TOKYO (Dow Jones)--The Japanese economy grew an annualized 6.0% in the July-September period, posting its first gain since the economy was brought low by the March 11 earthquake and tsunami.
But the strong rise may not be an accurate reflection of Japan's true economic prowess, as much of the growth was due to pent-up overseas demand being satiated with the restoration of supply chains in sectors such as auto manufacturing that saw severe disruptions and widespread production stoppages.
Easily outshining the U.S.'s annualized third-quarter growth of 2.5%, the GDP figures released by the Cabinet Office Monday were a tad bit better than economist forecasts that the nation's real, or price-adjusted, gross domestic product would increase an annualized 5.9% from the previous quarter. GDP grew 1.5% on quarter in July-September, according to the data.
While economists expect Japan's growth to continue in the coming months, they see the third-quarter surge as unsustainable. Months of growth driven by intense national efforts to rebuild
quake-damaged supply chains have moderated, while a slowing global economy and the yen's near record-high levels threaten exports.
Japan's Economy Minister Motohisa Furukawa warned that the nation's economic recovery would slow as the pace of exports moderates due to weakening overseas demand.
"We have to pay adequate attention to downside risks, such as possible deterioration in foreign economies, rapid appreciation in the yen and the impact of damage from the Thai floods," Furukawa said at a press conference after the release of the data.
Driving the third quarter growth was a 6.2% on-quarter spike in exports, a key engine of the Japanese economy. The country's auto sector was effectively brought to a standstill after the March disaster, with the July-September representing the first real resumption in shipments.
Private consumption, which was the second largest contributor to the growth in the third quarter, grew 1.0%.
Analysts noted the headline figure's gain was not surprising and to a certain extent masks what Japan's economy is truly facing.
"This reading alone warrants no optimism" as the growth is created by a rapid recovery from the March earthquake and tsunami, said Dai-ichi Life Research Institute chief economist Hideo Kumano. "The effects of Thai floods will likely to emerge in early October, while exports to Europe will likely see a slowdown from October onward," he added, noting that "changes in external demand will likely happen in the October-December period."
Japan's GDP outcome was "in line with our expectations," said Norio Miyagawa, a senior economist at Mizuho Research and Consulting. "The large gain was expected as the economy has been making a fast-paced recovery after bottoming in April," he added.
A Japanese government official briefing reporters on the data said that it was the strongest period of growth since a 10.2% annualized expansion in the January-March quarter of 2010 and the first rise in four quarters.
(The Nikkei Nov.14 edition)
TOKYO (Dow Jones)--Logging solid first-half earnings, Japan's three main banks appear unscathed so far from the European debt crisis that has been pummelling their Western peers.
Mitsubishi UFJ Financial Group Inc. (8306) announced the healthiest profits of the three, logging a 95% surge in net income for its fiscal first half ended Sept. 30, thanks to bond-trading gains and lower credit costs. The results prompted the bank to raise its full-year outlook.
Net profit at both Mizuho Financial Group Inc. (8411) and Sumitomo Mitsui Financial Group Inc. (8316) fell 25% from the previous year, as both banks were hit by valuation losses on shareholdings and smaller gains from bond trading from a year ago.
But a common theme in all the results is the minimal impact so far of the debt crisis, due to the banks' low exposure to European sovereigns. Indeed, the banks may be able to benefit from their relative strength by taking on loans from their European counterparts.
MUFG, Japan's largest bank by assets, posted a net profit of Y696.09 billion for the six months, compared with Y356.78 billion in the same period a year earlier. The bank, which has a stake of about 22% in Morgan Stanley, raised its group net profit outlook to Y900 billion from the Y600 billion previously foreseen.
Despite the upward revision of the bank's earning outlook, Katsunori Nagayasu, the financial giant's president and chief executive said at a press conference that the bank "has to expect some risk of a global economic slowdown" in the second half of the year through March.
MUFG has an exposure of about $17.2 billion to Europe including sovereign debt exposure of $4.1 billion to Italy and Spain.
But Nagayasu pointed out that "the direct impact on our business is small," saying that most of the bank's exposure comprises structured finance and project finance for infrastructure.
Mizuho's net profit for the six month period came to Y254.67 billion, and it maintained its full year profit outlook of Y460 billion.
SMFG posted net income of Y313.76 billion and raised its full year net profit outlook to Y500 billion from Y400 billion. While the results represented a decline in net profit, figures from the previous year included large unexpected gains.
Executives at the banks said they see more opportunities to ramp up their purchasing of loans from fragile European banks, although they point out the need to be selective in what they buy.
"Offers from European financial institutions to take over their lending or investments are lining up," Mizuho President and CEO Yasuhiro Sato said at a briefing.
Mizuho also notes a growing amount of overseas loans to Japanese companies, Sato said.
Separately, MUFG said Mitsubishi UFJ Morgan Stanley Securities Co., its joint venture brokerage with Morgan Stanley, will raise Y45 billion through the issuance of news shares expected to be completed Nov. 24.
Of the total, Mitsubishi UFJ Securities Holdings Co., a unit of MUFG will buy Y20 billion of the shares.
Like other brokers, Mitsubishi UFJ Morgan Stanley has struggled in the face of the market turmoil sparked by Europe's debt crisis, posting net losses of Y3.16 billion in the July-September quarter. The capital boost planned by the bank is apparently aimed at helping the brokerage get back on its feet.
Mizuho also announced plans to cut 3,000 jobs by the end of fiscal 2015 as part of restructuring efforts related to the merger of its two banking units. As of the Sept. 30 interim book closing, Mizuho had about 31,300 employees. The group said it can cut costs by Y40 billion through the staff reduction.
All of the banks' earnings are based on Japanese accounting standards.
(The Nikkei Nov.15 edition)
TOKYO (Nikkei)--Just as South Korean pop stars have taken Japan and the rest of Asia by storm, so too are steelmakers in that country.
Namura Shipbuilding Co. (7014) has used only domestic steel to date. But the midtier shipbuilder will for the first time buy ship-use steel from South Korea's Posco (5412) in the second half of this fiscal year. And Mitsui Engineering & Shipbuilding Co. (7003) plans to ramp up purchases of steel used for outer hulls from Posco to 30% of its total. Such actions are not limited to shipbuilders or even domestic production. Posco has also begun supplying steel sheet for Nissan Motor Co.'s (7201) March mainstay subcompact, which is now made entirely in Thailand.
Japanese steelmakers have over many years nurtured ties with shipbuilders and automakers. So why are their most important customers changing allegiances?
In terms of quality, Nippon Steel Corp. (5401) and other Japanese steelmakers are in no way inferior. Their downfall is price.
At almost 800 dollars a ton, Japanese blast furnace steelmakers have the highest production costs in the world for hot-rolled coil steel, estimates UBS Securities Japan Ltd. By contrast, Posco and Hyundai Steel Co.'s costs are just above 700 dollars. Steel in the Asian market is traded in greenbacks, so dollar-based costs determine the winners. For Japanese steelmakers, the price gap of 6,000 yen to 7,000 yen a ton is a fatal blow.
South Korea, like Japan, is a nation with few natural resources, and it endures the same terms for buying expensive iron ore and the like from resource majors. Unlike Russian and Indian rivals, which are highly self sufficient in materials, cost competitiveness is not the Koreans' forte. The clincher is foreign exchange rates.
While the yen has surged even higher against the dollar this fiscal year, the won is still soft versus the greenback.
"We wouldn't be worried if the won was advancing in lockstep with the yen, but it's not," says Shinichi Taniguchi, executive vice president of Nippon Steel. "Its extremely serious for cost competitiveness."
Japanese steelmakers cut back exports in the July-September quarter on concern that even if they set prices at the same level as their South Korean rivals', they would end up losing money in terms of yen.
Nippon Steel exported 40.1% of its output in the July-September term, down from 41.9% in the previous quarter. JFE Holdings Inc.'s (5411) export ratio slipped 5 percentage points to 44.4%. On the other hand, Posco's export ratio rose to 42% from 34% and Hyundai Steel's figure climbed to 30% from 27%. With Japanese steelmakers holding back on exports, South Korean rivals seem to have gone on the offensive in Asia.
Thanks to the weak won, South Korean steelmakers have room to lower prices and still be profitable. Operating profit margins for Posco and Hyundai Steel in the July-September quarter were around 7%, zooming past the 2-3% of Nippon Steel and JFE Holdings.
Japanese steelmakers are continuing to fight tooth and nail. Nippon Steel eyes slashing costs a hefty 100 billion yen again this fiscal year in part by developing and improving technology for using cheap low-quality materials. But this will lead to cost savings of merely 3,000 yen or so a ton, based on its fiscal 2011 outlook for crude steel production. That will not even plug the dollar-denominated gap in production costs.
As long as the yen is strong and the won wallows, South Korean steelmakers' global stranglehold is set to continue.
--Translated from an article by Nikkei staff writer Takashi Oku
(The Nikkei Veritas Nov. 14 online edition)
HONOLULU (Dow Jones)--Asia Pacific economies Sunday agreed to cut tariffs on "green" products and to pursue a range of other measures aimed at boosting trade, as they warned of increasing uncertainty in the world economy.
"Growth and job creation have weakened in many economies, and significant downside risks remain, including those arising from the financial challenges in Europe and a succession of natural disasters in our region," according to the final leaders statement from the Asia Pacific Economic Cooperation meetings.
Against this uncertain backdrop, "trade liberalization is essential to achieving a sustainable global recovery in the aftermath of the global recession of 2008-2009," they said.
The U.S. was able to wrangle a compromise on one of its key goals for the summit, capping tariffs at 5% on "green goods" like solar panels, wind turbines, and energy-efficient light bulbs. After resistance from China and developing economies, leaders agreed to achieve that level by the end of 2015, instead of end-2012 as the U.S. had sought.
The final compromise on green goods tariffs enshrined a proposal put forward by Southeast Asian nations. Unlike World Trade Organization agreements, commitments made at APEC are non-binding.
Leaders extended by two years a moratorium on protectionist measures that had been agreed in previous APEC meetings, through to the end of 2015. They acknowledged a near-term agreement in the Doha trade talks is "unlikely," and signaled they are open to breaking Doha into pieces and moving ahead on areas where a deal is closer.
In language that appears to target Chinese policies meant to protect entrepreneurs from foreign competition, APEC leaders agreed to "advance a set of policies to promote effective, non-discriminatory, and market-driven innovation policy."
They also pledged to phase out "inefficient fossil-fuel subsidies," and to "aspire to reduce" aggregate energy use by 45% by 2035.
The leaders also said they would seek to launch talks to expand the World Trade Organization Information Technology Agreement. Large tech firms including Dell Inc., Micron Technology Inc., and Xerox Corp., have pushed to expand the agreement to cover newer products, including touch-screen technologies.
(The Nikkei Nov.14 edition)
HONOLULU (Dow Jones)--Rice must be on the negotiating table if Japan wishes to join talks over the Trans-Pacific Partnership free trade agreement, New Zealand Trade Minister Tim Groser said Sunday, as the aim is to set a comprehensive market-opening example for the rest of the region "The negotiation must include rice," Groser said in an interview with Dow Jones Newswires on the sidelines of the Asia-Pacific Economic Cooperation summit in Hawaii.
Rice is Japan's main staple and one of the few crops the country is self-sufficient in. Opponents argue the TPP would destroy the Japan's agricultural sector and reduce food self-sufficiency to 13% from the current 39%.
Groser made the comment after a disagreement between Tokyo and Washington over the contents of a press release issued by the White House stating that Japanese Prime Minister Yoshihiko Noda had committed to "put all goods, as well as services, on the negotiating table for trade liberalization." Japan rejected the release, saying it overstated Noda's commitment. Noda, who made the decision to participate in TPP negotiations Friday, is likely to face a political backlash when he returns to Japan on Monday.
Groser said he supports the White House statement, emphasizing that the TPP is seeking a "comprehensive" market opening, without exceptions.
He also said other countries know that opening the agricultural sector, especially rice, is difficult for Japan.
"There is no possibility of rapid liberalization for the most sensitive items. It's a question of gradual progressive liberalization over a period of many years," Groser said. "A period of 10 years is not out of the question."
Groser said he was encouraged by active debate in Japan over participation in the TPP.
"I am optimistic that we will find a way in which the Japanese government in the future will be able to confirm a formal decision to start formal negotiations," Groser said. "Politically, I am extremely optimistic."
The nine TPP member countries agreed Saturday on a broad outline of a market-opening framework. U.S. President Barack Obama said in a statement the TPP is aimed at establishing "a comprehensive, next-generation regional agreement that liberalizes trade and investment and addresses new and traditional trade issues and 21st-Century challenges."
Groser acknowledged that a balance was needed between upholding the high standards of market opening and expanding membership to other Asia-Pacific countries. "You don't want to establish a model inside the TPP that is so ridiculously difficult that the rest of the world says: We can't join this. This is too difficult."
Groser also said the group also wants to avoid sending a false signal to prospective TPP participants that "we are prepared to dumb this agreement down just to get wider participation."
(The Nikkei Nov.14 edition)
TOKYO (Nikkei)--Despite its strong growth for the July-September quarter, economists warn that Japan is headed for a downturn due to such factors as European debt woes, a strong yen, and the Thai flooding.
Real gross domestic product grew an annualized 6% in the July-September quarter, the most since the 10.2% marked in the January-March quarter of 2010, according to preliminary figures released Monday by the Cabinet Office. Production recovered, mainly in the automobile sector, on the restoration of supply chains severed by the March 11 earthquake and tsunami. This pushed up exports sharply and also lifted personal consumption and capital investment.
But the yen's appreciation and the overseas economic slowdown stemming from Europe's debt crisis are weighing on the Japanese economy.
Exports in the first 20 days of October shrank 1.6% on the year, with demand for electronic parts and materials hit especially hard by the strong yen. The outlook is uncertain, in part because of the floods in Thailand, which have caused Japanese plants in that country to shut down.
Meanwhile, reconstruction demand will swing into full gear in April or later if the Diet passes the third supplementary budget for fiscal 2011 soon. For the time being, the Japanese economy will likely face a tug of war between the positive effects of rebuilding and the negative impact of the strong yen and economic slowdown abroad.
In a survey after the preliminary GDP data was released, seven of 10 private-sector economists said the economy has been stalled since October. On average, they predict that real GDP will grow just 0.6% on an annualized basis in the October-December quarter.
They foresee 1.8% growth for fiscal 2012 on reconstruction demand -- lower than forecasts by the government and the Bank of Japan of growth at the 2% level.
"Austerity measures being introduced around the world will impede growth," says Yoshiki Shinke, chief economist at the Dai-ichi Life Research Institute.
Quick implementation of the third supplementary budget, aggressive yen-selling intervention, and additional monetary easing are among policies mentioned by the economists as necessary to keep Japan growing.
"New growth fields need to be created through deregulation," says Ryutaro Kono, chief economist at BNP Paribas Securities (Japan) Ltd., citing such efforts as participation in the Trans-Pacific Partnership free trade pact.
(The Nikkei Nov. 15 morning edition)
TOKYO (Nikkei)--Nearly eight months on from the devastating March 11 earthquake and tsunami, the ruling and opposition parties agreed Thursday on a package of tax increases that will leave the next generation of Japanese still paying off the costs of reconstruction.
In what would amount to a permanent tax hike, the deal extends a proposed surtax on individual income to 25 years. The other pillar of the revenue-raising plan, a corporate surtax, would expire after three years.
All told, the tax increases will amount to 10.5 trillion yen in revenue. In closing the deal, the ruling Democratic Party of Japan appeased both the opposition Liberal Democratic Party and New Komeito -- the former by dumping a proposed tobacco tax hike and the latter by agreeing to longer-lasting tax increases.
The government and the ruling coalition had envisioned a 10-year span to coincide with the proposed reconstruction period. A reconstruction blueprint put forward by the government in July states that the cost burden would be shared by "all generations now living," not passed on to future Japanese. This principle appears to have fallen by the wayside in the three-party negotiations that followed. As it stands, babies born this year would see a portion of their first salary out of university go toward reconstruction. The agreed-on plan is also more convoluted than its original form, involving multiple taxes and revised deductions.
This is partly because Prime Minister Yoshihiko Noda ruled out hiking the consumption tax, a powerful revenue-raising tool that the government wants to save for social security funding. Soon after the disaster, Noda's predecessor, Naoto Kan, suggested raising the consumption tax, and the business community showed support for the idea. But Finance Ministry officials thought otherwise, arguing that raising the issue in the context of reconstruction would undermine the cause for a more substantial tax hike down the road.
Ideally, the government would like to propose legislation this fiscal year setting up a two-stage increase that would double the consumption tax to 10% by 2015.
That will entail a number of related difficulties, including relief measures for low-income individuals and the perennial problem of sharing tax revenue with local governments. The government is looking to have specific proposals ready by year's end. But after the drawn-out reconstruction tax debate, it has only about a month left. It also faces uncertain prospects for a cross-partisan agreement on the consumption tax increase.
(The Nikkei Nov. 11 morning edition)
The government has begun discussions on refunding part of the consumption tax paid by low-income earners when the tax rate is raised to 10 percent, possibly in the mid-2010s.
The refund would be stipulated in the government's policy outline integrating reforms on social security and taxation, which will be compiled by the end of the year, the government said Wednesday.
The measure aims to ease the burden on low-income earners and make it easier to gain public consensus on the consumption tax hike. People whose incomes fall below the taxable standard would receive the refunds. The government believes a system should be put in place to refund a certain amount of consumption tax to financially stressed people.
In its draft plan for integrating social security and taxation reforms in June, the government decided to gradually raise the consumption tax rate from the current 5 percent to 10 percent by the mid-2010s.
On Nov. 3, Prime Minister Yoshihiko Noda announced this policy at a summit meeting of Group of 20 countries in Cannes, France.
The government plans to submit a bill over the timing of the consumption tax hike and the rate of increase to the Diet by the end of fiscal 2011.
Some government officials want the consumption tax rate raised in two steps--to 7 percent or 8 percent in October 2013 at the earliest and then to 10 percent in fiscal 2015.
However, many lawmakers in both ruling and opposition camps, as well as business leaders, have voiced objections to this plan.
The government therefore believes some measure is needed to ease the burden on low-income earners.
Both Germany and France have systems that impose lower tax rates for food and other daily necessities on low-income earners. But selecting items to which lower consumption tax rates will be applied is expected to be difficult for this country.
Therefore, the government does not plan to introduce a system to lower the consumption tax rate on specific kinds of goods when the rate is raised to 10 percent.
(The Yomiuri Shimbun Nov. 11, 2011)
PALO ALTO, Calif. (Nikkei)--Toyota Motor Corp. (7203) and Nissan Motor Co. (7201) are among the major carmakers partnering with information technology companies in Silicon Valley to make vehicles greener and safer as well as more convenient to use.
Toyota said Wednesday that it will research automotive information systems with Intel Corp. of the U.S., the world's leading chipmaker. They apparently have set their sights on technology that would replace car navigation systems in providing drivers with road information and other data, in addition to linking with next-generation smart homes to manage appliances, solar panels and other household devices.
The pair are expected to work on technologies for connecting cars with smartphones and other personal information devices. They will also likely study ways to operate the systems without distracting from driving, such as with voice commands and gestures.
Intel, known for its processors used in personal computers and servers, hopes its partnership with Toyota will lead to higher chip demand for automotive systems, a market that is expected to expand. Nissan and French partner Renault SA have established a research facility in Silicon Valley to explore full-scale cooperation with Google Inc. and other local IT firms. Nissan has dispatched engineering personnel that hail from NEC Corp. (6701) to the research facility. Although what the site will research has not been disclosed, the Japanese automaker is believed to be eyeing new services in which vehicle movement data and other information received from cars connected to the Internet is shared with third parties. Renault has begun studying technologies related to smart grids. A structural change in the automobile market has prompted the carmaker-IT tie-ups. The growth of electric vehicles and other next-generation autos has resulted in demand for various information services, such as concerning battery charging. These services can boost the competitiveness of automobiles through added value in the sluggish markets of industrialized nations.
To this end, Toyota has formed partnerships with U.S. firms Microsoft Corp. and Salesforce.com Inc.
(The Nikkei Nov. 11 morning edition)
TOKYO (Nikkei)--With the Trans-Pacific Partnership free trade pact expected to expose Japanese farmers to global competition, the use of subsidies will determine whether the country can revamp its agricultural sector.
Prime Minister Yoshihiko Noda, in announcing Friday that Japan will join TPP negotiations with the U.S. and others, promised to protect the nation's farming villages.
Last month, with an eye toward participating in the trade pact, the government drew up a basic plan to create a leaner agricultural sector by making farms larger as a way of reducing production costs. The plan called for increasing the average area of farms by 10-fold to 20-30 hectares over the next five years. By setting a specific target, the government hoped to revamp a sector comprising many small farms with low productivity. It also proposed an overhaul of subsidies such as income support allowances for farmers as a means to achieve this goal.
Such subsidies will play an increasingly important role if Japan joins the TPP, since the trade pact will make it difficult to protect farmers by setting tariffs on imports. But with funding sources limited, a focal point is whether subsidy programs can be drastically revised -- for example, by making only large farms eligible for payments.
Noda's promise to protect "farming villages," rather than "farmers," can be seen as in line with the government's plan to have agricultural corporations consolidate farms.
Still, the agricultural sector has expressed strong discontent with the prime minister's decision, so the government will have to work long and hard to win its understanding.
"It's extremely problematic that (Noda) did not abandon plans to participate, ignoring the majority of Diet members and the resolutions objecting (to the TPP) passed by the assemblies of local governments," said Akira Banzai, head of the Central Union of Agricultural Cooperatives, or Zenchu.
(The Nikkei Nov. 12 morning edition)
TOKYO (Nikkei)--Japanese toy manufacturers will take their girls' toys global in a bid to crack a market dominated by such U.S. firms as Mattel Inc., the maker of Barbie dolls.
Most of the products that Japanese toymakers sell abroad are for boys. Tomy Co. (7867) will introduce its Koeda-chan series -- popular in Japan -- to the U.S. and Europe. Character figures will cost about 4 dollars each, and a house set will sell for about 40 dollars, with 15 different offerings available.
Tomy will use the sales network of the former RC2 Corp., an American firm it bought this past spring. Koeda-chan toys will be sold at such stores as Toys "R" Us and Walmart in the U.S. from the fall of 2012. They will hit Europe in 2013.
Tomy targets annual sales of 12 billion yen from the Koeda-chan series in three years and expects more than 60% of this to come from the U.S. and Europe.
Koeda-chan toys will be available at Toys "R" Us and Walmart in the U.S. next year.
This year, Tomy resumed domestic sales of the Koeda-chan series, which debuted in 1977, for the first time in about five years after seeing this category of toy -- a set of character figures and a house -- become a long-running hot seller in Japan.
Bandai Co. will resume overseas sales of its Tamagotchi virtual pets as early as next year. Tamagotchis sold in Japan can communicate with cellular phones. In foreign markets, the Namco Bandai Holdings Inc. (7832) unit is considering making Tamagotchis compatible with smartphones. In Australia and Hong Kong, the company is preparing to broadcast TV shows featuring Tamagotchi characters to support sales.
Sega Toys Co. will begin sales next spring of its Zoobles transforming toys in 10 Asian markets. The Sega Sammy Holdings Inc. (6460) unit has created cartoons with South Korean broadcaster SBS to promote its products abroad.
Foreign markets account for 20-30% of sales at Japanese toymakers. Overseas sales at Tomy, Bandai and Sega Toys total about 110 billion yen, generated almost entirely by toys for boys.
(The Nikkei Nov. 11 morning edition)
TOKYO (Nikkei)--The growing ranks of dads who are playing a more active role in child-rearing are breathing new life into the baby goods market, with manufacturers and retailers finding solid demand for products that emphasize functionality over cuteness.
"Ikumen" -- dads who play an active role in rearing their children -- are helping decide the latest hit baby goods.
With the declining birthrate weighing on demand for baby products, makers are turning their hopeful gaze to these so-called "ikumen," a play on the Japanese word for child-rearing, "ikuji."
"My wife is working, and I want to be actively involved in raising my child," said a soon-to-be-father while shopping at an Akachan Honpo Co. outlet in Tokyo's Kinshicho district in late October.
Ikumen are increasingly helping decide which products sell best. For example, the Akachan Honpo Kinshicho store is seeing brisk sales of the Chelsea Colorplus baby stroller with a brightly colored hood. The Soraria stroller is also winning a strong following because of its adjustable handles.
Catering to Dad
Daily use items designed with dads in mind are also doing well. Sales of baby nail clippers designed for larger adult hands are growing 10% on the year.
"Mothers and fathers shop together, and they tend to pick products that men find easy to use," said an employee with Akachan Honpo.
Sales of the Belt-Fit Colan Papadacco baby carrier, jointly developed by Aprica Children's Products Inc. and Familiar Ltd., have been selling far better than expected since the product was released in summer. Its simple design has proved popular among men.
At the Akasugu online shopping site, operated by Recruit Co., baby carriers with simple, unisex designs are attracting the attention of dads. The site has been recently flooded with preorders for a khaki baby carrier that Dad-Way Inc., a baby goods importer, plans to introduce later this month. The khaki model is available only in Japan.
Giving Mom a hand
In a recent survey conducted by toymaker Bandai Co. on people with children up to age 12, about 5% of respondents said that fathers are involved in all child-rearing activities. The percentage of respondents who said fathers do not help with any of the child-rearing chores fell from roughly 12% in the 2003 survey to less than 3%. The findings suggest that dads are playing a bigger role in helping raise their kids.
(The Nikkei Nov. 11 morning edition)
Sales of heating appliances are growing as people prepare for winter power shortages resulting from accidents at the Fukushima No. 1 nuclear power plant. A sales war is already hotting up at home improvement centers and other outlets, with many stores stocking the appliances earlier than usual. Kerosene heaters that require no electricity are hot sellers this autumn. According to research company GfK Marketing Services Japan Ltd., September sales of the heaters at home appliance stores across the country were 16 times greater than in September last year.
Even in the first week of October, sales were on a par with those of December, which is the peak month in an average year. Home improvement centers and other stores were prompted to begin stocking heaters earlier than normal after being caught off guard in the summer when electric fans frequently sold out as people tried to refrain from using air conditioners during power shortages. Kerosene heaters started selling in late September at Cainz Home at Minami Sunamachi Shopping Center Sunamo in Koto Ward, Tokyo, when the temperature began to drop.
A 67-year-old man living in Tokyo checking products at the home improvement store said: "I want to save electricity by using my air conditioner and other appliances as little as possible. A kerosene heater is good because it can be used even when the power cuts out like it did immediately after the March disaster."
Using kerosene heaters can help reduce peak demand for power. However, according to consumer affairs adviser Yuki Wada, using a heater can often be more expensive than an air conditioner, partly because of the rise in kerosene prices.
"People need to think about how best to use the types of heating available, such as using a kerosene heater in combination with an air conditioner. Since the use of kerosene heaters is banned in some apartment buildings, you should make sure you can use one before making a purchase," Wada said. Takasaki, Gunma Prefecture-based Cainz Co., the operator of the Cainz chain, said it started selling heating appliances at its stores in late August in the Tohoku region, and September in other areas--two to three weeks earlier than usual. Items such as hot water bottles and pocket warmers, which usually appear on store shelves in November, also began appearing at the end of September. Various types of bedclothes also are catching the eye of shoppers.
Blankets that can be wrapped around the waist like a skirt, or worn over the shoulders to keep the neck warm, are proving popular at the Takashimaya department store in Chuo Ward, Tokyo. Blankets and duvets made from materials that heat up when exposed to humidity are also selling well.
The store said sales of winter bedclothes are up 30 percent from last year.
"Consumers should weigh the cost of buying energy-saving products against the savings they will bring in terms of reduced heating costs," Wada said.
(The Yomiuri Shimbun Nov. 9, 2011)
JP Service, a postal company within the Japan Post Group, is to enter into a business tie-up with U.S. company eBay Inc., which runs the world's biggest online auction and shopping site, it was learned Monday.
With the planned tie-up, to be officially announced Tuesday, JP Service will launch a new support service in spring 2012 to help Japanese customers, who often struggle with English, put items up for sale on auction sites overseas.
JP Service is also considering discounting its current international postal charges related to eBay by 20 percent to 30 percent to increase the number of users, sources said.
By entering into an alliance with eBay, the postal company is aiming to breathe new life into its increasingly unprofitable postal business, in which the volume of domestically handled mail has been declining by 3 percent a year.
JP Service expects the annual volume of international eBay-related mail and parcels to reach several million items in two or three years, the sources added.
Meanwhile, eBay will be able to significantly increase the range of Japanese items it can sell as a result of the envisaged tie-up. The U.S. company expects art objects such as antiques, lacquerware and anime-related books and figures that are difficult to buy abroad to be posted on its site for auction.
EBay also wants to expand the range of Japanese items on its Internet shopping service. JP Service will take care of their delivery.
Although eBay has been accepting items for auctions from Japan, the number of Japanese users has reached a plateau as many feel daunted by having to post explanations of items in English on the Web site, the sources said.
To support such customers, JP Service will develop a system to simplify the writing of English explanations, and procedures for mailing items overseas.
Under the system, which will automatically show the name and address of successful bidders in English, Japanese users will be able to produce all the necessary customs documentation in English simply by entering their name and address in English on eBay's site.
(The Yomiuri Shimbun Nov. 8 edition)
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th