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Cool Japan Fund Launched to Aid Global Promotion of Japanese Culture by Japan SPOTLIGHT Editorial Section

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Cool Japan Fund Launched to Aid Global Promotion of Japanese Culture by Japan SPOTLIGHT Editorial Section Column Cool Japan Fund Launched to Aid Global Promotion of Japanese Culture By Japan SPOTLIGHT Editorial Section Japanese culture, from animation to fashion and the broader that their popularity will become a driving force for Japan’s economic notion of “Japanese hospitality”, is now a new target for export growth. promotion for the Ministry of Economy, Trade and Industry (METI) in You can learn about the targets and projects below. If you are the 21st century. interested in the Cool Japan Fund, you can contact us (tel:03-5565- Prior to our next issue highlighting “the role of Japanese culture in 4822 or [email protected]) and we will connect you with the foreign policy”, we introduce our readers to METI’s new policy to relevant person in the fund. promote exports of Japanese cultural goods. This is considered one of the important policy measures presented as “the third arrow of Abenomics”, the growth strategy, and thus culture in our postindustrial society has economic policy implications as well. In Photo: Ministry of Economy, Trade and Industry (METI) Japan reading both this short article and our next issue we hope you will enjoy learning about the wide range of these implications. On Nov. 25, 2013, at Toyko’s Roppongi Hills, Japanese business people and bureaucrats celebrated the office opening of the Cool Japan Fund, financed to the tune of 60 billion yen by the government and the private sector. This fund aims to invest money in companies and projects selling Japanese cultural products (the basic scheme is shown in the Charts below). Japan’s culture-related industries, such as software, fashion, animation and cuisine, have been gaining popularity worldwide. However, since they are mostly SMEs or individuals, they cannot take full advantage in business terms of their appeal. According to METI, the bottlenecks are lack of transmission of information about overseas markets, the funding of risk money by banks and investors, successful business experience abroad, and acquiring overseas bases for SMEs to expand their businesses. To resolve these problems, METI set up the Cool Japan Fund to provide risk money that cannot be offered by the private sector alone. METI hopes the fund’s support will lead to an explosion of attractive Japanese goods and services on a worldwide scale and Opening ceremony of Cool Japan Fund, at Roppongi Hills on Nov. 25, 2013. JAPAN SPOTLIGHT • January / February 2014 59 Column CHART 1 Scheme of the Cool Japan Fund Private companies Investment Cool Japan Fund Investment Investment Japanese Project entity A government 30 billion yen Investment (as of Nov. 2013) Support companies investing overseas, especially cultural Under consideration of Private funds additional investment up area to 50 billion yen by the end of FY2014 Support project development and management Private companies Private- sector Investment Investment Investment Banks, securities Project entity B companies Duration of the fund: 20 years Manufacturers, 7.5 billion yen Loan distributors, real (as of Nov. 2013) estate-related Banks entities, etc. The target figure is 10 billion yen Source: Ministry of Economy, Trade and Industry (METI) Japan CHART 2 Cool Japan Initiative Content Fashion Music and entertainment ©Nintendo·Creatures·GAME FREAK·TV Tokyo Thermae Romae conventional version ShoPro·JR Kikaku ©Pokémon 2012 “Thermae Romae” Production Anime and comics Committee Movies, Latest fashions Fashion brands TV programs, etc. ©BAKUGAN PROJECT Toys and games Clothing/food/housing industry Local products, etc. Services Miscellaneous lifestyle Cheap and Local companies Lacquer ware and interior goods delicious food (miscellaneous goods, collaborating with well- Beauty, nail and etc.) known brands cosmetic products Inbound Tourists seeking authenticity visit Japan Spa facilities, Bridal Education/welfare inns, tourism Tour guides for foreign Experiencing the charming, traditional Japan (Kyoto) tourists (Akihabara) Cool Japan-related businesses: a wide range of Japanese businesses representing Cool Japan (Japan’s strengths and attractive qualities - covering content, clothing/food/housing, services, advanced technologies (electrical appliances, automobiles, robots, etc.), leisure, local and traditional products, education, tourism, etc.). Source: Ministry of Economy, Trade and Industry (METI) Japan 60 JAPAN SPOTLIGHT • January / February 2014 CHART 3 Image of the projects -1 Commercial facility project Shopping street project In a major overseas city, a stylish area like the Developing a shopping mall that features Japanese “Uraharajuku Cat Street” will be created for shops apparel brand stores at its core and serves good food, etc. belonging to Japanese businesses. A Japanese apparel brand shop A miscellaneous gaining popularity overseas goods shop Housing Entertainment Housing Mid-sized Food shop MiscellaneousMiscellaneous Cafe Interior (incubation hub) An interior shop Clothing Clothing Clothing Uraharajuku: Cat Street Beauty Food Fashion salon Japanese Nail food salon A street image A food court (offering cheap and delicious food, etc.) Media / Internet space project Supporting “regional Cool Japan businesses” Acquiring content broadcasting rights and channels in Providing risk money to help regional companies take major foreign cities advantage of the appeal of their product, wisdom and Forming arrangements for disseminating content and ideas to expand into overseas markets distributing goods Anime Idols and music Fashion programs Fund of Funds (c)SUNRISE/T&B PARTNERS,MBS CoFesta2012 Modern metallic tumblers Based Japanese-Western furniture Acquiring TV broadcasting rights and interior goods Selling goods RG RX-78-2 GUNDAM Sotsu/Sunrise Accessories c BAKUGAN PROJECT Plastic models c BAKUGAN PROJECT Cosmetics Apparel and interior products Bridal services Food sold with toys Stationery Regional products and cards Source: Ministry of Economy, Trade and Industry (METI) Japan CHART 4 Image of the projects -2 M&A or other project investment Japanese food (acquiring sales network) Merging foodstuff procurement, processing and employee <Example> education Acquiring shares in local overseas companies owning sales networks Constructing Japanese food courts or leasing floor space Building networks to unify domestic and overseas distribution as a base for selling regional gourmet and related goods and sell Cool Japan products widely overseas Sales networks Udon Ramen Yakisoba pan- Japanese-style Consortium Acquiring noodles noodles fried noodles curry shares Apparel products Shops Shops A Japanese food court Developer Tempura Okonomiyaki Takoyaki Set meals Miscellaneous Local retail rice bowls pancakes lifestyle products chains, etc. Shops Shops etc. Shops Shops Consortium members The Fund Procurement Processing Education Enhancing and utilizing local companies’ sales networks to expand sales of Cool Japan Initiative goods M&A or other project investment (service-related businesses) Indirect support for overseas expansion <Example> Forming business alliances with local overseas companies <Example> Founding joint ventures with local overseas companies, Supporting companies that help Cool Japan-related providing facility management and personnel training businesses with employment, legal, accounting, tax, know-how to joint ventures, and helping joint ventures consulting and other professional services expand Japanese-style services Investment An overseas subsidiary of Investment a human resources service A staffing service Local overseas company Domestic companies company companies Investment Investment Investment An overseas subsidiary of A law firm Investment a law firm The Fund Investment Investment The Fund An overseas subsidiary of An accounting an accounting firm firm Local overseas Investment Investment Investment joint ventures An overseas subsidiary of A consulting firm a consulting firm Source: Ministry of Economy, Trade and Industry (METI) Japan JAPAN SPOTLIGHT • January / February 2014 61.
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