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.
Six hundred pairs of Nikes in a custom-built house
The six hundred pairs of Nikes are owned by a Japanese lady who now is head of marketing for Ugg in Japan. Previously she’d spent over 20 years in sales and marketing for Nike. Her house was designed around her shoe collection and the double height ceiling in the room to host the six hundred pairs is worth watching for alone. There are more than six hundred pairs. Some of the stories about the six hundred pairs of shoes are fascinating such as how Nike Air Max 95s were responsible for thefts and muggings in Japan.
Tom Ford
Everyone needs a Tom Ford in their life. From personal life hacks to interior design and grooming all in the space of a few minutes. This sounds as if the interview as done around about the time that Ford was bowing out of his fashion and beauty businesses.
Gibbs SR toothpaste
Along with Close Up and Aquafresh; Gibbs SR toothpaste was one of the toothpastes I remember most from childhood. Unilever bundled it eventually into Mentadent and it was quietly taken off the UK market in 2018.
I didn’t realise that Gibbs SR toothpaste was the first advertisement shown on British television. UK law had changed the previous year allowing for commercial television. The creative behind the ad was Brian Palmer of Young & Rubican (now VML).
So, I was listening to the Uncensored CEO podcast Jon Evans when he had Les Binet and Sarah Carter on. One of them mentioned that the above ad was tested recently and scored top scores. It might be novelty, but is unlikely to be nostalgia that drove this test score. What’s more interesting it that Y&R managed to get the creative so high performing decades before the kind of tools that we have now.
Hyper-reality
Keiichi Matsuda took what Apple would call spatial computing to its logical conclusion in this 7 year old film HYPER-REALITY. There are a number of clever aspects to it. Watch when the device reboots in the supermarket and the glyph wearing criminal who escapes identification by the system.
In reality, hardware will restrict how useable that these products will be. Which is the reason why the Apple Vision Pro looks so cumbersome. More related content here.
John Glenn
Great interview with Mercury and Apollo programme astronaut John Glenn covering different aspects of his experience as an astronaut. We hear how astronauts became so involved in the engineering and safety aspects of the Mercury and Apollo programmes.
The train of thought to this post about Hong Kong measurements started with a friend’s class learning do-it-yourself skills. I had rented an apartment when I lived in the city and had no need to do home repairs myself. I wondered past hardware stores, saw metric drill bits and rules.
Metric
My supermarket-bought groceries had their measurements on in metric. Hong Kong measurements go back to history and culture. I knew more about traditional measurements from traditional Chinese medicine shops and period Hong Kong cinema than the local ‘wet’ markets.
I didn’t drive, but the speed limits were all in Km/H like Ireland. Pedestrian signs for the most part didn’t need distances because everything is so compact and the public transport so good.
If I had driven, I would have seen distances in kilometres on the expressway. In fact, the only time I can remember using distances on pedestrian signs were on hikes like this one below, with distances in kilometres and approximate time that the walk should take.
What became apparent in my discussion that that Hong Kong measurements are more complex than would appear at a cursory glance.
Inches and pints
The method of instruction in the do-it-yourself was predominantly imperial measures with a metric equivalent being secondary. Timber could still be provided in 2×4 inch planks. Both imperial and metric drill bits were available to buy.
You could order a pint, though like many other countries, you will be served a 1/2 litre glass in most bars.
The laws governing weights and measures in trade is covered by the Weights and Measures Ordinance. This was drafted in 1988, came into force in 1989 and has been amended for formatting since. The related Weights and Measures Order of 2021 added US units were different alongside imperial measures, metric and traditional Chinese measurements. Though this seemed to be for reference, rather than encouraging the active use of American measures in Hong Kong. American products usually come with the equivalent metric sizing for items like drinks cans volume.
Taels and Cattis
Hong Kong uses Chinese traditional measures alongside more standard measures in certain markets – from fresh produce bought in the ‘wet’ markets to sales of gold and silver.
Before I had got to Hong Kong I had hear of taels and cattis. Taels is the traditional unit by which gold (and silver) had been sold amongst the wider Chinese community from Liverpool to Shanghai. If you’ve sat through enough old kung fu movies, you will have heard of a bounty or reward to be paid in taels.
However like other pre-Metric weights like hundredweights and tons; taels and cattis now mean different dimensions in different markets.
Hong Kong hews to the traditional weights and measures for this. Taiwan’s taels and cattis are more related to the measures of the Imperial Japanese empire. Taiwan may even refer to taels and cattis using different words. Mainland China went through a period of simplification during communist rule from Chinese characters to measures. Their taels and cattis are more aligned to metric measures.
Singapore struck much more closely to the metric system which it has adopted from 1968 – 1970. While traditional measures are included in the statutes for reference and fabric discussions still happen in terms of square yards, you will be charged for the metric measure. This was because post-independence Singapore had to make its own way in the world without the mother country of empire. China was closed off at the time and the city state had to think of its place in terms of global scale.
So why is this all important?
Measurements are essential to our points of reference in everyday life. The variance of points of reference can affect perceptions around attributes like value for money, or whether something is big or small. It affects how we think about tasks to be done or distances to be walked and things to be carried.
It can be a ‘grain of sand’ in the shoe level of dissonance, familiar, yet different. Rather like the average European pondering the American distance definition of ‘a block’. Our cities aren’t built on grid systems for the most part, so we don’t have the same feel for the measure. Speaking to a New Yorker friend; a block was considered by them to about a tenth of a mile. BUT, different cities have different sized blocks and it isn’t a formal definition. It’s a quintessential American cultural artifact and yet very inexact.
For a business there are additional factors to consider
Complexity of regulations.
Additional complexity in terms of product instructions.
Descriptive copywriting and advertising claims.
Pricing strategies and arbitrage opportunities. For instance, while Hong Kong gold might be duty free – does the differing weight from one’s home affect price considerations?
While Hong Kong is being reintegrated back into mainland China, even apparently small issues like measurement units could become political in nature.
As they are product of a unique history and emergent culture not shared with the mainland, rather like modern Hong Kong Cantonese. The Cantonese language evolved from being similar to that spoke in Guangdong province in the early 1960s to develop its own Hong Kong-specific idioms, lone words (from English, Japanese and South Asian languages spoken in the territory by minorities). Now with the increasing influx of mainland immigrants there is use of mandarin code switching added into the mix.
The use of multiple measures allows Hong Kongers and their businesses to be commercial ‘citizens of the world’ in their transactions. Hong Kongers have also taken these measures abroad. Going to a China town jeweller or pawn shop will allow you to buy gold taels, even though the weight on your receipt might be in troy ounces or grams.
Alongside Hong Kong-specific cuisine, the unique mix of measurement units may be its unique informal contribution to the world alongside archive films, long after the city becomes just another city in China.
My mind cast back to one of the first modules I studied at college. There was a lecture on the role of complaint resolution as part of customer services. The idea was that effective complaint resolution engendered trust in a customer service function and was more likely to increase brand loyalty and recommendation to other people. In reality Ehrensberg-Bass Institute have explored this area in more depth and found that customer penetration is more important than customer loyalty.
US National Archives: Approaching Logan Airport. 05/1973 by Michael Manheim
I suspect that the benefit in complaint resolution is more around a premium brand positioning rather than the business benefits of loyalty. This is an interesting frame to consider AirHelp’s global airline ranking. Unlike SkyTrax that focuses on experience, AirHelp weighs its ranking heavily on complaint resolution.
British Airways came 82nd out of 83 airlines assessed, which won’t be a surprise to anyone who has flown with them over the past four years.
Many airlines that would have a high SkyTrax service ranking, didn’t perform as well on complaint resolution.
So there wasn’t a clear correlation between experience resolving lots of customer complaints or a highly evolved service offering.
Emerging car brands scrutinised by Bloomberg and Grant Thornton | Manufacturer – “Chinese brands are dominating the scene with good products, big screens, and impressive interfaces.” However, the challenge arises when considering pricing, as Chinese EVs like the XPeng’s G9 SUV was 72,000 euros competing against the likes of BMW and Mercedes. So they’re going to find it very, difficult and it’s going to come down to price.” Dean pointed out MG’s success in the UK market was achieved by hitting exactly the right sweet spot in terms of pricing. The MG ZS, the second-best-selling battery electric vehicle in the UK, is priced at an average of £31,000, making it compelling in terms of competitive pricing especially in a country where consumers are not fiercely loyal to specific brands. – interesting reading. The way for Chinese vendors to win would be to have Chinese incentivised lease financing, particularly in a time of higher interest rates a la Huawei in the telecoms markets.
American men are dying younger. – by Richard V Reeves – I just don’t think this can be addressed in the current climate of othering and privilege. It would be like trying to hold a meaningful discussion on immigration a few decades ago.
Xi in Nanning; Shanghai and Beijing real estate tweaks; More Hong Kong bounties; Sim Love | Sinocism – the Hong Kong puts bounty on the head of US citizen who has criticised the Hong Kong government in the US. They are all ethic Chinese. So China and the Hong Kong government think that ethnic Chinese wherever they are should be loyal to their respective administrations – in essence their face is their passport. Not even Israel does something similar with the the world’s Jewish community, or Ireland with our diaspora.
Innovation
Quantum Breakthrough: Caltech Scientists Unveil New Way To Erase Quantum Computer Errors – Researchers from Caltech have developed a quantum eraser to correct “erasure” errors in quantum computing systems. This technique, which involves manipulating alkaline-earth neutral atoms in laser light “tweezers,” allows for the detection and correction of errors through fluorescence. The innovation leads to a tenfold improvement in entanglement rates in Rydberg neutral atom systems, representing a crucial step forward in making quantum computers more reliable and scalable.
Innovation signalling has some similarities with its counterpart virtue signalling in terms of authenticity in terms of behaviour and the projected image. An organisation looks to demonstrate its ‘high degree’ of innovation with actions and projects with the external image firmly in mind. There may be an internal learning, or business benefit to this as well, but the image projected is the main objective.
As I wrote this post a collaboration between Moncler and Adidas dropped putting innovation signalling at its core involving both involving NFTs and AI generated designs and models.
Open Sea has an NFT where the owner gets a Rolex watch on submission of the NFT. This has since been extended into the US market by CRM Jewellers in Miami.
AI has its place for instance, simulating and optimising product design based on physical properties. NASA has used AI for just this purpose in conjunction with additive manufacturing techniques for small production runs of parts needed for the space programme.
It’s not just the luxury sector
This might read like I have been picking excessively on the luxury sector. I use them as exemplars mainly because their examples are so high profile. But there are examples in other sectors. For instance, Walmart partnering with IBM to use block chain to track individual lettuce heads from farm to customer trolley.
There were similar partnerships that IBM hatched with Unilever, Nestlé and Dole Foods as well, but the fruits of these projects were not publicised to the same degree.
You can find similar posts here and this metaverse discussion paper that helps to cut through the blockchain and metaverse hype.
An Outfit to Match Your Chain – Google Drive – Highsnobriety has interviews where these intersect with luxury and fashion. It will be probably handy for a couple of client presentations
Technonationalism as a term has started to spring up in Chinese policy discussions regarding technology trade with the US and China.
Technonationalism origins
Technonationalism is a term used by economist Robert Reich in 1987 to describe the relationship between technology and national security. Reich used the term in an article that he wrote for The Atlantic. It originally referred to the intervention of the Reagan administration in the United States to prevent the acquisition of Fairchild Semiconductor by Japan’s Fujitsu. Reich felt that the Reagan administration mis-understood the the technology problems faced by the US and blocking the Fujitsu-Fairchild deal was the wrong thing to do.
Elkor Labs photo of Fairchild Semiconductor exhibition stand.
The China effect
In English language usage, it started to be mentioned in publications as far back as 1969 and seems to have had two distinct peaks. The first was from the Brezhnev-era Soviet Union through to 1990. The second peak coincides with China’s rise.
From a Chinese perspective, strategic conflicts between major powers have revitalised the concept in the international political arena. Of course, this ignores China’s own actions and their perceptions by other countries:
Chinese government policies to promote economic independence and induce strategic dependence of other states across all infrastructure technologies – or as the FT calls it ‘Fortress China‘
Today, the competition between China and western democracies is focused on critical materials like pharmaceuticals and a range of strategically important advanced technologies.
These sectors include:
Electric vehicles (or as they are called in China new energy vehicles)
Drones, virtual reality,
Various type of machine learning ‘artificial intelligence’
Big data and data mining
Robotics and automation
5G networks
The Internet of Things (IoT),
Synthetic biology
This conflict is considered more severe than the US – Japanese semiconductor trade friction of the 1980s. But Japan and the US were largely aligned from a political, defence and economic perspectives during this time.
The technology related to disputed sectors are seen as key to the next generation of defense systems, industrial capabilities and information power China and western democracies.
Neo-liberalism & technonationalism
This implies that economics is an extension of defence rather than completely separate, as implied by the western neo-liberal laissez-faire approach to globalisation. This places company leadership dead set against the wider interest of their own western countries. During the cold war with the Soviet bloc western companies were much better aligned with their country’s interests.
Palmer Luckey’s Anduril represents a notable exception in Silicon Valley and its attitude is remarkably different to the likes of Apple or Microsoft.
Post-war Asian miracle model
While technonationalism as a term was given voice in the mid-1980s, one could consider the directed economy efforts by the likes of MITI in Japan and its counterparts in Taiwan and South Korea as being technonationalist in nature.
From this perspective, technonationalism played a crucial role in post-World War II economic and industrial policies, fostering domestic industries, promoting scientific and technological innovation. These polices propelled Japan to become a global technological power. Korea took a similar tack with Park Chung Hee’s compact with the chaebols and the Taiwan government was crucial in the roots of Taiwan’s dominance in semiconductors.
Back to the present
The current increase in technonationalism by China and western democracies means that international trade in many fields will continue to change due to national security concerns evolve. This is often masked in language such as de-risking, de-coupling and de-globalisation.
