|
According to the media, Japan's economy is now resurgent and consumers are once again beginning to spend. What are the latest crazes to capture the imagination of the Japanese at this time of opportunity?
Japan's largest business publisher, Nikkei, recently compiled a ranking of hit products for the last year based on a set of such criteria as sales, social impact and media exposure.
Digital audiovisual equipment topped the list. Three products that fall into this category - flat plasma displays, DVD recorders and camera phones with advanced capabilities - have been consistently making it to top of the Nikkei Marketing Journal ratings over the past few years.
The contemporary design of plasma panel and LCD TV sets by Hitachi and Pioneer made them especially popular, with sales increasing by approximately one-third annually.
The market for DVD recorders has seen exponential growth in the last few years, with more and more high-capacity models (for example, a model with HDD of 160 gigabytes by Diga, of Matsushita Electric) in lower price ranges being introduced. DVD recorders, with prices under 100,000 yen, are definitely making the transition from being fancy, overpriced luxury items to becoming accessible to the average household.
 |
 |
 |
| Mobile phone with megapixel digital camera |
Megapixel camera phones, with a camera resolution of over 1 million pixels, are further strengthening their position as status symbols among young men and women. According to Mitsubishi Research Institute, a Japanese think tank, over 16% of men in the age group of 20-30 years old own a mobile handset equipped with a megapixel camera (one of the popular models actually looks like a camera). Mobile phones as a product category seem to have overcome the seemingly insurmountable challenge of insufficient capacity of existing terminals, making enhanced mobile communications an affordable luxury.
Middle-aged shoppers have triggered a Showa-era (1926-1989) products consumer craze. With higher discretionary income than the youth market and nostalgia for days gone by, they increasingly have been purchasing compilation CDs of hit songs from their youth. Marketers in turn have rapidly responded to the trend by creating and re-creating shopping centers with a 1950-60s atmosphere (like the one in Odaiba, Tokyo Bay area) selling various items from CDs with Showa era music to traditional confectionary.
The Roppongi Hills Mori Tower became a new landmark in the entertainment and commercial district of Roppongi in central Tokyo. Opened in April 2003, the 54-storied office/shopping complex has attracted millions of visitors with its designer-goods boutiques and gourmet restaurants that offer some of the best international dining experiences in town. Having quickly become a prestigious office and residence space for Japanese and foreign multinationals, the building features The Roppongi Hills Club on its top floor - an exclusive club for Tokyo's business elite.
Upscale clothing for men and children has done especially well in the last year. Isetan Department Store has remodeled their annex that sells men's clothing, targeting "mature men" in the 30s and 40s. The new sales space is designed to entice male customers to spend more time in the store browsing at a leisurely pace. Parents have been snatching up upscale clothing brands for children, such as Salvatore Ferragamo, Theory and the Japanese brand Angel Blue (Narumiya International Co.).
Cyclone vacuum cleaners are among the winners as well. The product does not require disposable bags and is more powerful, justifying a significant price premium over conventional vacuum cleaners. Sales of cyclone models (both Japanese and foreign brands, such as Dyson) grew 30-40%.
A variety of services in railway stations have attracted consumers and media attention, while taking advantage of unused space. Commuters can find gourmet supermarkets, beauty salons, and "depachika" (with better selections than convenience stores and more reasonable prices than department stores). Even unlikely services such as English language schools are conveniently placed for the busy traveler.
The Osaka-based Hanshin Tigers' first-time victory in baseball's Central League produced a consumer frenzy in the entire greater Osaka area, and not just among hardcore fans themselves. According to a Japanese think tank owned by UFJ group, Hanshin Tigers' shopping totaled to at least 600 billion yen, enhancing sales in various categories from fashion and sports goods to confectionary. In general, sports event-related spending sprees tend to make it to the top of Nikkei ratings. Indeed, products with World Cup Soccer themes won the title of #1 in 2002 - a year when the Japanese economy is said to have bottomed out.
The need to rejuvenate is universal - and it made urban hot springs and Healthya green tea very appealing to customers across all age groups. Healthya green tea, by Kao Corporation, contains double portion of catechin, a substance said to decrease body fat. Urban spas have spread out throughout Central Tokyo, redefining relaxation and providing a healing, relaxing, and enjoyable experience for old and young alike, while catering to the diverse lifestyles of Tokyoites. Hot spring spa theme parks such as Oedo Onsen Monogatari and LaQua, equipped with other non-traditional facilities such as tennis courts, compete with weekend retreats and resorts.
Looking at these recent heavy hitters, it's evident that, reversing the trend of the last few years, deep-discounted items have disappeared from the ranking. High-performance consumer electronics and household goods are enjoying increased popularity along with goods aimed at older shoppers.
Combining these trends with the growing presence of foreign-owned businesses in recent years, it's easy to see Japan will be a priority for global marketers in the years to come...
|
