4. SDI in Japan
•
Office in Japan for around 25 years.
•
Significant local and international experience in SDI Japan
team :.
•
•
Vince Kanatani - 20 years in gases/chemicals
•
Akira Matsueda – 30 years in Electronics and
business development
•
Miwa Tomoda – 20 years with SDI, Food & Drink &
Textiles
•
Emika Yoshitaki – Office Support
•
•
Dr Stephen Baker – 22 Years in electronics & int’l
business development, 7 years with SDI
Emiko Sato - Marketing & Event coordinator
Close relationships with :
•
GlobalScots
•
•
•
UKTI, JETRO, BCCJ, SG International Division
Japanese Corporations across all sectors
Academic & Industry Associations
• e.g. Tokyo University, Riken, JPMA, JTA, OEAJ
7. Japan at a Glance
•
•
•
•
•
•
•
Worlds 3rd largest Economy
GDP – US$ 5,068 bn
Currency - Japanese Yen
Population – 126.6M
Population Growth -.1%
Average life span: 79.29 (M), 86.05 (F)
65 or over 28.22 M (22.1%)
’09
GDP
’10
’11
-5.2% 1.7%
1.1%
1.9% 1.8% 1.6%
0.4%
0.0% 0.4% 2.0%
Inflation -1.4% -1.0%
’12
’13
‘14
8. Japan at a Glance
•
•
•
•
•
•
Worlds 3rd largest Economy
GDP – US$ 5,068 bn
Population – 127.1M
Population Growth -.1%
Average life span: 79.29 (M), 86.05 (F)
65 or over 28.22 M (22.1%)
’09
GDP
’10
’11
-5.2% 1.7%
1.1%
1.9% 1.8% 1.6%
0.4%
0.0% 0.4% 2.0%
Inflation -1.4% -1.0%
’12
’13
‘14
10. Key Drivers in the Japan Economy
Abenomics – End Deflation
⇒monetary relaxation
⇒Inflation Target of 2%
⇒Push for wage increases 1.5M over 10Yrs
⇒Large Companies +1.8%
⇒Mainly through increased Bonus
⇒Honda 6%, Toyota %.5%
⇒heavy fiscal spending
⇒¥200Tr on public works / 10 yrs
⇒Tokyo Haneda link
⇒24Hr Metro service
⇒Targeted growth strategies
⇒Medical & New Industries
⇒Working Environment
⇒ business growth through deregulation
250
Nikkei 255
14,000
8,000
May 11
May 13
2012 Outward M&A
489 Firms / 6.9Tr Yen
2013 M&A?
46.2% want to buy
61.9% US & Eur.
57.1% China + emerging
Access to Markets
New business
New Technology
GBP Vs JPY
150
Capital Investment
31% SEA & India
22.3% Japan
16.2% China
120
Apr 08
May 13
11. Opportunities for Scotland and Japan
• Life Sciences
• Developmental and clinical research. Disease
specific research partnerships and stem cell
technology development. Greying society.
• Energy
• Advanced fuel cell research and development,
sustainable transport, offshore wind, tidal and
wave technology.
• Financial Services
• Partnership opportunities with Japanese
Financial Institutions to manage company profits,
retiring baby boomer’s lump sums and funds
outsourced by Post Office reform.
• Electronics
• Provision of advanced niche technologies in
semiconductor design, automotive, green tech,
informatics, medical and communications area.
Digital content and software.
12. Opportunities for Scotland and Japan
• Chemicals & Advanced Materials
• Japan leads the world in this area and presents
great opportunities for Scottish companies.
• Tourism
• 12 million people will retire in the next 6-8 years.
There is a huge opportunity to attract Japanese
visitors to Scotland.
• Food & Drink
• Opportunities for premium products.
• Textiles
• Good opportunities for luxury products.
13. TAE ADM CI Sector opportunities
Sensors
Opportunity: M2M / healthcare/ Social infra monitoring / Smart tech / environment / subsea …
.
MOU signed between Scotland’s CENSIS and Japan’s JISEDAI
Sensor company catalogue put together with CENSIS
Sensor Expo mission from Scotland Exhibition / Seminar
.
Subsea ( non oil & gas, renewable )
Opportunity: Port construction, civil engineering / Seabed resources, Government’s Ocean Policy
Ocean Sensing WG with JISEDAI to identify industry challenges and make a proposal.
Japan Sensor Seminar in Dec. 2013,
Japan Mission to Subsea Expo in Aberdeen in Feb 2014
Methane Hydrate
Cobalt rich crust
14. Games and Informatics Opportunites
Games
Opportunity: Game contents biz in Japan is $10bn (70% online, 30% console)
•Online market will saturate in 2-3 years then will expand into overseas.
•Joint event in planning with JOGA (Japan Online game association) to network major
companies (April/May 2014)
Dare to be Digital
Opportunity : Leverage visibility of Dare 2014 Japan team to raise awareness of
Scottish Games Industry
• Organization Committee, Japan’s top academia and creators (Mr. Iwatani Packman)
•Abertay’s potential alliance with Japan’s top Unis of game study (UoTokyo, Ritsumeikan
Uni)
TGS Seminar and Exhibition
•-- good opportunity to demonstrate contents e.g. Paper Zoo
Informatics
Opportunity: SI’s activity in Scotland, R&D with Universities/Spin-offs; Bigger
opportunity in Big Data / E-health / Smart Tech.
Seminar in London in collaboration with JETRO and JCCI in planning (Feb 2014)
15. Industrial Textile Opportunities
Strategy / Objectives
•Expand the use of Industrial Textiles from Scotland in the Japanese market with a focus
on the transportation market
•Continue to deepen the engagement with the supply chain for Railway
•Develop a testimonial business success with one of the companies
•Expand the project scope to explore opportunities in Automobile, Aircraft and Ship
Opportunity: Japan’s high speed railway projects domestic and overseas, Interior
material of different design / function from existing. Material with Unique function.
Participation Mass Transit Innovation Japan
•Replin / Muirhead / Forbo /Transcal / Novograf
•working with Mitsui&Co.
16. Shared Services and Financial services Opportunities
SSC
Opportunity : Japanese companies based in UK. Cost reduction , robust regional HQ
• SSC seminar in London working with JETRO London and JCCI UK in Nov.
• Many high quality top company attendees (Hitachi EU, Idemitsu petro, Itochu EU, MHI,
JAL, Mitsui&CO, Ricoh EU, Nikkei, Mitsui Zosen, Mizuho Bank, JRI EU….)
Asset management
Opportunity : Quickly recovering Japanese economy - Abenomics.
Combined assets of Japanese households are worth ¥1,445trn
UK-TI’s Asset management seminar in April.
• 5 companies participated: Martin curry, Scottish widows, Aberdeen, Standard life, Ignis
17. Energy Opportunities
Background - Nuclear strategy to Renewable Strategy
• Old strategy 30% to 50% Nuclear by 2030
•13% Renewable to 40%? (Nuclear Plants idled)
•Solar FIT 42yen/kW-Hr, On-shore Wind FIT 23.1 Yen/kW-Hr
•Off-shore to be incentivised
•240Gw farm launch targeted 2016
•Ocean Power receiving significant R&D Funding
Key-Opportunity areas
•Offshore wind – sub-sea engineering, installation and maintenance, service vessel etc
and development of marshal port – consulting
•Offshore wind – floating system – design, installation and servicing
•Marine test field (Japanese EMEC) – consulting
•Nuclear – Decommissioning
•Deep sea development – LNG and Shale gas – engineering and consulting
•Small size biomass – bio fuel – cross over with chemicals
•Membrane technology
•H2 supply chain – cross over with chemicals
•Machining and tooling for advanced material e.g. carbon fiber – cross over with
Aerospace
18. Life Science in Japan
Overview
• Japanese Companies are still rather domestic focused but are looking
to expand their activities on a global basis.
• Access to markets, access to new compounds
• There are moves to reduce the time required to certify new medical
devices and new drugs
• Award of the Nobel prize to Dr. Yamanaka in IPS stem cells has
invigorated activities and increased funding in this area
• NEDO is now providing funding for Japanese companies to be used for
development overseas
Opportunity
• Collaborations between Scotland and Kyoto ICEMS in the area of stem
cells. Research, cell culture and processing supply chain
• Establish Scotland as a base for production of stem cell material for
research and future commercialization
19. Life-science and Chemicals Opportunities
Key Opportunity areas
•Potential Drug compounds
•Pharma service in general
•Manufacturing of pharmaceutical active ingredients - currently Kaneka supply the product
to major pharmaceutical l companies in Food related research - functional fool, hospital
food
•R&D and manufacturing of food additives for feedstock - e.g. farming of high quality fish
•Biologics - Anti body - Bio/Life Science
•Natural based ingredients from marine or wood
•Imaging technology – 3D
•Chemical composite for 3 D printing
•Chemical composite for power storage e.g. battery and EV cars
20. Japan Fashion Textile Industry and Opportunities 2013-14
Characteristics of the Japanese Market:
Highly sophisticated consumers’ market
Very diversified consumption -- constantly oversupplied
Severely competitive open market
Consumers demand high quality products
Appreciate stories behind the brands/products
Consignment sales to retailers, which are very traditional business practice in Japan, is still carried on in
some retailers.
The SPA (speciality store retailer of Private label Apparel) type of companies are on the increase.
Opportunities:
“British” trends remains, particularly for A/W season – tartan, Harris Tweed, cashmere, knit ware etc
British made items are recognized as high quality goods. Consumers start appreciating “long lasting” high
quality luxury products rather than cheap low quality one season clothing.
E-commerce / TV shopping
Interior markets
Key fashionistas and retailers are valuing and supporting Scottish fashion products.
21. Japan Fashion Textile Key Activities for 2013-14
Event/activity name
Description of Event/Activity
Date
1
Textile promotion at Isetan
Shinjuku Store’s New
Corporate Tartan launch
event
SDI Japan supported Isetan’s New Corporate
Tartan (MacMillan Isetan) launch and raised
awareness of Scotland’s textile industry overall
among the media as well as Isetan’s customers.
30 Oct ‘13
2
British Fair at Hankyu
Department Store in Hakata
& Osaka
Scottish textile companies (knitwear, apparel,
accessories) participated in the Fair by selling
products. Hankyu’s British Fair is a well
recognized Fair in Osaka region and is a good
opportunity for Scottish textile companies to
promote their products.
2-6 Oct ‘13
(Hakata),
9-15 Oct
’13
(Osaka)
3
Article for ANA in-flight
magazine, focused on Tartan.
Freelance journalist’s article on “Tartan” and its
industry in ANA in-flight magazine December ‘13
issue. SDI assisted the journalist visited Scotland
by arranging meetings with relevant
companies/organizations.
For
December
‘13 issue
4
TV Shopping (focused on
Scotland and Scottish
products)
SDI assisted Jupiter Shop Channel’s TV shopping
programme which is focused on Scotland. In prior
to the preparation of the programme, SDI helped
Jupiter’s buying visit to Scotland. This is to follow
their 1st programme focused on Scotland last
winter.
8 Dec ‘13
5
Support to Scottish
companies who wish to enter
the Japanese market
On-going support to Scottish companies in the
Japanese market by making introduction to
potential Japanese companies.
On-going
22. Japan Food and Drink Market
KEY MARKET FACTS
Japan imports 61% of food & beverage.
Food retail revenues $492.9 bn in 2012
2010-2015, fresh food sales up 4.3%
Consumers increasingly conscious of
health and wellness, fuelling the demand
for top quality, fresh foods.
Large Market for Functional foods and
nutraceuticals $27.1bn
UK brands perceived positively.
£96M in 2012, up 12% from 2011
KEY OPPORTUNITIES
•Beverages (cordials, beers and wines)
•Confectionery (snacks / biscuits /
chocolates
•Specialty foods
•Organic foods
•Sausages and bacon
•Seafood (salmon / lobster / mackerel)
KEY MARKET REQUIREMENTS
•High-quality products
•Quality packaging and presentation
•Clear and obvious link to the UK
•Product/company with an authentic
story
•Flexible approach to meeting consumer
needs
The Retail Environment in Japan
23. Major department store operators
capitalizing on customers' fondness for
local specialty goods.
Fish industry in Tohoku Region has been
badly affected (- 60%) by the 3.11
earthquake and related incidents.
Salmon has overtaken tuna as the
preferred variety of raw fish.
Craft Beers popular
Cheese sales are increasing 300,000 T t
Prepared meals sales through retail are
increasing
The Retail Environment in Japan
24. Hotel, Restaurant, Institutional,
(HRI) Food Service Sector was
nearly $360. 4 billion in 2011
•Restaurants 42.3% $152.6bn
•Drinking Estab. 16.3% $58.9bn
•Inst. Food Service 11.4% $41bn
•Hotels 9.0% $32.5 bn
•Transportation Rel. 0.8% $2.9bn
•Prepared Meals $72.5 billion,
Major hotels are attractive for
exporters. More oriented toward
Western food and frequently have
food fairs & promotions
Focus Hotels
Imperial
Okura
New Otani
Tokyo Hilton
Conrad
Sheraton Miyako
Hyatt Regency
Hyatt Park
Hyatt Grand
Ritz Carlton
ANA
InterContinental
Westin
Dai-ichi Hotel
Hotel Seiyo
Keio Plaza
Penninsula
Mandarin Oriental
Rihga Royal
Pan Pacific
Happoen
Four Season
Chinzanso
Palace (re-opening
soon)
Capitol Tokyu
Royal Garden
The Foodservice Environment in Japan
25. •Continue to work with Scottish
companies to broaden participation
and breadth of product in the market.
•Focus on seafood, especially salmon,
and premium groceries.
Mar 4-7th 2014
•Position Scottish salmon as a
premium food with its own positioning.
•Identify the supply chain for targeted
food outlets and establish relationships
with the key players.
•Set of promotions and fairs with Key
retailers to raise the visibility of
Scottish product.
Aug 2014
In market activity – what key happenings for SDI Team
26. Japan Food & Drink Key Activities for 2013-14
Event/activity name
Description of Event/Activity
Date
1
Visit to Scotland by
Representatives from All
Japan Chefs Association
(AJCA), accompanies food
medias
As a part of global WAC sponsorship, SDI invited
representatives from AJCA to a visit to Scotland.
21-14 July
‘13
2
International Seafood &
Technology Expo Tokyo
Seafood focused exhibition. SDI hosted a rep
stand in partnership with Scottish industry
organization(s). Showcased high quality Scottish
seafood products and offer edtasting samples.
21-23 Aug
‘13
3
Food & Drink promotion at
Isetan Shinjuku Department
Store (New Store Tartan
Launch)
Smoked salmon tasting at Isetan’s Grand Carve
during new Tartan launch week. Scottish food &
drink promotion at the Scottish Night event for their
VIP customers in cooperation with Japanese
importers. 1 sheet flyer of Scottish F&D industry
and information on the Scottish products used at
the Night event was distributed to the event
participants.
30 Oct, 1
Nov ’13
4
FOODEX Japan 2014
Large food & drink exhibition in Japan. Target
Scottish Food & Drink companies: Seafoods,
Sweets, Preserves, Crisps, Processed food and
drink companies which showcase at the show.
Participation with own stand.
4-7 March
‘14
5
Mackerel in-store Promotion,
Tokyo
In-store promotion at key supermarket chain in
central Tokyo to promote high quality Scottish
mackerels. Sample tasting + sales of Scottish
mackerel products.
March ‘14
(tbc)
6
Scottish e-commerce page
Support for Scottish e-commerce Page on Dress
Table or other shopping site
2nd half
7
Support to Scottish
companies who wish to enter
the Japanese market
On-going support to Scottish companies in the
Japanese market by making introduction to
potential Japanese companies.
On-going
(FOODEX
2013)
28. e-commerce in Japan
Scale of the e-commerce market
In Japan, the total number Internet user was 95 million in 2010, and 83% of them used
Internet shopping.
B2B e-commerce was 258 trillion yen (100.6% cf previous year
B2C e-commerce was 8.5 trillion yen (108.6% cf previous year
Japanese language site recommended
For Japanese customers, Japanese language gives them more security when shopping.
They look for detailed information on products , quality and make
Payment Methods – Credit card 70% & COD
Site hosted in Scotland – visibility?, language, currency
Own Site hosted in Japan - must have a registered status as a corporate business entity
to host an on-line shopping site, Visibility?
Third party site in Japan – Major portals have the traffic, use their promotion systems to
get Visibility, Shop owner needs to be a registered company
30. About the major Portals
Apart from Amazon Japan, shopping portals don’t provide warehousing option. Products
should be delivered to customers directly from a location in Japan. Shopping portals don’t
allow products to be delivered from overseas location.
Amazon Japan have FBA (Fullfilment By Amazon) service which provide a storage space
for shop’s ambient products due to products expiry dates. This enables purchased
products to be delivered to the customers on next day delivery.
In order to open a shop within Rakuten, companies need to be a registered company with
an address in Japan (self or Partner). Product must be delivered from within Japan.
Financial transaction can be made within the Rakuten site.
Flow of transaction is:Customer orders on Rakuten site and makes payment -> Rakuten sends order to shop
owner -> Shop owner arrange delivery of purchased products and informs Rakuten when
delivery has been made -> Rakuten credits the shop’s bank account
31. Key things to consider when thinking about e-commerce in Japan
A list of key things Scottish companies should consider when thinking about ecommerce in the target market
•To understand the market opportunity as well as issues surrounding e-commerce
business
•To provide Japanese language site to attract more Japanese customers and give detailed
product information
•To understand demand in the market for Scottish company’s product
•To partner with a suitable Japanese company/agent to become an importer to the Japan
market. Then Scottish company and the Japanese import work together with companies
who operate on-line shopping sites.
•To understand the market structure
33. Scottish Organisations assists in Japan by Sector FY2012
Food & Drink
36
Energy
11
F&H Education
4
Financial Services
1
Tourism
0
Lifescience
18
Chemicals
4
Construction
2
Textile
Non-sector or
unknown
DMET / ETICT /
Creative Industry
35
6
17
134
34. SDI maintains a set of relationships with
Japanese companies in each key sector
ELECTRONICS
Seiko Epson Corp.
Rohm Co., Ltd.
Sony Corp.
Hamamatsu Photonics K.K.
Brother Industries, Ltd.
Fujitsu Ltd.
Panasonic Corp.
Sharp Corp.
Denso Corp.
Yokogawa Electric Corp.
Casio Computer Co., Ltd.
NEC Corp.
Yaskawa Electric Corp.
Mitsubishi Electric Corp.
Pioneer Corp.
Yokogawa Electric Corp.
Casio Computer Co., Ltd.
NEC Corp.
Yaskawa Electric Corp.
Mitsubishi Electric Corp.
Pioneer Corp.
Canon Inc.
PHARMA
Takeda Pharmaceutical Co., Ltd.
Astellas Pharma Inc.
Eisai Co., Ltd.
Tsumura & Co.
Shionogi & Co., Ltd.
Daiichi Sankyo Co., Ltd.
Kyowa Hakko Kirin Co., Ltd.
Chugai Pharmaceutical Co., Ltd.
Mitsubishi Tanabe Pharma Corp.
Taisho Pharmaceutical Co., Ltd.
Dainippon Sumitomo Pharma Co., Ltd.
Hisamitsu Pharmaceutical Co., Inc.
TRADING COMPANIES
Canon Marketing Japan Inc.
Marubeni Corp.
Itochu Corp.
Toyota Tsusho Corp.
Sumitomo Corp.
Mitsui & Co., Ltd.
Mitsubishi Corp.
BANKING
Sumitomo Mitsui Financial Group, Inc.
Mitsubishi UFJ Financial Group, Inc.
Mizuho Financial Group, Inc.
The Sumitomo Trust and Banking Co., Ltd.
Aozora Bank, Ltd.
Shinsei Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Securities
Mizuho Investors Securities Co., Ltd.
Mizuho Securities Co., Ltd.
Daiwa Securities Group Inc.
Nomura Holdings, Inc.
35. SDI Helping Scottish Companies in Japan
Outward Opportunities:
Initial enquiry – Smart
exporter, Business Gateway
or your account manager
•
•
•
•
•
•
•
•
•
•
•
Introductions
Knowledge
Understanding
Strategic Planning
Market Research
Press and P.R
Events
Identification of business partners
Support for visit programmes
Logistical support (translation etc)
Partners and networks
36. SDI and our partners
SDI works with all our partners to make sure you get access to all
relevant support you need
Prefectural T&I Offices
Agents, distributors,
specialist market development companies,
37. • In-country business development and sales for Scottish companies
ready to engage their target customers and partners in Japan
• Low-risk and accelerated approach that doesn’t require investment in a
local legal entity, infrastructure or staff until revenues justify it
• Addresses the need to have people located in the market before you can
start selling
• A bilingual team which operates in Japanese but delivers transparency
through communication and contact reports in native English
• Focus on revenue generation with a track record of results
• Over 20 years in Japan with experience and contacts across multiple
sectors
A cost-effective way to enter the Japanese market while
keeping your longer term options and strategies open
www.intralinkgroup.com
38. Doing Business in the Japan - Same as doing
business in any region:
• Understand your own value
• Understand your client’s business
& needs
• Get creative to match your
product with their needs
• Hitting a home run takes a couple
of innings
• No need to worry about all the
cultural nuances, there are just a
small number of points you should
follow – SDI is here to help
43. Introduction:
• Lived and worked in Asia region 2008 – 2012
• GlobalScot since 2008
• Opened Representative Offices in Beijing & Tokyo
– Resided in Azabu-juban, Tokyo
• Travelled extensively in Asia on SSE’s Renewables brief
– International Market Development
– Supply Chain & Inward Investment
• This presentation covers:
–
–
–
–
“Ease of Doing” Business
Living and Working in Japan
Day to Day Business
Good Outcomes
44. ‘Ease of Doing’ Business
http://www.doingbusiness.org/rankings
/
• World Bank 2014 Ranking: 27th out of 189
– Good
•Resolving Insolvency, 1
•Getting Credit, 24
•Protecting Investors, 16
•Enforcing Contracts, 36
– Less Good
•Starting a Business, 120
•Paying Taxes, 140
Country
Rank
Singapore
1
US
4
UK
10
China
96
Chad
189
• JETRO
– Business Registration and Taxation advice
•Akasaka, Tokyo
• SDI, UKTI provide formal network opportunities and introductions
– Yokohama St Andrew’s/ Caledonian Society
– “Brits do Lunch”, Tokyo
45. Living and Working
• Is it expensive?
• Service
– Unparalled, attention to detail
• Accommodation
– Smaller than UK
• Working Day
–
–
–
–
Longer commutes and working day
Limited availability of mobile phone and wifi
Time difference work rounds
Travel system excellent
• JR East and West – Shinkansen
– Apps for everything, Street Signs in English
• Food
– Good quality and great choice
– Lunch, the 1000 ¥ set meal
• Family life
• Healthcare
– Private insurance recommended
46. Business Day to Day
• The Importance of the Business Card – Meishi
– Establishes social and business hierarchy
• Office
– Rents high, look for flexibility
• Communication
–
–
–
–
Japanese display a traditional reticence
Practice your listening skills
Be patient with silences and don’t interject
Don’t expect business on 1st meeting
• Presenting Yourself
– Be early!
• Meeting Composition
– Numbers and Gender
• Relationships
– Personal
– Longer term
– Balanced, multifaceted Trading Houses
• Decision Making
– Pace seems slower and often complex
• Exchange of Gifts
– Representative of thoughtfulness, rather than value
47. Good Outcomes
• Scotland and UK have a good standing in Japan
• Established key contacts with major trading
houses
– Innovation & Disruption on key offshore wind
categories
– Tested global supply chain scenarios
• Project Financing
• Low Carbon Technology MoU with MHI
– UK based teams in SSE Glasgow and Edinburgh
– SeaAngel Offshore WTG, Kanazawa
•
Hunterston Demo, May 2014
– Artemis Digital Displacement Technoloy (DDT)
– 2 MW ESS Orkney
49. JETRO Activities for Promoting
Direct Investment in Japan
Yutaka Harada
JETRO London Invest Japan Senior Advisor
November 2013
50. What is JETRO?
JETRO: Japan External Trade Organization
Government-related organization to promote mutual trade and
investment between Japan and the rest of the world
Established in 1958
73 offices worldwide, 39 domestic offices
Main activities:
1. Promoting foreign direct investment
into Japan
2. Supporting the overseas business
of Japanese firms
3. Facilitating economic growth in
developing countries through trade
promotion
1
51. Inward Investment Promotion
Japan’s Inward FDI/GDP is 183rd out of 187 Countries!
Promoting Japan as Asia HQ, R&D Base and FDI in High Priority Area
(environment, life science, tourism, finance etc)
Inward FDI/GDP (%) in Major Countries (2011)
49.8%
50%
34.7%
40%
23.2%
30%
20.0%
11.8%
20%
10.1%
Korea
China
3.7%
10%
0%
Japan
US
UK
Germany
France
Source: UNCTAD “World Investment Report 2011”
2
52. Advantages in Doing Business in Japan
0%
20%
40%
60%
High Income Level, Large Customer Volume
51.0%
さき大のムーュリボ客顧びよおさ高の準水得所
Well-developed Infrastructure
49.7%
ラフンイたし実充
Responsive Market to Added Value and Trends
47.3%
場市な感敏に行流や値価加付のスビーサ・品製
Agglomeration of Global Enterprises
35.6%
積集の業企ルバーログ
Well-developed Living Environment
33.9%
境環活生たれさ備整
Capable Human Resources
23.9%
材人な能有
Gateway to Asia Market, Regional HQ
18.6%
適最てしと点拠括統域地・口関玄の場市アジア
High Quality R&D
12.3%
境環発開究研い高の質
Well-protected IPR
11.6%
Easy Access to HQ
11.6%
備整法の等産財的知たし実充
さ良のスセクアのと国象対理管や社本
Good Financial Environment
(N=2,855)
10.5%
Source: 2011 Foreign Affiliated Firms Survey (METI)
3
境環融金たし実充
53. Impediments in Doing Business in Japan
0%
20%
40%
60%
High Business Cost
70.5%
さ高のトスコスネジビ
Closed and Unique Market
46.4%
性殊特、性鎖閉の場市本日
Difficulty in Getting Human Resources
39.7%
さし難の保確材人
High Requirement from Customers
38.6%
さ高の準水求要のーザーユ
Complicated Administrative Procedure
32.8%
さ雑複のき続手政行
Stringent Regulatory/Licensing System
29.0%
さし厳の度制可認許･制規
Insufficient Incentive
19.1%
分十不がブィテンセンイ・置措遇優
Concern about Radioactive Pollution
安不るす対に染汚能射放
Concern about Natural Disaster
安不るす対に害災然自どな波津や震地
Living Condition for Foreigners
境環活生の人国外
Concern about Unstable Power Supply
80%
15.0%
14.2%
12.8%
10.0%
Source: 2011 Foreign Affiliated Firms Survey (METI)
4
念懸のへ足不給供力電
54. Industrial nation
Japan’s growth strategy with twin engines
Three-pronged strategy
Ending deflation, expanding jobs,
stimulating the economy
Bold
monetary
policy
• Price stability
target at 2%
annually
• Fund supply
by Bank of
Japan
(monetary
easing)
Flexible
fiscal
policy
• “New Deal for
Disaster
Prevention &
Mitigation”
• Acceleration
of reconstruction
Growth
strategy
• Investment
promotion for
renewable
energy & energy
conservation
• Financing
support for SMEs
• Focus on
investment in
health care,
agriculture,
education, etc.
“Three-pronged strategy” for revitalization of economy
1. Bold monetary policy
2. Flexible fiscal policy
3. Growth strategy that encourages private-sector investment
Trade oriented
country
Industrial investment
oriented country
Industrial country
driven by the twin engines
Important issues on int’l business strategy
• Accelerating regulatory reform
• Promoting economic partnerships
(FTAs, EPAs)
• Ambitious agricultural policy
• Securing resources and promoting export
of infrastructure
• Promoting “Cool Japan”
JETRO contributes to these policies by
supporting int’l business of Japanese companies, promoting
FDI in Japan, contributing to trade policy through research
activities and more.
Shift from “redistribution in diminishing equilibrium” to
“creation of wealth through growth” to be an industrial
country driven by twin engines (trade and industrial
investment).
5
55. R&D Site
Key Industrial Sectors
Environment (New Energy, Next Gen. Vehicles
etc.）
-Next Generation Vehicles（EV, HV development etc.）
‐New Energy（Solar/Wind/Wave power etc.）
‐ Manufacturing, supply, and joint development of related
materials + components (Solar Cells, Lithium Ion Battery
Materials etc. ）
‐Other (Smartgrid, Material Recycling technology etc.)
‐ Pharmaceutical Development
(Contract Research Organizations,
Contract Manufacturing Organizations,
software etc.)
‐Medical Devices+ Systems
(AED, Cancer Diagnosis + Treatment etc.)
‐Tools and services for Geriatric Care
(Acquisitions of private nursing homes,
Telemedicine etc.)
‐Beauty Related
(Anti-aging products + services etc.)
Reconstruction
Employment Effect/ Large Scale
Employment Effect/ Large Scale
① Retail + Service
Investment
Investment
-Apparel , Restaurant, Distribution (Store Expansion,
Distribution Center etc)
-Services utilizing new business models (Advertising,
fitness, etc.)
- Establishment of distribution points for Japan-made
foodstuffs, products, or contents (Online shopping mall,
master franchiser etc.)
Smart Meter
Green-IT
Healthcare
Asian Headquarters
②Other Industries:
Data Center ・ BPO
Mobile （Manufacturing Centers, Call centers,
Communications Customer Service etc. w/ potential for job
creation)
Online Shopping
ICTOnline
HC IT (Electronic
Medical Records)
HC Business
Process Outsourcing
(BPO) ,
Reservations
Flight Simulator
Augmented Reality
Applications
Tourism
-LCC + other airlines Japan service
(including regional airports)
-Airport Related Services (Fixed
Base Operator etc.)
-Establishment of local regular ferry routes
-Friendly acquisitions of hotels +resorts
-Businesses targeted to Asian tourists
(Travel agency, Payment Systems etc.）
Procurement Base
6
56. JETRO’s Free FDI Promotion Activities
Dissemination of information
— Seminars, website, pamphlets
Local consulting services
— Meet with the Senior Adviser at JETRO London or at your
offices for an initial consultation.
Six Invest Japan Business Support Centers (IBSC) in Japan
— Consulting services (sector specialists, advice on setting up)
— Temporary office space, meeting rooms, seminar room
Invitation Programmes
— Support to attend exhibitions in Japan to meet Japanese
companies
7
57. JETRO Invest Japan Website
JETRO Publications
http://www.jetro.go.jp/en/invest
Market reports
How to set up a business in Japan
Success stories in Japan
Regional incentive information
8
58. Invest Japan Forum: French-Japanese Cooperation
toward the Restoration from the Great East Japan
Paris, France (27 February, 2013)
Venue: Paris-Ile-de-France Regional Chamber of Commerce and Industry, Paris, France
Organizer: JETRO, the Paris-Ile-de-France Regional Chamber of Commerce and Industry (CCIR),
French-Japanese Economic Committee (CEFJ)
Co-organizer: Reconstruction Agency, Cabinet Office, Ministry of Economy,
Trade and Industry (METI), Prefectural Governments of Iwate, Miyagi and Fukushima
Supported by: Embassy of Japan in France, French Chamber of Commerce and Industry in Japan
Number of Attendees: 237, from Japanese and French firms and organizations
JETRO hosted an investment forum aimed to promote quakerecovery measures of the Japanese Government and its
incentive programs to encourage global companies to invest in
Japan. With the goal to revitalize the Japanese economy by
promoting foreign direct investment, the forum was attended by
237 people including representatives of French companies.
Those in attendance profoundly exchanged views on potential
forms of cooperation between Japanese and French firms and
other topics.
*JETRO also hosted “Japan Business Forum: New Initiatives for Sustainable Growth” in New York (17 July),
“Opportunities from Japan’s Revitalization” in Singapore (11 December) in 2012.
9
59. JETRO Invest Japan Business Support Centre (IBSC) Services
Supporting and Consulting Services
Provide information about industrial structures, the industrial system,
product sales, market shares etc.
Access to administrative experts covering fields such as legal issues,
tax, payroll, accounting, social insurance, visa and labour
Dedicated support for areas such as initial cost estimation for setting up,
recruitment and real estate
Introduction to incentives from national and local governments
Office Facilities
Private and secure temporary office facilities
Use of facilities i.e. exhibit hall and conference rooms
Fully stocked business library
These services are free of charge !!
10
60. Temporary office space (e.g. Tokyo)
50 working days (free of charge)
+ 25 extra days (daily charge 5,000 - 7,000JPY)
Office hours: 9:00AM to 9:00PM, Monday to Friday
Ready-to-use: direct telephone/fax number, broadband access
23 office rooms, 6 meeting rooms and 1 seminar room
Osaka
Kobe
Tokyo
Fukuoka
Yokohama
Nagoya
11
61. Invitation for Exhibition Program
■IT PRO EXPO 2013 (9th -11th October, 2013)
Sector: ICT
Venue: Tokyo Big Site
Exhibitors: 12 companies
Main Exhibitors: Cloud Computing, Security, Server and Storage,
Business Applications, OS / DB / middlewares, and Network.
*Concurrent event: Security 2013, Cloud Days Tokyo 2013 Fall / BigData 2013 Fall
/ Smartphone & Tablet 2013 Fall / e- Document JAPAN 2013
*Previous year’s result : Total visitors 64,245 / Total exhibitors 354 companies
■ 4th INT'L SMART GRID EXPO（26th – 28th February, 2014)
（
Sector： energy-saving / renewable energy
Venue： Tokyo Big Site
Exhibitors： 12 companies
Main Exhibitors: Smart Grid, including utility/infrastructure companies,
house/building companies, construction companies
and various energy management solution providers.
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*Concurrent event: BATTERY JAPAN 2014 - 5th Int'l Rechargeable Battery Expo / PV EXPO 2014 - 7th Int'l Photovoltaic
Power Generation Expo / PV SYSTEM EXPO 2014 - 5th Int'l Photovoltaic Power Generation System Expo
/ FC EXPO 2014 - 10th Int'l Hydrogen & Fuel Cell Expo / ENETECH JAPAN 2014 - 5th Processing
Technology Expo / 4th ECO HOUSE & ECO BUILDING EXPO
/ WIND EXPO 2014 - 2nd Int'l Wind Energy Expo & Conference
*Previous year’s result : Total visitors 76,340 / Total exhibitors 1585 companies
12
62. TTPP: JETRO’s global business matching database
TTPP (Trade Tie-up Promotion Program) connects you and
other companies all around the world.
1. Browse through business proposals
from around the world
TTPP allows anyone, free of charge, to search and
browse through business proposals in various
areas registered by users in Japan and other
countries according to business type such as
“export and import of products/parts”, “business tieups” and “technology transfer”.
2. Transmit your business proposal
information to the world
The business proposals will be posted in both
English and Japanese after they are registered so
you can transmit the information to the world and
broaden your business opportunities.
Registered information can be updated and deleted
online, enabling you to transmit your information in a
timely manner.
www.jetro.go.jp/ttpp
13
63. Incentives by the Japanese Government
Implementtion
status
Program name
Outline
The Act for
Promotion of Japan
as an Asian
Business Center
The Japanese Government will take support measures for
certified global companies, including tax breaks and patent
fee reduction, in order to motivate them to locate their R&D
facilities or regional headquarters in Japan.
Effective from Nov.
2012
Trade and Investment
Facilitation Division, Trade
and Economic Cooperation
Bureau, METI
Subsidy program for establishment by global companies
of R&D facilities or regional headquarters in Japan.
Covers survey design costs, facility costs, equipment
costs, and facility rental fee.
Application Period
for 2013:
April 1 – June 3
Trade and Investment
Facilitation Division, Trade
and Economic Cooperation
Bureau, METI
Comprehensive
Special Zones
Incentives, including special regulatory measures and tax
reduction, are available for companies with business plans
in 7 designated zones: Hokkaido, Ibaraki, Tokyo,
Kanagawa, Aichi/Gifu, Kyoto/Osaka/Hyogo, Fukuoka.
Special regulatory
measures differ
from one
designated region
to the other.
Regional Revitalization
Bureau, Cabinet
Secretariat
Special Zones for
Reconstruction
Incentives, including special regulatory measures and tax
reduction, are available for companies with business plans
in the recovering areas stipulated in the Act on Special
Provisions of Article 3 of the Public Finance Act.
In effect
Reconstruction Agency
Points-based
Preferential
Immigration
Treatment for
Highly Skilled
Foreign
Professionals
Under the points-based system, foreign professionals who
earn 70 points or more will be recognized as "highly skilled
foreign professionals" and will be given preferential
immigration treatment.
(* Personnel of selected companies for the Subsidy
Program for Projects Promoting Asian Site Location in
Japan are given 10 points.)
Subsidy Program
for Projects
Promoting Asian
Site Location in
Japan
Effective from May
2012
Authority in charge
Foreign Residents
Information Center,
Immigration Bureau,
Ministry of Justice
Source: JETRO website (http://www.jetro.go.jp/en/invest/incentive_programs/)
14
64. Incentives in the Special Zones for Reconstruction
Special measures
Regulations and procedures
• Reduced requirements to be eligible for public housings
• Special measures in agricultural land conversion for
development of facilities for food/forestry/fishery processing and
sales
Approved plans for reconstruction
promotion (as of April 22, 2013)
Tax breaks
(Prefectural level)
Aomori
Tax breaks
• Special depreciation/tax credit
• Tax credit equivalent to 10% of the combined amount of salaries
and other payments for employers from severely damaged
areas
• Exemption from corporate tax for 5 fiscal years for new
enterprises, etc.
Financial and fiscal assistance
• Grants for reconstruction
• Interest rate compensation for reconstruction projects
Tax breaks
(Municipal level)
Iwate
Deregulation
(Prefectural level)
Deregulation
(Municipal level)
Miyagi
Compensation for
interest rate on
loans (Prefectural
level)
Fukushima
Land use restructuring
• Special arrangements for land use restructuring beyond existing
land use frameworks
• Relaxed requirements for the floor area ratio of buildings aimed
at easy evacuation from tsunamis
Compensation for
interest rate on
loans (Municipal
level)
Special measures can be added through consultations
between central and local governments
Ibaragi
15
65. JETRO’s Inward FDI Promotion (2003-2012)
Having supported more than 10,000 foreign companies.
More than 1,000 foreign companies have invested in Japan
US (318), China (107), Germany (98), Korea (65), UK (63)
North America
Europe
Asia
45.0%
13 9
40.0%
48
35.0%
342
30.0%
39.8%
N America
Europe
33.3%
41.5%
28.7%
25.0%
318
20.0%
15.0%
10.0%
5.0%
334
Asia
16.1%
China
6.5%
24.5%
12.8%
0.0%
16
66. Successful Cases by JETRO’s FDI Promotion
IKEA
(Sweden)
Forever21
(USA)
Hennes & Mauritz AB (H&M)
(Sweden)
PRICE COSTCO/COSTCO
WHOLESALE JAPAN
(USA)
McLaren Automotive
(UK)
LEO Pharma
(Denmark)
David Austin Roses
(UK)
Abercrombie & Fitch
(USA)
Scottish and Southern Energy plc
(UK)
Intelligent Energy
(UK)
Electro Medical Systems S.A
(Switzerland)
Inditex Group(ZARA)
(Spain)
Maquet
(USA)
Alpha CRC
(UK)
Evolution Power Tool
(UK)
Aggreko
(UK)
Colortrac
(UK)
Oxford Immunotec
(UK)
BGI
(China)
17
67. Thank you for listening.
If you have any further questions,
please contact:
JETRO London
Investment Team
E-mail: Ldn_invest@jetro.go.jp
Tel: 020-7421-8300
Fax: 020-7421-0009
Address: MidCity Place, 71 High Holborn, London WC1V 6AL U.K.
18
68. Doing Business in Japan 2013
Networking Break
sign up for one to one sessions
at the registration desk
69. Doing Business in Japan 2013
Carl Gardiner
Project Manager
Smart Exporter
71. THE ROLE OF INTERNATIONAL TRADE
Having more companies involved in international trade is important
for economic growth and the ultimate well-being of the economy.
Not only do companies that export tend to grow faster, are more
profitable and have higher productivity they can also stimulate faster
economic growth in Scotland Some specifics include:
• Increasing productivity growth
• Generating employment
• Profit flows to Scotland spent in Scotland
• Positive spillovers to local communities
73. Partnership Delivery
SCDI
Operate missions under Market
Visit scheme on behalf of SDI
during 2010-11
www.scdi.org.uk
International
Professional Advisors
UK Trade & Investment
Banks; Lawyers; Accountants;
Property & Recruitment: Specialist
/Logistics
SDI offers UKTI services in
Scotland, participates in
UK-wide approaches to inward
investment attraction, and influences
policy through membership of key
committees
www.uktradeinvest.gov.uk
Business Gateway
Staff based at Local
Authorities / Councils &
Chambers of Commerce
Globalscot
Partner Engagement
www.bgateway.com
International business network of
over 850 senior influential business
leaders who are committed to
generating opp’s for Scotland.
https://www.globalscot.com/public/about/index.aspx
The Enterprise Europe Network
Offers support and advice to businesses
across Europe and helps them make the most
of the opportunities in the European Union.
http://www.enterprise-europe-scotland.com/sct/
Overseas partners
Scottish North American Business Council; Singapore
EDB, China-Britain Business Council; Energy Industry
Council; Dubai Chamber of Commerce etc…
74. International Trade Growth Model
Awareness
& Ambition
Building
Capability
Market
Expansion
Action
Planning
Market
Entry
CI & ET
| page 74
77. PREPARING TO EXPORT PROGRAMME
Supports companies by helping them develop key skills in a
range of business activities and equipping them with the
knowledge to operate internationally.
Delivered at 3 levels – Introductory, Intermediate and Advanced
via workshops or online
Topics include Understanding International culture, market
research, distribution channels to acquisitions and joint
ventures.
78. SMART EXPORTER PRODUCTS
I’m new to
Exporting –
where do I start?
Export Training
Centre
Preparing to
Export Programme
Which market is
right for my
company’s
Product/Service?
Market Awareness
Events
International
Business Manager
for Hire
We need an Export
Expert to help
implement our
International Strategy
I’m ready to
Export but I don’t
understand what
paperwork I need?
Specialist Technical
Support
International
Strategy Forum
International
Strategy Workshop
I need help in
defining my
Export Strategy
79. EXPORT TRAINING CENTRE - NEW
http://www.sdi.co.uk/exporttraining
New, free online tools from SDI which are
NOW Available to help your business
break into international markets.
- Complete a free export assessment
and discover the next steps that your
business needs
- Refresh your thinking about exporting
and learn how to prepare to export
with the help of a step-by-step guide
- Access the Inbound Marketing
University course of video tutorials for
tips and advice on digital marketing
and using social media
- Access trade guides for deeper
insight into a range of topics
