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CERAMIC Products Market in Japan Tableware, Wall & Floor Tiles, Bio-Ceramics Challenges and Opportunities for European Companies

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CERAMIC Products Market in Japan Tableware, Wall & Floor Tiles, Bio-Ceramics Challenges and Opportunities for European Companies EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION 日欧産業協力センター CERAMIC Products Market in Japan Tableware, Wall & Floor Tiles, Bio-ceramics Challenges and Opportunities for European Companies Sonia PUPAZA Tokyo, April 2016 Acknowledgements I would like to express my gratitude to Dr. Silviu Jora, the EU-side General Manager of the EU-Japan Centre for Industrial Cooperation and the stakeholders for offering me the opportunity to conduct this research and improve my abilities. Many thanks also, to the Tokyo team of EU-Japan Centre for their support. In addition, I am thanking all my Japanese acquaintances for the time spent with interviews and for providing useful information. Disclaimer The information contained in this publication reflects the views of the author and not necessarily the views of the EU-Japan Centre for Industrial Cooperation, the views of the Commission of the European Union or Japanese authorities. While utmost care was taken to check and confirm all information used in this study, the author and the EU-Japan Centre may not be held responsible for any errors that might appear. © EU-Japan Centre for industrial Cooperation 2016 2 TABLE OF CONTENTS Executive Summary………………………………………………………………..………….….……..5 List of Abbreviations………………………………………………………………..………….….……6 List of Figures………………………………………………………………………………….…..…...7 List of Tables……………………………………………………………………………………….…….9 Introduction: Definition Properties Classification…………………………………………………10 Coverage…………………………………………………………………………………………………12 1. TRADE TRENDS 1.1. EU Ceramic Production by Value (2007-2014)………………………..…………………13 1.2. EU Ceramic Exports to Japan by Products (2010-2014) ………………………..…….14 1.3. Japan Ceramic Production: Quantity and Sales Value (2010-2014)…………..……..15 Tableware; Wall & Floor Tiles; Sanitary ware; Fine Ceramics; Refractory goods 1.4. Japan Ceramic Imports: Quantity and Value (2010-2015) ……………………..…….18 Tableware; Wall & Floor Tiles; Sanitary ware; Fine Ceramics; Refractory goods 1.5. Japan Ceramic Imports by Place of Origin (2010-2015) ……………………………….19 Tableware; Wall & Floor Tiles; Sanitary ware; Fine Ceramics; Refractory goods 1.6. Imports Market Share (2010-2014)………………………………………………………..27 Tableware; Wall & Floor Tiles; Sanitary ware; Fine Ceramics; Refractory goods 2. TABLEWARE 2.1. Market Overview & Trends………………………………………………………28 2.2. Promotion……………………………………………………………………………33 2.3. Regulation & Labeling…………………………………………………………….35 2.4. Distribution channels……………………………………………………………...38 2.5. Retail System……………………………………………………………………….40 2.6. Local Key Producers of Western Style Tableware……………………………44 2.7. Challenges & Opportunities. Halloween Market in Japan…………………..47 3. CONSTRUCTION & HOUSING 3.1. Construction Market Overview…………………………………………………...52 3.2. Trends ………………………………………………………………………………..55 3.2.1. Construction Market……………………………………………………..55 3.2.2. Building Construction Materials…………………………………….…59 3.2.3. Consumer…………………………………………………………………..60 3.3. Regulation, Labeling, Distribution ………………………………………………61 3.4. Key Players ………………………………………………………………………….66 3.5. Challenges & Opportunities………………………………………………………72 3 4. TECHNICAL CERAMICS…………………………………………………………………..75 BIOCERAMICS………………………………………………………………………………76 4.1. Dental Implants…………………………………………………………………….77 4.1.1. Market Overview (Population, Dentists, Dental Care)…………….78 4.1.2. Trends (Product, Patient, Doctor)……………………………………..81 4.2. Joint Replacement Implants……………………………………………………...86 4.2.1. Market Overview ………………………………………………………..88 4.2.2. Trends (Product, Patient, Doctor)……………………………………..90 4.3. Key Players………………………………………………………………………….92 4.4. Regulation, License, Labeling, Packaging, Distribution……………………100 4.5. Challenges & Opportunities ……………………………………………………107 5. Recommendations and Conclusions…………………………………………………...113 Appendixes Appendix 1 – Tariff Duties…………………………………………………………………………...120 Appendix 2 – List of Trade Fairs / Exhibitions…………………………………………………..122 Appendix 3 – 1st CERAMICS Expo Japan, launched in 2016………………………………….124 Appendix 4 – List of Authorities and Related Organizations, Associations………………….125 Appendix 5 – Bibliography…………………………………………………………………………...128 4 Executive Summary This Report provides to potentially interested European companies some useful information on the Japanese ceramic market, with a main focus on Ceramic Tableware, Wall and Floor Tiles and Bio-ceramics.. Chapter1 “Trade Trends” is intended to draw a general picture of all ceramics traded in Japan during the last six years (2010 – 2015), by analyzing the imports and local production of each group of products (Tableware; Wall & Floor Tiles; Sanitary-ware; Fine Ceramics; Refractory goods). Chapter2 “Tableware” is treated from the Consumer Goods perspective as many aspects can be extrapolated, especially to other interior design products; Chapter2.1. “Market Overview & Trends” can deepen the understanding of the Japanese consumers` buying behavior and their expectations regarding the products. Chapter3 “Construction and Housing” is presenting the new trend in Japanese consumers` behavior: their tendency to choose re-housing instead of the traditional “new house for a new family”, trend that is also influencing the choice of construction materials. Chapter4 “Bio-ceramics” is dedicated to a small part of the technical ceramic market, a promising sector with new technical developments, studying in detail the Dental Implants Market (Chapter4.1) and the Joint Replacement Implants Market (Chapter4.2). The market demand for these products is on an ascending trend in Japan since the aging society factor. All three chapters (2, 3 and 4) also include other trade related aspects like: Regulations, Labeling, Distribution, Retail and Promotion in order to provide a complete understanding on the subjects. The Key Players chapters are intended to add value by the power of example; helping the producers to decide which products are best suited for the Japanese market in terms of what novelty they can bring in. The final part presents a number of recommendations focusing on business practicalities, such as choosing a suitable location in a Japanese city, adapting the products to the market and finding Japanese partners. .This Report is based on existing open sources of information, interviews, seminars and it has a non-exhaustive character, its main ambition to support European companies interested in Japanese market. 5 List of Abbreviations B2B = Business to Business B2C = Business to Consumer BL = Better Living Labeling System BU = Business Unit Ce/PE = Ceramic-on- Plastic Ce/Ce = Ceramic-on-Ceramic D-MAH = Designated Marketing Authorization Holder FAP = Foreign Average Price FY = Fiscal Year GMP = Good Manufacturing Practices GOJ = Government of Japan GQP = Good Quality Practices GRP = Glass Reinforced Plastic GVP = Good Vigilance Practices HORECA = Hotel/Restaurant/Café IPSS = the National Institute of Population and Social Security JFCC = Japan Fine Ceramic Center JIS = Japanese Industrial Standards JNTO = Japan National Tourism Organization MAH = Marketing Authorization Holder Me/PE = Metal-on-plastic MHLW = Ministry of Health, Labor and Welfare MLIT = Ministry of Land, Infrastructure, Transport and Tourism in Japan Me/Me = Metal on Metal OEM = Original equipment manufacturer (a company that makes another company's branded products) PAL = Pharmaceutical Affairs Law PHM = Prefabricated Housing Manufacturers PMDA = Pharmaceuticals and Medical Act PMDL = Pharmaceuticals and Medical Devices Law THA = Total Hip Arthroplasty TKA = Total Knee Arthroplasty UHMWPE = Ultra High Molecular Weight Polyethylene 6 List of Figures Figure1. HS Codes and Description Figure2. E.U. Ceramic Production by Value (2007-2014) Figure3. E.U. Ceramic Exports to Japan by Value (2014) Figure4. Ceramic Tableware Style, by Quantity Produced Figure5. Ceramic Wall & Floor Tile Types, by Quantity (m2) (2010-2014) Figure6. Wall & Floor Tile Types, by Quantity % (2014) Figure7. Fine Ceramics Production Sales Value (2014) Figure8. Share of importers, by place of origin (2015) Figure9. Trends in Porcelain imports of leading exporters (2011-2015) Figure10. Share of importers, by place of origin (2015) Figure11. Trends in other ceramic imports of leading exporters (2011-2015) Figure12. Share of importers by place of origin (2015) Figure13. Trends in tiles imports of leading exporters (2011-2015) Figure14. Share of importers by place of origin (2015) Figure15. Trends in tiles imports of leading exporters (2011-2015) Figure16. Share of importers by place of origin (2015) Figure17. Trends in fine ceramics imports of leading exporters (2011-2015) Figure18. Share of importers by place of origin (2015) Figure19. Trends in refractory goods imports of leading exporters (2011-2015) Figure20. Procedures required by the Food Sanitation Law Figure21. Distribution Channels for Interior Goods Figure22. Diagram of the Morimura Group’s History Figure23. Total Number of Housing Units, Households and Vacancy Ratio Figure24. Housing Types (% of house stock, exclusively residential) Figure25. Trends in Floor Space of Office buildings for Lease Figure26. Housing Structures (% of house stock, exclusively residential) Figure27. Construction cost per square meter of floor space (in thou. Yen) Figure28. Number of Households by Family Composition Figure29. JIS Certification Procedure Figure30. New JIS Mark Scheme Figure31. Distribution channels for ceramic tiles Figure32. Key Players in the Renovation Market Figure33. Contractors and Subcontractors Figure34. Structural Reorganization of LIXIL Figure35.
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