Category: japan |日本 | 일본

Yōkoso – welcome to the Japan category of this blog. This blog was inspired by my love of Japanese culture and their consumer trends. I was introduced to chambara films thanks to being a fan of Sergio Leone’s dollars trilogy. A Fistful of Dollars was heavily influenced by Akira Kurosawa’s Yojimbo.

Getting to watch Akira and Ghost In The Shell for the first time were seminal moments in my life. I was fortunate to have lived in Liverpool when the 051 was an arthouse cinema and later on going to the BFI in London on a regular basis.

Today this is where I share anything that relates to Japan, business issues, the Japanese people or culture. Often posts that appear in this category will appear in other categories as well. So if Lawson launched a new brand collaboration with Nissan to sell a special edition Nissan Skyline GT-R. And that I thought was particularly interesting or noteworthy, that might appear in branding as well as Japan.

There is a lot of Japan-related content here. Japanese culture was one of odd the original inspirations for this blog hence my reference to chambara films in the blog name.

I don’t tend to comment on local politics because I don’t understand it that well, but I am interested when it intersects with business. An example of this would be legal issues affecting the media sector for instance.

If there are any Japanese related subjects that you think would fit with this blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.

  • Luxe streetwear

    I started thinking about the latest developments in luxe streetwear after leafing through the FT to see the following advert marking the proposed purchase of Stone Island by Moncler. (Stone Island had already sold its parent brand CP Company and intellectual property back in 2015 to Hong Kong manufacturer Tristate Holdings Limited).

    Moncler buys Stone Island
    R+R SpA – published in the Financial Times – a luxe streetwear merger

    It follows hot on the heels of Supreme being purchased by VF Corporation.

    Luxury disruption

    From the luxury market point of view their customer base over the past 30 years has done three things:

    • The customers have become younger. Luxury shopping is no longer dominated by dowager heiresses in Europe and the New World. Now the man purchasers of luxury are much younger and are second generation money. They’ve had money in their families for somewhere between 20 and 50 years. They are the scions of political leaders or business leaders. Money has allowed them access to the world’s best education institutions. They might have had etiquette classes, but they’re no more than two generations away from having known deprivation.
    • The customers are in a different place. Globalisation massively changed their customer base. First it was the Japanese middle classes who picked up a taste for luxury brands whilst travelling abroad. As the Asian tigers took off, you started to see luxury purchases being made in Singapore, Hong Kong, Korea and China. When the Soviet Union fell luxury consumption also sprang up in the East as some people had money to burn. Much of the luxury retail in traditional shopping areas like London and Paris are derived from tourists rather than local purchasers. A change in the luxury tax regime in China has seen more domestic luxury consumption. China is now looking to build Hainan into a domestic luxury shopping and holiday resort.
    • Luxury serves a different purpose. Luxury has traditionally reflected status. Goods of a superior nature that the ‘wrong sort’ of people would never be able to afford. Luxury then became a symbol that you’d made it. In Asian markets, particularly China, luxury became a tool. People gifted luxury products to make relationships work better. It also signified that you are the kind of successful business person that partners could trust. You started to see factory managers with Gucci man bags and premium golfwear to signal their success. Then when the scions of these business people and figures in authority were adults, luxury has become about premium self expression. It has been mixed up with streetwear in a manner reminiscent of the Buffalo Collective.

    So from the perspective of the luxury industry, they are feeling a massive amount of disruption going on. And that’s even before you get into digital transformation.

    It is this transformation of customer segments, geographies and use cases which is forcing the luxury industry to ‘go casual’ fit in a luxe streetwear space.

    Streetwear evolution

    The perspective from the streetwear side of the table is more exemplified by my favourite Thai English phrase: same-same, but different. Their market hasn’t been disrupted in the same way as luxury. It has got a lot bigger.

    Rise of Streetwear
    Growth in streetwear

    The internet has meant that streetwear culture has become global and trends catch on much faster. It has become more popular around the world and there are thriving secondary markets like StockX and GOAT.

    Streetwear has pushed into luxury pricing models led by Japanese brands; who brought a higher attention to detail to the market. It has continued the trend of innovation that companies like Stone Island started. This is best exemplified now by the likes of German label ACRONYM.

    From a design perspective right back to the origins of what we know as streetwear by the likes Shawn Stüssy or Harlem’s Dapper Dan co-opted luxury product language. In Dapper Dan’s case using fake fabrics and labels to make clothing. His customer base of African Americans from poor neighbourhoods whether early hip hop stars or criminals didn’t see the items that they wanted in boutiques. And even if they did, many of them didn’t feel welcome in the uptown boutiques.

    From Stüssy’s point of view it was the pop art ethos and DIY fanzine culture that infused his work. The reversed double S in a circle is an obvious reference to Chanel’s design language.

    Over the space of a decade Supreme went from being sued for aping Louis Vuitton’s design language to collaborating with them. Dapper Dan has recently been collaborating with Gucci.

    Does luxe streetwear lack ambition?

    Highsnobriety asked the question five years ago and concluded that no streetwear company had shown the serious ambition to become an umbrella brand the size of LVMH or Kering. Skiwear, skate wear and snow sports equipment are sectors that are a tenth of the size of streetwear. Yet they have seen consolidation into larger holding groups. These groups provided the financial cushion for these companies through the 2008 financial crisis.

    The closest that luxe streetwear has got to the holding group is likely to be New Guards Group. New Guards Group describes itself as a contemporary luxury fashion holding group. It owns Off-White, Opening Ceremony and Palm Angels. This in turn was bought out by luxury e-tailer Farfetch. Farfetch in turn has Richemont and Alibaba as minority shareholders.

    Surfwear is also described as having a generational strain. Dads keep wearing the gear. Kids no longer want to wear it. Given the commonality with the streetwear lifestyle. You could see similar things happening at even the largest of streetwear brands eventually. Some of the people wearing Supreme in the mid 1990s are still wearing it. The original international Stüssy Tribe are still going strong, repping streetwear in their 50s and 60s.

    Luxe streetwear brand A Bathing Ape has definitely seen better days, by the time Nigo sold the business to Hong Kong I.T. Group. The transitory nature of streetwear brands is littered with names that were formerly prominent like XLarge (that came back) or 90s icon Massimo.

    Stone Island and luxe streetwear

    Moncler get a technically proficient firm in Stone Island. It was built on a foundation of experimenting with materials. It is the only company able to garment dye polyester fabric for lightweight applications like summer jackets.

    The brand is widely respected and has collaborated with other innovators like Nike. It has been worn by Drake regularly that opened the brand up to hip hop fans. This has helped the brand widen its association beyond football hooligans and scally culture.

    More luxury related content here.

    More information

    Moncler to buy Stone Island in deal that values rival at €1.15bn | Financial Times

    VF snaps up streetwear line Supreme in $2bn deal | Financial Times

    Luxury brands set sights on Chinese tourists in Hainan as extended duty-free quotas and pandemic-free shopping attract travellers | South China Morning Post

    Dapper Dan’s collaboration with Gucci – focused on ‘hip hop style ready to wear and accessories featuring the GG logo

    Everything we know about the Supreme x Louis Vuitton collection | High Snobriety

    The umbrella brand: is streetwear ready for corporate takeover? | Highsnobriety

    Billabong’s demise is emblematic of a wider crisis in the surfwear industry | Guardian

    Silk or Synthetic | Financial Times

  • Hydrogen fuel cells + more news

    Hydrogen fuel cells

    Hyundai and Ineos team up to develop hydrogen future | CAR Magazine  BMW details fuel cell plans | EE News – I think that this move to hydrogen fuel cells makes more sense than lithium ion batteries. Hydrogen fuel cells are well understood, having been used by NASA during the Apollo space mission, the main challenge as been the cost of the cell. Hydrogen fuel cells don’t induce range anxiety and don’t have the environmental problems that you get recycling lithium ion batteries.

    Panasonic finally looks at European battery gigafactory – but this is happening with hydrogen fuel cells being in a more effective decision. Elon Musk is down on hydrogen fuel cells, but ignores the issues with lithium ion batteries compared to hydrogen fuel cells. Lithium ion batteries have their own dangers. Hydrogen fuel cells don’t have the same recycling issues that spent lithium ion batteries have. Given the strategic hold over lithium mining by China; hydrogen fuel cells offer a better option to reduce dependence. The hydrogen lobby does a better job to combat the Tesla showmanship.

    China

    EU braces for battle despite new faces in White House | Financial Times“ There will be a number of easy wins and enhanced co-operation on climate, the pandemic and remedying some of the offences of the past four years,” said Kristine Berzina, a senior fellow at the German Marshall Fund of the United States. “But there are real dangers that disagreements on issues like data privacy and digital taxation will make it more difficult to get agreements on other issues that are very important for both the US and Europe — particularly China

    Germany frets over its corporate dependency on China | Financial TimesRobust Chinese demand has helped Germany’s auto manufacturers and their suppliers to offset weaker European and US markets still afflicted by the pandemic. But it has also revived concerns that German industry is too dependent on China. And it has raised questions about whether Berlin will be willing to respond to growing pressure in the EU for a stronger line towards Beijing and to embrace a new transatlantic partnership on China under a Biden administration. – you can see this in the split between Merkel and her party over China engagement – Daimler, which has two large Chinese shareholders, sells nearly 30 per cent of its Mercedes cars in China. It accounts for about 11 per cent of group revenues. For several companies in the Dax 30 index, China represents at least a fifth of sales including BMW, chipmaker Infineon and plastics manufacturer Covestro. Likewise, Volkswagen is estimated to generate a similar proportion of its sales in the country last year, selling nearly 40 per cent of its vehicles there. All of this leaves you vulnerable to the Australian situation: China sends a message with Australian crackdown | Financial TimesThe message is clear. If your media is overly critical, if your think-tanks produce negative reports, if your MPs persist in criticism, if you probe Communist party influence in your community and politics and if you don’t allow Chinese state and private companies into your market, and so on, you will be vulnerable to Beijing’s retribution as well

    Red Convergence | China Media Project – media policy in China – with implications domestically and internationally. It outlines how the Chinese Communist Party intends to leverage transformations in global communication, both at home and abroad (though the latter is more implied), to sustain the regime and increase its influence internationally.

    Lessons from China’s decision to halt Ant Group’s giant IPO | Financial Times – interesting points from WeBank about a sweet spot from Rmb 8,000 – 200,000 were debtors do not have an incentive to run away or speculate. SMEs are focused on having a good credit record

    Q&A: Gareth Richardson – Western Brands No Longer Have an Easy Ride in Asia | Branding in Asia MagazineIn China, there’s no access to Google and Facebook but consumers are immersed in WeChat. This is a playground where western brands have no inherent advantage. In fact, many Chinese consumers don’t know or much care about where the brand originated (save for a few specific categories such as Infant Milk Powder). In western culture individuals are heroes and this is reflected in the approach to brand storytelling. However, in Asia, the culture is more collectivist and storytelling celebrates multiple heroes. Asian brands should celebrate their cultural values. Examples include brands built on traditional values of Asian hospitality, such as Mandarin Oriental. There’s a paradox though. Asian culture is collectivist and yet Asian businesses are very hierarchical. There’s often a significant power gap between the C-suite and the frontline staff. This makes branding more challenging to implement even when its value is properly understood by the leadership – this also happens within agencies. True story: I was asked to go and present to the Chinese subsidiary of a US multinational. The global digital lead had gone in there previously with the global client ambassador and made a mess that couldn’t be cleared up. Firstly, they hadn’t recognised the great firewall. Twitter doesn’t matter in China. Secondly, they thought that democratic political campaigning experience was an example of great marketing. At the time, the person who was the global data lead had also worked on the first Obama presidential campaign. All of them had come from a political background and were clueless about brand marketing. Finally, they’d unintentionally priced a measurement solution ludicrously low. It was a shit show. We had lost the client already, but the client lead had held out hope that hanging on in there churning out a monthly report with no actionable insight would somehow provide a way back in. But at least I got to Guangzhou for the first time.

    Consumer behaviour

    Right-wing populism with Chinese characteristics? Identity, otherness and global imaginaries in debating world politics online – Chenchen Zhang, 2020The past few years have seen an emerging discourse on Chinese social media that combines the claims, vocabulary and style of right-wing populisms in Europe and North America with previous forms of nationalism and racism in Chinese cyberspace. In other words, it provokes a similar hostility towards immigrants, Muslims, feminism, the so-called ‘liberal elites’ and progressive values in general. This article examines how, in debating global political events such as the European refugee crisis and the American presidential election, well-educated and well-informed Chinese Internet users appropriate the rhetoric of ‘Western-style’ right-wing populism to paradoxically criticise Western hegemony and discursively construct China’s ethno-racial and political identities. Through qualitative analysis of 1038 postings retrieved from a popular social media website, this research shows that by criticising Western ‘liberal elites’, the discourse constructs China’s ethno-racial identity against the ‘inferior’ non-Western other, exemplified by non-white immigrants and Muslims, with racial nationalism on the one hand; and formulates China’s political identity against the ‘declining’ Western other with realist authoritarianism on the other. The popular narratives of global order protest against Western hegemony while reinforcing a state-centric and hierarchical imaginary of global racial and civilisational order. We conclude by suggesting that the discourse embodies the logics of anti-Western Eurocentrism and anti-hegemonic hegemonies. – This is interesting especially when the Communist Party of China is adopting a more Han nationalist stance (and in some respects reaching back into historic integration of Mongol and Manchu rulers). Secondly, Communist Party academics and legal academics from Beijing University have been drawing heavily on the work of Carl Schmitt. As have far right organisations and Russian nationalists. Schmitt was Nazi Germany’s leading legal theorist. He was known to be hostile to parliamentary democracy and supported the power of an authoritarian leader to decide the law. Schmitt’s rejection of attempts to take politics out of the operation of the law or economic policy implementation – have appeals to diverse audiences.

    Design

    Top 3 reasons why Nokia N97 failed: The “iPhone killer” that actually killed Nokia – Gizchina.comNokia N97 has a slide-out design with a three-line QWERTY keyboard displayed below the display. That was an advantage at the time, but it was just another manifestation of Nokia’s outdated ideas. With the improvement of input methods, touch screen keyboards have become more accurate and soon eclipsed physical keyboards. – the keyboard was very poor compared to the Nokia E90 Communicator that I used to use. I also remember that the address book feature used to crash the phone if you loaded more than 999 contacts into it. Even their ‘E’ series business handsets like my E90 Communicator and the later E71 devices. I moved to the iPhone because I wanted an address book that worked. If the iPhone ever came in a Nokia Communicator type format, I would be ecstatic. More gadget related content here.

    Ideas

    I have been watching more David Hoffman films recently, looking back to the past to try and understand the present. What becomes apparent was that there was a schism of values in the late 1960s America. What’s less apparent was how, or even if; that schism was eventually healed.

    Online

    China tightens grip on booming livestreaming sector | Financial Times – this needs to be viewed in the wider aspect of reining in internet companies

    Style

    Good Collaborations Are Art, Great Ones Are Kitsch | Highsnobiety“You know it’s art when the check clears,” said Andy Warhol. With Roy Lichtenstein and Robert Indiana, Warhol made his way into museums by turning the mundane world into works of art by enriching it with pop references, connotations and associations. Warhol’s art is commercial and his commercials are art (a Warhol ad launched Absolut vodka in 1986)

    Technology

    A little automation goes a long way in distracting drivers | INPUT – technology creating more problems than it solves in the car driving experience.

  • Toyota Hilux & more stuff

    Toyota Hilux

    This is spot for the Toyota Hilux was done by Saatchi & Saatchi New Zealand. I was reminded of how growing up in Ireland, people would pull up in their cars, vans, trucks or tractors like this and chat in the middle of the local market town.

    It touches on quirkiness, the diverse nature of use cases for the Toyota Hilux and social distancing.

    Big Car did a really good history of the Toyota Hilux. It is impressive how little the Hilux has changed over the years. It’s simplicity has made the Toyota Hilux a very reliable vehicle

    General Magic Personal Communicator

    Film maker David Hoffman, put together a super cut of film that he’d shot for US carrier about General Magic’s Personal Communicator.

    What becomes apparent is that mobile computing has got smaller, but conceptually hasn’t changed that much. Yes the literal ‘desk’ from General Magic seems a little strange. It was a software metaphor that Apple deployed on the Lisa workstation. It also feaArktronics Jane and Microsoft ‘Bob’ a year later in 1995.

    You can see thinking not that far removed from it in the early skeuomorphic designs in the early versions of iOS. (The notepad app had spiral binding and ‘textured’ paper.)

    General Magic’s icons are the predecessor of today’s emojis and stickers found in Messenger applications by the likes of Apple, LINE, WeChat, Kakao and Facebook.

    Electronic personal assistants, later became ‘software agents’ that went out on the early web. It isn’t that far from Wildfire, Hello Google or Siri.

    Brexit

    I am not a fan of John Major, but this speech has got a lot of good content in it, particularly on the subject of Brexit. More on his speech here.

    Markku Alén

    And lastly, just for the hell of it; vintage Chris Harris. In the cockpit with Markku Alén piloting a Lancia Stratos.

  • Things that caught my eye this week

    House music producer Roy Davis Jr put together an amazing mix for Phonica Records and I have been vibing off it for most of the week.

    Roy Davis Jr for Phonica Records

    An old, but good music video put together by my long time colleague Haruka. It’s a mix of found footage and painting done on 16mm film.

    Gates to the city by Haruka Ikezawa

    I’m not so sure if it was the best portable stereo; but the JVC / Victor RC-M90 was an archetypal boombox of the 1980s beloved by hip hop fans and gadget lovers. Techmoan does a good tour of the device. What’s interesting is how quality seems to have reached a peak in the late 1970s, early 1980s in hi-fi equipment. Quality seems to have declined as more overseas manufacturing was undertaken by the Japanese brands.

    If you are buying a major Japanese brand like Sony etc; try to buy a ‘Made in Japan’ product is still a great rule of thumb. More gadget related posts here.

    Leo Burnett did a great advert for McDonalds. It tells the story of story of a single mum trying to get her son into the Christmas spirit. However, she faces an unresponsive child; until his inner child wins out. The Drum did a walk through of the ad with the creative team who worked on it at Leo Burnett here.

    Leo Burnett for McDonalds UK

    Finally, the IPA did a three hour webinar A New Way to Track Consumer Demand, that is now available online.

    Finally Sony launched the PlayStation 5 in the UK this week. As I write this, there is a strong secondary market at three times the original retail price of the consoles. They’re the hot item for Christmas.

    This was supported by buzz marketing with a takeover of London Underground signs at Oxford Circus station. The square logo (all the shapes are from the PlayStation controller) contrasts with the closed Microsoft store behind it.

    Social media spread images of the signs and it was all very nice. I think part of its success was the counterintuitive aspect of a stunt in a high footfall area in central London – during the COVID19 lockdown, when other brand marketers are spending their budgets online…

    playstation5 taken by Ian Wood
    London Underground sign photo by Ian Wood

    Bonus content: Clifford Stott is an expert in policing. He walked away from a Hong Kong government review into the 2019 protests. He goes into failings of the review and everything that went on in this report: Patterns of ‘Disorder’ During the 2019 Protests in Hong Kong: Policing, Social Identity, Intergroup Dynamics, and Radicalization by Clifford Stott, Lawrence Ho, Matt Radburn, Ying Tung Chan, Arabella Kyprianides, Patricio Saavedra Morales.

    He talks about his findings with the Hong Kong Free Press.

  • M1 processor + more things

    Apple’s M1 ARM Pivot: A Step Into the Reality Distortion Field | Chips | TechNewsWorld – pretty much many of the points that I was thinking about. More here on the M1 Apple M1 Processor, Passing on the Chiplets | EE Times 

    BMW Unveils Anime-Like Electric Scooter Concept – Core77 – nice but I would still want Kenada’s bike

    The Biden team’s tug of war over Facebook – POLITICO – Facebook is the new Goldman Sachs….

    5G has been heralded as a tech game changer but consumers in China are underwhelmed by spotty coverage and hard sell | South China Morning Post 

    How to appeal to Gen Z in Asia | Vogue Business“Chinese luxury consumers’ offline and online lives are becoming increasingly intertwined,” says Mark Morris, Burberry’s senior vice president of digital commerce. “They are demanding a more seamless blend of content and capabilities across their two worlds.”  Working with local experts like Mr Bags and relatively lower-tier influencers (Ching has 6.6 million fans on Weibo, which is mid-range for a Chinese KOL) helped reach this level of engagement. “Gen Z wants to be approached in a narrow and deep, insightful way instead of using a mass approach with a big talent [and] hashtag ads,” says Rie Tanaka, senior business strategist and senior researcher at Japanese PR firm Dentsu

    Europe is ready for Biden to start, says E.U. foreign affairs chief Josep Borrell – The Washington PostWestern governments may have been “a bit naive” about Beijing’s manipulation of global trade rules – strategic reset inbound

    Five-Year Plan, 15-Year Vision by Geoff Yu, Bank of New York Mellonat the outset a new long-term objective for 2035 was established: China is expected to “largely realize socialist modernization” by that year. Specifically, this means achieving GDP per capita of a “moderately (or mid-level, depending on the translation) developed country”. Again, we underscore that the FYP itself does not contain a corresponding numerical target, but during his remarks at the plan’s launch, President Xi Jinping remarked that “it is fully possible for China to realize a doubling of the size of the national economy by 2035”. Assuming the doubling happens in real terms, this comes to around 4.7%y/y p.a. real GDP growth over the next 15 years (PDF)

    Micron Leapfrogs to 176-Layer 3D NAND Flash Memory | EE Times – everyone else is on 128 layers

    Japan gov’t may turn to YouTubers to promote ‘My Number’ ID cards – The MainichiTo publicize the system, the government has inserted advertisements in newspapers and used digital signage to stream commercials at stations and in the streets, among other methods. However, it has not received as many applications as anticipated, and now places a big hope on the YouTubers’ power to transmit information. The choice is also apparently because labor costs are not as high as appointing nationally popular actors, celebrities and other public figures. Moreover, the Japanese government, by eradicating its image of stubborn bureaucracy and having people watch videos on YouTube without reserve, aspires to remove anxiety and concerns about possible personal information leaks that accompany the My Number system – surprised that Japanese influencers would be that cheap relative to their reach. More on marketing here

    Resharing this as many people still don’t know about this old paper from Ogilvy on Facebook organic reach