TOKYO (Nikkei)--The real economy is projected to grow 1.89% next fiscal year, according to a January survey of economists, a downgrade of 13 basis points from December.
Although reconstruction demand stemming from the March earthquake and tsunami is buttressing the economy, the European debt crisis and the strong yen are weighing heavily on corporate earnings, pushing down capital investment, the economists say. For fiscal 2013, the forecasters predicted growth at 1.42%.
The survey was conduced by the Economic Planning Association, a Cabinet Office affiliate, from Dec. 24 to Jan. 10, with 40 private-sector economists responding.
(The Nikkei Jan. 17 morning edition)
TOKYO (NQN)--Consumer sentiment increased for the first time in three quarters in the three months ended December, according to a quarterly survey released Friday by the Bank of Japan. However, nearly 60% of the respondents said the economy had worsened from a year ago. The diffusion index for consumer sentiment stood at minus 57.5, though the size of decline was 4.9 points smaller than in the previous survey in September. Consumer sentiment remained weak due to lower incomes, job uncertainty and the yen's appreciation, casting a shadow on peoples' outlooks.
The DI is calculated by subtracting the percentage of respondents who said the economy worsened from a year earlier from the percentage of those saying the opposite. The gauge dropped 17.2 points to minus 59.5 in July's survey, the first survey conducted after the March 11 disaster. The index fell even further in the September survey. The DI for consumer sentiment for the coming year fell 6.7 points to minus 35.9, sinking to a three-year low.
Of the respondents, 45.4% said their incomes will be smaller one year down the road, up 2 percentage points from the previous survey. Those who said they feel nervous about their employment situations a year later increased by 2.4% to 40.6%.
(The Nikkei Jan.13 edition)
TOKYO (NQN)--Sales of imported cars rose 16.3% on the year to 26,265 vehicles in December, up for the fifth straight month, according to preliminary data released Wednesday by the Japan Automobile Importers Association.
An expansion of product lineups, such as the release of fuel-efficient cars and models covered by eco-car tax cuts, contributed to the higher sales.
Sales by foreign automakers rose 26.5% to 22,985 vehicles.
BMW AG was the best-selling overseas automaker with a 19.73% market share in December. Its sales increased 21.4% on the year to 5,183 vehicles.
Coming in second was Volkswagen AG at 15.97%, followed by Mercedes-Benz at 15.54%. For all of 2011, sales of imported cars, including foreign-built Japanese cars, rose 22.5% to 275,644 vehicles, accounting for 10.3% of all new car sales in Japan.
"Sales of imported cars topped 10% for the first time since records began in 1966," said a JAIA official.
Sales by foreign automakers grew 13.1% to 205,857 vehicles in 2011, accounting for a record 7.7% of overall new car sales
(The Nikkei Jan. 11 edition)
TOKYO (Nikkei)--Amid rising anxiety about food safety since the Fukushima nuclear disaster, more supermarkets are labeling seafood with where it was caught in an effort to reassure customers. Inageya Co. (8182) will start Monday at all 127 of its greater-Tokyo-area stores. It will label fish and other seafood caught in areas designated by the Fisheries Agency last October. The list is likely to consist of about 10 varieties, including Pacific saury, jack mackerel and shellfish, depending on the day's catch.
The agency called on the seafood industry to label products from the Pacific Ocean north of Chiba Prefecture.
Seiyu GK began labeling some seafood with place of origin last Friday and will do the same at 170 stores in the Kanto and Tohoku areas this month. It will also put up signboards showing where the seafood on sale was caught.
Aeon Co. (8267), Ito-Yokado Co. and Ibaraki Prefecture-based Kasumi Co. (8196) began origin labeling for seafood last year.
(The Nikkei Jan. 16 morning edition)
OKYO (Nikkei)--TV Asahi Corp. (9409), in cooperation with Hakuhodo DY Media Partners Inc., will produce new series of popular Japanese animated films in India and provide them to broadcasters in various Asian countries, starting this year, The Nikkei learned Saturday. As a starter, the pair will produce the first new series of "Ninja Hattori-kun" in 25 years.
With the Japanese market for animated films stuck in the doldrums due to the declining youth population, the pair plans to cultivate potentially lucrative markets with big populations of young people in the rest of Asia while taking advantage of cheaper production costs in India.
Shin-ei Animation Co., a wholly owned subsidiary of TV Asahi, will produce new series of popular Japanese animated films in India jointly with Reliance MediaWorks Ltd., a major Indian film and entertainment services company.
The production cost of an animated program designed for a 30-minute TV broadcast is between 10 million yen and 15 million in Japan. This cost will be only around half in India.
(The Nikkei Jan. 14 evening edition)
TOKYO (Nikkei)--Four major brewers will seek growth outside the traditional beer segment in 2012, such as nonalcoholic beer and premixed cocktail drinks, according to domestic sales plans released as of Friday.
With demand for regular beer dropping, alcohol-free beer and "chuhai" low-alcohol cocktails are among the few segments that are still growing.
Beer represents at least 80% of sales at Asahi Breweries Ltd., Kirin Brewery Co. and Sapporo Breweries Ltd. The ratio is lower at Suntory Liquors Ltd., whose mainstay business is whiskey. The domestic beer market likely shrank 4% in 2011, a seventh straight year of declines. The brewers project that the market will contract 1-3% this year. Although they all target higher beer sales this year, achieving the goal would be difficult.
A bright spot is nonalcoholic beer. Although its sales account for only several percent of beer sales, the market has more than doubled in two years. Because nonalcoholic beer is exempt from liquor taxes, the margins are high.
Asahi Breweries, which defended its title as the beer leader in 2011, will release an alcohol-free beer, Dry Zero, next month. The Asahi Group Holdings Ltd. (2502) unit has a market share of only 2-3% in this segment. But the firm intends to raise this to 25% this year.
Suntory emerged as the leader in alcohol-free beer last year by tripling sales of its All Free. This year, the firm plans to increase alcohol-free beer sales 19% to 7 million cases through aggressive promotion that includes giving out 1 million samples.
Kirin Brewery, a unit of Kirin Holdings Co. (2503), will seek to boost alcohol-free beer 25% while Sapporo Breweries, a unit of Sapporo Holdings Ltd. (2501), targets a 77% gain.
Another bright spot is low-alcohol beverages, such as canned "chuhai" drinks. This segment has been steadily growing every year by drawing more young people and women.
Kirin will introduce a carbonated white wine drink next month in partnership with group firm Mercian Corp.
Suntory will expand sales of canned highballs and beverages using South Korea's traditional liquor. Sapporo President Fumiaki Terasaka says, "We will aggressively spend on product promotion and advertisement to reduce our reliance on beer." The company is preparing to release various canned beverages using various types of liquor, including rum made by Bacardi Ltd., a Latin America-based firm with which Sapporo formed a partnership last year.
(The Nikkei Jan. 14 morning edition)
The Japanese economy will likely remain on a moderate recovery path in 2012, propped up by demand for reconstructing areas ravaged by the Great East Japan Earthquake and tsunami. An average estimate by 15 private-sector economists points to real economic growth of about 2% this year on an annual basis.
Risk factors, however, include the yen's persistent strength and the European debt crisis. If Europe's troubles turn into a full-fledged financial crisis, Japan's recovery scenario will be scuppered.
On average, the economists forecast contraction of 0.4% for fiscal 2011 through March 2012 - the first negative growth in two years. As for fiscal 2012, they see growth of 1.8% on an inflation-adjusted real basis.
If the prediction for fiscal 2012 proves correct, economic expansion would surpass the estimated nearly 1% potential growth rate for the year.
As for quarterly real growth rates, many expect a slow recovery to continue into the middle of 2012 before a gradual deceleration in the latter half. Average forecasts are for growth of 0.1% for the October-December period of 2011, 1.5% for January-March 2012, 1.9% for April-June and 2% for July-September.
Growth should be shored up by reconstruction demand. Based on available data, including the third supplementary budget for fiscal 2011, the economists reckon reconstruction demand will boost the real growth rate by an average 0.8 percentage point in fiscal 2012.
The government has earmarked about 18 trillion yen ($233.7 billion) for reconstruction work in the first to fourth extra budgets for fiscal 2011 and the initial draft budget for fiscal 2012. If the budgets are steadily implemented, it will work in the economy's favor.
Meanwhile, the economists agree that conditions in Europe pose a major risk to the Japanese economy in 2012. Given that it will take quite a while for the European debt crisis to be brought under control, many are wary about the possibility of the mess spilling over to the Japanese economy.
Hiroshi Hanada of Sumitomo Trust & Banking Co. warned that Japan's economy could suffer a downturn if emerging economies in Asia lose momentum due to a highly likely European recession. Mitsumaru Kumagai at Daiwa Institute of Research said that if fiscal and financial crises were to strike Europe simultaneously, it would lop about 4% off Japan's real gross domestic product. Still, many think the world economy will be able to withstand a slowdown in Europe relatively well, with China serving as a driving force.
"An easing of monetary policy and a leadership change are expected to lend impetus to the Chinese economy," said Junichi Makino at SMBC Nikko Securities Inc.
The 15 economists peg real economic growth in China in 2012 at 8.6% on average. That is short of the country's high double-digit expansion in recent years, but it should still be enough to allow Japan to secure stable growth on the strength of exports.
The U.S., where a presidential election will be held this autumn, is expected to fend off a serious recession - though there are concerns about the job situation and some other issues.
Assuming the European economy does not take a sharp dive and the U.S. and China remain firm, most of the economists see the Japanese economy continuing to recover for the time being. Eleven of them project the economic pickup to last at least until the end of fiscal 2013.
At any rate, the yen's historic appreciation seems unlikely to end this year. The 15 economists' average forecast for the yen-dollar rate in fiscal 2012 is 78.7, with projections ranging from 75 to 83. On a quarterly basis, they largely expect the yen to trade in the 75-80 range until the October-December period. Although the average forecast of 78.7 is weaker than the postwar record of 75.32, set on Oct. 31 last year, exporters are seen continuing to suffer from the currency's high value.
The economists predict prices will keep dipping, with the rate of the fall increasing in fiscal 2012. They expect the consumer price index, excluding perishables, to fall an average 0.1% in fiscal 2011 and 0.3% in fiscal 2012.
When will Japan emerge from deflation? Ten economists see it happening in fiscal 2014 or later, with one picking the January-March quarter of 2013 - the earliest date among the predictions.
NEEDS points to 1.8% real GDP growth in fiscal 2012
Japan's real GDP is poised to increase 1.8% in fiscal 2012, according to the Nikkei Economic Electronic Databank System, or NEEDS, offered by Nikkei Digital Media Inc. With post-disaster reconstruction demand expected to fully kick in, the projection is higher than the 0.4% decline forecast for fiscal 2011.
NEEDS foresees sluggish export expansion due to a slowdown in overseas economies, as well as the strong yen. Corporate earnings and personal income are forecast to be slow to improve, with a recovery in capital investment and consumer spending likely progressing at a snail's pace.
Domestic demand is expected to push up real economic growth in fiscal 2012 by about 1.6 point and external demand by some 0.2 point, with reconstruction work accounting for most of the domestic contribution.
Public investment is projected to increase 6.2% - the most since fiscal 2009, when it swelled as a result of the government's post-Lehman shock stimulus efforts. NEEDS also expects housing investment to pitch in to economic growth in fiscal 2012.
Exports are seen increasing 3.4% - a stark contrast to the robust 17.2% expansion in fiscal 2010, before the megaquake hit northeastern Japan.
Consumer spending, which comprises more than 50% of GDP, is projected to edge up a mere 0.7%. Aside from limited income growth prospects, NEEDS sees concerns about a consumption tax hike possibly casting a shadow on spending.
(The Nikkei Weekly Jan.9 edition)
There is hope for the domestic economy, provided the nation's companies and government do what it takes to prosper in the global marketplace
The Japanese economy stands at a critical juncture. In one direction, there is deeper gloom. In the other, there is a future in which the nation overcomes its many challenges and creates a virtuous circle of growth.
So which way will Japan go? The answer depends on how it goes about going global. Given the declining birthrate and aging population, the domestic market is destined to contract. That means Japanese companies have no choice but to expand overseas - and strive to make their foreign activities more profitable. In turn, they should use those profits to bolster the competitiveness of their operations, including at home.
The Japanese government, meanwhile, should do more to support firms' efforts.
Motivational adversity
On the whole, corporate Japan will not look back on 2011 with fondness. Supply chains were disrupted by two catastrophes: first the earthquake and tsunami that devastated the Tohoku region on March 11, and later the massive floods in Thailand - an important manufacturing base. Firms also had to contend with a superstrong yen, as well as electricity supply constraints in the aftermath of the Fukushima Daiichi nuclear disaster.
There is still plenty to worry about in 2012, with a global economic slowdown creating other headaches for nations like Japan that rely on exports for growth. But hardship can be a catalyst for positive change. Companies are now thinking more seriously than ever about strategies to survive in the global market.
Some believe that as more Japanese firms broaden their foreign horizons, jobs will be lost at home due to a hollowing-out of domestic industry.
Not necessarily. Just look at Komatsu Ltd. The major construction machinery manufacturer invests a certain portion of its overseas profits in research and development and other initiatives in Japan. As a result, the number of employees at its eight domestic product development bases - in Kanagawa Prefecture and elsewhere - increased by 40% over the past decade.
According to the government's 2011 Annual Report on Japanese Economy and Public Finance, companies that raise overseas production ratios tend to boost domestic employment at twice the pace of firms that lower their ratios. Profits gained by stepping up overseas production can be used to expand operations at headquarters, creating jobs.
In short, the domestic economy stands to get a shot of adrenalin if Japanese companies reap higher profits in the global marketplace. The time has come for the government and corporate sector to push ahead with policies and management strategies that can make that happen.
Japan's major trading houses have already transformed themselves into global players, securing profits via aggressive investments in overseas resource development and other endeavors. This fiscal year, they are expected to rake in nearly 1 trillion yen ($12.98 billion) in dividends from foreign firms in which they hold stakes, as well as other investments abroad. The total is up threefold from 10 years ago.
According to Thomson Reuters of the U.S., Japanese companies took advantage of the mighty yen in 2011 and poured a record $68.4 billion into foreign mergers and acquisitions. Targets included firms in China, India and other emerging markets with strong growth prospects.
Yet when it comes to profiting overseas, Japan Inc. still generally lags behind. According to the International Monetary Fund, Japan's rate of return on foreign direct investment is only two-thirds of the levels in the U.S. and U.K.
In this respect, Japanese companies would do well to emulate their American and European counterparts - particularly when it comes to tapping global human resources. U.S. information-technology giant IBM Corp. aims to boost its overseas sales ratio to over 70%; only half of its 430,000 employees around the world are Americans.
There are signs of a shift on Japanese shores: Panasonic Corp., for one, has started hiring several hundred new non-Japanese graduates per year. But Japan clearly needs to open its doors wider to promising foreign talent. The effort will hinge on steps like unifying personnel evaluation methods worldwide and promoting capable staffers to executive positions at headquarters.
Molding international work forces and getting more out of foreign investments are not the only globally oriented ways Japan can boost its economic vigor. Nurturing start-ups is another, as successful ventures can join bigger players in generating profits on the world stage. But in this area, too, Japan has a long way to go.
In the entrepreneurship category of its 2011 global competitiveness ranking, the International Institute for Management Development (IMD) - a major Switzerland-based business school - put Japan at the bottom among 59 major economies. The Japanese government should implement measures to create an environment conducive to new business growth, including tax deductions for investments in ventures.
Flipping things around, attracting foreign firms to set up shop in Japan will also be key to giving the economy a jolt. The government recently decided to grant subsidies to overseas companies that wish to establish R&D bases and other facilities in Japan. Ten foreign firms, including Swedish automaker AB Volvo, are poised to capitalize on the initiative.
Such government support measures should be prioritized and ramped up, as they will help promote an influx of highly skilled foreign workers.
It remains to be seen which direction Japan will choose. But this much is clear: the nation needs to make "global" a keyword for its future.
(The Nikkei Weekly Jan.9 edition)
Iwate, Miyagi and Fukushima prefectures are getting down to the real work of rebuilding communities shattered by the Great East Japan Earthquake. Catches are gradually increasing at some tsunami-battered fishing ports, and with government help, firms and residents may soon find doorways to new sectors like renewable energy. But major challenges remain - such as securing enough funds to sustain the Tohoku region's recovery momentum, and ensuring that some areas are not left behind. In nuclear disaster-hit Fukushima, the top priority will continue to be radiation containment and decontamination.
Although key fishing ports pummeled by the quake-induced tsunami on March 11 are starting to see their fish hauls pick up, anxiety is growing among Tohoku's fishing industry insiders. The speed of recovery at each port is highly dependent on the scale of the damage. And there is a widening gap between on-the-mend ports and those that remain largely crippled.
"The more the recovery lags," one industry member said, "the more difficult it will be for us to return to our pre-disaster state."
Things are certainly busy at the fish market in the city of Shiogama, Miyagi Prefecture. At 8 a.m. one recent morning, the place was buzzing with the voices of wholesalers.
The giant wave did strike Shiogama's port, but the damage was much less severe than it was elsewhere. In November, the port welcomed twice as much fish by weight than it did a year earlier. Tuna is the main product, and since the Big One, some tuna boats that would normally call at the Miyagi ports of Ishinomaki or Kesennuma have been landing their catches at Shiogama instead.
That brings us to the less fortunate ports. Having lost many processing plants and refrigeration/freezing facilities, Ishinomaki and Kesennuma are having a hard time restoring their landings, which were down by 60-70% year on year in November. "There are limits to what we can do by trying to boost fresh-fish shipping alone," a source at the Kesennuma fish market said. Clearly, these areas are desperate for comprehensive reconstruction of their fishing infrastructure - including processing and distribution as well as related businesses like shipbuilding.
The government, for its part, plans to completely rebuild Tohoku's eight major fishing ports by the end of fiscal 2015. "We hope," a local fisherman said, "the new year brings the start of serious recovery work."
Interrupted industry
The fisheries of Fukushima Prefecture have suffered badly due to the meltdowns at the Fukushima Daiichi nuclear power station, operated by Tokyo Electric Power Co. (Tepco). Both inshore and offshore fishing operations have been under voluntary restrictions. Since the quake, no catch has been reported at Matsukawaura port in the prefecture's city of Soma.
The Fukushima Prefectural Federation of Fisheries Co-operative Associations is working for an early resumption of test fishing in a portion of its jurisdiction. But even that prospect is generating little excitement. "Fishing boats may go out again, but that alone won't rebuild anything," said a source at the Onahama trawler co-operative in the city of Iwaki. "It will just be the beginning of our battle against negative rumors."
Farmers, meanwhile, have their own fight to worry about. In Miyagi, Iwate and Fukushima prefectures combined, the tsunami inundated roughly 20,000 hectares (49,421 acres) of farmland with salt water.
The Ministry of Agriculture, Forestry and Fisheries' master reconstruction plan for agriculture and farming villages calls for resuming about 86% of farming in affected areas by fiscal 2014. But it will be an uphill battle: As of Nov. 30, rice farmers had been able to plant only about 1,150 of 11,150 hectares of arable land in Miyagi, and 7.5 of 603 hectares in Iwate.
"That figure may make our planting effort look minuscule," an Iwate source said, "but it is the best we can do given the harder-than-expected task of debris removal."
Some farmers are shifting to salt-resistant crops like cotton and tomatoes, but a return to full agricultural operations will take time. As for Fukushima, the prefecture has yet to finish identifying lands contaminated with radioactive substances.
Zones of hope
For stricken communities to truly bounce back, they will need jobs. To this end, the government's core approach to industrial recovery is the creation of special reconstruction zones. In December, it passed a related bill to help qualified municipalities entice corporations and develop new businesses. Zoning rules for the special districts allow for construction of housing, food-processing plants and other things on agricultural land. Rezoning has created idle land that should be attractive for factories and commercial facilities. New businesses formed in the districts are fully exempt from corporate taxes for five years.
The national and prefectural governments are brainstorming other, more specific ideas for how the special zone program should be applied.
Miyagi Gov. Yoshihiro Murai, for instance, has proposed eight kinds of special zones, including community-rebuilding and fisheries-rebuilding districts. The central government is promoting the idea of special medical districts, whereby hospitals would link up with the medicine and engineering departments of universities in the three prefectures and develop new medical equipment. Municipal authorities intend to leverage the special zone scheme to attract firms. The cities of Iwanuma and Natori in southern Miyagi plan to attract medical research facilities to the coast. Sendai will work to lure renewable energy businesses.
Companies have already put wheels in motion. IBM Japan Ltd., Kagome Co. and others have announced a plan to build one of Japan's largest greenhouses - to be used for growing vegetables - on a damaged Sendai farm. They will also build a solar power plant to generate private-sector jobs. The Sendai chapter of the Japan Association of Corporate Executives (Keizai Doyukai) has produced another idea for the special zone program: drawing research laboratories specializing in healthcare and elder care to ravaged farmland. It hopes to find new business models for developed nations with aging and shrinking populations.
The primary focus of the reconstruction effort will be attracting large production facilities that can offer many jobs. But with the yen's historic appreciation driving Japanese manufacturers to produce offshore, an industrial revival in Tohoku may be hard to come by.
Reconstruction is coming particularly late to coastal Fukushima, which bore the brunt of the nuclear disaster. The uneven progress, with a widening gap in recovery rates, is a real concern.
(The Nikkei Weekly Jan.9 edition)
TOKYO (Nikkei)--Tulle skirts are catching on among young women as the latest must-have fashion item. The elaborate, multitiered lace skirts are particularly cute and feminine, and can be worn throughout the year with a wide range of different tops.
Tulle skirts are catching on among young women. "Like other girls, I love fluffy materials -- I have black and white tulle skirts," said one 27-year-old Tokyo woman, sporting a white, three-tiered tulle skirt and a short duffle coat.
Tulle skirts are becoming popular due to their soft, feathery texture, which is quite distinct from cotton or wool. Baycrew's Co.'s popular Iena Slobe fashion label has sold several hundred tulle skirts this autumn and winter alone. "We've been selling tulle skirts for some time, but they actually started taking off last year," said Baycrew's spokesperson. "To meet growing demand, we made original products." Puffy appeal
Many women have also been drawn to tulle skirts because of their versatility. Due to their puffy appearance, they initially appear to be difficult garments to match with tops, but they can be worn in a wide range of styles. "Tulle skirts can add a romantic edge when combined with a nice top, but they also work well with items such as military wear," said fashion journalist Rie Miyata.
Tulle skirts are also appealing because they can be worn in any season. They appear thin enough to only be suitable in the spring and summer, but they can serve as part of a fashionable winter outfit when combined with knit tops and tights.
"The big trend today is to combine different materials," said Miyata. Tulle creates a different impression than cotton and wool, and it is gaining ground as a key fashion accessory for many women.
Tulle outfits are based on ballet costumes.
Tulle skirts first became popular in collections released overseas in the 2009-2010 season, when they were presented as embodying a ballet-tutu motif. Tulle skirts are based on tutus, which are also made of multilayered lace. "They spread like wildfire in Japan with the release of the ballet movie Black Swan last year," said Miyata. In fact, ballet costumes and accessories have been incorporated into fashion items since the release of the film.
Ballet flats, which are based on pointe shoes, are also becoming popular. The established French ballet goods brand Repetto is said to have introduced ballet flats as a casual fashion item. It opened its first shop in Japan in 2009, with 11 stores open throughout the nation now.
Handmade tulle skirts are also catching on, and they tend to vary in texture. Miho Mochizuki, 36, made two black and gray tulle skirts last year. "I initially thought that tulle was too cute for me, but I selected materials that are not too puffy," she said. She also made one for her three-year old daughter.
Waistbands are another reason for the popularity of tulle skirts. Unlike other women's bottoms, they feature elastics. "Tulle has been used for lingerie. It is thin, so elastic waistbands are more suitable for gathering the skirt at the waist and creating a feathery image," Miyata said.
Elastic waistbands allow women to adjust the length of their skirts. They can shorten them by tucking in the waistband, or lengthen them by doing the opposite. Elasticity also makes the skirts more comfortable to wear.
--Translated from an article by Nikkei staff writer Satoko Ido
(The Nikkei Marketing Journal Jan. 11 edition)
TOKYO (Nikkei)--Health care equipment manufacturer Tanita Corp. will open a Tokyo restaurant Wednesday based on its in-house cafeteria, featuring healthy meals and free consultations by certified dieticians.
A recipe book featuring the low-calorie, low-sodium food made at the firm's cafeteria has become a best-seller, spurring consumers' appetite for the actual meals served there.
Tanita will make its food offerings available to the general public.
The restaurant with a maximum seating capacity of 70 will serve daily and weekly special meals for 800 yen and 900 yen, respectively. Each meal has 500 kilocalories and 3 grams of sodium.
The restaurant is located in the Marunouchi district, home to many corporate offices. It will be open from 11 a.m. to 3 p.m. on weekdays.
A health consultation room equipped with Tanita-brand body composition analyzers is attached to the restaurant. Based on measurement data, dieticians will offer free advice on diet and exercise. Tanita has formed a partnership with pub operator Kichiri & Co. to open such cafeteria-style restaurants, with the Marunouchi site the first one.
(The Nikkei Jan. 11 morning edition)
TOKYO (Nikkei)--Japan's space business has finally taken off, but it will need to cut costs to tap strong demand in emerging markets as well as in other nations, where tight budgets have become the norm.
Last year, the Japanese H-IIA rocket achieved a 95% success rate over 20 launches, which is considered the international standard for a reliable rocket. And a satellite ordered from overseas was blasted into orbit for the first time last year. Japan is now poised to compete with the U.S., Europe and Russia.
Japan's H-IIA rocket has finally achieved the 95% threshold for successful launches.
At Mitsubishi Heavy Industries Ltd. (7011), the main manufacturer of the H-IIA, front-line workers building the rockets came up with various ways to trim costs, such as changing the parts inspection process and assembling a certain component at the firm's factory instead of at the launch site. Unlike cars and appliances, replacing an expensive part with a cheaper alternative is vastly difficult because it takes lots of time and money to determine how such a change would affect the rocket's overall performance. That is why cost cuts take place mainly through small improvements at the production site rather than via design modifications.
Thanks to such efforts, the cost of manufacturing and launching the H-IIA has been roughly halved, but it remains about 20-30% higher than American, European and Russian rockets. And the strong yen has hurt Japan's competitiveness in this field.
To remedy the situation, the next-generation rocket, dubbed H-X, is being developed as a simple, low-priced vehicle. For example, the H-X is not expected to employ a staged-combustion engine, which is used in the first stage of the H-IIA. A plain engine will not be as powerful, but the rocket can be bundled with two or three such engines, depending on the weight of the satellite being launched.
Kawasaki Heavy Industries Ltd. (7012) is using aluminum instead of carbon fiber to build the payload fairing for the H-IIA. Although carbon fiber is lighter, the firm chose aluminum due to cost considerations. It is currently working to reduce seams to lower the weight further.
Manufacturers of small rockets are also paring expenses. IHI Corp. (7013) said its Epsilon rocket, the successor to its M-V solid-fuel rocket, will be a standardized product listed on a catalog instead of a custom-built version like the M-V.
To reduce costs, IHI will use solid rocket boosters on each side of the H-IIA to propel the first stage of the Epsilon. And it will simplify the engines for the Epsilon's second and third stages. But halving launch costs from about 7.5 billion yen for the M-V, IHI hopes to tap growing demand in emerging countries to lift small satellites into orbit. It aims to launch its first Epsilon rocket in fiscal 2013.
Satellite makers are also taking steps to improve profitability. Last year saw the first successful launch of a Japanese-made commercial satellite ordered from overseas. Mitsubishi Electric Corp. (6503) produced the satellite, which is jointly owned by Singaporean and Taiwanese telecommunications firms. The Japanese company also received orders for two communications satellites from the Turkish government. It is currently expanding its satellite plant in Kanagawa Prefecture at a cost of 3 billion yen, aiming to double its annual output capacity to eight units by 2013.
Mitsubishi Electric is the only Japanese manufacturer that can handle everything from design and production to testing. It invited personnel from satellite insurance providers to its Kanagawa factory to show its production lines and quality control measures, a move that resulted in lower insurance premiums.
Japanese manufacturers of appliances and mobile phones focused so much on performance that they often made pricey products with capabilities beyond what consumers wanted. Most of these products were not accepted abroad, resulting in the so-called Galapagos Syndrome. To avoid making the same mistakes, Japan's space industry needs to focus on products whose specifications cater to emerging markets.
(The Nikkei Veritas Jan. 15 edition)
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th