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- 1. Artisan Economy in JAPAN Economic Design Project Sachino Taki & Takuya Mikado
- 3. “An artisan economy is an economic system in which goods and services are produced by skilled artisans who use traditional techniques and tools to create unique and high- quality products. The focus is on creating goods that are not mass-produced, but rather individually crafted and often tailored to the needs and preferences of the customer. “ (THE NEW AGE OF ARTISANS) WHAT IS AN ARTISAN ECONOMY?
- 4. ARTISAN ECONOMY BENEFITS Craftsmanship serves as a countermeasure to a mass- production/disposal society. People can regain the joy of creation through craftsmanship. DEINDUSTRIALIZE SPUR CREATIVITY Artisans can stimulate the local economy. Craftsmanship of artisans is the local culture itself. INVIGORATE LOCAL ECONOMIES PRESERVE CULTURE
- 5. 3rdin the world after US & China 13th among 132 economies Global Innovation Index 2022 International Monetary Fund Nominal GDP 2022 195th among 228 countries 9th among 180 economies International Monetary Fund 2022 The World Bank 2021 WHERE IS JAPAN’S ECONOMY TODAY? LABOR FORCE GROWTH Japan’s economy is facing a key turning point - India is estimated to surpass Japan’s GDP by 2030 due to prolonged economic stagnation. REAL GDP GROWTH CURRENT GDP RATE OF INNOVATION
- 6. PROBLEM MAPPING Japan’s Economic Stagnation Less diversity Losing ability to innovate Seniority based and hierarchical corporate system Low income and less spending Low global Competitive- ness Aging society Increased expenditure on health and long-term care Urbanization Women’s empowerment Late marriage and Low birth rate Shortage of labor force Loss of cultures and technologies in rural areas Japanese culture has been developed mainly through traditional and unique craftsmanship. Focusing on the artisan economy is key to addressing wicked problems such as aging population, urbanization and shortage of labor force.
- 7. PRE-COVID SITUATION The number of employees also dropped by about 50% over the same period. Regarding the production value of traditional crafts designated by the Minister of Economy, Trade and Industry, it decreased by about 67% from 1999 to 2017. Source: The Association for the Promotion of Traditional Craft Industries However, the artisan economy in Japan is significantly declining.
- 8. DURING-COVID SITUATION Artisan businesses that reported that sales in April 2020 were less than half of those in April 2019 (before Covid hit Japan). Artisan businesses that answered if sales did not return to normal levels, they would have to consider closing their businesses by the end of 2020. 56% 40% Source: AERU inc. report conducted in 2020 N: 367 N: 367
- 9. MAJOR CAUSES With migration of young people to urban areas, there are few people willing to take over the traditions in rural areas. Even if someone wanted to take over, the artisans cannot afford to hire new people due to declining sales. Due to suppliers going out of business as a result of declining sales, necessary raw materials and tools cannot be sourced. Lack of Successors Declining Demand Supply Shortage The background of the market shrinkage is intertwined with a variety of factors.
- 10. How Might We help Japanese artisans’ businesses to preserve our cultures and stimulate the local economy?
- 11. RESEARCH 02
- 12. 1. Desktop Research 2. Experts Interview 3. Fieldwork/ Observation ● Artisan Economy ● Finding cases 4. Insights/ Concept Development ● YAMANE SHUZO ○ A craftsman, who makes SAKE collaborating with a wooden craftsman in another rural area. ● Focus America ○ Japanese person based in NYC, who helps Japanese crafts product company to sell their products in the US market. ● Roman & Williams GUILD: a shop featuring items from the workshops of the world's best artisans. ○ KANEKO KOHYO: Japanese Ceramics Company ● Insights from the research ● Developing concept RESEARCH PLAN
- 13. ● Interview 1: Mr. Fukunari Wakabayashi, Founder of YAMANE SHUZO ○ A Sake Brewery company based in a rural area of Japan. ○ They are selling their products as “Natural Sake” using the locally produced rice, wood and collaborating with a wooden vat craftsman to make high-quality Sake and to differentiate from other brands. ○ They also plan to build a guest house with a workshop that people can join to experience making Sake. ● Interview 2: Mr. Atsushi Semimoto, Founder of Focus America ○ Research & Marketing company based in NYC supporting Japanese crafts company to promote their products in the US market. ○ They sell kitchen, home & wellness products made by Japanese companies. RESEARCH OVERVIEW 1: INTERVIEW
- 14. RESEARCH OVERVIEW 2: FIELDWORK ● KANEKO KOHYO POTTERY @ Roman and Williams GUILD in NYC
- 15. Craftsmanship Japanese are good at creating something new. (0→1) Business & Branding However, not so good at expanding their products/services including gaining global market. (1→10, 10→100) Skill & Mindset There are some patterns of skills and mindsets within the company to produce value to their products and businesses. New Value Combination of a fine product and meaning will produce values to people. Meaning is often more important for consumers to choose. Therefore, artisans must also convey meaning. 1 2 3 4 INSIGHTS
- 16. Craftsmanship Business & Branding Skill & Mindset New Value Insight Approach Question 1 2 3 4 Talent Approach Marketing Approach What kind of talents are needed? What are their roles? When are they needed? What kind of marketing strategy is effective? INSIGHTS x APPROACHES
- 17. 03 CONCEPTUALIZE
- 18. Talent Approach – Key Talents ● Product Designer - Understand the needs of users to create products and services Key Talents: Design Designer Engineer Artisan Carpenter Brewer Chef Desirability New Value Entrepreneur Creator Design Strategist Business Designer Strategic Designer Researcher Data Analyst Marketer Planner Graphic Designer Product Designer UI/UX Designer Interior Designer Craft Feasibility Business Viability Producer / Innovation Lead UX Planner ● Business Designer - Understand and analyze the needs of users to create brand and sustainable business
- 19. Roles for Key Talents Key Strategy: Meaningful Less Meaningful Useful Useless Uniqlo ZARA MUJI Patagonia Issey Miyake COMME des GARÇONS Japanese crafts Product Design Business Design Value for User ● Vertical Shift - Product Design that Japanese artisans are inherently good at. It enhances usability. ● Horizontal Shift - Business Design that artisans are poor at. It gives products symbolic meaning and, in turn, raise profitability.
- 20. Growth Stage & Talent Required Create Operate Elevate Growth Image Required Talent Distribution Artisan Business Professional Business Designer Piece Needed Hurdle Time-consuming training Less opportunity to intersect Insufficient talent supply Volatile Steady Exponential Design Craft Business Design Craft Business Design Craft Business
- 21. Dot Line Plane Marketing Approach Image Strategy Perspective Existing Players Key Question Distribution time time Product Range Fine Product Customer Journey Value Chain Journey point Product Customer Eco System Artisan themselves Consulting Firm Tourism • Kaneko Kohyo • Yamane Shuzo • Nakagawa Masashichi • Aeru • Hoshino Resort How to sell a product? How to build a brand? How to immerse people in culture?
- 22. Hurdle Marketing Approach Artisans can do by themselves Product Design Branding Value Chain Journey Provided by good number of existing player No platform provided Possible Intervention – Value Chain Tourism – Talent Approach Product Designer Business Professional Business Designer Mostly Japanese artisans are excellent product designers Less opportunity to intersect Insufficient talent supply Matching Platform (Digital / Physical) Overseas talent import – Hurdles & Intervention
- 23. WHY US? Sachino Taki Takuya Mikado Japanese Government Agency Innovation Related Project Branding & Communication Certified Supply Chain Professional Consumer Product Industry Consultant & Business Owner
- 25. Appendix
- 26. Hanno City, Saitama Prefecture Sake brewery Mie Prefecture Wooden bucket craftsman ● Biologist ● Sake-making craftsman ● MBA holder / entrepreneur ● Business Designer EXPERT’S INTERVIEW - YAMANE Producing locally made SAKE - Japanese traditional alcoholic beverage in a rural area collaborating with wooden bucket craftsman in another prefecture.
- 27. Locally produced rice Local timber Using wooden bucket made by wooden bucket craftsman Locally produced Sake Producing locally made SAKE - Japanese traditional alcoholic beverage in a rural area collaborating with wooden bucket craftsman. SAKE BUSINESS - YAMANE