Get documents about "Asia
Document Sample
Doing Business in Japan
2010 Road Show Presentation
Presented by Sumio Shibata
1
State of North Carolina Japan Office
2
3
4
5
GDP in 2009
Japan $ 5,095 billion
China $ 4,909 billion
(Source: Nikkei 1/21/10)
6
7
8
Real GDP Growth Overview
Japan USA Japan USA
4 10.0
3.1 2.7 2.1 2.7 2.4
3 5.6
2
6.0
2.2 5.0
1.9 2.0 2.4 1.7 2.2
1 3.8
0.4
0 0.0
△ 2.4
-1 △ 0.7 △ 0.6
△ 6.4
-2
△ 1.2 -5.0
-3
-4 -10.0
-5
△ 5.2 △ 13.7
-6 -15.0
2005 2006 2007 2008 2009 2010(*) 2011(*) Jaｎ-Mar Apr-Jun Jul-Sep Oct-Dec
(*) IMF world Economic Outlook Update Forecast 1/26/10 2009
9
Source: Cabinet Office, Government of Japan / USDOC Bureau of Economic Analysis
BOJ chief sees signs of sustainable
economic recovery
The Governor told reporters
economy has been picking
up on 4/7/10
(vs. March statement :
Economy is picking up)
He will raise current economic
projection
FY2010 FY2011
GDP +1.3% +2.1%
Bank of Japan
CPI -0.5% -0.2%
Governor
Masaaki
(Source : Nikkei Newspaper April 8, 2010)
Shirakawa 10
New Hatoyama Cabinet
• Growth Strategy for Economy
“For a Shining Japan”
2% yearly GDP growth through
2020
Economic growth driven demand
expansion (No more heavy
reliance on public work
projects)
DPJ (Democratic
11
Party of Japan)
New Hatoyama Cabinet
(cont’d)
• Reinforcement of the environment &
energy-related industries
• Enhancement of the health care sector
including medical and nursing services
• Promotion of science and technology
(platform for backing up the envisioned
growth)
• Government to finalize new growth
strategy by around June
12
Approval Rating in Japan
Approval Rating of Hatoyama Cabinet Parties Approval Ratings
%
80 %
60
70
50
non-approval (57)
60
50 40 DPJ (33)
40
30
30 approval (36)
20 LDP (23)
20
10
DPJ: Democratic Party of Japan
10
LDP: Liberal Democratic Party
(Source: Nikkei Newspaper March 29, 2010) 13
Population & Land size
• Population of
127 million
・41% of USA
(307 million)
• Land Size of
146,000 sq miles
・ 4% of USA
(3,787,000 sq miles)
14
Population
Japan 127
million
Tokyo Metropolitan
Area : 33 million
Osaka Metropolitan
Area : 21 million
KANSAI
Greater Nagoya :
15 million
Fukuoka : 5 million
Hokkaido : 5 million
15
Ties to the U.S.
• Japan is the United
State’s 4th largest Export
Market, after Canada,
Mexico and China.
• Second largest foreign
investor in the U. S., with
more than $230 billion
invested, second only to
U. K.
• The U. S.-Japan alliance
is a cornerstone of U. S.
security interests in Asia
and is fundamental to
regional stability and
prosperity.
16
(Source: U.S. Commercial Service / 2010 Country Commercial Guide)
Ties to the U.S. (cont’d.)
• The Foreign Ministry
of Japan released
“The Diplomatic Blue
Book 2010”
• Japan pledges to
deepen security
alliance with U.S. to
serve as a basic
framework to secure
the stability of Asia- (Source : Kyodo News, April 7, 2010)
Pacific region 17
Japanese Subsidiaries in the Piedmont Triad
Region (Manufacturers only)
18
Investment in NC
• Toshiba America • Mori Seiki, one of
Nuclear Engineering leading machine tool
Corporation companies in Japan
Opened engineering Opened Charlotte
center in Charlotte in Technical Center in
August, 2009. January, 2009
# of personnel : 200
(by 2013)
19
クリスピー・クリーム in Tokyo
NC Investment in Japan
20
Top 10 U.S. Exports to Japan
(2009)
Optical, Medical Instruments 5,850
Aircraft, Spacecraft, And Parts 5,328
Industrial Machinery, incl. Computers 4,489
Cereals 4,168
Electric Machinery 4,049
Pharmaceutical Products 2,279
Meat 2,008
Inorganic Chemicals 1,913
Oil Seeds/Grain/Seed, Fruit 1,715
Plastics 1,404
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
*Total Export : $ 51 billion (2008 : 65 billion) Unit : $ 1 million
21
Source : WISERTrade
NC Exports to Japan (2010)
NC is 10th among all
US states for exports
to Japan
$1.5 billion in NC
exports to Japan
Japan is 4th largest
market for NC
exports
(HondaJet at GSO) (Source : SMARTrade)
22
2009 NC Exports to Japan
($1.5 billion)
Chemical/Plastic 457
Tobacco 345
Meat 175
Pharmaceutical Products 74
Industrial Machinery, incl. Computers 68
Gear Box for Car, etc. 66
Wood Pulp 51
Optical Fiber 48
Light Emitting Diode 46
Prevision Metal Article 34
Aircraft, Engine 24
Furniture 16
Apparel 4
0 100 200 300 400 500
Unit : $ 1 million 23
Source : WISERTrade
Emerging Sectors for NC Export
• 1) Biotechnology
• 2) Nanotechnology
• 3) Renewable（Green) Energy
• 4) Senior Market
24
1) Biotechnology/Pharmaceuticals
in Japan
• Market size of Biotech • Japanese pharmaceutical
industry : $24.3 billion in companies eagerly seek
2008 (+27.9% over 2007) new drug candidates and
• Leading sub-sector : pipeline identified or
medical biotech $6.85 developed by US biotech
billion (Source : Fuji Keizai) companies to be further
developed into new drugs
• <High growth potential>
Therapeutic antibodies
Molecularly targeted
(Source : U.S. Commercial Service)
cancer therapies
25
Biotechnology/Pharmaceuticals
Key market segments for (cont’d.)
Biotech
Medical Care
Food
Bio Tool & Information
(Bioimaging analysis
equip., DNA Chips,
Protein/Gene Analysis
Equip)
Environment & Energy
26
1) Biotechnology/Pharmaceuticals
World second largest consumer
of pharmaceuticals
American pharmaceutical firms
have a market share of almost
20%
Japan’s aging population is
generating increased demand
for pharmaceutical treatments
for cardiovascular problems,
metabolic, gastrointestinal,
CNS. Generic drugs have
good potential 27
World Medical Pharmaceuticals Market
(unit : billion dollars, numbers on parenthesis : % )
【 2005 Average rate 】
Asia/Africa/Australia 46.5(8.2%) 1 dollar = 109.64 yen 1 euro = 136.97 yen
Latin America
24(4.2%)
In Addition Europe
53.4(9.4%) United States
252.2(44.6%)
The market scale
Spain of medical
15(2.6%) pharmaceuticals
566.1 billion
Britain
19.5(3.4%) dollars
Italy
19.6(3.5%)
France
30.3(5.4%)
Canada
Germany
13.5(2.4%)
31.8(5.6%)
Japan 28
<Source: GSK annual report 2005.Dec.> Japan
60.3(10.7%) Bioindustry
Association
Bio Japan 2010
• September 29-October 1,
2010 at Yokohama
Pacifico
• Main themes for
exhibition/seminar are
Health, Environment, and
Food (Functional Food,
GMO)
• Please join us to exhibit
at NC Commerce’s booth
29
2) Nanotechnology
• METI’s Strategic Technology
Roadmap 2009 designated
Nanotech as one of most
important fields(*) in science
and technology to promote R
& D investment in the public
& private sectors.
(*) Life Science, Information
& Communications,
Environmental Sciences,
Energy and etc.
30
(The Ministry of Economy, Trade, and Industry)
Nanotechnology (cont’d)
• Market : $60 billion in 2010 (estimated)
$230 billion by 2015
Market Segment :
Electronics, Energy/Environment, Medical
Applications, Measurement Instruments
2015 (billion of US$)
Electronics 72
Energy/Environment 49
Medical
33
Applications
Measurement
25
Instruments
31
0
(Source : Nomura Research Institute) 20 40 60 80
“Japan Analytical
Instruments
Manufacturers’
Association” EXPO
September 1-3, 2010
at Makuhari Messe
• Free of charges to display and distribute your
literatures at NC Japan Office’s booth 32
3) Renewable（Green) Energy
Renewable energy
technologies such
as photovoltaic
solar panels,
biomass-to-ethanol,
lithium-ion
battery for
hybrid car &
electric vehicle
are promising
sectors in Japanese
market now. 33
34
35
Greenhouse Gas Emission
Reduction by 2020 (Pledges)
• Japan : 25% from 1990
levels
• USA : 17% from 2005
levels
• E U : 20-30% from 1990
levels
• China 40-50% from 2005
levels (*)
• India : 20-25% from 2005
levels (*)
(*) amount of CO2 emitted per
unit of GDP, or <CO2/GDP>
36
(Copenhagen Climate Summit, January, 2010)
Seven-Eleven Eyes 20,000 Green
Stores Worldwide In 5 Years
• LED technology for signs and
lighting, generate electricity from
solar power, and feature hot-water
systems utilizing waste heat from
air conditioners. Some will even
have rechargers for electric
vehicles
.
• Green technology is seen slashing
store energy consumption by as
much as 30% and will also cut
greenhouse gas emissions
(Source : Nikkei April 6, 2010) 37
38
Exhibited at :
“Japan Green
Device Show”,
October, 2009
“Japan Home
Show”,
November,
2009 39
4) Senior Market
Percentage of age 65
and older Comparison of aged population
Japan 19.7(%) 2000
USA 12.3
Average Life Expectancy
Women Men
Japan 86 79
USA 79 76
• Average saving of households
of people aged 60-69 years
old: $245,000 (after debt)
• Average income : $59,000
(Source : JETRO) 40
Deflation Makes Older People
Key Consumers
• CPI in 2009 : -1.2%
• Households of
persons aged in 60s :
Net savings of
$230,000.
Consumption rose
1.2% in 2009
• Households of persons
aged in 30s : Net debt
of $19,700.
(Source : Nikkei April 5, 2010)
Consumption dropped
41
1.1% in 2009
Senior Market
(cont’d)
• Promising market
for, Medical
care/welfare
& services
Leisure products
Home remodeling
Travel
Pet products
42
Opportunities for NC Exporters
• Aerospace
• Computer Software
• Electronic
Components
• Medical Equipment
• Safety & Security
• Furniture
43
Aerospace
14,953
Market Size
13,833
11,017
Imports
10,887
9,352
Imports from the U.S.
9,044
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
(Millions of U.S. $)
2007 2008
(Source: Ministry of Finance, Ministry of Economy, Trade and Industry, and
Society of Japanese Aerospace Companies) 44
Aerospace (cont’d)
• Aerospace industry is • Best Prospects :
shifting the focus from
Defence (56%) to Civil
(44%) in 2008 Aircraft parts and
supplies, Avionics
• Japanese makers such
as Mitstubishi Heavy
Industries, Kawasaki, Fuji
are supplying 35% of
Dream Liner, or 787
content to Boeing
(Fuselage, and etc.)
45
Computer Software
(Millions of U.S. $)
• Interest shifting from 7,589
Market Size
on premises legacy 7,239
software
3,892
to SaaS Imports
3,526
(Software-as-a-
Service) and cloud Imports from 3,503
the U.S.
computing 3,174
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
2008 2009
(Source: JEITA, JISA and unofficial
CS estimates.) 46
Computer Software (cont’d)
Best Prospects :
Smartphone
applications, security,
SaaS(*), Smart Grid,
Cloud Computing
(*)Software as a
Service
47
Computer Software (cont’d)
Key Elements to launching in the
Japanese market :
a) Localization : translation,
testing, customization
b) Support Capability : Japanese
language support is mandatory
c) Products Quality : High quality
control is a very important
consideration for Japanese
users
48
Medical Equipment
(Millions of U.S. $)
• In 2008, imports
32,727
took 50% of the Market Size
21,688 (est.)
market.
• U.S. producers
19,530
Imports
10,282
hold 60% share of
import, viz., Imports from 11,718
the U.S. 6,169 (est.)
accounted for 30%
of Japan market. 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
2008 2009
(estimate)
(Source: Ministry of Health, Labor and Welfare. CS Japan)
49
Medical Equipment (cont’d)
Best Prospects :
For chronic and life-
style diseases,
medical devices
alleviate pain,
complement lost
functions, improve
quality of life.
50
Safety and Security
(Millions of U.S. $)
• The number of crimes
has decreased since Market Size 6,192.2
2003. However, 5,922.7
Nikkei survey shows
75% of public had Imports
619
592
concerns about
security.
Imports from n/a
• Market for IP-based the U.S. n/a
surveillance
equipment continues 0 1000 2000 3000 4000 5000 6000 7000
to grow strongly 2008 2009
(estimated)
51
(Source: Fuji Keizai)
Safety and Security (cont’d)
Best Prospects :
• Biometric-related solutions
• Drug/explosive detection
equipment & systems
• Personal/container screen
systems
• Nuclear/biological/chemical
preparedness equipment
and medicines
52
Furniture
53
Furniture (cont’d)
• Japan is 3rd largest Best Prospects :
importer of NC
furniture after Canada, a) Compact and high-
and Saudi Arabia. end, medium-high
furniture
• Largest importer of (Area of average
NC Mattress Japanese house :
• 2nd largest importer of 900 sqft. Vs. U.S.
NC Wood furniture house : 2,300 sqft.)
b) Unique furniture
54
55
Kennedy Rocker
56
Bottom Line
• World’s second
largest market
• Open business
climate with
transparency and
rule of law
• Resources ready to
assist your firm in
entering the market
The Japanese market is one of the most competitive
in the world. But if you find success in Japan, you
can use Japan as gateway to Asia. 57
Tips for successful entry
Tips
Preparation On Paper
before contacting potential partners
• Prepare written company information
●Company profile including company history
●Profile of president
●Sales/Statistics (incl. paid-in Capital)
●Your objective
• Product/Service information
●Emphasize positive aspects such as
Uniqueness, Originality
●Domestic Market Successes (Track Record)
58
Tips for successful entry (cont.’d)
Tips
Attitude aimed at success
• Communicate in simple English and
quick follow-up
• Stress uniqueness of Product
• Have patience with ”Trial and Error”
• Be flexible
• Keep schedules, promises,
commitment is key
59
Tips
Most Common Mistake
Made
by Foreign Partners
• “Cold calling” prospective buyers in
Japan
• The Japanese prefer to do business
with someone only when they have
been properly introduced
• Rely on an introduction by a “go-
between,” such as the North Carolina
Department of Commerce
representative in Tokyo
60
What can the NCDOC Tokyo
Office do for you?
• We work seamlessly with ITD BDMs
(Business Development Managers) to
provide you with
– Market research
– Basic Translation services
– Temporary office space in central downtown
Tokyo location
– Trade show assistance
– Logistics/lodging assistance
– “Fast Track” partner search services
61
How does Fast Track work?
• Market research
• Partner profiling and screening
• Introduction to potential partners
• Scheduling of face-to-face meetings
in Japan
• Basic translation of marketing
collateral for business meetings
62
Where to start?
• Contact International Trade Division, NC
Department of Commerce
BDMs ( Business Development Managers)
tel. 919-733-7193
http://www.nccommerce.com/en/BusinessServi
ces/InternationalBusiness/InternationalTrade
Services/
• Contact Sumio Shibata, NC Trade
Representative in Tokyo
info@nctokyo.com
tel +81-3-3435-9301
fax +81-3-3435-9303 63
Thank you very much
64
Related docs
Other docs by pengtt
Introduction to IPv6 IPv6 deployment IPv6 Forum IPv6 Transition support IPv6 IPv4 and
Views: 5 | Downloads: 0
