          
          
          
                      The Japanese Consumer
          
          Your company should carefully consider the characteristics 
          and preferences of the over 123 million consumers in Japan.  
          Japanese consumers are the most discriminating shoppers in 
          the world.  They have become increasingly sophisticated in 
          their tastes and demand high quality and good after-sales 
          service in the products they purchase.  After-sales service 
          in Japan is an "attitude."  It is not uncommon for a 
          Japanese manufacturer to apologize for a breakdown in a 
          piece of machinery it serviced two years ago when the 
          customer returns to purchase another product.  The Japanese 
          also continue to be rather brand-conscious, but a trend 
          toward individuality has been noticeable in recent years.  
          The Japanese make greater demands in terms of the 
          appearance of a product.  Packaging is a very important 
          factor in marketing.  For example, the gift-giving market 
          in Japan is very large.  However, great emphasis is placed 
          upon the packaging with less importance placed on the gift 
          itself (typically in the $10-$15 price range).  In 
          addition, for trade shows, the presentation of the product 
          and the booth is as important as the product itself.  
          Remember, image is everything in Japan.
          
          The standard of living in Japan is relatively high, 
          although housing standards and the amount of leisure time 
          are lower than in other industrialized countries.  Medical 
          care in Japan is good, a nationalized health care system is 
          in place, and the Japanese life expectancy is among the 
          highest in the world.  The Japanese education system is 
          topnotch and the literacy rate is approximately 99 percent.
          
          According to the Japan External Trade Organization (JETRO), 
          Japanese families tend to spend the largest part of their 
          monthly income on food (27 percent), followed by hobbies 
          and leisure (12 percent), housing (5 percent), and clothing 
          (5 percent).  Monthly expenditures on leisure have been 
          increasing recently as the Japanese economy becomes more 
          consumer-oriented.  Homes in Japan, particularly urban 
          areas, are very small.  This fact should be taken into 
          account by your company because the lack of storage area in 
          most homes limits the amount and size of Japanese 
          purchases. Furniture and appliances therefore must be 
          scaled down in size in order to fit into most Japanese 
          homes.  Likewise, since the Japanese tend to be smaller 
          physically than Westerners, clothing and shoe sizes should 
          be scaled down to fit the local standards.
          
          The consumer market in Japan is segmented according to 
          factors such as age, sex, income level, and lifestyle.  
          While the mass media's nationwide influence and 
          standardized education have contributed to the homogeneity 
          of the Japanese population, regional differences exist in 
          areas such as climate and cuisine.  Tastes vary 
          tremendously depending on age and sex in Japan.  Like their 
          American counterparts, Japanese young people tend to enjoy 
          trendy items.  Japanese college students have more leisure 
          time than junior or senior high school students.  The 
          average male white-collar worker in Japan spends a portion 
          of his salary on dining, alcohol, lunch, golf, cigarettes, 
          hobbies and leisure. A noteworthy trend of equivalent wage 
          earning females is that they spend more money than their 
          male counterparts.  These women, along with single males 
          and students, are leaders in consumer spending in Japanese 
          society due to their high incomes and large discretionary 
          spending habits. After men join the work force, they become 
          more conservative and usually have less money for 
          discretionary spending.  Until marriage, young working 
          women usually live at home.  Once married, they tend to 
          leave their jobs in order to manage their households, 
          including the family budget.  Another significant change in 
          the consumer market is the graying of Japanese society as 
          more and more Japanese are nearing retirement.  Retired 
          persons tend to have more leisure time and more 
          discretionary income.
          
              How to Please the Japanese Consumer
          
          The following tips should help you satisfy the needs of 
          your potential customers:
          
          Give a High Level of Support to Customers:  In virtually 
          every product or service sector, markets in Japan are 
          competitive to a degree unknown in most other countries.  
          Consequently, Japanese buyers, agents, and distributors at 
          all levels of the distribution chain are accustomed to 
          receiving a higher level of support than many foreign 
          suppliers normally provide.  Suppliers commonly provide 
          comprehensive personnel services, including actual staffing 
          of retail points of sale and training of the buyers' 
          personnel.  Suppliers also work with buyers to help develop 
          uses and applications for products.
          
          Know Every Detail:  Because large numbers of companies are 
          struggling to increase market share in all sectors, they 
          have become adept at identifying small niches in their 
          sector and being the first or best at creating products 
          meeting specialized demands in those niches.  Successful 
          differentiation of your product is necessary to set your 
          product apart from the competition.
          
          Design for the Market:  The fragmentation of sectors into a 
          multitude of small, specialized niches and the willingness 
          of Japanese companies to create products to fit those 
          niches means suppliers must work closely with all levels of 
          the distribution chain to provide products specifically 
          designed for their target market.  In the United States, a 
          market is often created for a product; in Japan, the 
          product must be tailored for a specific market.
          
          Expect Small Orders at First:  Small initial orders are a 
          natural outgrowth of competition, differentiation, and the 
          Japanese willingness to design for the market.  The 
          companies and people involved with a new product must 
          assure themselves that the item will meet the specific 
          needs of the customer by testing the market.
          
          Emphasize Quality:  Attention to quality standards is 
          perhaps the most important aspect of the Japanese market.  
          The Japanese are accustomed to high quality and they insist 
          on it.  The concept of quality applies not only to the 
          product, but to its presentation as well.  For instance, in 
          day-to-day life, how food is presented and the way gifts 
          are wrapped are just as important as the items themselves.  
          Your firm must do its homework and be sure that items 
          translated into Japanese are properly prepared and free of 
          grammatical and typographical errors.
          
          Recognize Japanese Sense of Structure:  Japanese are proud 
          of their strong sense of unity, organization, and 
          structure.  In group meetings, your firm should make clear 
          through its actions who is the "point person" or senior 
          spokesperson for the group.  This action often can be 
          accomplished through the use of business cards.  Exchange 
          of business cards is a necessary formality in business 
          meetings, and it is advisable to have them translated into 
          Japanese on the reverse side.  Also, it is often a good 
          idea in initial meetings to outline your company's 
          structure and history.
          
          Demonstrate Reliability:  To succeed in Japan, it is very 
          important to keep promises made and to respond promptly to 
          communications from Japanese business and trading partners, 
          especially when problems or emergencies arise.  Reliability 
          extends to permanence in the marketplace.  The Japanese 
          need to know that you will be in the market for the long 
          term.
          
          
