Made in Japan

Does Made in Japan still matter ? I just spent the month of February 2023 in Japan, here is my perspective of whats happening in Japanese business post-Covid.

Japan post Covid 

I just spent a month in Japan, the first long stay since Japan’s borders have been reluctantly cracked open. There’s always two sides to my experiences in Japan – love for the people, country, language and culture. And work and business. I learnt some time ago not to confuse the two. We’ll leave my love for Japan for today and concentrate on work and business.

People in the UK ask me, how is Japan recovering after the Pandemic. The assumption being Japan, the 3rd richest economy and technology giant, must be doing great. The short answer to this question is, it feels a bit depressed…at the moment. 

Yes, on the face of it the shops are full, as always. The restaurants and bars have the habitual queues outside. The rate of construction in cities like Tokyo hasn’t slowed. And as everywhere the seemingly endless stream of super rich hasn’t abated. And there is no doubt those companies who are fleet of foot have adjusted and are thriving. But look a little closer, there’s less staff and more ‘AI’ in stores, less products on shelves and it feels like the much celebrated service culture is bit by bit being eroded. 

I thought to myself, I am 56 perhaps I can’t deal with change ? But after visiting clients and talking to some respected and experienced business people over the month, their overwhelming view point is Japan inc. is at a crisis point, a time to act not ruminate. 

Many companies pulled down the shutters during the Pandemic and decided to sit it out. Makes sense right ? We did the same but now people in the UK, Europe and US are hungry for rapid progress. Its anecdotal but in contrast to this, I had a few conversations with some smart engaged people in Japan who are wondering wether or not to remove their masks this month, when the rules of the ‘nanny state’ are relaxed. Those I spoke to felt the anonymity / seclusion masks provide is comforting. 

And at the same time some Japanese consumer focused companies have decided to focus on B to B activities hence relieving them of the troubling business of targeting, innovating, marketing and understanding user needs especially in overseas markets. This is the opposite of the dynamic ‘let’s do it’ Japan I have known over the past 30 years.  

There are of course the notable outliers, such as Sony, Toyota, Uniclo and those I described above who continue to innovate and lead, but in general it was pointed out to me by locals that Japanese business inc. is at a similar point to post war period Japan. A country, which brushed itself down, rolled its sleeves up and created the industrial miracle through which (people of my age) view Japan today. The problem is in 2023, only a few company leaders have the impetus and focus to do that. The others appear to be looking inwardly.

It seems comfortable seclusion individually, in society and at the business level is the overwhelming sentiment. Of course, I am not Japanese and I have been confounded and wrong many times in my view of Japan and the Japanese – thats part of the appeal. And its not to suggest the UK is a great beacon of hope either. But, I can ‘read the air’ as the Japanese say, and listen to people, and it feels to me the current situation is bad for the future of Japanese business. As I was told, its time to act.

I said at the beginning I would separate my love for Japan from business. As a lover of Japan I want Japan to thrive. And as a die hard optimist, I hope and believe a new generation of innovative and energetic Japanese will find a new way forward.