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"Izakaya" are among the most popular establishments within the Japanese restaurant industry. Diners can choose from wide selection of drinks, including beer and sake, and also enjoy an array of appetizers and main dishes. Friendly service and low prices have also helped to draw local expatriates and overseas visitors as well. One of the top izakaya chains currently operates about 650 restaurants nationwide. In this program, we look at the management philosophy that's driving this vast business and its increasing popularity worldwide.
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One of Japan's fastest growing e-commerce companies is Start Today. It operates an online shopping site called "ZOZOTOWN", which offers products from top domestic and foreign apparel brands. With a portfolio of over 1,600 brands and 4 million members, it is the undisputed leader in the field. The growth of what was once a small company into a major player in just 10 years is rooted in the corporate vision and unique management style of founder Yusaku Maezawa. He speaks to us about the unconventional path he's taken from being a 20-something musician into the creator of one of the hottest companies in Japan.
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"Cosplay" is the act of dressing up as an anime or manga character. What was formerly a hobby among a small group of people in Japan has exploded into a global phenomenon. At an year-end manga and anime festival held in Tokyo, cosplay fans from around the world were seen flaunting their character-inspired costumes. Businesses that offer custom-made outfits have also sprung up. One store boasts over 1,000 members and is seeing a spike in orders from abroad. We show you how this surprising trend is evolving in native Tokyo.
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I usually go to izakaya after work, which is often late in the evening. While the decor and ambiance is very casual and there isn't anything really special about them, I still miss being able to go to one when travelling overseas. There aren't many places where you can enjoy a variety of dishes and drinks at such reasonable prices until the wee hours of the morning. Izakaya may sound similar to some fast food outlets, but the biggest difference is the quality of service. Fast food chains certainly offer the same, uniform service almost anywhere in the world, but it can often seem routine and lacks a more human touch. Izakaya rely heavily on part-timers, who are given a detailed manual on the preparation of dishes, but there are no specific instructions on the provision of customer service. Staff are put through intensive training to be able to think for themselves about how to best serve the customer.
The concept of customer service can also make a difference for businesses in the virtual space. With internet shopping, there isn't any interaction with store staff or the ability to try out products, and the experience can seem cold and impersonal. Start Today has taken a different tack, aggressively recruiting fashon trend-setters, often former users of the site, recognizing that their tastes and views are a critical ingredient to improving services and understanding what the end user really wants.
At the same time, though, constantly catering to the customer doesn't always lead to business efficiency. According to some data, labor productivity of the dining and lodging industry in Japan is less than 40% of that in the US. So why do many Japanese firms put so much emphasis on customer service? The hope is that profits will naturally follow. Putting efficiency above everything else, it's believed, will likely result in a short-term boost to profit, but could eventually mean fewer customers. Providing service with a personal touch may cost time and money, but these firms are betting that they will win the hearts and minds of more customers, and drive profit growth in the long run. It's a strategy that might call for a bit more patience and faith in one's business model. (Makiko Utsuda)
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Japanese culture is becoming increasingly popular around the world, powered in large part by the internet. "Hatsune Miku", a virtual idol, created as the face of a vocal synthesis software, has a growing fan base not just at home, but in the United States and across Asia, with video sharing sites expanding her global reach. Meanwhile, a social networking service operated by IT firm, CyberAgent, is challenging international rivals by allowing users to become one of a multitude of "cute" avatars. In this edition, we report on some of the new trends coming out of Japan's pop culture scene.
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The Tokyo Motor Show opened its doors in December, bringing together some of the top global car makers. Japanese manufacturers showcased their latest eco-cars with greatly improved fuel efficiency. Concept vehicles combining IT and environmental technology were also on display. We talked with the top executives of Toyota, Nissan, and other major car makers about their global strategies and the future of transport.
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Japan has long been said to suffer from "Galapagos syndrome", describing the country's insular society and the failure of many of its advanced products to expand into global markets. That is not necessarily the case, says one amateur music producer who we met through our interviews. Collaborating with his friends, he writes and produces songs that are sung by virtual idols, gaining fans around the world. He says being a kind of "Galapagos" market may well be to Japan's advantage, giving it the ability to create one-of-a-kind products. The infectious popularity of the Japanese-born virtual idol, "Hatsune Miku", is one such example that underlines his view. A quick internet search shows there are over 100,000 songs under her name, created by fans worldwide using the voice-synthesizing software. Users can write songs in English, Chinese and other languages, in addition to Japanese. But many avid fans overseas insist that the idol sings in her "native tongue", and requests for translation of lyrics back into Japanese are often found on related sites. It's an interesting phenomenon, especially when Japan is currently facing a huge wave of English-ization, with many businesses even switching their official language to English. Of course, in most cases, being subjected to global competition will result in a better product. But as the world increasingly moves towards globalization, the landscape appears to be becoming ever more flat. In such a world, there may be more demand overseas for products and ideas that have evolved uniquely within the domestic Japanese market.
This idea may also apply to the auto industry. Environmentally friendly cars were clearly the focus at the Tokyo Motor Show and there was a wide variety of technologies on display, ranging from plug-in hybrids, electric vehicles to ultra-efficient diesel engines. In the future, auto makers are planning to incorporate information technology to create vehicles that can be operated with a smart phone, or allow users to change the design at the touch of a tablet. Cars are on the cusp of evolving into more than just a simple form of transport. It could prove an opportunity to bring to life Japan's home-bred creativity and the true potential of this Galapagos nation. (Makiko Utsuda)
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The textile industry was instrumental to Japan's recovery after World War II, but the nation's share of the global market has come under increasing pressure from new entrants such as China in recent years, putting the future of the industry in question. Still, some companies have managed to wither the onslaught, winning orders from around the world for their one-of-a-kind products. Sato Seni Co., Ltd. boasts a unique fiber manufacturing technology. 241CO. is a contract manufacturer of high-end jeans that has succeeded in securing global clients by leveraging its advanced sewing techniques and vast network of small workshops. Seiren Co., Ltd., which has a history of over 100 years, has developed a revolutionary dyeing process to create clothing that was impossible using conventional methods. In our report, we introduce the traditional and cutting-edge technologies of Japanese textile makers that are reshaping global fashion.
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Takeda Pharmaceutical Co., Ltd. was established more than two centuries ago and has remained Japan's top pharmaceutical maker over the years. Under the helm of company president, Yasuchika Hasegawa, it is actively seeking out overseas M&A opportunities to expand its business into emerging markets and drive growth amid the dramatic changes in the global economy. Mr. Hasegawa talks to us about his management philosophy and the urgent need to undertake bold reforms.
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In central Tokyo, there's one spot that has been attracting foreign visitors night after night. The main draw is live performances of traditional Japanese instruments. Here, people can listen to acoustic sounds of the Shamisen and Koto, or even try it out themselves. We take a look inside a small shop connecting Japanese musicians and foreigners through the medium of traditional instruments.
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My initial impression was that Japanese textile makers had long been overtaken by low-cost Chinese rivals and that the domestic industry was virtually nonexistent. But a closer look revealed that is not really the case. A new dyeing system developed by century-old Seiren has the potential to revolutionize the industry, with its huge, printer-like machine able to produce over 16 million colors. Under conventional methods, product orders would have to reach at least 2 thousand units to justify the cost, but the new system allows them to handle just a single order, at a low price. Generally, the textile industry relies heavily on manual labor, making it impossible for Japan to compete with emerging markets in terms of labor costs. But at Seiren's factory only 3 people are needed to operate 200 machines. The ability to offer an array of colors is also a major strength, attracting customers from around the world, including many top fashion brands. Company president Tatsuo Kawada expressed confidence in beating the competition, saying, "If we can keep production costs low, I believe the business we lost to emerging markets can be brought back to Japan". Businesses such as these which have not only survived against all odds but are also managing to compete globally have a common characteristic - a willingness to change and adapt to shifting trends. That's a principle that resonates beyond the textile industry.
Takeda Pharmaceutical is one such company, with a history spanning more than 2 centuries. Currently, the industry faces major headwinds as patents for many leading products begin to expire and are replaced with cheaper, generic drugs. Takeda could have played it safe by concentrating on the domestic market where it is a dominant force, but Mr. Hasegawa chose to take a more agressive strategy, pushing through massive acquisitions of overseas companies to stay competitive in the global market. The key to businesses that stand the test of time may be the unrelenting pursuit of a vision and the courage to take on risks to reach it. (Makiko Utsuda)
More than six months have passed since the March 11th earthquake and tsunami that ravaged eastern Japan. What is the situation on the ground now? What is life like for the residents? And have businesses and industries gotten back on their feet? To answer these questions, we bring you special reports on the work being carried out to rebuild devastated industries and the challenges faced by local people and communities.
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Since March 11th, various forms of aid have poured into disaster-hit towns and villages to help in recovery and rebuilding work. One non-governmental organization, "Crash Japan", has dispatched volunteers from around the world to some of the worst-affected areas. The group has been actively supporting local residents, from cleaning up debris left in the wake of the tsunami to providing psychological counseling to people struggling with personal tragedies. Japanese companies are also joining the effort, with cosmetics maker, Shiseido, offering make-up consultations to women in the hopes that they will have a more positive outlook about the future. At the same time, local tourism offices are working to bring back visitors scared off by the disaster at the nuclear power plant. We talk to one British couple, who are on a tour across Japan and have been blogging about their experiences.
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Semiconductor maker Renesas Electronics Corporation is the world's biggest supplier of microcomputers, an indispensable component for automobiles and home appliances. Their plant was severely damaged in the earthquake, affecting a wide range of industries. Operations resumed in June and by September, shipments had exceeded pre-earthquake levels. We also revisited car parts maker Iwaki Diecast Co., Ltd., which told us in April how the earthquake had almost completely destroyed a subcontractor's factory. However, thanks to a rush of orders from car makers, they are now operating at full capacity. We report on the underlying strengths of Japan's manufacturing industry and the surprising speed at which it is recovering from the devastation.
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It's been 6 months since I last visited the quake-hit areas in northeastern Japan, and what I saw left me with two very different impressions. The first thing that struck me was the scenery along the coast, with the raw destruction still clearly visible, suggesting that the rebuilding efforts have not progressed as fast as initially expected. In areas hit by the tsunami, debris had been gathered into huge mounds but were then left there and were starting to be covered in weeds. In Ishinomaki, one of Japan's major fishing ports, the destructive force of the tsunami was brought home by the vacant and ruined buildings and abandoned streets. Considering the huge outpour of support from around the world since March, it was frustrating to see the lack of progress in these areas.
Still, residents expressed a strong determination to do whatever it takes to rebuild their communities and lives with their own hands. At a severely damaged fishing port, a temporary tent had been set up and the market had resumed business. With refrigerated warehouses and other vital facilities washed away, the port won't be able to operate at full capacity for some time, but the perseverance of the local people was helping to breathe life back into the area.
Many people who lost their homes, are now living in temporary housing facilities. A woman we met in a facility in Kamaishi city had lost her husband in the tsunami. She said that for a long time afterwards, she was in a state of shock and couldn't even cry, but by sharing her experience with those who went through the same experiences, she has gradually been able to accept reality and overcome her grief. She says communicating with others is what has been the most helpful for her. Volunteers, many from abroad, continue to visit affected areas, helping set up events where evacuees can get together to share their experiences and move forward.
One of the most impressive developments was how quickly businesses are recovering. An auto parts maker we had visited in April was mostly inoperable at the time due to damage to its production equipment and an electricity shortage. But 6 months later, its factories were almost completely repaired and operating at full capacity. A plant manager admitted that "If we stop supplying parts, another maker could take our place anytime. We have to continue suppying our customers no matter what our situation is, to stay in business". That determination is probably one of the biggest reasons they were able to recover so quickly.
The disaster that hit northeastern Japan is said to be on an event that occurs only once in a millenium. Recovering from such an event is not something that can be accomplished in just a few years. It is a challenge, not just for the affected areas and the people there but for Japan as a whole, and I hope to continue following the many ongoing efforts on the ground. (Makiko Utsuda)
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Japanese agriculture is facing a slow decline amid falling production and a shrinking workforce. The dim outlook in the home market is forcing many farmers to turn their sights overseas aided by new technology and marketing methods. One small town in a mountainous area of northern Japan has long been harvesting rice on terraced paddies. While the rice is known for its superior quality, production has remained unprofitable due to the the high cost. But now with some outside help, demand has skyrocketed, putting it among an exclusive class of rice known as "brand rice". Building on that success, the town has developed a new product that it hopes to export to Europe and the United States. Meanwhile, one agricultural corporation has developed a system guaranteeing stable production of high-quality vegetables that it plans to sell overseas. In this program, we report on the efforts of the Japanese agriculture industry to cultivate global customers.
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Japanese convenience stores have built up a unique business model unlike any in the world, offering a countless variety of products and services. The country's second largest chain, Lawson, has undertaken an especially distinctive strategy to drive product and store development. President Takeshi Niinami says the company's strengths are its "manufacturer retailer" model that extends across the value chain from production to retail, and a marketing strategy fully utilizing information technology. In recent years, Lawson has also started closing the gap with rivals in overseas store openings. Mr. Niinami talks about how he plans to grow his business in the shrinking Japanese market and tap into international demand for covenience.
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The ancient capital of Japan has just opened a new attraction for foreign tourists. Called the Toei Kyoto Studio Park, the renovated theme park that re-opened in September offers an "Anime Museum", an Ukiyo-e gallery and even a ninja house. Featuring popular Japanese culture as well as more traditional arts and crafts, the operators hope to capture the hearts of visitors from around the world. But will it succeed?
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Convenience stores and agriculture are both established industries and seemingly have little room to change dramatically. But through this report, I realized they are undertaking strategies that may have a far-reaching impact on our everyday lives. In Japan, convenience stores are the place to go for food, an ATM, or even to post a letter. People walk into one at least once everyday and it has become so integrated with our daily life that it often serves as an island of familiarity and gives us a sense of comfort. Mr. Niinami says his ultimate goal is to have convenience stores become a part of a city or town's infrastructure, helping to rebuild and revitalize local areas. While this may seem like quite a novel concept, it is still firmly in line with the original aim of providing daily necessities and most of all, convenience. Mr. Niinami has been at the helm of the company for nearly 10 years, but his passion for the business remains steadfast. "It's so exciting, I feel convenience stores have so much potential to expand into completely new fields".
Surprisingly, the same enthusiasm was expressed by the farmers we interviewed for this report. "Japanese agriculture is competitive" was a phrase we repeatedly heard. Through a clever marketing strategy, rice grown in a remote area of Japan was propelled into a much sought-after brand, which could have applications in driving sales of many other local products. Another eye-opener was to learn that industrialization, an area in which Japan has excelled in the case of manufacturing, could also be applied to the agricultural industry. The high-tech farming system we saw greatly reduces the amount of water and fertilizer needed to grow vegetables. The developer is hoping the technology will eventually make farming under severe conditions, such as the dry, desert areas of Africa or the Middle East, possible. The hope is that such new methods will help draw more young people to take up farming. (Makiko Utsuda)
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Wave your smartphone across the sky and a massive robot appears out of thin air. A locomotive jumps out from a magazine cover displayed on a computer monitor. These are just some of the extraordinary visual effects made possible by an imaging technology called Augmented Reality (AR). Numerous companies are increasingly incorporating AR into their businesses. For example, visitors to the major tourist destination of Takayama City, Gifu Prefecture can now use smartphones to conveniently access various information about the area. Services are also being launched in multiple languages so that overseas tourists can more easily navigate the sites of the city. Developed by a small Japanese venture, the application is being used in over 100 countries and regions around the world. AR has also given rise to some innovative content. One content designer says his technique doesn't require a smartphone or computer to see AR images. In this report, we take you into the intriguing world of augmented reality.
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Downtown Tokyo is home to numerous small workshops that are the backbone of Japanese industry. They churn out key components for hybrid cars and mobile phones, and even ultra-thin, painless medical needles. "We make things that others can't", boasts Masayuki Okano, the president of Okano Kogyo. His small workshop with just 5 employees generates over 600 million yen in annual sales. Mr. Okano, who symbolizes the strength of Japan's small businesses, talks to us about the craftsman's passion and pursuit of new technology.
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As long as you're on a tour of Japan, why not experience something that isn't listed in any guidebook? For example, an "Akihabara Idol Concert", "bonsai-making", or even karate and calligraphy. This summer, a website was launched to introduce overseas tourists to such hands-on experiences. We follow one overseas tourist as he discovers Japan off the beaten path.
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I experienced AR technology for the first time through this report, and was amazed with what it could do. By pointing a smartphone camera at my hand, a computer-generated character would suddenly appear on the display and start dancing on my palm. There was also a game in which monsters would pop up as I passed certain locations along my daily commute. Many of the applications have the potential to change the way we interact with society and how we see the world around us. One of the engineers we interviewed said the technology being used wasn't necessary groundbreaking, but the key was in the way it is applied. Japan boasts a treasure trove of content such as anime that will enhance the AR experience, and it's exciting to think of the virtually limitless possibilities.
Mr. Okano is possibly one of the most unpredictable and fascinating people I have interviewed for this program. The 78-year-old speaks in rapid bursts, owns and still drives several fancy sports cars, and is inexhaustibly passionate about his work. His eyes sparkled when I asked him what he's working on, exclaiming that "when it's completed, it will transform the Japanese industry!". But he stopped short of revealing to me what it was. Most companies go to him as a last resort to create products that other firms considered impossible to do. Mr. Okano says his philosophy is to take on a project if he feels there is a 60% chance of succeeding. The rest is a risk he is willing to take. "Only by taking risks, can one achieve anything significant" is his mantra, but it is his ability to enjoy any challenge that makes him the epitome of a craftsman. (Makiko Utsuda)
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Since disaster struck the Fukushima Dai-ichi Nuclear Power Plant in March, Japan's capability to supply power across the nation has declined considerably. As the summer season enters full swing, worries are growing about an acute electricity shortage as more people switch on their air conditioners to cope with the severe heat and humidity. Many companies and households are joining efforts to conserve electricity, including reducing usage of air conditioning and lighting throughout the day. At the same time, various technological innovations are also being adopted. Among them is a semiconductor recently developed by Japanese researchers that is sparking interest around the world. The semiconductor is said to be revolutionary, minimizing the amount of electricity needed to power home appliances. There are also systems allowing households to efficiently manage their power use and clothing that can make the wearer feel cooler and more comfortable in the heat. In this program, we report on the various ideas being explored as Japan prepares to ride out the sweltering summer.
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Shipping companies transport a variety of materials from natural resources to industrial products such as cars and are a critical link in global trade. Competition in the industry has intensified in recent years with the rapid rise of emerging economies. Mitsui O.S.K. Lines boasts the world's biggest fleet of transport ships. Its president, Koichi Muto, says the company's growth is anchored in its ability to quickly collect information about sea lane conditions as well as safety policies to thwart potential danger on the high seas. In our interview, he talks to us about navigating the company toward business success.
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In July this year, an unusual concert was held in Los Angeles. Appearing before several thousand fans was a virtual singer created entirely with computer graphics. Called "Hatsune Miku", she was originally designed as an advertisement character for a computer software used to digitally synthesize singers' voices. But with features drawn straight out of the pages of anime, she immediately became a sensation among both computer and anime fans, sparking businesses that now span music CDs to character-themed merchandise. We take you behind the scenes of a virtual idol's real-world success on the international stage.
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Japan is facing an extremely difficult situation amid a severe power shortage, but I realized through this report that innovation can be realized even under such conditions which may not have been possible during normal times. Households and businesses alike are doing their utmost to use less electricity. Automakers have shifted production to weekends to help reduce power consumption during weekdays. These efforts really seem to capture the strong solidarity of the Japanese people in times of crisis. It is also encouraging to see that some companies are even managing to turn this adverse situation into a business opportunity. As office buildings cut back on air conditioning, companies are allowing employees to wear more casual and cooler clothing to work, as well as to shorten their work hours. For now, these measures seem like quick fixes to conserve electricity, but they could eventually lead to a fundamental shift in the very lifestyles of the Japanese people.
Mr. Muto says "a business can survive as long as its forecasts are correct 60% of the time". While that may seem like a low success rate, it is also true that the world has become ever more unpredictable. "Forecasts can be wrong, and the key is to be well prepared so that one can weather a 40% failure rate". Mr. Muto's approach may be something that's applicable across industries and businesses, as well as to how we manage our own lives. (Makiko Utsuda)
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Japan has long relied on imports for most of its energy supply, including oil, natural gas, and uranium. Following the recent disaster at the Fukushima Dai-ichi nuclear plant, the country faces an even more tenuous situation. The solution may lie in vast alternative resources that have been left untapped until now. One of those is geothermal energy. With its numerous volcanoes, Japan is said to be sitting on some of the world's biggest reserves. Methane hydrate is another energy source with potential applications. It is essentially methane gas, which is a component of natural gas, frozen in a crystal structure. Massive deposits have already been discovered under the sea bed in nearby waters. Meanwhile, a major solar power project is also being discussed between Japan and China. In our report, we look at the current state, the possibilities and the problems of alternative energy sources that have come into focus following the nuclear disaster.
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The "Hayabusa" space probe returned to earth on June 2010, after completing a seven-year mission that made significant contributions to international space development. The microscopic particles collected from the "Itokawa" asteroid are believed to contain clues about the birth of the solar system nearly 5 billion years ago and may also shed light on the origins of earth. Science was not the only achievement. The dramatic return of a spacecraft that overcame numerous malfunctions was a feat lauded by the Japanese public. Professor Junichiro Kawaguchi of the Japan Aerospace Exploration Agency who steered the project talks to us about what the success of "Hayabusa" means for Japan's space development initiatives.
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The geothermal power plant we visited for this report was located near a national park, in an area well known for its hot springs. We passed through many hot spring resorts as we headed ever deeper into the mountains, when suddenly a huge facility appeared in front of us. Pipes weaved in and out, and steam was billowing up everywhere. At the plant, boiling water was being pumped up from a well, 2500 meters deep, and the resulting steam used to rotate turbines to generate electricity. The firm that operates the plant says it is a stable source of energy that can practically last forever. The use of new technologies might allow us to better tap into these alternative resources, and make Japan more energy self-sufficient in the future.
Mr. Kawaguchi says, "our aim has always been to accomplish what has never been done before". The Hayabusa probe was a world first, with his team building everything from scratch. In the process, many new technologies were born that have potential applications in other industries. The professor stressed that space development should be something that benefits society, since such projects can only be realized the support of the public. (Makiko Utsuda)
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Japanese companies were long said to have been reluctant to hire non-Japanese staff. However, in recent years, such employment practices have been undergoing a nascent change. Fast Retailing, the operator of the UNIQLO brand and the world's 4th biggest clothing retailer, plans to hire over 700 people from overseas this year, and expects about 80% of new hires, or about 1,050 people, to come from outside Japan by 2012. This trend is evident not only among major companies, but has spread to small and mid-sized firms as well. Some businesses are starting to undertake initiatives that go even further. E-commerce giant Rakuten has switched its official company language from Japanese to English and is requiring its Japanese employees to conduct meetings in English. However, the recent earthquake in northeastern Japan and the ongoing problems at a nuclear power plant there has dampened the enthusiasm of foreigners wanting to work in the country. In our program, we report on the efforts by Japanese companies to attract top-class talent from around the world, the foreigners working in Japan, and how the earthquake is affecting such initiatives.
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Last year, Asahi Breweries became the top beer seller in Japan. Until the early 1980s, the company was a marginal player and its market share constantly under threat of competitors. But after launching the widely popular "Super Dry" beer brand in 1987, it quickly grew into one of the biggest breweries in Japan. Building on the success of "Super Dry", which has since become the top beer brand in the domestic market, the company has begun embarking on an aggressive overseas expansion. In recent years, it has invested in a major food distributor and brewery in China. It has also acquired a top beverage maker in Australia. President Naoki Izumiya talks to us about the company's push into international markets.
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I was impressed by the bold initiatives by Japanese companies we visited for this report to secure talented foreign workers. They were willing to accept the risk of lower efficiency or causing confusion among workers, even if temporarily, in order to fundamentally remake their organization. Some companies said they were already seeing unexpected benefits, as foreign workers tend to be more aggressive and adept at proposing ideas, inspiring their Japanese counterparts to take more initiative in their work. The spread of English-ization among Japanese firms was also much appreciated by the foreign workers we interviewed. With the language barrier removed, they feel they can work on the same terms as local employees and receive a fair evaluation. These kinds of approaches may prove to be key in luring highly talented workers from abroad, and ultimately, help breathe new life into Japan's economy as a whole.
Beer is often the drink of choice when eating out in Japan, but deciding which brand to order is usually a spontaneous choice. The efforts being made by Asahi to become the brand of choice was well beyond what I imagined, involving everything from cultivating a brand image to analyzing ever-changing consumer tastes and psychology. Mr. Izumiya says "providing a high quality product is an absolute condition, while delivering emotional quality or satisfaction is the key" to coming out on top of the fierce global competition. (Makiko Utsuda)
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The massive earthquake and ensuing tsunami that struck Japan on March 11 have left Japanese industry struggling to deal with a variety of problems. Supplies of various products and components are in short supply due to damage to many factories in the country's northeast, causing major disruptions to the operations of auto and electrical machinery makers, both domestic and foreign. Amid this, some parts manufacturers are working to fill the gaps in the supply chain. One mid-sized car component manufacturer in Miyagi prefecture, which has lost both customers and suppliers to the disaster and continues to suffer from power outages, has resumed production using an in-house power generator. Meanwhile, the catastrophic disaster has also revealed the surprising technological capabilities of companies across a wide range of fields. One example is the Shikansen bullet train, which stopped immediately as the earthquake hit, preventing any deaths or casualties. Another is "Roppongi Hills", a high-rise building in Tokyo that sustained no damage due to its unique earthquake-resistance structure. Equipped with an in-house power generator, it was able to sell excess electricity to Tokyo Electric Power Company, helping to relieve the company's supply shortage. The building also has infrastructure to allow it to function as a self-contained city and evacuation center. In this edition, we report on the problems facing Japanese industry as well as its underlying strength and resilience to override crisis.
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Carbon fiber is found in everything from aircraft to fishing rods, while reverse osmosis membranes has been used for water purification and desalination of seawater. The company that holds the big market share in both these fields is general chemical manufacturer Toray Industries. After being established in 1926, the company has been engaged mainly in the production of chemical fibers for clothing. However, since shifting its focus to the development of high-functionality, high-value-added materials such as carbon fibers, Toray has emerged as one of the leaders in the field. Chairman and CEO Sadayuki Sakakibara, who calls R&D "the company's lifeline", talks to us about Toray's technologies and plans for future growth.
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The parts factory we visited for this report was located in a coastal town near the epicenter of the earthquake. The tsunami waves reached several kilometers inland, and the scope of devastation was far beyond what I had imagined. In contrast, areas that had escaped the tsunami suffered relatively little damage, which suggested to me that Japan's earthquake resistance technology had been effective to some extent. The factory manager, knowing that one missing component meant car makers would have to halt their assembly lines, restarted operations just 10 days after the earthquake. Many workers who had lost their homes or suffered damage also joined the effort. Aftershocks continued even during our visit and were large enough to make me nervous. So it was moving to see the workers determined to keep up production under such difficult conditions.
Materials behind and underneath the products we use everyday are something we rarely think about. But after taking a closer look, I was surprised by the wide variety of products made from materials developed by Toray, from clothes to food packaging, and even tennis rackets. Their carbon fiber business, which is now in the spotlight, had been in the red for a long time. But believing that "it will eventually become a key material in the 21st century", the company continued to invest in its development for more than 40 years. Mr. Sakakibara says creating a new material "takes time and money, and a manager with a strong will and patience who can persevere". (Makiko Utsuda)
Copyright 2012 Nikkei Inc. All rights reserved.
