Download - Doing Business in Japan 2010

8/9/2019 Doing Business in Japan 2010

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Doing Business in Japan

2010 Road Show Presentation

Presented by Sumio Shibata

State of North Carolina Japan Office


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GDP in 2009

Japan $ 5,095 billion

China $ 4,909 billion

(Source: Nikkei 1/21/10)


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3.7

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3.8

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Re l GDP Growth Overview

Source: Cabinet Office, Government of Japan / USDOC Bureau of Economic Analysis

Ja-Mar pr-Jun Jul-Sep Oct-Dec

2009

2005 2006 2007 2008 2009 2010(*) 2011(*)

(*) IMF world Economic Outlook Update Forecast1/26/10


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BOJ chief sees signs of sustainableeconomic recovery

The Governor told reporterseconomy has been pickingup on 4/7/10

(vs March statement :Economy is picking up)He will raise current economicprojection

FY2010 FY2011GDP +1 3% +2 1%CPI -0 5% -0 2%

(Source : Nikkei Newspaper pril 8, 2010)

Bank of JapanGovernorMasaaki

Shirakawa


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New Hatoyama Cabinet

Growth Strategy for Economy

For a Shining Japan

2% yearly GDP growth through2020

Economic growth driven demand

expansion (No more heavyreliance on public workprojects)

DPJ (Democratic

Party of Japan)


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New Hatoyama Cabinet

(contd) Reinforcement of the environment &energy-related industries

Enhancement of the health care sectorincluding 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


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Approval Rating in Japan

(Source: Nikkei Newspaper March 29, 2010)

1

30

0

0

0

70

80

Approval Rating of Hatoyama Cabinet

non-approval ( 7)

approval (3 )

%

10

20

30

0

0

0

PartiesApproval Ratings

DPJ (33)

LDP (23)

%

DPJ: Democratic Party of Japan

LDP: Liberal Democratic Party


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Population & Land size

Population of

127 million

41% of SA

(307 million)

Land Size of

146,000 sq miles

4% of SA

(3,787,000 sq miles)


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Population

Japan 127 million

Tokyo MetropolitanArea : 33 million

Osaka MetropolitanArea : 21 million

Greater Nagoya :15 million

Fukuoka : 5 million

Hokkaido : 5 million

KANSAI


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Ties to the S Japan is the nited

States 4th largest ExportMarket, after Canada,Mexico and China

Second largest foreign

investor in the S , withmore than $230 billioninvested, second only to

K

The S -Japan alliance

is a cornerstone of Ssecurity interests inAsiaand is fundamental toregional stability andprosperity

(Source: U.S. Commercial Service / 2010 Country Commercial Guide)


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Ties to the S (contd )

The Foreign Ministryof Japan releasedThe Diplomatic BlueBook 2010

Japan pledges todeepen security

alliance with S toserve as a basicframework to securethe stability ofAsia-

Pacific region

(Source : Kyodo News,April 7, 2010)


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Japanese Subsidiaries in the Piedmont TriadRegion (Manufacturers only)


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Investment in NC

ToshibaAmerica

Nuclear EngineeringCorporation

Opened engineeringcenter in Charlotte inAugust, 2009

# of personnel : 200(by 2013)

Mori Seiki, one of

leading machine toolcompanies in Japan

Opened CharlotteTechnical Center inJanuary, 2009


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in

TokyoNC Investment in Japan


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1,

1, 1

1,91

2,

2,2 9

, 9,1

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, 2

,

1, 2, , , , , ,

Plast s

Oil s/G ain/ , it

Inorganic C icals

Meat

PharmaceuticalProducts

ElectricMachineryCereals

IndustrialMachinery,incl. Computers

ircraft, pacecraft, ndParts

Optical,Medical Instruments

*Total Export : $ 51 billion (2008 : 65 billion) Unit : $ 1 million

Source : WISERTrade

Top 10 .S. Exports to Japan

(2009)


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NC Exports to Japan (2010)

NC is 10th among allUS states for exportsto Japan

$1.5 billion in NCexports to Japan

Japan is 4th largest

market for NCexports

(HondaJet at GSO)(Source : SMARTrade)


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Emerging Sectors for NC Export

1) Biotechnology

2) Nanotechnology

3) RenewableGreen) Energy

4) SeniorMarket


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1) Biotechnology/Pharmaceuticalsin Japan

Market size of Biotechindustry : $24.3 billion in2008 (+27.9% over 2007)

Leading sub-sector :medical biotech $6.85

billion (Source : Fuji Keizai)

Therapeutic antibodies

Molecularly targeted

cancer therapies

Japanese pharmaceuticalcompanies eagerly seeknew drug candidates andpipeline identified ordeveloped by S biotechcompanies to be furtherdeveloped into new drugs

(Source : .S. Commercial Service)


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Biotechnology/Pharmaceuticals(contd.)Key market segments for

Biotech

Medical Care

Food

Bio Tool & Information(Bioimaging analysis

equip., DNA Chips,Protein/GeneAnalysisEquip)

Environment & Energy


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1) Biotechnology/Pharmaceuticals

World second largest consumerof pharmaceuticals

American pharmaceutical firmshave a market share of almost

20%

Japans aging population isgenerating increased demand

for pharmaceutical treatmentsfor cardiovascular problems,metabolic, gastrointestinal,CNS. Generic drugs have

good potential


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The market scale

of medical

pharmaceuticals

566.1 billion

dollars

2005 Average rate

1 dollar = 109

.64 yen 1 euro = 136.97

yen

JapanBioindustry

Association

United States

252.2(44.6%)

Canada

13.5(2.4%)

Japan

60.3(10.7%)

Germany

31.8(5.6%)

France

30.3(5.4%)

Italy19.6(3.5%)

Britain

19.5(3.4%)

Spain

15(2.6%)

In Addition Europe

53.4(9.4%)

Latin America

24(4.2%)

Asia/Africa/Australia 46.5(8.2%)

World Medical Pharmaceuticals Market(unit : billion dollars, numbers on parenthesis : % )


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Bio Japan 2010 September 29-October 1,

2010 at YokohamaPacifico

Main themes forexhibition/seminar areHealth, Environment, andFood (Functional Food,GMO)

Please join us to exhibitat NC Commerces booth


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2) Nanotechnology

M

ETIs Strategic TechnologyRoadmap 2009 designated

Nanotech as one of mostimportant fields(*) in scienceand technology to promote R

& D investment in the public& private sectors.

(*) Life Science, Information& Communications,Environmental Sciences,Energy and etc.

(The Ministry of Economy, Trade, and Industry)


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Free of charges to display and distribute yourliteratures at NC Japan Offices booth

JapanAnalytical

InstrumentsManufacturers

Association EXPO

September 1-3, 2010

at Makuhari Messe


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3) RenewableGreen) Energy

Renewable energytechnologies suchas photovoltaic

solar panels,biomass-to-ethanol,lithium-ionbattery for

hybrid car &electric vehicleare promisingsectors in Japanese

market now.


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Greenhouse Gas EmissionReduction by 2020 (Pledges)

Japan : 25% from 1990levels

SA : 17% from 2005levels

E : 20-30% from 1990levels

China 40-50% from 2005levels (*)

India : 20-25% from 2005levels (*)

(*) amount of CO2 emitted perunit ofGDP, or

(Copenhagen Climate Summit, January, 2010)


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Seven-Eleven Eyes 20,000 GreenStores Worldwide In 5 Years

LED technology for signs andlighting, generate electricity fromsolarpower, and feature hot-watersystems utilizing waste heat from

air conditioners. Some will evenhave rechargers forelectricvehicles

.

Green technology is seen slashing

store energy consumption by asmuch as 30% and will also cutgreenhouse gas emissions

(Source : NikkeiApril 6, 2010)


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Exhibited at :

Japan GreenDevice Show,

October, 2009

Japan HomeShow,

November,

2009


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4) SeniorMarket

Average saving of households

of people aged 60-69 yearsold: $245,000 (after debt)

Average income : $59,000

Comparison of aged populationPercentage of age 65

and older Japan 19.7(%)USA

12.3Average Life Expectancy

Women MenJapan 86 79USA 79 76

2000

(Source : JETRO)


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Deflation Makes OlderPeopleKey Consumers

CPI in 2009 : -1.2%

Households ofpersons aged in 60s :

Net savings of$230,000.Consumption rose1.2% in 2009

Households of personsaged in 30s : Net debtof $19,700.Consumption dropped

1.1% in 2009

(Source : NikkeiApril 5, 2010)


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SeniorMarket(contd)

Promising marketfor,Medicalcare/welfare

& servicesLeisure products

Home remodeling

Travel

Pet products


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Opportunities for NC Exporters

Aerospace

Computer Software

ElectronicComponents

Medical Equipment

Safety & Security

Furniture


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Aerospace

, 44

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,

,

,

4,

, 4, , , , , 4, ,

por s ro e

pors

Mar e e

(M ll ons o $)

( ource: M n s ry o F nance, M n s ry o Econo y, Trade and ndus ry, andoc e y o JapaneseAerospace Co pan es)


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Aerospace (contd)

Aerospace industry isshifting the focus fromDefence (56%) to Civil(44%) in 2008

Japanese makers suchas Mitstubishi HeavyIndustries, Kawasaki, Fujiare supplying 35% of

Dream Liner, or787content to Boeing(Fuselage, and etc.)

Best Prospects :

Aircraft parts and

supplies,Avionics


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n ngn l g cy

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(S w -as-a-S v c ) and cl udc u ng

(S u c : JE TA J SA and un c a lCS stim ate s.)

( illio ns o fU .S . $)


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Computer Software (contd)

Best Prospects :

Smartphoneapplications, security,SaaS(*), Smart Grid,Cloud Computing

(*)Software as a

Service


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Computer Software (contd)

Key Elements to launching in theJapanese market :

a) Localization : translation,

testing, customizationb) Support Capability : Japanese

language support is mandatory

c) Products Quality : High quality

control is a very importantconsideration for Japaneseusers


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Medical Equipment

In 2008, importstook 50% of themarket.

.S. producershold 60% share ofimport, viz.,accounted for30%

of Japan market.

2 ,688 est.)

0,282

6, 69 est.)

32, 2

9,530

, 8

0 5,000 0,000 5,000 20,000 25,000 30,000 35,000

Imports from

the .S.

Imports

Market Size

2008 2009estimate)

(Millions of .S. $)

(Source: Ministry of Health, Labor and Welfare. CS Japan)


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Medical Equipment (contd)

Best Prospects :

For chronic and life-

style diseases,medical devicesalleviate pain,complement lost

functions, improvequality of life.


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Safety and Security (contd)

Biometric-related solutions

Drug/explosive detectionequipment & systems Personal/container screen

systems

Nuclear/biological/chemicalpreparedness equipmentand medicines

Best Prospects :


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Furniture


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Furniture (contd)

Japan is 3rd largestimporter of NCfurniture after Canada,and SaudiArabia.

Largest importer ofNC Mattress

2nd

largest importer ofNC Wood furniture

Best Prospects :

a) Compact and high-

end, medium-highfurniture

(Area of averageJapanese house :

900 sqft. Vs. .S.house : 2,300 sqft.)

b) Unique furniture


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Kennedy Rocker


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Bottom Line Worlds second

largest market Open business

climate withtransparency and

rule of law

Resources ready toassist your firm in

entering the market

The Japanese market is one of the most competitivein the world. But if you find success in Japan, you

can use Japan as gateway toAsia.

Tips for successful entry


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Prepare written company informationCompany profile including company history

Profile of president

Sales/Statistics (incl. paid-in Capital)

Your objective

Product/Service informationEmphasize positive aspects such as

niqueness, Originality

Domestic Market Successes (Track Record)

Tips for successful entry

Preparation On Paperbefore contacting potential partners

Tips

i


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Tips for successful entry (cont.d)

Attitude aimed at success

Communicate in simple English andquick follow-up

Stress uniqueness of Product

Have patience with Trial and Error

Be flexible

Keep schedules, promises,commitment is key

Tips

Ti


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Most Common MistakeMade

by Foreign Partners Cold calling prospective buyers in

Japan

The Japanese prefer to do businesswith someone only when they havebeen properly introduced

Rely on an introduction by a go-between, such as the North CarolinaDepartment of Commercerepresentative in Tokyo

Tips


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What can the NCDOC TokyoOffice do for you?

We work seamlessly with ITD BDMs(Business Development Managers) toprovide you with Market research Basic Translation services

Temporary office space in central downtownTokyo location

Trade show assistance

Logistics/lodging assistance

Fast Track partner search services


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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 marketingcollateral for business meetings


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Where to start?

Contact International Trade Division, NCDepartment of CommerceBDMs ( Business Development Managers)

tel. 919-733-7193

http://www.nccommerce.com/en/BusinessServices/InternationalBusiness/InternationalTradeServices/

Contact Sumio Shibata, NC Trade

Representative in [email protected]

tel +81-3-3435-9301fax +81-3-3435-9303


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Thank you very much