gardens, can be found in many areas. Among other places, there are  



prominent, public tea gardens in Portland, Oregon; Philadelphia, Pennsylvania; and Rockford, Illinois. It is even possible to find sellers of koi ponds and koi in such states as Nevada and Texas, which have not traditionally embraced Japanese culture.

Japanese architects themselves are also exerting significant influence on the contours of design. One leading light is Tadao Ando, a recipient of the prestigious Pritzker Architecture Prize and an AIA Gold Medal, 2002. Ando designed the Pulitzer Foundation for the Arts in St Louis and the Modern Art Museum in Fort Worth, Texas. Yoshio Taniguchi has also won fame for designing the expansion of the Museum of Modern Art in New York City, in the process transforming the old and new spaces into a unified whole.

Language: Japanese is a widely studied language and has been growing in popularity in recent years. This is especially true among young people who have become familiar with Japan through anime and video games. According to one source, more than 2 million individuals are studying Japanese. This includes more than 500,000 Australians and Americans who are working to develop a proficiency in the language. Beyond this, almost 100,000 foreign students are studying Japanese in Japan.

Sports: In the United States, Japan Cool is perhaps most visible in the sport of baseball. The frenzy over Seibu Lion pitcher Daisuke Matsuzaka, eventually acquired by the Boston Red Sox, has cast into stark relief the considerable talent produced by the Japanese baseball system.

Beyond this, Japanese players such as Ichiro Suzuki and Hideki Matsui continue to rank in the top statistical categories, while others such as Tadahito Iguchi and So Taguchi have played critical roles in their teams' quest for playoff success and eventual World Series triumphs. They are attracting attention not just because they are superb players, but also because they display dedication to the team they have selected. Even the fact that they speak only through interpreters does not seem to detract from their popularity.

Part of the reason for this emphasis on culture by Japanese corporations can be attributed to the fact they can no longer rely primarily on their cost-competitiveness or even the quality of their manufacturing capabilities. Higher value-added is essential, and the advances seen through the development of Japan Cool are resulting in a new range of products that combine these new advances with Japan's proven ability to commercialize new trends and products.

While the Walkman might be seen as the first example of this trend, the fact that Japan leads in so many consumer and leisure products is no accident. Sony's and Nintendo's dominance in, respectively, consumer electronics and video-game hardware and software demonstrates the clear ability of Japanese firms to develop and successfully to launch new market segments.

In part, this is achieved by the ability of these firms to take advantage of Japanese culture; that is, anime, Japanese characters, and so on. Firms such as Toyota - which will soon become the world's largest car company - are also able to achieve success not just because of their manufacturing capabilities, but their dedication to the Japanese tradition of excellent customer service. This can be seen in its ability to make smaller, energy-efficient vehicles, to the manufacture, sale and servicing of its cars as well as its emphasis on kaizen or continual improvement.
Growing revenue for foreign companies
The rising popularity of Japanese culture in foreign markets is providing many new business opportunities for foreign companies and investors. For example, the Japanese Food Culture Festival took place in New York from March 4-10. It revealed many profit-making opportunities for those involved in the production, distribution and sale of such food as ramen, tofu, teas and sake and of houseware such as Japanese knives and place settings, as well as restaurateurs interested in offering Japanese cuisine.

During this food festival, famed New York restaurateur David Bouley, chef and owner of Bouley, Test Kitchen and Bouley Bakery, spoke about his passion for Japan and its food, as well as dishes he serves with the finest sakes. During this session, Bouley noted his belief that Japanese food is in a similar stage as French food was in the US several decades ago and that the arrival of new ingredients is leading to an explosion of new interest and possibilities for food importers and others within the industry.

One example of this rising demand can be seen in a recent New York Times story. It highlighted the ability of one firm, Massachusetts-based South River Miso, to market 11 kinds of miso through food outlets across the United States.

Similarly, the spread of Japanese anime, manga, film, video games and fashion is providing numerous opportunities to US and other foreign firms. This is yielding a potential boost not only to the economies in which these firms are headquartered, but to the local, regional and national tax base, and workers, who may find new employment opportunities.

Inside Japan, the quest for culture and services is also creating opportunities for foreign investors who can identify the right kinds of vehicles to provide cultural and service goods to Japanese consumers, both young and old.

To date, foreign companies have primarily entered Japan to open up retail operations (Coach - USA), to run resorts (Harmony Resorts - Australia), to provide services to the health care sector (FWBC - Finland), and to supply equipment for bowling alleys (Getronics - Netherlands).

Of course, there are also abundant opportunities for US and other foreign firms to sell goods to Japanese consumers, even without investing in Japan. This is reflected by the strong performance of foreign movies such as Harry Potter and the Goblet of Fire, the successful rollout of various high-tech products in Japan, and the warm reception given to such Western luxury goods as Louis Vuitton products.

Indeed, Japan now serves as an important trend-setting market - not only for industrial applications but also for consumer styles and trends. Products adapted to appeal to Japanese tastes and physiques can be subsequently marketed not only to other East Asian countries and growing numbers of Asians living in the West, but to all those who appreciate the sophistication, high quality and visual appeal that have always been a hallmark of Japanese style.
(This material is published and disseminated by JETRO in coordination with KWR International Inc. JETRO New York is registered as an agent of the Japan External Trade Organization, Tokyo, and KWR International Inc is registered on behalf of JETRO.)

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