The impact of the lost decade on advertising in Japan

This study describes the perceptions of Japanese advertising professionals regarding the evolution of advertising planning and execution over a three-decade period. Senior management and creatives from 18 of Japan’s top agencies participated in extensive in-person interviews to compare the traditional nature of Japanese advertising with that of the US, and to explore factors that may have caused a shift in the style of Japanese advertising since the 1980s ‘bubble economy’. A grounded theory approach was utilised as an interpretive methodology. The study finds that the dramatic recession experienced during Japan’s ‘lost decade’ indeed had a strong influence on the nature of Japanese advertising. Along with additional factors such as changes in the media landscape and the adoption of American-born audience measures, economic uncertainty during the 1990s pushed adverting agencies towards a more direct and persuasive selling approach. This trend contrasts sharply with a general societal shift from materialist to post-materialist values in Japan during this period.     

Japanese marketing in the post-bubble era

This article analyzes recent changes in marketing practices in Japan against the background of the recession and the high yen rate of the early 1990s. Based on direct observation, press reports, and interviews with experts, the study describes the changing situation in the Japanese market and shows how new opportunities for Western companies are opening up. The longer term implications of the home market changes for Japanese companies' competitiveness abroad are also discussed.     

“Karoshi (Work to Death)” in Japan

Since the collapse of Japan’s bubble economy in the early 1990’s, the Japanese economy has only recovered slightly. This has direct implications for employment. Both the seniority wage system and the lifetime employment system, which were popular during the period of economic growth in Japan, unavoidably changed to an outcome-wage system. Now there is greater mobility in employment, increased use of non-regular employees, and diversed working patterns. The problem of karoshi – a potentially fatal syndrome resulting from long work hours – has been known since the early 1980s. This problem has become more serious in recent years. The purpose of this article is to provide an overview of the economic and employment conditions in Japan, as well as to examine the working lifestyle of Japanese men and its connection to “karoshi.” It is argued that (1) the long work hours are not the preference of individuals, but rather the result of the adaptation to the work environment, and; (2) solving this problem requires re-conceptualization of workers’ human rights on the part of both companies and the society as a whole.     

Can the Japanese Economy Rebound?

The Japanese economy has begun to show signs of recovery from its deepest post WWII recession. Although it is generally acknowledged that the recovery is not based on solid foundations, there is elation within Japan regarding the prospects for renewed economic growth. Yet little or no attention seems to be paid to what is happening to Japanese technological innovation, the engine that drives growth. The article shows that the impressive technological excellence of the famed Japanese companies is simultaneously accompanied by a decline in overall Japanese technological innovation. This is attributed to the dual nature of the Japanese economy, where super‐strong exporting industries co‐exist with super‐weak domestic sectors, and to Japan's adherence to outdated perceptions and policies. However, the potential for recovery is within reach: galvanise the backward leg of the dual economy and healthy growth would ensue; restore confidence in the healthy leg and things would be better still; add to this a recipe for responsible macroeconomic management and the prospects would be rosier.     

Restructuring Japanese business through Kyosei: Capitalizing on international strategic alliances at the consumer level

Japan of the post-bubble era is the object of much reflection and speculation pertaining to risutora or restructuring of the economy. This study provides a novel, analytical perspective on the fundamental issues involved in the shift of momentum that characterizes Japanese business and economic restructuring. After examining the economic and corporate dimensions of the transitional forces that shape Japan's restructuring process, this study focuses on two powerful, yet often ignored, agents of change: the emergence of a new class of collaborative mandates, kyosei, and the rise of consumer power. The study further emphasizes the importance of planning and managing corporate-level restructuring activities with the interests of end users in mind, by empirically demonstrating the significance of strategic alliances, as a corporate restructuring option, on consumers. The results show that consumers' impression of alliances with Japanese firms have a strong effect on future attitudes toward each partnering brand. © 1996 John Wiley & Sons, Inc.     

Japan's International Tourism in the Context of its International Economic Relations

Despite the rapid growth of the Japanese economy, Japan still accounts for a relatively small share of international tourism as a recipient. However, Japan's outward tourism has grown to the point where it is the fourth largest tourism generator. This article analyses the role of tourist flows in Japan's external economic relationships and in the structural adjustments in the Japanese economy needed to correct its perceived external imbalance. Together with the massive and increasing outflows of long-term capital from Japan, increasing outward tourism could become an important factor in achieving external balance. Future policies and forecasts are also analysed.     

Can Japan Make a Comeback?

Since the beginning of the 1990s Japan has experienced economic stagnation. The economy had been allowed to overheat in the 1980s and a bubble had been built up. When this burst, there was massive asset‐deflation, which led to a banking crisis. The bad debts were not faced up to effectively. Japanese banks could not achieve high enough margins to recapitalise themselves, and the government was for a long time reluctant to intervene effectively. The shock made economic agents more pessimistic, which led to an imbalance between savings and investment‐demand. Excess savings were placed abroad and used to finance a domestic fiscal deficit, but this was not enough to close the gap and sustain growth. To be able to run a large current account surplus the yen needed to depreciate, but this was not achieved due to expectations about a future appreciation. The strategy to get out of the liquidity trap would include credible inflation targeting and yen depreciation. Monetary policy should have an inflation target well above zero per cent. Such macroeconomic measures need to be complemented by structural reforms such as deregulation of financial services, competition policy and reallocation of public investments. The Japanese development model with close connections between firms and banks needs to be reformed. Japan should be able to achieve stable growth again, but since the catch‐up phase is over one would not expect growth in Japan to be higher than in other developed countries, even if Japan undertakes the needed reforms.     

The Japanese employment system in transition

In the post-bubble era, Japan is going through major structural upheavals and the relevance of the five perspectives presented here on the implications of these changes for the Japanese employment system can hardly be overstated. The institutions and practices of the Japanese employment system are closely linked to the Japanese model of skill formation, human resource management and innovation. The relevance of “lifetime employment” for the accumulation and preservation of knowledge within companies has been documented for example in comparative studies on the Japanese and US semiconductor industries. The knowledge sharing, problem solving capacities and high commitment of Japanese employees are very much enhanced by the late selection characteristics as implied by “seniority” based promotion schemes. If the skills, the innovative capacities and the commitment of Japanese employees have been so much supported by the salient features of the Japanese employment system, it is essential to see what is happening to the latter when reflecting on the future of the former. This is the prime purpose of this article. Each of the following sections looks at specific changes in the economic environment, that are challenging the further viability of “traditional” human resource management practices: In particular, the first section looks at the rapid aging of the work force as a key “domestic” factor, while the second section looks at the implications of Japanese internationalisation in the post-bubble era and, especially, the “hollowing out” of the industrial system due to increasing competitive pressures from low labor cost countries. Adaptations necessitated by these challenges have already transformed the Japanese employment system and will continue to do so, as is discussed in the third section. It is not difficult to guess that this will have repercussions on the process of knowledge creation and transfer in the Japanese economy and the final section therefore looks specifically at the changes to the Human Resource Management system in the Japanese Innovation System.     

The Economics of Japan’s Stagnation

The Japanese economy has been mired in subdued growth and deflation for more than two decades. This paper describes the key economic facts and features of Japan’s decades of stagnation. It discusses why long-term Japanese government bonds’ nominal yields have stayed very low in spite of elevated government debt ratios and chronic fiscal deficits. It also provides a brief overview of Abenomics and recent economic developments in Japan.     

The Bubble and the Lost Decade

In this overview of the Symposium papers, we note that the bubble that occurred in Japan's asset markets in the late 1980s came at a time when the conventional indicators of Japan's economic performance were relatively stable. Following the collapse of the bubble, neither the Bank of Japan (BOJ) nor the Ministry of Finance (MOF) took timely and effective measures to deal with the recession that followed. While the evidence suggests that looser fiscal policy would have been ineffective, monetary policy measures might have worked. However, the BOJ followed a relatively tight monetary policy in 1991–93. In the face of the liquidity trap that ensued in the last of the 1990s, the conventional tools of stabilisation policy appeared to be of limited use. To help the Japanese economy to recover from the ‘lost decade,’ we thus discuss a number of unconventional and bold measures that the BOJ and MOF could pursue. It appears, however, that the political will is absent to undertake such measures. So long as this is the case, the effects of the lost decade will continue to act as a drag on the economy.     

Public Sector's Involvement in Marketing Growth:

The Japanese public sector played an instrumental role in the successful resurrection of the Japanese economy after World War II. The public sector supported the use of several emerging marketing concepts as well as borrowing and applying American concepts through cross-cultural marketing during the various stages of Japanese marketing growth. The public sector accomplished its goal by supporting the private sector through the establishment government agencies as well as through other players in the public sector. The leadership and direction provided by the public sector has enabled Japan to develop its economy throughout all five periods of marketing growth. A new sixth phase appears to be emerging through the efforts of the public sector to attract foreign investment and imports into Japan, to counteract the tremendous trade surpluses built up since the mid 1980's.     

New business entrepreneurship in the Japanese economy

This article presents the results of a study focused on the role of new business entrepreneurship in the Japanese economy. Particular attention is paid to the activities of various government agencies in relation to new business entrepreneurship and to the barriers to this activity in Japan. New business entrepreneurship was defined as the formation and rapid growth of a business enterprise through unique approaches to the firm's activities.In contrast to the American stereotype of Japan as an economy of a few large, interconnected firms, it is, in fact, characterized by small- and medium-sized enterprises. Over 99% of all Japanese enterprises are categorized as small or medium and over 80% of all employed Japanese are employed by such firms. However, very few of these firms are entrepreneurial in nature. The vast majority are small firms that are either subcontractors to a single larger firm or small retail, wholesale, or restaurant establishments.The start-up rate for all types of businesses in Japan has been declining for the past 10 to 15 years. More importantly, the rate of start-up s for independent firms, as opposed to firms started by a larger firm to serve primarily as a subcontractor, declined even more sharply. This indicates a significant weakness in Japan's otherwise strong economy.The low and declining rate of new business entrepreneurship in Japan is a function of structural, governmental, and cultural barriers. Structural barriers include an acute, long-term labor shortage, high financial start-up costs due in large part to high land prices, and a shortage of venture capital funding. Government barriers include “red tape,” financial and other support for small firms that is withdrawn as they enter rapid growth, and the persistent protection of inefficient industry structures. Cultural barriers involve Japan's strong group/collective orientation, the traditional career path in Japan, bounds on creativity, and the fact that entrepreneurship is not assigned a high social value.While the government provides an extensive, well-developed network of services for small- and medium-sized firms, these programs are not designed to facilitate rapid growth into the large firm phase. The Japanese experiences and programs offer useful insights for policy and tactics by other governments.     

Plaza Accord： A Lesson Should Learn From？——Analysis of the influence on Chinese economy caused by appreciation of RMB

After the World War Two, to catch up other capitalism countries, Japan placed economic growth as the top target of the country and the government, and implemented a similar economy strategy. Mean- while, to meet the requirements of Cold War strategy, USA offered to help Japan with the economy development. As a result of Japanese governments＇ favorable policies and the financial, technological and marketing support from USA, the economy in Japan grew rapidly. Till 1968, Japan had exceeded most western countries and the gross national product ranked second in the world.     

震后日本经济对中国经济影响的实证研究

日本地震使其经济遭受重创并引发了对中国经济影响的思考。本文选取1996年1月到2011年4月中日美三国宏观经济景气指数建立VEC模型进行实证研究,并结合宏观经济数据分析,认为震后日本经济下行会直接导致中国经济短期内同向波动,并通过影响外部经济环境间接对中国经济产生不利影响,诸多影响在中国对日出口和日本对华投资方面表现突出。并针对这一问题提出了相应的政策建议。     

The Foreign Exchange Origins of Japan's Economic Slump and Low Interest Liquidity Trap

Japan's macroeconomic problem has yet to be properly diagnosed. Throughout the 1990s, policy makers could not decide on the proper macro economic measures to combat the country's severe economic slump. We propose a unified explanation, with deep historical roots, of why aggregate private demand failed to recover after Japan's stock and real estate bubbles burst in 1991 and deflationary pressure continues. The problem is not purely ‘made in Japan’. It arises from Japan's unbalanced mercantile relationship with the United States. Starting in the early 1970s, numerous trade disputes between the two countries created tensions that were (temporarily) resolved by the yen going ever higher against the dollar up to 1995. In the last two decades, this persistent pressure for the yen to rise was further aggravated by Japan's large current‐account (saving) surpluses as the counterpart of America's large current account (saving) deficits. The legacy is the expectation that trade and financial tensions will recur so that the yen will be higher 10, 20, or 30 years from now –with Japan's (wholesale) price level forced correspondingly lower and nominal interest rates on yen assets remaining more than four percentage points less than those on dollar assets. This fear of yen appreciation, whose timing is erratic and unpredictable, now inhibits private domestic investment by both Japanese firms and households. Our theory also explains why, in the late 1990s, nominal interest rates on short‐term yen assets were compressed toward zero so as to destroy the normal profit margins of the banking system. In this liquidity trap, the Bank of Japan –whose monetary policy has been quite ‘expansionary’–is powerless to stimulate the flagging economy. To spring the liquidity trap, eliminate deflationary pressure, and restore macro economic balance in Japan, the American and Japanese governments must act jointly to quash the expectation that the yen will be higher in the future than it is today.     

日本泡沫经济与中国当前经济对比分析

近几年中国经济的某些现象与日本当年的泡沫经济颇有几分相似之处,如货币升值、房地产价格持续攀升,这使得人们担心中国经济能否如日本经济泡沫破裂后陷入长期低迷。但是,当前的中国经济与日本泡沫经济有许多的不同点:经济发展水平不同、金融自由化的程度不同、政府的重视程度及宏观调控措施不同、经济泡沫化的程度不同和经济增长的潜力不同,这种种的不同可以确保中国经济能够长期稳定的增长。     

全球格局下的中国经济走势

2012年,美国经济的增速将放缓,欧元区经济进入相对稳定期,日本经济会在一定程度内反弹,新兴经济体的增长速度也将趋缓,世界经济的整体增速将下滑,但不会衰退。在这种大环境下,2012年前4个月我国经济增长稳中趋缓,第二季度将延续减速态势。当前我国经济下行压力加大,稳增长尤显重要;物价较快上涨势头虽得到控制,但食品价格周期性大幅波动的深层次矛盾并未有效解决;节能减排任务艰巨;小微企业仍然困难,贷款难已转为生产经营规模的缩小。而且,刺激性政策逐步退出以及严厉的房地产调控政策将使经济增速进一步放缓;地方财政风险和土地市场交易趋冷对地方投融资能力形成制约;节能减排等对经济增长的质量提出新要求,将制约粗放型增长;资源、劳动力成本上升抬高了经济增长的成本;出口放缓对工业生产形成一定压力,进而导致经济增速放缓。同时,战略性新兴产业的相关规划陆续出台给经济增长增添新的动力;中西部不断承接东部产业转移,逐步成为带动经济增长的新亮点;消费水平将保持稳步增长。综合来看,2012年中国经济增长将呈"前低后高"的态势。     

Japanese trade unions at the crossroads: dilemmas and opportunities created by globalization

Japanese trade unions have contributed much to the economic stability and success of Japanese enterprises. Globalization has, however, placed substantial pressure on the Japanese industrial relations system and, in turn, upon the enterprise union system. Not all changes can be directly attributed to globalization. We contend, however, that the success of Japanese firms, both in exports and in overseas production, has made the Japanese economy reliant on a strong world economy. Economic downturns that have been witnessed in a number of countries in 1990s have weakened the demand for Japanese export products. This, in combination with the Japanese banking and financial crises, has created pressure for an overhaul of employment and human resource management systems. This article examines these pressures and the response by trade unions.     

Has Japan entered a new era of financial constraints?

The collapse of Japanese asset prices in the early 1990s-which weakened the balance-sheet positions of banks, firms, and households-has led some observers to suggest that “balance-sheet problems” may have contributed to the recent economic downturn and may impede a recovery. In this article, we conclude that balance-sheet problems did not and will not play a significant role in depressing the Japanese economy. First, while asset prices appear to have some explanatory power in loan demand and supply relationships, we find that asset price shocks in the 1990s had little effect on borrowing and lending, other than through traditional wealth effects on aggregate demand. Second, we find little evidence that bank lending was tighter than usual compared to downturns of the 1990–1993 magnitude. Finally, we find some puzzling evidence that borrowers lowered their appetite for loans, even after accounting for sharp declines in aggregate demand and asset prices.