FC NOW: The Fast Company Weblog
July 21, 2005
New Challenges for Japan
In a recent conversation, I had the opportunity to hear Peter Drucker discussing potential challenges faced by Japan:
- China, South Korea and other parts of the region are becoming increasingly competitive. For example, the products from several South Korean companies are given increasingly high ratings for quality - Japan used to be way ahead in this area.
- The Japanese ecomomic miracle was created by a workforce that was extremely motivated, hungry and driven. The new generation of younger Japanese workers may not have the same level of drive.
- I was amazed by the emotion behind the anti-Japanese marches when I was recently in China. Questions regarding what happened in World War II sill produce a lot of anger.
If you were an advisor to the Japanese government (or to large Japanese companies) - what suggestions would you have? Predict the economic future - what is going to happen in Japan?
Posted by Marshall Goldsmith at July 21, 2005 11:40 AM | Category: globalization |
5 Comments
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My company, GMI, looked at U.S. consumer opinions toward Asian brands and found that Japanese products, particularly cars, ranked well above Chinese and Korean brands. However there were signs that Chinese brands in particular could challenge down the road. OUt of the 1,000 Americans polled, we found that the 45-69 age group still hold very negative views toward Chinese brands (60%+) but the younger consumers 18-29 held 'no opinion' of Chinese brands (~60%). Chinese brands thus have an opening from which to mold their brand identity and possibly challenge Japanese dominance.
As a 63-year-old guitarist (yes, there are such people who play guitar), I am continually impressed with the quality, craftsmanship, and price point of the stunning guitars and other fretted musical instruments coming our way from Korea. As I understand it, Samick, a Korean company, makes more guitars than any other manufacturer in the world today. Their factory(factories?) produce musical instruments under an almost endless variety of proprietary names (made-to-order, mass-produced electric, classical and acoustic flattop guitars) for musical instrument retailers who want their own "store brand name"...such as the Carlo Robelli fretted instruments produced for a West Coast retailer. Korean manufacturers are making better known "brand name" fretted instruments for such legendary U.S. musical instrument names as Gibson/Epiphone, Washburn and Gretsch, among others. If I were a Japanese competitor of Samick, for example, I know that my Japanese quality is superb (remember TQI?)...so I would concentrate on "design"...enhancing the "process" of guitar making with fine art...using more exotic woods, heavily (abalone) inlaid fingerboards (for the showman), stunning new colors (pastels to attract female players?), elaborate engraved gold hardware throughout the instrument...and promote these mass-produced instruments with recurring "Win This Guitar!" media campaigns and related promotions designed to pull in entry mailing list names to be used for subsequent mailings/emailings to keep up interest in the Japanese brand among guitar players worldwide. Design a one-of-a-kind "masterpiece" guitar as a "advertising" gimmick to be used in all print and video ads...and to be shown as the "showstopper" at national and regional trade shows and local guitar shows. Promote media events to support the brand name. Make (well-publicized) "donations" of representative Japanese guitars to non-profit music organizations, such as Mr. Holland's Opus Foundation in California. Offer the use of one of the Japanese guitars to "hot" local bands to gain additional exposure (and support!) of the Japanese instruments, and promote a "day-in-the-life" of a "(name) Japanese guitar...showing the Japanese craftsman/artisan transforming tree parts into works of art. In essence, the marketing secret is not new: "Sell the 'sizzle', not the steak!" (I'll have the terriyaki, please...skip the kimchee!"
Every time I think the Japanese are "doomed", something happens to remind me that they are ahead of the curve. I'm not worried about Japan. I'm worried about America.
The best example is the Toyota Production System. American companies are falling over themselves to implement replicates of the famous system. But the difference I see is cultural. The Japanese are taught to value continuous improvement. Maybe not taught but it seems to be a part of their culture. It is the way they think. American companies can talk "lean" but can they sustain it? Current workers can be trained and may buy into a lean initiative but what about new workers that come from outside. Does American culture promote getting lean and eliminating waste?
While we are obsessed with getting lean, I'm certain the Japanese are moving on to the next great initiative.
No, I'm not worried about the Japanese.
I agree with Stephen that the Japanese work ethic has definitely not waned. Young Japanese workers still take less vacation days than their foreign counterparts and pick 'work overload' as the main reason they don't go on holiday. However if they work hard and build a good product, will they still be undercut by the cheaper yet less 'shiny' Chinese or Korean models? The cheaper autos from Korea, with added European syling, come to mind.
Dear reader; Samick Guitar should change the design of their headstocks[very ugly].I believe it would[eventually]help sales.