Why Trade Matters
Success Stories
Japan: taking advantage of a resurgent market
After a decade of stagnation followed by economic deflation, Japan
is showing abundant signs of recovery. This should prompt Canadian
companies to return to the Land of the Rising Sun.
The Cabinet Office of Japan recently announced that “as a
result of private-sector demand and regular export flow, the Japanese
economy should grow by 3.5 percent this year.”
The Japanese government’s reassessment of the growth rate
by more than 100 percent confirms a trend that began in the last
quarter of 2003, when Japan’s gross domestic product (GDP)
was growing by 1.7 percent annually. According to several economists,
Japan is headed for its best economic performance in 13 years. The
stock exchange has risen by over 48 percent over the past 13 months,
and the economy is once again beginning to generate jobs—the
unemployment rate is down to 4.6 percent, its lowest level in four
years.
Underlying Japan’s recovery are business investment and exports
to Asia, particularly China, where Japanese exports increased by
over 30 percent in 2003. More recently, there has also been renewed
growth in domestic consumption.
Norman Boersma, Executive Vice President of the investment management
firm Franklin Templeton Investments Corp. in Toronto, says that
this is the first time that expenditures by Japanese companies and
consumers have been up since the financial bubble burst in 1990.
A survey by the Bank of Japan (June 2004) also confirms the optimism
of Japanese manufacturers, as its Tankan index of business confidence
is at its highest level since 1991.
However, a number of structural problems may prevent a sustained
recovery, warns Richard Schuster, an economist with Export Development
Canada. Japan’s public debt--150 percent of GDP--and aging
workforce will become increasing burdens on the country’s
finances. Moreover, Japan’s economy is still very dependent
on the strength of the global economy, and China’s economy
in particular.
That said, Japan, far and away the world’s second-largest
economy, with a GDP of $6 trillion, remains a country of great industry
and innovation, where the emergence of new retail channels affords
numerous business opportunities for Canadian companies.
The Commercial Section of the Canadian Embassy in Tokyo has indicated
that most of the opportunities for Canadian companies in this leading
Asian market are in both the traditional sectors (natural resources,
construction and agri-food), and the new economy (including information
technology, environmental technology, nanotechnology and biotechnology).
This issue of Success Stories features Canadian companies
that have succeeded both in proposing original and innovative products
and in satisfying the high standards of Japanese customers.
 | | Click to enlarge |
Hitting a Chord with Celtic Music Lovers in Japan
The Cottars, Cape Breton, Nova Scotia
Japanese fans can now buy The Cottars' debut CD, Made in Cape Breton, which was recently released in the land of the rising sun. The Cottars—two brother-and-sister duos ranging in age from 14 to 17—have become Cape Breton Island's latest musical wonders in a remarkably short time. Since forming in late 2000, the four young Celts have received standing ovations at virtually every performance, from Boston, Los Angeles, Denver and even Denmark to Canada's East Coast Music Awards, where they were named Best New Artist of 2003.
The Cottars visited Japan in November 2003 to promote the release of Made in Cape Breton. They also took part in radio, television and newspaper interviews, and played to a full house at the Canadian Embassy concert hall in Tokyo. According to Edward Kenney, The Cottars' agent and spokesperson, the Embassy is not only a striking and modern structure, but a dynamic place where Canadian culture is promoted year-round. "It was the perfect setting for The Cottars' Japanese debut. The capacity crowd of expats, enthusiastic Japanese fans and music-industry types has yielded new career opportunities for the group," says Kenney.
And he adds, "Canadian Embassy staff played a key role in the success of The Cottars' trip. In particular, Cultural Officer Kevin Canning worked hand-in-hand with our Japanese label, JVC/Victor Entertainment, to smoothly orchestrate what could have been a very complicated excursion. He assisted with everything, from inviting Japan's top music promoters to our performance, to helping with the stage set-up."
2002 was a pivotal year for The Cottars. Made in Cape Breton was recorded in February and released to critical acclaim just two months later, landing the group a St. Patrick's Day concert for Senator Edward Kennedy and his family in Massachusetts, a Borders Books and Music Tour in the U.S. and appearances at Rhode Island's Newport Folk Festival and Nova Scotia's Stan Rogers Folk Festival.
In a coup for Canadian Celtic music, The Cottars will be headlining Celtic Christmas, Japan's largest Celtic music event later this year, following the release of their second CD, entitled On Fire.
 | | Click to enlarge |
Canadian Lingerie in Upscale Japanese Stores
Collection Arianne, Montreal, Quebec
Six months after establishing its Japanese affiliate, Montreal-based lingerie maker Collection Arianne reports that sales are right on target. Arianne apparel is selling well across the country in select shops such as Opaque in Ginza and Osaka and the Tokyo Daimaru, one of the country's largest department stores. In May, the company participated in the Intima Japan Trade Show, which was "a great success," according to Roxane Liboiron, Arianne's Marketing Director.
The company has recently received interesting editorial coverage in popular Japanese magazines such as The Body, Bailu, Frau and Hanako. Arianne was also featured, along with a number of other Canadian clothing manufacturers, in the June 2004 edition of VERY, a trendy Japanese fashion magazine. The article was the result of an initiative by the Canadian Embassy in Tokyo to highlight Canada's fashion industry. As part of this project, the International Trade Centre in Montreal hosted the VERY crew in March for a four-day program. "Trade staff at our Tokyo Embassy have assisted us in a number of ways, particularly in organizing functions such as fashion shows," says Liboiron.
Founded in 1947, Arianne has evolved from a manufacturer of basics into an internationally competitive lingerie brand with an extensive distribution network. Describing its collection as "Lifestyle Lingerie," Arianne plans to open its own Tokyo boutique in 2005.
 | | Click to enlarge |
Canadian Homes Offer a New Way of Living in Japan
DAC International Inc., Carp, Ontario
A small Ottawa-area company, DAC International Inc., has landed a major deal to deliver its pre-fabricated housing kits for the construction of four seniors' facilities in Japan. The first project, a two-story building comprised of 40 units in Toyota City, is scheduled to start construction in September 2004, while the three others will be built later in Toyohashi, Kasugai and Saitama. The grand opening of the first facility is planned for February 2005, in collaboration with the Canadian Consulate in Nagoya. Canadian-made building components, such as doors and windows, are also expected to be used in this project.
Despite a slowdown in construction in Japan, DAC's sales have been holding steady in that market, accounting for 40 percent of its total business. DAC President Jeff Armstrong says that exporting to Japan has actually made DAC a better company. "We remain committed to Japan, despite economic conditions. This is partly because of the loyalty of our clients, but also because the demands of the Japanese market force us, in a sense, to continually improve our products and services," explains Armstrong.
Various federal government services have also played a role. "We have been strongly supported by Canadian embassy and consular staff in Japan, as well as by the Canada Mortgage and Housing Corporation and Natural Resources Canada, who have helped us to identify new clients and business opportunities," adds Armstrong. "Our current seniors' housing projects are a direct result of these collaborative efforts."
In 1999, DAC built one of Japan's first Super E® houses, based on environmental technology developed in Canada. In the past year, the company has also sold Super E houses in the United Kingdom and the United States, and recently supplied the first of several of its high-performance custom homes to a developer in southwest Ireland.
 | | Click to enlarge |
Japanese Classrooms Get Connected
SMART Technologies Inc., Calgary, Alberta
In the late 1990s, Japan launched a concerted effort to hook up all of its classrooms to the Internet in order to equip them with the same level of connectivity as North America's schools. While most of the necessary technology is being provided by Japanese firms, a key element of the government-run School Internet Project is being supplied by Calgary-based SMART Technologies Inc.
SMART's interactive whiteboards have been sold to more than 200,000 schools, companies and government organizations worldwide. Not only can users control any computer application or multimedia platform simply by touching the SMART Board's large screen, the technology can also link schools and companies, enabling long-distance transmitting and sharing of programs.
Active in the Japanese market since 1992, SMART opened its Tokyo office in 2001. The company sponsored Japan's 2004 Internet Education Website Contest, which rewarded the development of innovative electronic learning content in classrooms. In 2003, SMART received the Good Design Award of Japan, which commends exceptional usability, originality and superior product design.
Fully 95 percent of SMART's sales are derived from exports to some 65 countries, winning the company a 2000 and 2002 Canada Export Award, as well as the title of Exporter of the Year 2000, the Awards' top honour. A number of its introductions to international markets came about through the help of Canadian embassy staff. "It is extremely rewarding to contribute to Canada's positioning as an innovator in global technology markets," says SMART's president and co-CEO, Nancy Knowlton. "Canada's trade commissioner staff did some valuable legwork for us in this respect and they continue to provide us with advice and assistance, particularly in Tokyo."
Other SMART users in Japan are Toyota Motors, Nissan Motors, NEC, Panasonic, Sony, NTT, the Japanese Imperial Police Department, the Tokyo Metropolitan Police Academy and Keio University. The company also has international offices in Germany, New York and Washington, D.C.
Back to "Why Trade Matters"
|
