4. QUICK COMPARISON
JAPAN USA
Land Area 145,925 sq mi 3,794,101 sq mi
Population Density 873.9 people sq mi 83 people sq mi
2008 Population 127 million people 304 million people
2030 Estimated Population 117 million people 323 million people
• Japan is approximately the size of California and stretches from Maine to Florida.
• Iowa has 3 times as much arable land as Japan.
• It has 13 cities with more than 1 million people, compared to the USA’s 9 cities.
Tokyo 8.5 mil Kobe 1.5 mil Saitama 1.2 mil
Yokohama 3.6 mil Kyoto 1.4 mil Hiroshima 1.1 mil
Osaka 2.6 mil Fukuoka 1.3 mil Sendai 1.0 mil
Nagoya 2.2 mil Kawasaki 1.3 mil Kitakyushu 1.0 mil
Sapporo 1.9 mil
(Japan Marketing Data 2008-09)
5. QUICK COMPARISON
(continued)
Japan USA
male: 78.8 years male: 75.65 years
Life Expectancy (2009 est.)
female: 85.62 years female: 80.69 years
Population Density (2009 est.) 1.21 children born/woman 2.05 children born/woman
GDP PPP (2008 est.) $4.356 trillion (3rd) $14.441 trillion (1st)
Per Capita GDP (2008 est.) $34,115 (24th) $47,440 (6th)
Source: 2009 CIA World Fact Book
• Japan has the world’s longest life expectancy. At the same
time, it also is the first industrialized nation to enter zero
population growth.
• Seniors in Japan have more than $13 trillion in household
savings.
6. By 2055, Japan’s population over 65 years will surpass 40%. The photo
below on the left was recently taken in Shibuya, a neighborhood popular
with young people in Tokyo. In the photo on the right, the young people
have been replaced with older people from Sugamo, an elderly hotspot.
7. JAPANESE MANUFACTURING
FACILITIES IN THE USA
1987 1992 1999 2002 2007 2010
Michigan 25 85 103 94 90 109
Indiana 12 76 112 102 97 117
Illinois 28 114 120 116 109 124
Ohio 16 128 183 170 165 168
Kentucky 10 70 100 102 116 122
Tennessee 17 55 99 81 91 85
Alabama 9 24 35 39 48 44
Georgia 40 84 112 105 110 89
TOTAL 157 636 864 809 826 858
U.S. Total 550 1724 2126 1961 1918 2153
Source: JETRO’s Annual Survey on Business Conditions of Japanese Companies in the U.S. & Canada – Nov. 2010 & past years
8. IN THE MIDWEST
• Japan’s Presence in the U.S. Midwest - “Steady Growth”
• Approximately 27.8% of Japanese Manufacturing in the US is Located in the
Midwest. Why?
• Particularly, Transportation Machinery Parts Facilities = 48
Source: JETRO’s Annual Survey on Business Conditions of Japanese Companies in the U.S. & Canada – Nov. 2010
Ohio
Alabama Texas
4% Others 4% Kentucky
Ohio
6% 19% Indiana
South Carolina
5% Tennessee
Michigan
California
4% Georgia
North Illinois
Carolina
Kentucky North Carolina
3% Illinois
14% California
4%
South Carolina
Georgia Alabama
4%
Others
Michigan Indiana
12% 13% Texas
Tennessee
8%
9. JAPANESE MANUFACTURERS IN THE US
(Total 2,153 Plants)
660
599
205 5 VT 2
53
NH 8
47 1 2
9 MA
1 15 39 CT
22
3 109 RI 2
15
16 12 168 43
69
10 1 124 117
492 7 5 21 DE 1
10
122 28 MD
69 10
9 16 85
20 4 50
16
7 44 89
113
13
20
20
689
9
Source: JETRO’s Annual Survey on Business Conditions of Japanese Companies in the U.S. & Canada – Nov. 2010
10. DEVELOPMENTS & NEW TRENDS
• New sectors
o Information and Communication Technology (ICT)
o Green Technology & Clean Technology (esp. EV, battery)
o Medical & Biotechnology
o Service robotics
o Silver Services
• New business models
o Services that can be adopted to meet needs of Japanese
consumers (e.g., financial, real estate, logistics, funeral)
o Technology transfer & licensing
11. CHALLENGES FOR
JAPANESE MANUFACTURERS
• Aging population
• Overdependence on haken (temporary workers)
• Overreliance on automotive industry
• Endaka or high yen recession [Refers to the strong yen compared
to other currencies. Because Japan is highly dependent on
exports, this can cause a recession.]
• Rise of Asian tech communities
• Low cost foreign production
• Maintaining quality versus global competitors
• The challenge innovation
• Rebuilding from the Great East Japan Earthquake of 2011
12. THE JAPANESE MARKET
1. Japan is the world's second-largest market with a market scale ranking near the top of developed
nations. In fact, each of Japan’s geographic regions has an economic scale similar to or greater than
many countries.
2. The Japanese are sophisticated consumers with high purchasing power. They tend to be early
adopters and are eager to stay on the cutting edge with the latest technologies, making Japan an
ideal test market for new products.
3. Japan has a highly developed business environment. From major multinationals to small
ventures, Japan’s world-class companies produce innovative products and services. Japan’s strong
technology-based industries offer many opportunities for foreign companies to partner with
Japanese firms at all stages.
4. Japanese companies value loyalty and emphasize long-term business relationships. Foreign-
affiliated companies have long found their partnerships with Japanese companies to be ones of
commitment and dependability, resulting in reduced costs and improved quality.
5. Japan is a global leader in technological innovation and product development. Partnerships with
Japanese firms enable foreign companies to leverage their respective talents, which is vital to
remaining globally competitive.
6. Japan offers foreign companies access to new Asian markets. Many consumer products that gain
popularity in Japan, such as movies, game software, clothing and cosmetics, go on to become
popular throughout East Asia.
13. SAYING “YES” TO JAPAN
Entrepreneurship on the rise in Japan
• Japan does not have a history of entrepreneurship.
Japanese are more risk averse.
Start-up capital is not as readily available.
• The government is trying to make Japan more attractive for
entrepreneurs.
Decreased business costs
Revised Commercial Code – April 2006
Globally Harmonized Accounting Rules
More Liquidity in Labor Market
Improved IT Infrastructure
• There are opportunities for innovative foreigners who can
recognize the potential in the Japanese market and think
outside the box.
14. THE 3 P’s FOR DOING
BUSINESS IN JAPAN
• Product & Management
– Must be suitable or adaptable to Japanese consumers and businesses
• Japanese have a high standard of quality expectations and after
sales service
• Patience
– Japanese decision making takes longer that the American counterpart
• Relationship Building
• Implementation of business transaction
– Consensus building (Ringi System and Nemawashi )
• Persistence
– A trusting relationship must be built first
– Long-term commitment-definition
15. ABOUT JETRO CHICAGO
OUR MISSION
In order to strengthen the economic relationship between the U.S. and Japan, it is
our mission to assist Midwest companies and/or organizations enabling to expand
their business ties with Japanese partners.
JETRO Chicago: JETRO Chicago on a National Level:
Responsible for 12 Midwest States Responsible for Business Partnering and
>Illinois >Missouri Investment in the following industries
>Indiana >Nebraska •Automotive OEMs
>Iowa >North Dakota •Automotive Parts
>Kansas >Ohio •Robotics Technologies
>Michigan >South Dakota •Biotechnology
>Minnesota >Wisconsin
JETRO has 6 offices in the United States:
Atlanta, Chicago, Houston, Los Angeles, New York, San Francisco
16. ABOUT JETRO
The Japan External Trade Organization (JETRO) is a government-related organization that
works to promote mutual trade and investment between Japan and the rest of the world.
As Japan’s official overseas trade & investment agency, JETRO’s network, resources and
access are powerful tools unparalleled by any other organization or company.
Established: Established in 1958
Employees: Approx. 1,600 (January 2011)
Offices: JETRO has 36 offices in Japan and 73 offices in 55 countries world wide.
17. PRIORITY SECTORS
Employment Effect/ Large Scale Investment
① Retail + Service
Environment •Apparel , Restaurant, Distribution
(Store Expansion, Distribution Center etc)
• Next Generation Vehicles & Technology
• Services utilizing new business models
• New Energy Generation (Solar/Wind/Wave etc.) (Advertising, fitness, etc.)
• Manufacturing, supply, and joint development of •Establishment of distribution points for
related materials + components (Solar Cells, Lithium Japan-made foodstuffs, products, or
Ion Battery Materials, etc. ) contents (Online shopping mall, master
• Other (Smartgrid, Material Recycling Technology franchiser etc.)
etc.)
Smart Meter Data Center ・ BPO ②Other Industries
Green-IT Mobile Communications •(Manufacturing Centers,
Online Shopping •Call centers, Customer Service etc. w/
potential for job creation)
•Pharmaceutical Development
ICT
(Contract Research Organizations, HC IT (Electronic Online Reservations • LCC + other airlines Japan service
•Contract Manufacturing Organizations, Medical Records) Flight Simulator (including regional airports)
software etc.) HC Business Process Augmented Reality
• Airport Related Services (Fixed Base
•Medical Devices+ Systems Outsourcing (BPO) Applications
Operator etc.)
(AED, Cancer Diagnosis + Treatment etc.)
•Establishment of local regular ferry
•Tools and services for Geriatric Care
routes
(Acquisitions of private nursing homes,
Telemedicine etc.) • Friendly acquisitions of hotels +resorts
•Beauty Related (Anti-aging products & Medical Tourism • Businesses targeted to Asian tourists
services etc.) (Visit for the purpose of medical (Travel agency, Payment Systems etc.）
treatment)
Healthcare -Spa Facilities Tourism
18. JETRO’S SERVICES
• Consultations on corporate structures, company registration, visa
applications and tax and labor procedures
• Market research on different industry sectors
• Temporary office space at JETRO’s Invest Japan Business Support
Centers (IBSCs)
• Human resource assistance, including introductions to qualified
HR agencies and information on wage rates, employment law and
Japan’s social insurance system
• Site selection assistance
• Business matching programs and Japan Trade Missions
• Examples of past success cases
• Information on government subsidies and incentives
19. JETRO’S SERVICES
(continued)
• To date, JETRO has helped more than 500 companies from around
the world establish an office in Japan.
• JETRO Chicago has helped more than 35 companies establish a
Japan office since 2005.
20. INVEST JAPAN BUSINESS SUPPORT CENTERS
(IBSCs)
Nagoya
Osaka
Tokyo
Kobe
Fukuoka Yokohama
21. AMENTIES @ THE NAGOYA IBSC
5 incubations offices, equipped with a
desk, chairs, lockers, telephone, fax, internet
connection
2 conference rooms
1 auditorium hall
23. JETRO CHICAGO IS HERE TO HELP YOU!
JETRO Chicago Business Development Team
Ralph Inforzato Kevin Kalb
Director of Business Development Project Coordinator, Business Development
Tel: 312-832-6000 Ext 103 Robotics, automotive, and manufacturing inquiries
Email: Ralph_Inforzato@jetro.go.jp Tel: 312-832-6000 Ext 205
Email: Kevin_Kalb@jetro.go.jp
Kohei Okui
Director of Business Development Robert Corder
Tel: 312-832-6000 Ext 105 Project Coordinator, Business Development
Email: Kohei_Okui@jetro.go.jp Biotechnology & life sciences and business services inquiries
Tel: 312-832-6000 Ext 204
Email: Robert_Corder@jetro.go.jp
We look forward to helping you!
