Is “Made in Japan” a Competitive Advantage? — The Present and Future of the Japanese Brand —

In this series, Part 3 , we noted that “shopping” ranks high among the things people want to do in Japan. A stroll through Ginza reveals crowds of foreign tourists enjoying a shopping spree, and we hear stories about how gachapon machines have become a hot topic and how Japanese kitchen knives and folding fans are popular souvenirs.

“Made in Japan” once took the world by storm, but now that opportunities to purchase these products—whether through visits to Japan or cross-border e-commerce—have increased, how is it viewed by the world today?

This series explores insights for the future of the inbound tourism business based on the “Japan Brand Survey 2019,” conducted in 20 countries and regions in December 2018. In this installment, we’ll take a closer look at “Made in Japan.”

Over 80% Say “Japanese Products Are Excellent”! Overwhelmingly Positive Views on “Made in Japan”

Part 2 , when asked about their impression of Japan and whether they thought “Japanese products are excellent,” 82.3% of respondents across all 20 countries and regions answered “yes.”

In the ASEAN region in particular, the score exceeded 90%, indicating overwhelming approval. In Europe as well, 80% of respondents rated them highly. This shows that Japanese products are highly regarded not only in Asia, where they are widely distributed, but globally as well.

So, specifically, what kind of people hold this view? A closer look reveals that people who have visited Japan tend to rate them more highly. Many people actually visit Japan, experience Japanese products, like them, and buy them to take home—heated toilet seats, which were once a hot topic due to “mass buying,” are a prime example.

Furthermore, people who described Japanese “food” and “traditions” as “excellent” or “interesting” also gave high ratings. While cup noodles, snacks, yukata, and folding fans are becoming popular souvenirs, the increased opportunities to experience Japanese food and traditional designs may also be influencing the positive perception of Japanese products.

The Image of “Made in Japan” Shifts from “Cutting-Edge” to “Quality”

When asked about the image of “Made in Japan,” “high-tech” ranked highest overall, followed by “high performance” and “reliable.”

There are slight differences in perception by region; in East Asia in particular, impressions differ from other regions, with respondents citing “seems to be made with care,” “delicate/meticulous,” and “reliable.”

In Europe and the Americas, the top responses were “high-tech,” “high-performance,” and “reliable”—in line with the overall trend—but the scores were generally lower, suggesting a less developed perception of Japanese products.

While this is likely related to the volume of Japanese products in circulation and their specific characteristics, it is striking that in East Asia—where Japanese products are widely prevalent—it is not so much “technology” as “the commitment to craftsmanship” and the “quality” underpinned by that commitment that are highly valued.

Furthermore, when compared to the 2015 survey—in which “high-tech,” ranked first, scored more than 10 points higher than “high performance,” ranked second—it is clear that the “cutting-edge” image was much stronger back then, compared to the current situation where the gap is only 5.5 points.

The weakening of this “cutting-edge” image is thought to be due in part to external factors, such as the improvement in technological capabilities of Asian countries, including South Korea and China.

From the perspective of comparison with competitors, the results also show that while the “Made in Japan” brand is highly rated for performance and quality, it receives low ratings for its “fashionable image.” Although Japanese products are highly regarded worldwide, there still appear to be challenges to overcome in order to attract a wider user base.

Are “Health Foods” and “Jewelry” Product Categories with High Future Potential?

So, in which categories are Japanese products in demand? Categories with high scores for both experience and interest are, as expected, traditional strongholds such as “AV equipment (TVs, audio systems, etc.)” and “transportation equipment (cars, motorcycles, etc.).” Close behind are “instant foods (such as ramen)” and “cosmetics.” For other categories, the experience score does not even reach 30%, indicating that interest remains low.

On the other hand, the product categories believed to have future potential (where interest exceeds experience) were “health foods and beverages” and “jewelry.” Looking at the data by country and region, Taiwan had the highest score for “health foods and beverages” (63.3%), while the Philippines had the highest for “jewelry” (30.0%).

Furthermore, when asked about future intentions—that is, product categories that are currently not widely available or not available at all in their home countries but which they would like to see more Japanese brands offering in the future—trends varied by country and region.

For example, while many countries in regions such as Europe and the Americas—where Japanese products have traditionally been strong—cited “AV equipment” and “transportation equipment” as their top choices, “pharmaceuticals” ranked first in East Asian countries and regions as well as Vietnam.

Furthermore, the results showed that “instant foods” ranked first in Singapore, “confectionery” in Thailand, “apparel and fashion” in Indonesia, “cosmetics” in Italy, and “health foods and beverages” in Russia. The findings revealed that in about half of the countries and regions, demand is emerging for diverse categories other than “AV equipment” and “transportation equipment”—areas where Japan has traditionally been strong—suggesting that Japanese products have even broader potential than before.

While the “Japan Brand” once dominated the world, changes in the external environment and increased exposure to Japanese products have shifted its image. The results reveal that while trust in quality remains a strength, challenges also exist—such as a limited range of experiences and a loss of ground to competitors in terms of a “stylish” image.

It is believed that this growing interest in a wide variety of Japanese products will further increase the number of tourists visiting Japan, and that the diversification of experiences with Japanese products driven by inbound tourism will continue to influence the image of the “Japan Brand.”

We will continue to monitor the evolving “Japan Brand” and its relationship with inbound tourism.

[Contact Information for Inquiries Regarding This Matter]
Dentsu Inc., Japan Brand Project Team
japanbrand@dentsu.co.jp

Japan Brand Research Hub Page
https://www.dentsu.co.jp/knowledge/japan_brand/ 　

[Purpose of the Dentsu Inc. Brand Survey]
Launched in 2011—when the Great East Japan Earthquake led to reputational damage affecting Japanese agricultural and marine products as well as inbound tourism—this is Dentsu Inc.’s proprietary commercial marketing research initiative designed to understand how products and services originating in Japan are perceived globally.The Japan Brand Survey regularly assesses overseas consumers’ perceptions and actual behaviors regarding the Japan brand as a whole, covering areas such as overseas travel, inbound tourism, culture, regional revitalization, Japanese cuisine, Japanese products, and lifestyle. By visualizing shifting consumer sentiments as well as the challenges and potential of the Japan brand, the survey contributes to increasingly complex corporate activities and helps promote cross-cultural understanding within Japanese society.

[Dentsu Inc. Brand Survey 2019: Survey Overview]
・Target Areas: 20 countries and regions (Mainland China, Hong Kong, Taiwan, South Korea, India, Singapore, Thailand, Indonesia, Malaysia, Vietnam, the Philippines, Australia, the United States, Canada, the United Kingdom, France, Germany, Italy, Russia, Turkey)
・Sample Size: 6,600 (Breakdown: United States 600, Mainland China 600, other countries and regions 300 each)
・Survey Period: December 2018
・Eligibility criteria: Men and women aged 20–59 (middle-income and above)
・Survey Method: Online survey
・Research Organizations: Dentsu Inc. (Principal Investigator), Video Research Ltd. (Implementation Partner)

[Notes and Disclaimers]
*1: The target areas in mainland China were primarily Tier 1 cities; in Australia, the Sydney metropolitan area; and in Southeast Asia, primarily metropolitan areas.
*2: Definition of middle-income group: Criteria were established for each country based on average national income figures (such as OECD statistics) and socio-economic classification (SEC).
*3: Samples were collected using equal allocation by gender and age group in each country and region, and the data was weighted to reflect the population distribution.
*4: Since the composition ratios in this survey are rounded to the second decimal place (or to the first decimal place in some cases where whole numbers are displayed), the total may not add up to 100%.
*5: In creating the charts and tables for this survey, the names of the countries and regions analyzed use the international standard ISO country codes (ISO 3166-1 alpha-2/3), with a few exceptions.
United States/US/USA, Canada/CA/CAN, Australia/AU/AUS, United Kingdom/UK/GBR, Germany/DE/DEU, France/FR/FRA, Italy/IT/ITA,Spain/ES/ESP, Finland/FI/FIN, United Arab Emirates/UAE, Saudi Arabia/SA/SAU, India/IN/IND, Indonesia/ID/IDN, Singapore/SG/SGP, Malaysia/MY/MYS, Philippines/PH/PHL, Thailand/TH/THA,Vietnam/VN/VNM, Mainland China/CN/CHN, Hong Kong/HK/HKG, Taiwan/TW/TWN, South Korea/KR/KOR, Turkey/TR
*6: The names of countries and regions used in this survey report and on our website are based on the long-standing views of the Japanese government, as well as Japanese social norms and business practices.
*7: The names of countries and regions used in this survey are for statistical or analytical convenience only and do not imply any political stance or viewpoint.
*8: The maps used in this survey (world map and map of Japan) have been partially modified and cropped to suit the analysis content and page layout; therefore, they may not necessarily reflect national borders and territorial boundaries accurately.
*9: As a commercial marketing research study aimed at understanding the lifestyle habits and brand preferences of general consumers, this survey has been conducted consistently since its inception through commissioned fieldwork partners, in strict compliance with local laws, regulations, and public order and morals.Surveys conducted in China are carried out through fieldwork contractors who have obtained the “Foreign-Related Survey Permit” required by Chinese authorities; our company does not conduct market research activities within China itself. Furthermore, we monitor and review our operational procedures as necessary in light of developments such as changes in laws and regulations.
*10: The response data collected through this survey is obtained, managed, and processed lawfully in accordance with the relevant laws and regulations of each target market. The data we receive consists solely of aggregated data that has been anonymized in a manner that does not allow for the identification of specific individuals and cannot be reversed; it does not contain any personal information.