EUROBIZ JAPANEUROBIZ • The negotiator An interview with Mauro Petriccione, chief negotiator for the EU-Japan EPA

AUGUST 2017 • Ahead of the pack The enduring popularity of European bicycles in Japan

AUGUST 2017

OLIVER RYF, MANAGING DIRECTOR OF ARYZTA JAPAN O T ISING T HE TOP Aryzta Japan sees its R success leavening THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE IN JAPAN IN JAPAN IN (EU) COMMERCE OF CHAMBER COUNCIL EUROPEAN / THE BUSINESS EUROPEAN THE OF MAGAZINE THE RISING TO THE TOP

Contents August 2017

4 34 First Focus Executive Notes Low market volatility 9 By Tom Elliott From the Editor 20 By Andrew Howitt 35 In Committee 10 Financial Reporting Investing in Japan By Geoff Botting Oliver Ryf, Aryzta Japan By Gavin Blair 39 Eurobiz Poll 14 Punish distracted pedestrians? Ahead of the pack The enduring popularity of 41 European bicycles in Japan Illuminating Voices By Gordon Knight Giver of new dreams By Andrew Howitt 18 A way out for 43 overworked Japan 14 Cellar Notes Forward-thinking businesses The sommelier craze offer alternative work styles By Allison Bettin By Alena Eckelmann 44 20 Down Time The Interview Edward Cole / Mauro Petriccione Fernando Iglesias By Andrew Howitt 45 24 On the Green Country Spotlight Golf for the world Switzerland By Fred Varcoe

30 47 EBC Personality The Agenda Peter Kronschnabl By Andrew Howitt 30 48 Work Place 32 Yukari Kagami, Dormeuil Japon Event Report EBC Tax Seminar 2017 By Andrew Howitt

33 Innovations The Mission of the European Business Council Advice from algorithms To promote an impediment-free By Tim Hornyak environment for European business in Japan.

COVER PHOTO BY BENJAMIN PARKS 2 EUROBIZ JAPAN • AUGUST 2017 “You have to be patient to acquire new customers, especially in the bakery industry; if you push too hard, the door might never open.”

Rising to the top 10 By Gavin Blair 4 EUROBIZ JAPAN • AUGUST 2017 First Focus

It is believed that mikoshi, or porta- ble Shinto shrines, are temporarily inhabited by the gods of a particular shrine during festivals in Japan. The Urayasu Sanja Matsuri, which began in 1923, is put on jointly by Urayasu’s three main shrines once every four years. More than 100 mikoshi are paraded through the streets over the three days of the festival. As they are overcome by a spirit of revelry, the bearers of the mikoshi often toss and shake it as a way of amusing the deities inside.

Photo by Saethapoeng Triechorb Shutterstock.com

AUGUST 2017 • EUROBIZ JAPAN 5 CONTRIBUTORS MASTHEAD

Alena Eckelmann studied on the An Australia-based writer, Gordon Publisher Production and Vickie Paradise Green distribution Executive Training Programme in Knight spent five years in Tokyo on [email protected] Daisuke Inoue Tokyo, and then began to write staff at The Japan News, and is [email protected] about business, culture, travel and co-author of the Wallpaper* City Editor-in-chief Andrew Howitt Published by Paradigm people in Japan. She contributes Guides to Kyoto, Osaka, Sapporo [email protected] 6F Daiwa Osaki articles to magazines and websites and Tokyo. A keen cyclist, he owns 3-chome Bldg. both in Japan and in Europe. seven bicycles — four of them Senior Editor 3-6-28 Osaki, Shinagawa- David Umeda ku, Tokyo 141-0032 European — and still thinks he •“Japan is the country of Tel: 03-5719-4660 needs one more. Creative Director Fax: 03-3492-1202 kaizen. But why apply it to fac- Paddy O’Connor www.paradigm.co.jp tories and production lines only, •“Japan’s enduring love of qual- and not to office work? A high- ity craftsmanship and trusted Art Director Published monthly in Cliff Cardona Tokyo. All rights reserved. tech office and Zen-like work–life brand names has helped demand The views and opinions balance should be a perfect fit for for European bicycles grow since Illustrator expressed herein (other Japan today, and some compa- the 1950s. But while Italian and DJ than editorials by the EBC) are solely the opinions and nies here are starting to buck French bicycles dominated the Sales Director views of their authors. The the trend of long working hours. market in the past, a threat is Tapo J. Mandal EBC and Paradigm are not The transition from karoshi to emerging from the tech-savvy responsible or liable for Account Executives any portions thereof. a healthier and more productive Germans and Swiss.” Tamas Doczi workforce starts with a change Nicole Marchetti in mindset.” [email protected]

European Business Council in Japan (EBC) The European (EU) Chamber of Commerce in Japan

The EBC is the trade policy arm of the eighteen European national chambers of commerce and business associations in Japan Writing in and about Japan since Tom Elliott is deVere Group's inter- Chairman Danny Risberg 2000, Gavin Blair contributes national investment strategist. He Vice-Chairman Carl Eklund articles to magazines, websites and produces regular videos, blogs on Treasurer Erik Ullner newspapers in Asia, Europe and the a wide range of topical investment Executive Director Alison Murray Policy Director Bjorn Kongstad US on a wide range of topics, many issues, and regularly speaks at sem- Communications & PR Yoko Hijikuro of them business related. inars for clients at deVere offices around the world. Subscription is free for members of the EBC and national •“Having visited ready-to-bake European chambers of commerce. bread specialists Aryzta about •“Interpreting the current Subscription rates are: one year ¥9,000; two years ¥15,000; three years ¥22,000; ¥800 per copy. Rates include domestic five years ago for a story, it was climate of low volatility in postage or surface postage for overseas subscribers. Add good to see the business had financial markets as a sign of ¥7,500 per year if overseas airmail is preferred. Please allow flourished in the intervening investor complacency simply two weeks for changes of address to take effect. Subscrip- tion requests should be sent to [email protected] years and expanded consider- misses the point. We have had ably. I did, though, make the better-than-expected political If you prefer not to receive this magazine, and for all matters mistake of turning up for the and economic news flow in the related to distribution, please send an email to [email protected] interview hungry and had to first half of this year, and that leave once the photo shoot began, justifies investor ease of mind.” Eurobiz Japan welcomes story ideas from readers and as I was in danger of eating proposals from writers and photographers. Letters to the editor may be edited for length and style. my way through the display products.”

6 EUROBIZ JAPAN • AUGUST 2017

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Telephone: 03-5210-5701 E-mail: [email protected] www.elio.co.jp FROM EUROBIZ JAPAN

TEXT BY ANDREW HOWITT

long-standing appreciation Making success Japan has for bicycles made in Europe. As the EU’s chief nego- possible for others tiator during negotiations on the EU-Japan Economic Partnership Agreement, Mauro Petriccione is responsible for NASA is currently working on Switzerland presents some of the many great bringing about an outcome the Mars 2020 Rover in prepa- Swiss businesses, including maxon motor, that will benefit all EU member ration for its fifth rover mission that are behind others’ successes (page 24). states and improve trade to the Red Planet. About the size On the August cover is Oliver Ryf of Swiss between Japan and the EU. He of a car and weighing 1,000kg, firm Aryzta, a leader in the frozen baked spoke with Eurobiz Japan about the rover will be equipped with goods sector and another enterprise that the negotiations and what’s left seven new functions, allowing exists to support other businesses. Gavin to be done before the agreement it to do jobs such as collecting, Blair’s Rising to the top (page 10) relates how is finalised (page 20). sealing and depositing soil Aryzta’s ready-to-bake products let hotels Although you may never find samples for a future mission to and restaurants in Japan quickly and easily yourself in the spotlight, it’s take back to earth. To help its provide their customers with high-quality, deeply rewarding to do work sample-handling arm perform fresh-from-the-oven baked goods. that helps make success possi- mission-critical tasks are European racing bikes have long given ble for others. • nine DC motors designed by professional Japanese riders and amateur Swiss firm maxon motor. This cyclists alike a leg up. In Ahead of the pack Editor-in-Chief month’s Country Spotlight on (page 14), Gordon Knight looks at the [email protected]

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TEXT BY GAVIN BLAIR PHOTOS BY BENJAMIN PARKS Rising to the top

Aryzta Japan sees its success leavening

The frozen, ready-to-bake bread and food group Aryzta can trace its history back to the final years of the 19th century, when the Irish Co-Operative Agricultural Agency Society was founded in 1897, renamed that December as the Irish Agricultural Wholesale Society. A century later, the group undertook a major international expansion through acquisitions in Europe and the US. This project culminated in the 2008 merger with Swiss gourmet baker Hiestand — which celebrates a half-century in business this year — as well as the adoption of its current name, Aryzta.

10 EUROBIZ JAPAN • AUGUST 2017 he group logged revenue of €3.88 billion in 2016, with around 95% of that Tcoming from North America and Europe, and the remaining 5% from its growing opera- tions in Asia, Australasia and South America. For the past 20 years, Aryzta Japan has been purveying its range of breads, croissants, pastries, pretzels and cookies to this market, and carving out for itself a growing niche in the competitive local bakery sector. Managing director of Japan operations Oliver Ryf hails from Zurich, where Aryzta’s headquarters is now located. Ryf describes the company as something akin to a “worldwide bakery alliance” with an exten- sive range of baked goods and other frozen speciality food. The Japan branch focuses on offering a “Anybody can “selection of authentic be a baker with European-style baked goods according to our products” artisanal and tradi- tional recipes from various countries, such as Germany, France, Switzerland and Denmark,” explains Ryf, who worked in the beer and dairy industries before joining Aryzta a decade ago. “We were a pioneer of European frozen baked goods in Japan, which has allowed us to establish a strong sales and distribution network here.” Aryzta’s products are deliv- ered ‘proofed’, a term used in the industry to describe the final stage of pastries and bread dough preparation before baking. This saves time and effort for the hotels, restau- rants and retail outlets, but still allows them to provide the fresh oven-baked experience

AUGUST 2017 • EUROBIZ JAPAN 11

RISING TO THE TOP

to their customers. Making However, it’s grown by around half in the croissants from raw dough, hard to find six years since Ryf took over as for example, adds another female sales head of the Japan operations, two to three hours to the €3.88bn people, since the company is also looking to process, according to Ryf. about 95% of move its Tokyo head office to The group logged revenue of This is often impractical for €3.88 billion in 2016 our applicants larger premises. a hotel serving breakfast are male.” One of the keys to success from early in the morning. Sales staff at in the market — beyond the Hotels are Aryzta’s biggest customers in Aryzta also need to act in the taken-as-read expectations of Japan, followed by restaurants. But it is in capacity of bakery advisers, consistently high quality and retail that Ryf sees the biggest potential for visiting their customers onsite food safety — is “playing the future growth, particularly with in-house to help ensure that the end long game and avoiding the bakeries at supermarkets and other shops. consumer is able to enjoy its hard sell,” Ryf says. The company has already made inroads into products as they were intended. “You have to be patient to the sector with its anko croissant, which They provide help with matters acquire new customers, espe- combines traditional Swiss lye bread with from presentation to how cially in the bakery industry; Japanese sweet bean paste; the locally to adjust the baking process if you push too hard, the door created offering from Aryzta has become according to the ovens being might never open,” he adds. a best-seller at convenience store chain used, and even how to deal “The decision process for a Natural Lawson. with seasonal factors, such as bakery operation to change its Ryf says he would like to develop more changes in humidity levels. “It’s setup from scratch to frozen can Japan-specific products to compete in what a living product and needs to be be exceptionally long, but once he describes as the “more experimental, treated carefully,” notes Ryf. they walk through the door, playful” local market, but needs to guaran- With the business having things move very quickly.” • tee enough volume to convince headquar- ters it would be viable to start producing them. “As we get bigger, we will be able to innovate here more in the future.” “We were a pioneer of European Meanwhile, Japan’s well-documented labour shortage issues are proving both a frozen baked goods in Japan” boon and a bane for Aryzta. The difficulties in recruiting skilled baking staff faced by hotels, restaurants and shops only serve to make the company’s time and labour-sav- ing products more appealing, says Ryf. “Anybody can be a baker with our products.” On the other hand, with Aryzta products needing to be kept frozen all the way to customers’ doors, there are challenges with logistics, one of the areas in which the short- age of workers is most chronic. “We have to make difficult choices with regard to our supply chain in areas outside the big cities,” he explains. “For example, in places such as Hokkaido, we can only deliver once or twice a week.” As for the company’s own staff, the headcount is now at 60 and growing, all local employees except for Ryf. While there are mostly women in the back office, the sales department is a very male world. “I would like to hire more ladies to do sales,” Ryf states. “A lot of consumers of baked goods are women, so having the female perspective would be helpful.

AUGUST 2017 • EUROBIZ JAPAN 13 FEATURE

TEXT BY GORDON KNIGHT AHEAD OF THE PACK The enduring popularity of European bicycles in Japan

“Japanese customers are very well educated in terms of bike engineering”

14 EUROBIZ JAPAN • AUGUST 2017 Japan’s love affair with high-end European report from Japan’s Ministry of bikes seems to be unquenchable. The Economy, Trade and Industry for the first three quarters of market, once dominated by Italian steeds 2015 shows that, although the Anumber of bikes being imported fell, import Colnago, Bianchi and Pinarello, expanded in the 1990s to include French offerings value increased by 10.7%, the highest in 15 years. And the Japan Bicycle Promotion such as Time and Look, and has widened Institute says that in the second quarter again to make room for German and of 2017 ended in June, high-end imported Swiss brands. bicycles — a category that includes such bicycles as the Colnago C60, which retails at ¥1,245,000, and Pinarello’s Dogma F10 (¥1,290,000) — comprised 35% of imports, accounting for 42% of import value. All this means Japanese are happily handing over their hard-earned cash for high-priced imports. A survey in the March issue of Japanese cycling magazine Funride reveals the esteem Japan holds for bikes from Italy and France. For the question, “What is your dream bicy- cle?”, Italian-made bikes took the top three spots: Pinarello, De Rosa and Colnago. Then came the French, Time and Look. Bianchi came 10th. Funride readers said they love Pinarello because of its cool design and the fact that it’s ridden by Team Sky, which scored its fifth Tour de France win in six starts this year. De Rosa scored high marks with riders who saw the bikes ridden to European victories in their youth. The fact that five Japanese pros now race on De Rosa further bolsters its profile. Of the French bikes, readers said Time looks smart and exudes luxury. And Look won points for its unique design — a radically reshaped frame — and its Piet Mondrian-inspired colour palette. “Colnago is a very strong brand here,” says Taku Tsushima, who heads Colnago in Japan. “Its name has been known for decades by many cyclists.” Tsushima also notes that Trifoglio, the club of Colnago owners in Japan, has some 2,500 members. “Colnago [represents the] image of good bikes for Japanese people,” says Japanese professional cyclist Mayuko Hagiwara, who won the Japanese championship on her prized machine in 2014 and 2015. “It’s about status to own one, like having a top-brand car.”

AUGUST 2017 • EUROBIZ JAPAN 15 THE SALES JAPAN SERIES Don’t Give Mystifying Presentations, Please

BY DR. GREG STORY PRESIDENT, DALE CARNEGIE TRAINING JAPAN

he global chief’s private jet has landed. We are all roll out and pull us along the path of the speaker’s argument. Other assembled in a luxury hotel’s gorgeous function simple ploys — such as, “There are three key issues” or “The five room. The big brand name, the speaker’s resplend- areas of urgent attention are …” — can help frame the content in a ent silver mane, resume and abundant confidence way where we can track it. These structures help us relate the current Tall speak to a brilliant talk coming up. After the obligatory net- point to the others preceding it. working and chatting with tablemates over lunch, the main Maybe a fellow genius — if indeed our speaker was a genius — event gets underway. The keynote starts well, but gradually would be simpatico with the intent and have understood the thesis. we start to lose connection with the speaker’s message. The Alas, we were just ordinary punters, turning up in the hope of a nice talk is full of subtleties. The main point becomes fuzzy, distant lunch and some enlightenment from this font of knowledge. Our font and impenetrable. We sit there wondering if we are all stupid, this day, though, was dry and not at all helpful because we couldn’t because we can’t grasp the speaker’s nuanced argument — get the point. or, perhaps, the speaker is rambling and simply incoherent? As speakers, we have to make it easy for our audience to under- stand us. On the contrary, if we are going to be clever and tangential, we run the risk of losing people. If we are fixated on subtlety, we can Actually, it doesn’t matter which of us is stupid, because the talk has be too opaque for the troops — and they just get lost. We were all failed. The speaker has not been able to get the message across in crime scene witnesses to the merciless murder of a major brand that a way that resounds with the audience. Being intellectually brilliant day. When the big cheese fails like that, we doubt the whole organi- but speaking above your audience is not e ective communication. As sation. Our faith in the firm has completely subsided. Apart from the speakers, we have to know who is in our audience, their level of un- damage to the company, the individual’s personal brand is shredded, derstanding of the subject, as well as their capacity to be challenged. torn and tattered. We need to be able to communicate — which means the listeners The stakes are high when you are a presenter, so mastering the can understand and follow what we are saying — rather than trying to ability to connect with your audience is critical. However, don’t impress with our own brilliance. over-complicate the exercise. Have a clear structure, be easy to follow Structure helps to guide the audience through the proceedings. as you navigate your way around your talk, and pitch it at the right This speech, if it had a structure, was obscure, vague and puzzling. level for your audience. Do that, and your personal and professional Consequently, the global chief lost the audience. A heavy mist rolled brands will be enhanced, appreciated, and working for you, not in on this speech after about the first ten minutes and engulfed us all against you. in such a way that we struggled to follow where the speaker’s meandering was Engaged employees are self-motivated. going. What was the point being made “The stakes are The self-motivated are inspired. Inspired here? Where are we going with these sta grow your business but are you stories? What is the key argument being high when you inspiring them? We teach leaders and made? These are all bad questions for an organisations how to inspire their people. audience to be asking. They should never are a presenter, Want to know how we do that? Contact have to wonder if the speaker is clear, me at [email protected] coherent, and provides direction. so mastering the The use of slides on this occasion was ability to connect If you enjoy these articles, then head minimal. In many cases this is a blessing, over to www.japan.dalecarnegie.com but not this one. We needed some more with your audience and check out our “free stu ” o erings — form to the presentation to follow the white papers, guidebooks, training videos, speaker’s points. We were lost. We could is critical.” podcasts, blogs. Take a look at our Japa- have found a path if the speaker had nese and English seminars, workshops, o ered us some visual guideposts. Slides course information and schedules.

2 EUROBIZ JAPAN  XXX  AHEAD OF THE PACK

Well-known manga artist Wataru Watanabe has helped to popularise brands such as Pinarello and Bianchi through his cycling cartoon series Yowamushi Pedal. But Sam Takahashi, who heads Bianchi in Japan, says increased brand awareness has come at a cost. He notes that cycling cartoons drove sales in 2014 and 2015 more effectively than the brand’s own efforts, but also pushed the brand toward entry- level machines. “Bianchi’s heritage has not road. Of the French vélos de course, Time, Japanese-language support been recognised correctly in one of only two makers to weave its frames centre, both of which have Japan,” he states. “So, it has from raw carbon thread, creates bikes with addressed concerns around changed its strategies to sell an emphasis on handling — perfect for a day Canyon’s factory-to-consumer more high-end bikes.” in the peloton; and Look heads the other sales method. The Koblenz- This will hopefully address way, with frame shapes that are radically based firm’s range includes its cartoon-led image problem. aerodynamic and proprietary components two models with smaller 650B Bianchi chairman Salvatore designed to assist the breakaway rider in wheels — ideal for Japan’s Grimaldi says a recently inked cutting through the wind. slightly shorter average height agreement with Ferrari will see Although there is a long-standing admira- — and has worked with leading tion in Japan for Italian and French designer Christian Smolik on brands, a threat is emerging from weight-saving ideas. Japanese are happily European countries with compara- Fellow German firm Focus tively little cycle-making pedigree. operates in the old-fashioned handing over their The Swiss brand BMC way, having found over 200 Switzerland has been a Tour de retailers in Japan to stock hard-earned cash for France force in recent years under its products, and sponsoring riders such as 2011 winner Cadel Japan’s 2017-season-conquer- high-priced imports Evans. ing Matrix Powertag team. Its BMC began in 1994 in the entire range is race-proven, and a “Bianchi for Scuderia Ferrari” watch-making town of Grenchen where it the firm has tapped the knowl- line that reflects the heritage still creates part of its range. edge of Swiss aerodynamics and R&D of both firms later this “We refuse to compromise on ride quality, expert Andreas Walser. Focus’ year. no matter what the frame size or material,” flagship Izalco Max bike, creat- It is undeniable that all of says Marcel Emmenegger, BMC’s director of ed using computer modelling, these brands make exception- sales. “Japanese customers are very well-ed- tips the scales at an extremely al bikes. They are created by ucated in terms of bike engineering and the light 6.4kg. master craftsmen and incor- impact a well-engineered bike has on ride BMC, Canyon and Focus porate decades of professional quality. Japanese customers are also, for the bring with them none of the rider feedback. Saddle up on most part, aware of our key values: Swiss, decades of heritage that the each marque’s flagship model premium, performance.” Italians boast: cyclists’ hearts and they reveal their unique From Germany comes Canyon. skip a beat at the sight of a strengths: Colnago is sure-foot- “Japan is a massively important market Colnago, not a Canyon. But will ed, great for long rides; Bianchi for Canyon,” says Matthew Heitmann, chief the Germans — led by engineers loves unforgiving roads; marketing officer. “It’s immediately clear and designers with innovative Pinarello offers a bike that is how much passion the Japanese people have ideas — be the winning brands both aerodynamic and a pared- for riding.” of the future in Japan, or do down hill-climber; and De Rosa Canyon marketing manager Yukikaze the Italians still have one more boasts an oversized downtube, Ishiyama reports growing sales since the attack in their legs that will which transfers power to the introduction of an office in Kyoto and a keep them ahead of the pack? •

AUGUST 2017 • EUROBIZ JAPAN 17 FEATURE

TEXT BY ALENA ECKELMANN A way out for overworked Japan Forward-thinking businesses offer alternative work styles

he long-standing all-work-and- Baltic states clocked more hours, no-play culture of corporate as did workers in the US and Japan is on course for change. South Korea. The Japanese govern- However, a closer look ment put out its action plan reveals that 20.8% of Japanese Tfor work-style reforms in March as a way workers do more than 49 to tackle the country’s infamously long hours a week, compared to working hours. Within two years, the action 16.4% in the US, and between plan will enable the government to enforce 10% and 13% in EU countries, tougher rules and impose penalties on com- according to International panies that do not comply. Labour Organization statistics However, forward-thinking business lead- from 2015. ers have already introduced policies that go A 2016 survey shows that well beyond just counting the hours. workers at 10.8% of participat- “Government and businesses both need ing Japanese companies put in to act, and to coordinate their actions, but a staggering 80 to 100 hours of real change only happens when senior overtime per month; and work- corporate leaders take the lead,” says Jesper ers at another 11.9% of compa- Edman, associate professor at Hitotsubashi nies, even more than 100 hours. University’s Graduate School of Commerce Eighty to 100 hours of overtime and Management. work is considered the “karoshi On the surface, Japan is not the only nation line” — karoshi meaning death where people work long hours. In 2015, the from overwork — as defined average employee in Japan worked 1,719 hours according to “You don’t get innovation OECD statistics, but from being in the office, workers in Greece, Portugal, Poland, but from nurturing the Czech Republic, Slovakia and the creativity”

18 EUROBIZ JAPAN • AUGUST 2017 under Japan’s labour accident For many companies, this is taken the lead and empowered compensation scheme. easier said than done — fitting employees to change their work Article 36 of the Labour in the same amount of work style. Standards Law provides the into a shorter number of hours Akira Matsumoto, CEO of loophole that allows for these is the real challenge. Calbee since 2009, introduced excesses. It states that the man- “We encourage employees Diversity & Inclusion, as well agement and labour union at a to work more efficiently and as an overhaul of the company’s Japanese company can agree to adjust their work styles,” work style. to allow overtime work during explains Nawa. “Achieving good results for “busy seasons”. Until March At Anglo–Dutch global the company is not possible any- this year, there was no maxi- energy company Shell, senior more by having many employees mum upper limit. management sees employees as put in long hours,” says Kazuka The new action plan has stakeholders that the company Nohara, PR manager at Calbee introduced a cap of 100 hours has a responsibility to look Japan. “What counts nowadays of overtime work a month, for after. This policy is anchored is innovation and accountability. a period that can be extended in its Shell General Business You don’t get innovation from between two and six months Principles and respected at being in the office, but from a year. Once this comes into every level of the company. nurturing creativity, which force in April 2019, companies “Our people are central to the comes from a fulfilled family exceeding the threshold will delivery of our strategy,” states life — from hobbies, education, face legal action and penalties. Natsuko Kenma, External and spending time outside the “This will be difficult to police Relations, country manager, at company.” as there is no strong whistle- Shell Japan. “As employee value Calbee evaluates staff based blower mentality in Japan and propositions and societal expec- on their performance. Each year no strong culture of standing employees make up to your superiors,” Edman a commitment to states. “Companies should “a better work–life what they want to make it easier for employees balance is increasingly achieve in the year, to do their job by streamlining and this “contract” operations, reorganising out- expected by employees” is what they are dated structures, cutting hierar- accountable for. chy and cancelling unnecessary tations continue to change, our Staff are given a computer and meetings.” success depends on our ability a phone, allowing them to be The Tokyo Metropolitan to attract, motivate and retain flexible in where they work. Government tries to lead by this increasingly diverse pool of “Face-time in the office has example and switches off lights talent. For example, in Japan, no meaning for us,” Nohara at 8:00 p.m. to get workers to the dual career household is explains. “Nobody is watching leave the office. Some business- more common, and a better whether you are present. As es have followed suit. Aozora work-life balance is increasingly long as you achieve your goals Bank, for example, implement- expected by employees.” for the year, you can work from ed a no-work-after-8:00-p.m. Shell Japan has already anywhere.” rule in January. implemented flextime work To speed up procedures, “Since implementing this that does not centre on a daily Calbee now allows documents initiative, our employees have core time. And new technology to be approved online. And sales made a greater effort to leave has been put into place for “vir- staff are no longer required to the office early,” says Tatsuhiro tual working” to allow employ- show up at the office before Nawa, Media Relations officer ees to work from home. and after visiting a client, in for Aozora Bank. “As a result, “We encourage employees to order to make their days more we are already seeing a steady take initiative on planning their productive. reduction in the number of own work, and we also provide “Rather than counting hours, overtime hours.” them with channels for report- we have to understand what we ing concerns,” says Hayato want to achieve and commit to Hiroi, HR account manager at it,” concludes Nohara. “We need Shell Japan. imagination and innovation for At snack food maker Calbee our business, or else our markets as well, senior management has will shrink.” •

AUGUST 2017 • EUROBIZ JAPAN 19 THE INTERVIEW

TEXT BY ANDREW HOWITT PHOTOS BY EUROPEAN COMMISSION THE NEGOTIATOR An interview with Mauro Petriccione

20 EUROBIZ JAPAN • AUGUST 2017 “we managed to reach solutions by finding anappropriate balance between the interests of the two partners”

Mauro Petriccione speaks with the voice and tion and expertise to identify authority of the European Union, and represents the non-tariff measures that European businesses were the collective interests of its member states facing in Japan, and for which during trade negotiations. He is chief negotiator solutions were to be negotiated. for the EU-Japan Economic Partnership Every time that a trade commis- sioner came to Japan, a visit to Agreement (EPA), which reached an agreement the EBC was on the agenda in in principle at the beginning of last month. A order to gain insight into day- native of Taranto in Italy, Petriccione first joined to-day EU business trading and investing in Japan. the European Commission in 1987 and has worked in trade policy ever since. Today, he is Can you tell me about the the deputy director general of the Directorate process of negotiating the EU–Japan EPA? General for Trade (DG Trade) at the European It took us four years to reach an Commission where he deals in areas as diverse agreement in principle, which as services and investment, intellectual property, is reasonable compared to other trade negotiations. But it was a public procurement, Asia and Latin America, difficult and complex process. sustainable development, and agri-food and We had to take into account fisheries. Petriccione spoke withEurobiz Japan not only the intrinsic technical difficulties that we had to solve, about the negotiations on the EU-Japan EPA but also the wider political envi- and what’s left to be done before the agreement ronment in Japan, in Europe is finalised. and in the rest of the world. Trade agreements do not hap- pen in isolation, and it is only by always keeping the broader How did the idea for a free a negotiating mandate from political picture in mind that trade agreement between EU member states. Concluding you can find solutions. the EU and Japan get off the an agreement with Japan was ground? a natural next step, in order to From your perspective, how The negotiations were officially increase trade with more of Asia. will it benefit the economies launched on 25 March 2013, of the EU and Japan? after an extensive scoping How much was the European There will be benefits from day exercise. But the truth is that Business Council (EBC) one. For example, for EU wine the idea of this agreement dates involved in the early and producers who will be able to back a few years before. In 2009, subsequent stages? export to Japan duty free as when the negotiations for a The EBC was closely involved soon as the agreement enters trade agreement with South throughout the entire negoti- into force. But the bigger bene- Korea were concluded, the ating process. They were one of fits will probably only appear in Commission undertook to seek our main sources of informa- the longer term.

AUGUST 2017 • EUROBIZ JAPAN 21 THE NEGOTIATOR Providing legal Koji Fujita, Attorney-at-law With this agreement, Japan in a new negotiating team in March 2017 as a proceed together with Japan and the EU have agreed to decisive step in the process. to the legal revision of the assistance for closely cooperate in promoting negotiated texts. They will then and enhancing international What were the difficult areas in negoti- need to be translated into all 24 standards, notably in the ating the EU–Japan EPA? official EU languages — and, of nearly one automotive sector where we are Not surprisingly, agriculture market access course, into Japanese. Only then Masanori Awazawa, now working closely together was the main difficulty as it was both the will the agreement be officially Attorney-at-law in defining UNECE [United EU’s number one exporting interest and signed and then submitted entire century Japan’s biggest for approval. In the EU, this sensitivity. approval process begins with a Procurement was decision of the Council, which also particularly is then followed by the consent difficult as Japan of the European Parliament. It Japanese-Swiss full-service law firm Michael Mroczek, had never engaged is a rather intense, but essential Attorney-at-law (Switzerland) in negotiating process, which we will try with core competencies including: commitments with to make as short as possible. the level of ambition • Corporate/M&A/Restructuring requested by the Is there any risk of this end- • Banking and Capital Markets EU. On the EU side, ing up like the TPP? • Antitrust and Competition Law further opening our I have not heard any fundamental Masako Banno, market to Japanese criticism, on either side, of the • Commercial Transactions Attorney-at-law cars was the main agreement between the EU and difficulty. On all Japan. Of course, there will be • International Arbitration these issues, we objections from some quarters, Nations Economic Commission managed to reach solutions by finding an especially from those constitu- for Europe] regulations. appropriate balance between the interests encies who may fear a negative This is a strategic choice that of the two partners. impact. However, we have sought will have far-reaching consequences. If Japan and the EU both manage “it is an agreement that brings to successfully promote these international important economic benefits to both standards, the benefits will be considerable for their sides and builds on the core principles producers and economic operators in the global common to our two societies” economic environment.

Could you tell me about some Why has dairy specifically been such a to build into the agreement all the of the milestones of the nego- difficult issue to reach an agreement on? necessary safeguards, and we will tiation process? The EU is a competitive dairy producer, engage with all those concerned We had tried to conclude nego- notably for cheeses, while the Japanese mar- to see whether other measures tiations by the end of 2016, but ket has always benefited from a high level of are needed. some more work was needed protection. Here, again, we needed to iden- At the same time, I would to bridge the gaps between our tify very carefully the right balance to bridge like to note that the agreement respective positions. In 2017, the gap between our respective positions. in principle, which was only we have seen some important The final balanced outcome proves that the announced last month, has political changes, including the EU was not a real threat to the Japanese already received wide support decision by the US to withdraw agricultural sector. both in Europe and Japan. This from the TPP [Trans-Pacific is because it is an agreement that Partnership], which also played Now that you have reached an agree- brings important economic ben- a role in accelerating the pro- ment in principle, what needs to happen efits to both sides and builds on cess that led to the conclusion and how long will this process take? the core principles common to of an agreement in principle last We now need to fully conclude the our two societies: for consumer 1-2-5 Kyobashi, Chuo-ku, Tokyo 104-0031. month. One could also highlight negotiating process. Our objective is to do protection, food safety, environ- Tel: +81 (0)3-3274-3807, the decision by Japan to bring this by the end of this year. We will then mental and labour standards. • Email: [email protected] www.okunolaw.com

22 EUROBIZ JAPAN • AUGUST 2017 Providing legal Koji Fujita, assistance for Attorney-at-law nearly one Masanori Awazawa, entire century Attorney-at-law

Japanese-Swiss full-service law firm Michael Mroczek, Attorney-at-law (Switzerland) with core competencies including: • Corporate/M&A/Restructuring • Banking and Capital Markets • Antitrust and Competition Law Masako Banno, • Commercial Transactions Attorney-at-law • International Arbitration

1-2-5 Kyobashi, Chuo-ku, Tokyo 104-0031. Tel: +81 (0)3-3274-3807, Email: [email protected] www.okunolaw.com COUNTRY SPOTLIGHT

TEXT BY ANDREW HOWITT WWW.SCCIJ.JP Switzerland Making everything tick

Although hidden away beneath the clock face, the carefully made gears, springs and wheels inside Swiss watches are, in large part, what makes these world-renowned timepieces excellent. With a centuries-long history of crafting parts of such high quality, many Swiss businesses today have gained unparalleled skills in precision manufacturing. Companies around the world, and across a wide range of industries, have come to depend on Swiss enterprises to create the unseen components that make their products truly excellent.

“Most Swiss companies are world leaders in their seg- degree of precision. NASA has relied on maxon motor’s ment, so they bring innovative products and processes brushless DC motors for its rovers on missions to Mars. to Japan,” says Swiss Ambassador to Japan Jean- In Japan, Softbank’s humanoid robot Pepper has wheels François Paroz. “There are many examples of ‘Made in powered by maxon motor. Switzerland’ product components that are useful for Another firm with an extensive, but equally inconspic- Japanese products.” uous, presence in numerous products is Feintool. The The drive systems manufacturer maxon motor is a Swiss technology group specialises in precision cutting, prime example. Founded in 1961, the firm produces called fineblanking, and in forming processes. Feintool micromotors that are used in such diverse applications focuses largely on the automotive industry, with its fine- as camera lenses, driver assist systems, surgical robots blanked parts in everything from engines and transmis- and tattoo machines — all of which require a high sions to airbags and brake pad carriers. The company’s

24 EUROBIZ JAPAN • AUGUST 2017 Japan business pri- “Swiss companies … marily deals with steel components bring innovative for seat adjusters, with more than products and 90% of the world’s vehicles containing processes to Japan” seat adjuster parts —Swiss Ambassador to Japan made by Feintool or using a Feintool press. —Jean-François Paroz The machine tools manufacturer Reishauer also provides significant support for the automotive industry. In 1945, it invented a machine for continuous generating gear grinding, introducing a faster and more accurate way to make gears than having to grind each tooth gap separately. Automakers around the world today still use these machines. In Japan, hundreds of Reishauer’s gear grinding machines make components daily for cars, trucks and motorcycles, as well as in industries such as aerospace and robotics. Area Swiss firms also have an invisible presence on your 41,277km2. visits to the dentist. The Straumann Group has been Land boundaries: 1,852km. developing and manufacturing instruments, implants, Climate prosthetics and biomaterials for the dentistry sector Temperate, but varies with since 1954. With its products and services available in altitude; cold, cloudy and rainy/ more than 100 countries, the firm reports that — based snowy winters; cool to warm, cloudy and humid summers on the volume of products sold — someone is treated with occasional showers. with a Straumann product every single second. Asia– Pacific is the company’s fastest-growing region, with Major cities Zürich, Geneva, Basel, Bern revenue in Japan having risen by 19% in 2015. (capital) and Lausanne. Since 1998, Ziemer Ophthalmic Systems has empow- ered ophthalmologists, enabling them to give their Population 8,061,516 (July 2014 estimate). patients better vision. The firm’s state-of-the-art surgi- Urban population: 73.7% (2011). cal and diagnostics tools assist doctors in performing eye 43.9% 25-54 years of age (2014 surgery such as corneal transplants, laser-assisted cat- estimate). aract surgery and Z-LASIK operations. The Shinagawa Natural resources LASIK Center in Japan performs 70% of the country’s Hydropower potential, timber LASIK operations, and has conducted nearly 1.2 million and salt. procedures using Ziemer machines. “Swiss companies regard Japan as a highly developed market where quality and leading technology is in high demand,” states Ambassador Paroz. “Swiss investment and technology do not only provide support for patients and consumers, but are also instrumental in the regional Basel development of Japan. Companies such as Nestlé in Zürich Himeji, LNS in Omi and Feintool in Tokoname, generate jobs and tax revenues in rural areas.” • Bern Switzerland Lausanne

Trade with Japan Geneva

Imports from Japan: 3 billion Swiss francs Exports to Japan: 7.3 billion Swiss francs

SOURCE: SWISS CONFEDERATION (2016)

AUGUST 2017 • EUROBIZ JAPAN 25 PUBLICITY

IMPERIALE “LA VIE EN ROSE” 28MM

This delightful pastel The strong straight lines of these pink model of Chopard’s symbols are softened by the delicate shade of pink infusing the entire classic Imperiale watch timepiece with an aura of exquisite artfully combines soft- lightness. Even the alligator leath- ness with sophisticated er strap takes on the tender blush of finer feelings. The dial centre, elegance, for those who adorned in old rose mother-of-pearl, love to see life through glows with an opulent, velvety radi- rose-tinted glasses. ance. Epitomising a subtle blend of power and gentleness, the Imperi- ale La Vie en Rose reveals a more When the codes of contemporary sensitive and romantic aspect of the elegance draw inspiration from the Imperiale personality. grandeur of the Roman Empire, a The Imperiale La Vie en Rose is a great classic is in the making. The 100-piece Japan limited edition fea- Imperiale watch distils a wealth of turing a stainless steel case available details from the finest hours of an- from September 18th at all Chopard cient Rome. The sovereign nature of Boutiques and retailers. the collection is expressed through Anyone who purchases this limit- the powerful stature of the Roman ed edition watch will receive a pre- numerals marking the hours, as cious gift, reminiscent of La Vie en well as through the tapered design Rose. of the hands, reminiscent of combat daggers, while the shape of the lugs echoes the tradition of imperial col- umns famed for their perfectly bal- anced proportions. —Shop Information Chopard Ginza Flagship Boutique Chopard Building 2-4-14 Ginza, Chuo-ku, Tokyo 104-0061 Japan

TEL: +81-3-5524-8972 FAX: +81-3-5524-8971 Imperiale “La Vie en Rose” 28mm Opening Hours: 11:30–19:30 —Technical Details www.chopard.jp Case: Steel Total diameter: 28.00 mm Dial: Pink mother-of-pearl, Roman numerals index Movement: Quartz Price: ¥527,040 (tax included) Japan limited edition: 100 pieces

6 EUROBIZ JAPAN XXX  EuroBiz_AD_2017810_FIN_OL.pdf 1 2017/08/10 11:55

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BOBST is one of the world’s leading suppliers of equipment and services to packaging and label manufacturers in the folding carton, corrugated board and flexible materials industries. A passion for innovation has been encoded into BOBST’s DNA, allowing it to thrive for more than 125 years. Engineers at BOBST translate today’s packaging trends into outstanding packaging solutions, resulting in unwavering growth and advancement.

www.bobst.com BUSINESSES FROM ...

SWITZERLAND A LOOK AT SOME COMPANIES FROM THE REGION

NESPRESSO

Focusing on the coffee-serving needs of select cus- tomer channels, Nestlé’s Nespresso provides the best solutions for optimal coffee enjoyment. In the office, Nespresso offers a high-quality alternative to traditional vending machines, while exceeding hotel guests’ expectations and providing restaurant patrons with coffee that makes all the difference. Finally, Nespresso makes a lasting impression on clients at luxury retail establishments.

www.nespresso.com/pro For inquiries: 0120-35-7202

NOVARTIS

Changing the practice of medicine At Novartis, we harness the innovation power of science to address some of society’s most challenging healthcare issues. Our researchers work to push the boundaries of science, broaden our understanding of diseases and develop novel products in areas of great unmet medical need. We are passionate about discov- ering new ways to improve and extend people’s lives.

www.novartis.com

UNZEN KANKO HOTEL

NEW TALES of NOSTALGIA Carrying on the Tradition, Taking Memories into the Future Established 10th October, 1935

UKH is nestled amidst the natural surroundings of Unzen National Park. Our story is filled with vivid memories of the people who loved staying with us.

www.unzenkankohotel.com

28 EUROBIZ JAPAN • AUGUST 2017 KUONI GLOBAL M-INDUSTRY TRAVEL SERVICES JAPAN K.K.

Congratulations on 153 years of formal friendship M-INDUSTRY Japan is proud to be a member of the and trade between Switzerland and Japan. Swiss Chamber of Commerce and Industry, as well as a strong partner of the Swiss Embassy. M-INDUSTRY, Kuoni Japan Co. Ltd is the world’s leading group part of the Migros Group, has over 23 production travel provider and destination management facilities, manufactures over 25,000 products, and company with one of the biggest travel networks on exports to over 50 countries. the planet. www.mindustry.com www.cafe-royal.jp www.zoeofswitzerland.jp www.swissdelice.jp

RICHEMONT ZURICH INSURANCE

Congratulations on 153 years of formal friendship Zurich Insurance Company Ltd and Zurich Life and trade between Switzerland and Japan! Insurance Company Ltd are part of the Zurich Insurance Group, one of the world’s leading insurance groups. Richemont owns some of the world’s leading luxury We are one of the Group’s key operations in Asia and goods companies — with particular strengths in offer a full range of insurance products and services to jewellery, luxury watches and premium accessories individual and corporate customers in Japan. We deliver — including Cartier, Van Cleef & Arpels, Piaget, what our customers need when they need it most. Vacheron Constantin, Jaeger-LeCoultre, IWC Schaffhausen, Panerai and Montblanc. Zurich Insurance Company Ltd www.zurich.co.jp Zurich Life Insurance Company Ltd www.zurichlife.co.jp

Nagamine Building 4F Tel.: +81 3 5789 1160 Managing Director, Kami-Osaki, 3-3-6, Shinagawa-ku Fax: +81 3 5789 1161 Kazunori Kurose 141-0021 Tokyo Email: [email protected]

AUGUST 2017 • EUROBIZ JAPAN 29 EBC PERSONALITY

TEXT BY ANDREW HOWITT PHOTO BY KAGEAKI SMITH Peter Kronschnabl Savouring the salt in the soup

“Without change, we would never achieve anything,” says Peter Kronschnabl, CEO of BMW Group Japan. “Maintaining the present will always lead, at a certain point in time, to mediocrity.”

hange is the theme of Kronschnabl’s life and career, and the topic he Cmost likes to speak on when he gives lectures. Having been president of different BMW Group offices around the world, he has relished the opportuni- ties he has been given to share his experiences with students. Last year, he gave talks about the importance of change to Keio University MBA students. “It’s important to give people confidence that doing it their way doesn’t mean it’s a bad way — that’s what leads to innovation,” he explains. “I like to encourage the younger gen- eration that if they have great ideas, they should go for their ideas, because maybe that will change something.”

30 EUROBIZ JAPAN • AUGUST 2017 As someone who has lived in five coun- to improve at whatever he tries, including his native Germany, and puts his hand to. Growing up worked in many others, Kronschnabl is in the Black Forest, he started someone who understands and appreciates skiing when he was three and, the value of new experiences. at school, was on the racing “There is a saying in team. When he was eight, he German, ‘the salt in the joined the football club and “Sometimes you soup’,” states Kronschnabl, quickly became passionate referring to something that about the sport. Later, he took don’t know what adds excitement or zest to up skateboarding and wind- a situation. “Sometimes surfing. In his early twenties, the outcome of an you don’t know what the snowboarding became popular experience will be, outcome of an experience and he knew it was something will be, but you say: ‘Well, he had to try. but you say: let’s try’. Isn’t that the salt “I wanted to do something in the soup?” different,” says Kronschnabl, ‘Well, let’s try’.” While working in “because I couldn’t make any Munich, Kronschabl over- more progress on skis.” saw the African and Caribbean regions, and For much of his adult life, two weeks a month he travelled to French- running has been part of his speaking African countries, “starting from weekly training routine. But the Maghreb, then all only since moving to Tokyo in the way down.” He later 2014 did he decide to do a full opened branches in Poland marathon. After completing the Do you like natto? and Hungary. Since then, Tokyo Marathon once, he was he has been president of determined to improve his time

Time spent working in Japan: BMW Group offices in and knew what he had to do Three years. India, Russia, Belgium- differently to be faster. Luxembourg, and now “So, I changed things,” he Career regret (if any): None. Japan. states. “My goal was below four BMW was founded in hours, and I did it a second time Favourite saying: 1916 and opened its doors in 3 hours, 57 minutes.” Doing the same thing over and over again and expecting a different result is here in 1981. Today, Japan Sports have also helped insanity. is one of the six most Kronschnabl to change at a important markets for psychological level. Favourite book: Ken Follett is a great writer. I think The the Group. In 2016, it sold “Golf is a completely different Pillars of the Earth is remarkable. approximately 80,000 sport to my other activities, products — including because it centres your mind Cannot live without: My smartphone. BMW cars, motorcycles, — you need to keep up your and MINIs. concentration over a couple of Lesson learned in Japan: “We laid out a strategy hours,” he observes. “And you I learned the difference betweenhonne (true feelings) and tatemae (the opinions last year for Japan to 2022 learn what it means to control you express in public). called ‘Change to Success’,” your emotions.” Kronschnabl notes. “We Out on the golf course, Secret of success in business: You need to have a vision so you know believe that there is still Kronschnabl has discovered where you want to go. And with that, growth potential in the that the moment he becomes you create a plan and a direction for the Japanese market in all are- emotional is the moment he whole company. as. We have to change, as loses his precision — a moment Favourite place to dine: well, because the automo- he describes as the “beginning I’m a big fan of steak, and there are a lot tive industry is continually of the end”. of great steak places in Japan. developing.” “Having a bad shot doesn’t Do you like natto?: Since he was young, mean you will have a bad game; No. But I tried it. I didn’t like it the first Kronschnabl has sought you can recover,” he states. time. I thought, give it a second try. And I didn’t like it then, either. So I thought, OK, out new experiences, but “But you have to change some- maybe it’s really no. has also challenged himself thing.” •

AUGUST 2017 • EUROBIZ JAPAN 31 EVENT REPORT

TEXT AND PHOTO BY ANDREW HOWITT

EBC Tax Seminar 2017 A mixed bag of good news and bad

While the only certainties in life porate tax returns in Japan. This will come until this year, foreign nationals are death and taxes, it’s a little as welcome news to accounting depart- who were here for only a year heartening to remember that ments struggling to meet the unusually were subject to inheritance one of those at least is subject short two-month filing period in Japan. tax in Japan. The good news is to changes and improvements. The talk David Bickle of Deloitte that, with the 2017 tax reform, Every year, the Japanese Tohmatsu gave covered M&A and interna- foreign nationals who have government sets out new tax tional tax, looking at some positive changes been in Japan for fewer than 10 reforms, announcing changes regarding spin-offs and squeeze-outs. He of the last 15 years — on a visa to the nature and scope of the also noted that reforms announced this that doesn’t allow them to stay taxes it levies. Members of the year will bring Japan closer in line with the indefinitely — will no longer be EBC Tax Committee held a OECD’s base erosion and profit shifting subject to the inheritance tax seminar at the EU Delegation (BEPS) project, which aims to resolve the on their non-Japanese assets. on 14 June to highlight some often-exploited discrepancies among differ- However, those who have of the changes introduced in ent countries’ tax rules. been in Japan for more than Japan’s Tax Reform 2017. “BEPS is by far the biggest thing that 10 of the last 15 years, will not has happened in international tax in our qualify for that exemption. The first to speak, Duncan lifetime,” explained Bickle. “Japan has The worst part of this is that, Adrian of KPMG, looked at made changes to the rules that have levelled their assets will continue to changes to domestic corporate the playing field. [For example,] foreign be subject to Japan’s gift and tax. Along with revisions to suppliers of digital content now have to levy inheritance tax for five years directors’ compensation, R&D consumption taxes … so they don’t have the after they leave Japan — even advantage that if the asset is not in Japan, and they used to [over] it goes to somebody who has Japanese pro- never been to Japan before. viders of digital Hans-Peter Musahl of EY, content.” who is also chairman of the Everyone in EBC Tax Committee, outlined the audience, the EBC’s tax policy, as it is predominant- documented in the latest EBC ly long-term, white paper. He concluded the non-Japanese res- seminar with some further idents of Japan, comments on the inheritance listened intently tax reforms. to Marcus Wong From the perspective of of PwC, who spoke foreign direct investment, “this on income and is not a good idea,” he said, since inheritance tax “foreigners who stay here in

(From left to right) David Bickle of Deloitte Tohmatsu; Duncan Adrian of revisions. Japan for 10 years or longer will KPMG; Hans-Peter Musahl of EY, and Marcus Wong of PwC Wong described actually be punished.” the reforms on As the EBC Tax Committee tax credits and employment tax gift and inheritance tax as “a mixed bag” — continues to take up these credits, he spoke about how this very good for foreign nationals in Japan on issues with the Ministry of year’s reforms introduced the temporary business assignments, but not Finance and members of the possibility for listed companies so good for foreign nationals who have been Diet, they hope to see further to apply for an extension of up here for more than 10 years. improvements to Japan’s taxa- to four months when filing cor- Japan taxes the recipient of an asset and, tion rules. •

32 EUROBIZ JAPAN • AUGUST 2017 INNOVATIONS

TEXT BY TIM HORNYAK

It used to be that if you wanted to invest It’s a mobile app that allows California-based Acorns Grow in the stock market, you had to ask users to put money in invest- was established in 2012 and your broker for advice and pay a hefty ment funds and other vehicles already has over one million commission for the privilege. These days, starting with as little as £500, customers. The app is linked to artificial intelligence software platforms with fees of 0.3% to 0.95%. To users’ credit cards and invests can advise you for almost nothing — and determine their appetite for spare change generated when your portfolio still has a good chance of risk, investors are asked a series rounding up purchases to the outperforming the market. of questions. Capital is then nearest dollar. This applies divided among funds chosen even to small purchases. So, So-called robo-advisors are mobile by investment advisors seeking when you buy a candy bar with apps and other forms of software that use value in the market. Launched your credit card, the app might algorithms to automatically invest and in 2012, Nutmeg now has over round up the purchase to the rebalance funds for investors. They have 40,000 users. nearest dollar, and put that 25 exploded in popularity in recent years with “What’s different about cents into a basket of invest- the spread of smartphones, drawing over Nutmeg is that we benchmark ment money. $50 billion in investments, according to the our performance against high- “To appeal to millennials who Aite Group. They’re especially attractive to net-worth asset managers,” don’t have much money, we investors who don’t have the time to spend Shaun Port, CIO of Nutmeg, attach the investing process to researching which stocks or funds will deliv- told a fintech conference in the spending process,” Walter er above-average returns. Tokyo last year. Cruttenden, chairman and UK-based Nutmeg is one example of a The US has seen the growth co-founder of Acorns Grow said robo-advisor geared to the retail market. of far bigger robo-advisors. at the conference. “The funds go over to Vanguard [or] BlackRock ETFs [exchange-traded funds] in a portfolio designed by Dr Harry Markowitz, who won the Nobel Prize for modern portfolio Advice from theory.” Robo-advisors and other app-based investment vehicles are really going prime time. algorithms New York-based Betterment, which offers users a mix of The robo-advisors standing up exchange-traded funds, was launched in 2010, and had $1 to human brokers million under management at the end of its first three months. It has grown 300% to over 250,000 customers and now has $8.5 billion in assets. But that’s peanuts compared to Alibaba’s Yu’e Bao fund, which also invests spare change in money markets. With a name meaning “leftover treasure”, the Chinese fund is only four years old, but now has $165.6 billion under manage- ment, larger than JPMorgan’s US government money market fund of $150 billion. artificial If you have a smartphone, money to invest and a yen for intelligence savings, you might want to check out investment options at software platforms your local app store. • can advise you for almost nothing AUGUST 2017 • EUROBIZ JAPAN 33 EXECUTIVE NOTES

TEXT BY TOM ELLIOTT

put too much of their money negotiations, and so be less into over-risky investments. damaging to the economy than Low But what do we do with such a hard Brexit. an insight? Is buying a risk While the US Federal Reserve asset — for example, the newly Board (Fed) has raised interest market issued 100-year Argentinean rates twice this year, in line with bond that is yielding 7.9% — an predictions in January, yields indication of complacency? Or, on the US Treasury market and based on hard-nosed logic, do other global bond markets have volatility we believe that US Treasury risen by only modest amounts as bond yields are likely to remain inflation remains much weaker Should investors be low by historic standards for a than would normally be justified considerable period of time? by the low unemployment rate. concerned? And doesn’t warning of com- Indeed, the much-anticipated placency somewhat ignore the bond bear market appears to run of positive news we have have been postponed indefi- seen since January, which has nitely. Janet Yellen of the Fed supported investor confidence? recently speculated that the In spite of President Donald new ‘normal’ long-term rate of Stock market volatility has been low on Trump taking the US out of the interest may be just a percent- most major stock markets this year. And Trans-Pacific Partnership nego- age point higher than the cur- expectations of future volatility — as tiations and picking squabbles rent target rate of 1%–1.25%. measured through futures-based derivative contracts — are also low. But does this indicate investor complacency, as many are arguing? If so, investors should probably sell to realise the 13.3% gain, in US-dollar terms, that has been made on global stock markets since 1 January this year — based on the MSCI World Index, as of 31 July. Or is this, in fact, a sign of investor confidence?

The degree to which investors are expect- ing low volatility to persist is striking. The Nikkei Stock Average Volatility Index, creat- ed in 2012 to help investors trade volatility on the Nikkei 225, currently stands at a with trading partners such as Global economic growth has record low of 12.2 (as of 31 July). In Europe Mexico, Canada and Germany, been stronger than expected, and the US, similar low volatility is being the global trading environment which is helping to boost corpo- blamed for low trading volumes. The VIX remains broadly intact. He also rate earnings and to justify cur- index tracks expectations of future volatility has not imposed a 40% import rent stock market valuations. on the S&P 500 index, as implied by deriv- duty on Chinese goods upon It is too glib to accuse inves- ative contracts. On 14 July, it reached a new taking office as he campaigned, tors of complacency. Stock mar- multi-decade low of 10.5. and has not — so far — torn up kets have had a relatively strong The complacency argument says that any existing trade agreements. year, so far, because news-flow low volatility breeds investor complacency, European voters rejected has been better than expected. and the more complacent we become, the populism in the Dutch and Steady gains, with no major bigger the risks that we are prepared to French elections. In the UK, sell-offs, result in low volatility. take. Excess risk-taking then contributes to Prime Minister Theresa To be afraid, simply because the bigger market falls should panic set in. May’s failure to secure her market expects such conditions This argument applies to the economic Conservative party an overall to persist, is perverse. • cycle as well. According to US economist majority in the House of Hyman Minsky, periods of stability in Commons was interpreted by capitalism breed their own destruction by many political commentators Tom Elliott is an international encouraging complacency. Banks over-lend as an opportunity for a soft investment strategist with the to the wrong sort of customer, and investors Brexit to emerge from EU deVere Group in London.

34 EUROBIZ JAPAN • AUGUST 2017 IN COMMITTEE

TEXT BY GEOFF BOTTING

such member, Norichika Gohda, chief financial officer at Nicole Financial Racing Japan, which imports and sells high-performance European cars and parts. “The Reporting most important thing for me is the exchange of communication among the other entities.” Advocating for consistency, Gohda has a particular inter- est in the convergence issue. His efficiency and transparency company has recently received an investment from a US firm; and, in the future, he expects The Financial Reporting Committee is back. convergence of the accounting his business will opt for IFRS to Following a one-year break, the EBC group standards for the sake of con- facilitate its global operations. has been rebooting its activities. sistency, efficiency and trans- “I presume IFRS will become parency. In the 2015 EBC white the global standard,” he says. “Basically, it was because people on the paper, the committee points to Hermans reports “steady committee returned to their home coun- an “administrative burden” that progress” in Japan towards a tries,” says Dirk Hermans, committee chair- can occur when the subsidiaries more widespread adoption of man, explaining its period of inactivity. New need to reconcile their required the standards. “If you look at members have been recruited since the start J-GAAP-based financial report- the momentum overall, it’s been of the year, with recent meetings featuring ing to IFRS, which is needed for fairly strong,” he says, adding plenty of fresh faces. group-wide reporting. that he’s personally been seeing Yet, just as before, membership consists “Therefore, the EBC rec- significantly more companies of a mixture of accounting professionals ommends that more efforts be make the switch to full adoption from three of the Big Four global accounting made to reduce such reconcilia- over the past couple of years. firms and “preparers” — financial specialists tions,” the committee states. Even so, the quest for greater from a variety of companies whose job is to Convergence would also help financial transparency can be a prepare financial statements. Japanese companies with ambi- challenge for the preparers. In spite of the hiatus, the committee is tions of expanding overseas “IFRS has so many disclo- continuing to push its central issue: the through M&As. sures, but J-GAAP not so many,” convergence of a set “They realise that Hermans explains. “When a of Japanese account- in order to grow, company converts to IFRS, it ing rules, called Advocacy issues they need to become has to disclose a lot more. And J-GAAP, with those more global, given it’s not just the volume but the of the International • Revenue recognition the demographics in type of disclosure. These are Financial Reporting Standards should include a Japan,” says Hermans, often things that Japanese com- Standards (IFRS). robust set of disclosures so Director at the panies don’t show.” Backers of IFRS, that financial statements give Accounting & Finance Yet, more and more compa- which originated in a complete picture of revenue Advisory Group, nies are realising that at the the European Union, recognition. Deloitte Touche end of the day, the efforts will are seeking to make it Tohmatsu. be worth it. Transparency and the global language of • Financial instruments At a typical com- global competitiveness are key financial reporting. All investments in equity mittee meeting, the concepts behind the Japanese “So, our role hasn’t securities should be measured members from the government’s corporate reform changed,” Hermans after fair value. accounting firms drive. The adoption of glo- says. “We’re still report on the latest balisation-friendly reporting facilitating the • Property, plant and IFRS-related develop- standards fits with this goal. process and want to equipment ments. The preparers “IFRS is seen as providing give a voice to the The IFRS approach should be often bring cases from a framework for stronger preparers.” employed to give an accurate their own companies corporate governance, because Many European picture of usage patterns and to the table. J-GAAP is not as robust,” the multinationals with related costs, and to enable “I get a lot of committee chairman says. Japanese subsidiaries companies to maintain exist- information from the “IFRS is also more wide- are keen to see further ing tax advantages. committee,” says one spread.” •

AUGUST 2017 • EUROBIZ JAPAN 35 INDUSTRY PERSPECTIVES

CONNECTING THE DOTS

Every point along the Nichirei Logistics Group is ex- JAPAN STRATEGY periencing an increasing handling Asian Tigers Mobility is delighted to supply-chain and relocation volume in the European region. assist you with your relocation. “Utilising our asset strength,” ex- “We have the ability to support all route is crucial. plains a spokesperson for the group, aspects of relocations,” Olea adds. “we offer ideas for distribution They take care of their clients’ TEXT BY DAVID UMEDA reform and high-quality operational needs, from international moves, management.” domestic moves and storage to Relocation experts are also im- orientation, housing and schooling Exceptional service, know-how, portant advisors to both individuals arrangements, visas and more. and technology in the logistics and and corporations. “How well a relocation is WAREHOUSE LINK relocation fields are critical for Japan’s managed will dictate how smooth The Nichirei Logistics Group invests globalised economy. As the Japanese and hassle-free the move will be,” in facilities in major metropolitan government finalises a free trade points out Andrew Olea, Deputy areas of Japan where logistics de- Managing Director at Asian Tigers mand is focused on cargo booking. agreement with the EU, it is counting Mobility. “Leaving the challenges “With logistics centres and deliv- on the logistics and relocation to the experts eases the moving ery hubs throughout Japan,” says sectors to support an increase in process, reduces unnecessary a spokesperson for the group, “we stress and avoidable mistakes. We provide a foundation to meet a wide the movement of goods and people are here to assist you to settle in range of logistics needs, including between countries and within Japan. smoothly.” the solid demand for storage and cold chain logistics.” When it comes to logistics and re- location services available in Japan for around-the-world requirements, you’re in good hands from pickup and storage to delivery.

36 EUROBIZ JAPAN • AUGUST 2017

Specialists in :

> International & domestic moves

> Relocation services EUROBIZ POLL

PUNISH DISTRACTED PEDESTRIANS?

At the end of last month, the city of Honolulu approved a law — referred to as the distracted pedestrian law — making it illegal for pedestrians to “cross a street or highway while viewing a mobile electronic device”. This includes smartphones, video games and laptops. A pedestrian caught by police crossing a street with their eyes glued to an electronic device will be issued a $15–$35 fine for a first-time offence, increasing to up to $99 for a third. The law comes into effect on 25 October. Do you think Japan should introduce a similar law that would punish pedestrians for crossing the street while looking at their phones?

It should be widened to include people getting on and off trains, too. Why? Leave things to Darwin’s natural selection.

No

Yes 17% 83%

To vote in the next Eurobiz Poll, find details in our Eurobiz Japan newsletter. Subscribe by visiting eurobiz.jp.

AUGUST 2017 • EUROBIZ JAPAN 39 Serviced Apartments Azabu Court www.azabucourt.com

Information

Size RangeRange of of Units Units : StandardStandard StudiosStudios (20–22m(20-22㎡)2 ),, Large Large Studios Studios (25m (25㎡)2) 11 BedroomBedroom SuitesSuites (33–52m(33-51㎡)2), , 2 2 Bedroom Bedroom Suite Suites (71m (72㎡)2)

BedroomsBedrooms: : 6060 Units Units

Parking Facilities Facilities: : 2 Spaces2 Spaces

Room Rates Rates : Daily JPY8,200 to JPY28,000 per night Weekly JPY7,050 to JPY23,800 per night Monthly JPY5,700 to JPY19,100 per night

Overview Like a resort within the City. The nearby Arisugawa Park makes you A Touch of Resort Within the City. The nearby Arisugawa Park makes forget you are in the big city. Ideally located in the Hiroo-Roppongi you forget you are in the big city. Ideally located in the Hiroo-Roppon- giresidential residential area area (4 (4 min. min. from from Hiroo Hiroo Sta.), Sta.), close close to to the the business business heart heart of ofTokyo, Tokyo, convenient convenient toto shopping shopping and and cafes, cafes, we we have have 60 units 60 unitsof ex - of tended-stayextended-stay studios studios and and suites suites at daily,at daily, weekly weekly and and monthly monthly rates. rates. English-speakingEnglish-speaking professionals professionals are are onon duty seven days days a a week, week, from from 8:00am8:00am to to 8:00pm 8:00pm on on weekdays weekdays and and 8:00am 9:00am to to6:00pm 1:00pm on & weekends 2:00pm to and6:00pm national on holidays. weekends and national holidays. Our services include concierge,Our services general include information, concierge, mail/courier, general information, free broadband mail/courier, internet freeaccess, broadband and 24-hour internet building access, security. and 24-hour Our nighttime building superintendent security. We have a nighttime superintendent who assists during the evenings. assists you during the evenings. We are members of the Fitness Club Hiroo for exercise and fitness We are members of the Fitness Club Hiroo for exercise and fitness studio programs, and tickets are for sale at the reception for JPY1,400/ one-time.studio programs, and tickets are for sale at the reception for JPY700/one-time. InquiriesInquiries PacificPacific RimRim Development,Development, Inc Tel:Tel: 03-3446-8610 03-3446-8610 Fax: Fax: 03-3442-3344 03-3442-3344 Email:Email: [email protected] [email protected] 4-5-394-5-39 Minami Minami Azabu, Azabu, Minato-ku, Minato-ku, Tokyo Tokyo 106-0047 106-0047 Serviced Apartments Azabu Court www.azabucourt.com ILLUMINATING VOICES

TEXT BY ANDREW HOWITT

Since its founding in 2010, ple in distress — such as those Peace Wanko Japan — wanko threatened by conflict, poverty Giver meaning “doggie” in Japanese and natural disasters — and — has worked to save as many providing humanitarian relief, of these abandoned dogs as rehabilitation and social assis- of new possible. Staff take them from tance. The project Peace Wanko public shelters before they are Japan got its start when Peace killed and place them in the Winds Japan began looking for dreams kennels and adoption centres dogs it could train to become that it operates in Hiroshima, search-and-rescue animals for Kanagawa and Tokyo, with its activities following natural The NGO turning some facilities on as much as disasters — and stumbled on rescued animals into 40,000m2 of land. Dogs of every the truth about how abandoned breed, age and size are wel- dogs were being dealt with rescuers comed and cared for — even the throughout Japan. aggressive ones. All animals are Yumenosuke, a mixed breed, During Japan’s pet boom, which began over also given health checks and, if was the first of these dogs to a decade ago, pets came to outnumber needed, medical treatment. To be rescued and trained. When children under the age of 15, and the nation date, the group has arranged for Junko Onishi, founder of Peace bought more than 400,000 dogs and cats the adoption of almost 650 of Wanko Japan, first saw the four- annually. Although this is now slowing the dogs it has rescued. month-old puppy at a public down, Japanese people still adore their pets; One of Peace Wanko Japan’s shelter, he was waiting in a cage last year alone, 136,000 dogs and cats were early goals was to rescue all the for his turn to be euthanised in purchased. Sadly, however, there is a dark dogs at public animal shel- a dream box. The dog trembled side to the story. A staggering number of ters in Hiroshima — once the when he was held. After being Information these animals are abandoned, then caught prefecture with the highest rescued, Yumenosuke was given and euthanised in public animal shelters kill-rate in the country — by his name (yume means “dream” every year: nearly 83,000 in 2015, according 2016, and effectively end the in Japanese) and trained to Size RangeRange of of Units Units : to Japan’s Ministry of the Environment. And euthanisation of dogs there. It become a search-and-rescue StandardStandard StudiosStudios (20–22m(20-22㎡)2 ),, Large Large Studios Studios (25m (25㎡)2) the inhumane death they face — by carbon successfully put dream boxes dog. Since, at first, he did not 2 2 11 BedroomBedroom SuitesSuites (33–52m(33-51㎡)), , 2 2 Bedroom Bedroom Suite Suites (71m (72㎡)) dioxide gassing in what is referred to as out of operation in Hiroshima trust his trainers, the task the “dream box” — can be protracted and in April of last year. Its next goal required months of patience Bedrooms : 6060 Units Units Bedrooms: excruciating. is to reduce the kill-rate of dogs and determination. in Japan to zero by 2020. In August 2014, Yumenosuke Parking Facilities Facilities: : 2 Spaces2 Spaces Peace Wanko Japan is part of went out on his first mission for Room Rates Rates : Peace Wanko the NGO Peace Winds Japan, an Peace Winds Japan, following organisation with a global pres- the landslides in Hiroshima, Daily JPY8,200 to JPY28,000 per night Japan … has ence dedicated to helping peo- where he looked for people who Weekly JPY7,050 to JPY23,800 per night Monthly JPY5,700 to JPY19,100 per night worked to save were unaccounted for. Since then, he has taken part in rescue Overview as many of these operations in the Philippines, Like a resort within the City. The nearby Arisugawa Park makes you Nepal, and Kyushu — the last A Touch of Resort Within the City. The nearby Arisugawa Park makes forget you are in the big city. Ideally located in the Hiroo-Roppongi you forget you are in the big city. Ideally located in the Hiroo-Roppon- abandoned dogs after the recent flooding in giresidential residential area area (4 (4 min. min. from from Hiroo Hiroo Sta.), Sta.), close close to to the the business business heart heart of Fukuoka. ofTokyo, Tokyo, convenient convenient toto shopping shopping and and cafes, cafes, we we have have 60 units 60 unitsof ex - of as possible Several other stray dogs have tended-stayextended-stay studios studios and and suites suites at daily,at daily, weekly weekly and and monthly monthly rates. rates. since been trained by Peace English-speakingEnglish-speaking professionals professionals are are onon duty seven days days a a week, week, from from Wanko Japan as search-and- 8:00am8:00am to to 8:00pm 8:00pm on on weekdays weekdays and and 8:00am 9:00am to to6:00pm 1:00pm on & weekends 2:00pm to rescue dogs. and6:00pm national on holidays. weekends and national holidays. Our services include Once abandoned by humans concierge,Our services general include information, concierge, mail/courier, general information, free broadband mail/courier, internet and left to die, these dogs have freeaccess, broadband and 24-hour internet building access, security. and 24-hour Our nighttime building superintendent security. We been rescued from the grip of have a nighttime superintendent who assists during the evenings. assists you during the evenings. a bad dream and Peace Wanko We are members of the Fitness Club Hiroo for exercise and fitness We are members of the Fitness Club Hiroo for exercise and fitness Japan has entrusted them with studio programs, and tickets are for sale at the reception for JPY1,400/ one-time.studio programs, and tickets are for sale at the reception for a new dream — of life, care and JPY700/one-time. helping people. • InquiriesInquiries PacificPacific RimRim Development,Development, Inc Tel:Tel: 03-3446-8610 03-3446-8610 Fax: Fax: 03-3442-3344 03-3442-3344 Email:Email: [email protected] [email protected] AUGUST 2017 • EUROBIZ JAPAN 41 4-5-394-5-39 Minami Minami Azabu, Azabu, Minato-ku, Minato-ku, Tokyo Tokyo 106-0047 106-0047

CELLAR NOTES

TEXT BY ALLISON BETTIN

The sommelier craze And our fascination with pomp and circumstance

In 2006, the world was The ostentation captivated by the BBC’s Planet the film portrays is so engaging that two Earth, the first high-definition years later, in 2015, nature documentary series that a sequel was made, gave us unparalleled insight entitled Somm: Into the Bottle. And that same into the wilds of the earth. year saw the release of a The male bird of paradise TV series called Uncorked, amazes with its erratic mating following the same premise. Around that dance; the great white shark time, internet searches terrifies as it launches from for the term “sommelier” the depths to catch a fleeing spiked. Rather intriguingly, Japan was the number one fur seal. The show was equally nation trending this newfound informative and bewildering keyword. — a peek into a world so far in Napa, and such — while the Ever since, the world has audience sits in stunned awe. been captivated with the removed from our daily lives. A sommelier is, essentially, a refined idea of the sommelier. wine steward. On a daily basis, The wine drinker marvels at Seven years later, the documentary sommeliers work at fine-din- their knowledge and diligence. Somm was released in theatres in the US, ing restaurants where they The wine professional envies and was soon after streaming on Netflix. specialise in all aspects of wine their mastery and their access The film follows the journey of four Master service, including creating to the industry’s best vintag- Sommelier candidates attempting to pass food and wine pairings. Master es. The winemaker scoffs at the outrageously rigorous sommelier exam Sommeliers — those select few their pedantic focus. But all — one of the hardest around, with a pass rate who pass the Master Sommelier of them must acknowledge of only 8%. The men blind-taste bottles from Diploma Examination — are that the sommelier’s quest any and every region of the earth, naming the rock stars of the wine world. for knowledge — born from vineyards and vintages simply from taste and Many work in the finest of their boundless curiosity and smell. Hundreds upon hundreds of flash- restaurants and resorts, and are persistence — is a vivid picture cards are brooded over — on the soil compo- often paid quite generously to of human excellence itself. sition of a particular vineyard in Burgundy, speak at wine events and judge We are innately intrigued the number of degree days on Mt. Veeder wine tastings. by the foreign. Like the snow leopard or the ibex, the Master Sommelier inhabits a world far different from our own, an environment replete with magnums and crystal decant- ers and white linen. And yet, what keeps us rivetted is the fact that these creatures, with their dreams and fears, are still so much like us. We can’t help but root for them. •

AUGUST 2017 • EUROBIZ JAPAN 43 DOWN TIME

TEXT BY ANDREW HOWITT

Hungry? Where do you like to go What’s something a lot of people for a bite? don’t know about you? There are great options within a I’m interested in airport design/ few minutes’ walk from my house, architecture. ranging from Hiroshimayaki to Italian. It’s one of the great things Cats or dogs? about living near Meguro station. Our two dogs and I think that is a silly question. What do you do to stay in shape? Summer or winter? I go to the gym and walk the dogs. Winter. I don’t like feeling damp!

Edward Name a favourite movie: What’s your ideal weekend? Any James Bond — good or bad. Heading off to the countryside with Cole Favourite musician: Either Emeli my partner and our dogs, some Sandé or the Pet Shop Boys. good food and an early night. We Company: Freshfields Bruckhaus Deringer Favourite album: Be Altitude: Re- also enjoy exploring places we Official title: Tokyo Managing Partner spect Yourself by The Staple Singers. don’t know well. Originally from: Melbourne, Australia Favourite TV show: I’m quite Length of time in Japan: enjoying American Playboy: Where do you go for a drink This time, about 9 years The Hugh Hefner Story at the after a busy week? moment. But I also have a My favourite Friday night spot weakness for home renovation is a yakitori place near home programmes. that has a great wine list. “I’m interested in Favourite book: Kazuo Ishig- uro’s Never Let Me Go. So much airport design/ impact with so few words. architecture.”

Hungry? Where do you like to go What’s something a lot of people for a bite? don’t know about you? CICADA in Omotesando. I’m a pretty decent cook.

What do you do to stay in shape? Cats or dogs? I ride Motocross. Both.

Name a favourite movie: Summer or winter? Groundhog Day. In Japan, definitely winter. Favourite band: Red Hot Chili Peppers. What’s your ideal weekend? Favourite album: Californication A walk with the family in the morn- Fernando by Red Hot Chili Peppers. ing, lunch or dinner with friends, Favourite TV show: Vikings. and a good movie and some good Iglesias Favourite book: One Hundred wine in the evening. Years of Solitude by Gabriel García Company: Clestra Hauserman Márquez. Where do you go for a drink after Official title: Representative Director a busy week? Originally from: Montevideo, Uruguay Two Rooms Grill & Bar. Length of time in Japan: 21 years!

“What do I do to stay in shape? I ride Motocross.” 44 EUROBIZ JAPAN • AUGUST 2017 ON THE GREEN

TEXT BY FRED VARCOE Golf for the world Japan attracting more golfers from overseas

having relatively few golf courses, it can be present and golf could and hard to book a tee time. As a result, the pop- should be part of that boom. But ularity of Japan as a tourist destination for bringing the tourists and the golf tourists has increased in recent years, golf courses together may be a With over 2,000 golf courses and Japan’s courses are finally beginning to little more difficult as different in the country, you’d think that realise that they can expand their customer cultures play by different rules. Japan would be a major golf base by attracting golfers from overseas. “With companies like ours we tourist destination, but it has In 2018, Mie Prefecture — which has make it as easy as possible for largely flown under the radar of been trying hard to attract golf tourists to our guests,” Niseko Golf direc- world travellers. Japan still has Japan — will host the Japan Golf Tourism tor Kent Prior says, but warns, the reputation of being the most Convention, the country’s first-ever “For people just coming on their expensive place in the world to convention aimed at inbound golf tourists. own, it can be a little daunting play golf, but the reality is, the Peter Walton, the chief executive officer of with the language barrier.” days of mega-high prices and the International Association of Golf Tour However, Prior points out limited access are long gone. Operators believes the time is right. that it’s easier in areas such “With golf’s second outing at the as Niseko, which has many Back before the bubble burst Olympics only three years away, it’s the international tourists and in the early 1990s, a day out perfect time for Japan to begin rolling out international staff on hand to at a top golf course could cost a national golf tourism strategy,” he said assist them. you anything up to ¥100,000, in announcing the convention. “Golf in According to Jet Golf General factoring in a round of golf, Japan is extraordinary. There’s an incred- Manager Junichi Hosono, the food, drink and transportation. ible range of golf and travel experiences, “Golden Route” between Tokyo And there are still some pricey and Kyoto is popular golf courses out there. The Fuji with Europeans and Course at the Kawana Hotel on the days of mega-high Americans, while the Izu Peninsula requires that Asians prefer the you stay at the hotel in order prices and limited resort experience of to play its spectacular seaside Prince Hotels and course. But you can play good access are long gone Mie Prefecture’s courses that are an hour or COCOPA RESORT so from Tokyo for as little as from Hokkaido in the north to Miyazaki CLUB. However, he cautions, ¥5,000, sometimes even includ- and Okinawa in the south. There are many “It is not easy to play golf in ing lunch. And that hasn’t gone courses right now in great touristic destina- Japan if you are not familiar unnoticed. tions that would like to have the opportunity with … Japanese golf’s cultural Ironically, the popularity to share their unique golf experience with background.” of golf and golf tourism have international visitors.” As a result, companies helped jack up prices through- But, Walton remarks, “Making this vision such as Niseko Golf and Golf out East Asia and Southeast a reality will not happen overnight and, of Shizuoka are making life easier Asia. You can pay “Japanese course, will require a lot of work, co-ordina- for tourists to play on Japan’s prices” in countries such as tion and preparation.” 2,000 courses — and, in doing Thailand, Vietnam, Korea and Getting tourists to Japan is no problem. so, they are making it easier for China. And with some countries Japan is undergoing a tourist boom at golf to survive in Japan. •

AUGUST 2017 • EUROBIZ JAPAN 45

THE AGENDA

COMPILED BY DAVID UMEDA

FINNISH CHAMBER OF COMMERCE IN IRELAND JAPAN CHAMBER OF AUG. JAPAN SEPT. COMMERCE 25 8th FCCJ Yakatabune 21 Joint Networking Event Cruise with BCCJ

time: 18:30–21;00 time: 19:00–21:00 venue: Embarkation at venue: Irish Ambassador’s Residence Funayado Miuraya fee: ¥5,500 (members), ¥8,000 fee: ¥9,000 (members), ¥12,000 (non-members) (non-members) contact: [email protected] contact: [email protected]

BELGIAN-LUXEMBOURG CHAMBER OF ITALIAN CHAMBER OF COMMERCE IN AUG. COMMERCE IN JAPAN SEPT. JAPAN 27 Summer BBQ party 21 End of Summer Party

time: 16:00–21:00 time: 19:00–21:00 venue: La Brasserie at l’Institut venue: BVLGARI, La Terrazza Lounge, Français Japon–Tokyo, Iidabashi Ginza Tower, 11F fee: ¥10,000 (members), ¥12,000 fee: ¥10,000 (members), ¥15,000 (non-members), half-price (children (non-members) up to 12 years old) contact: [email protected] contact: [email protected]

SPANISH CHAMBER OF COMMERCE IN BRITISH CHAMBER OF COMMERCE IN SEPT. JAPAN SEPT. JAPAN 5 After-Summer Party — 27 Luncheon: Alberto Pozo Sustainable Finance

time: 19:00–21:00 and Investment Trends venue: Balcony Restaurant & Bar, time: 12:00–14:00 Roppongi venue: ANA InterContinental Hotel

The Agenda fee*: ¥6,000 (members), ¥8,000 fee: ¥6,500 (members), (non-members) ¥8,500 (non-members) contact: [email protected] contact: [email protected] * Includes buffet & drinks.

SWISS CHAMBER OF COMMERCE AND BRITISH CHAMBER OF COMMERCE IN SEPT. INDUSTRY IN JAPAN SEPT. JAPAN 7 Luncheon: Prof. Dr. 28 BB&R wine tasting Ulrich G. Haas and time: 19:00–21:00 Dr. Stephan Netzle venue: Berry Bros. & Rudd tasting room time: 12:00–14:00 fee: To be confirmed venue: ANA InterContinental Tokyo contact: [email protected] fee: ¥6,500 (members), ¥7,000 (non-members) contact: [email protected]

AUSTRIAN & SWISS JOINT EVENT BELGIAN-LUXEMBOURG CHAMBER OF SEPT. SEPT. COMMERCE IN JAPAN ABC & SCCIJ After- Shaping Europe for 8 Summer Cocktails 2017 29 Tomorrow. Together. time: 19:00–21:30 (doors open: 18:30) When challenges venue: Residence of the Austrian Commercial Counsellor become opportunities

fee: ¥6,500 (members), ¥7,500 time: 8:30–10:00 (breakfast) (non-members) venue: The Peninsula Tokyo, Sky Room contact: Respective chambers of fee: ¥5,000 (members), commerce ¥6,500 (non-members) contact: [email protected]

AUGUST 2017 • EUROBIZ JAPAN 47 WORK PLACE

TEXT BY ANDREW HOWITT PHOTO BY KAGEAKI SMITH

This year, Dormeuil SAS is celebrating its 175th anniversary, and 105 years in Japan. The company was established in 1842 in Paris, importing fabrics from England to France. “All of Dormeuil’s wool fabrics come from Britain, but have a touch of French elegance,” says Yukari Kagami, representative director of Dormeuil Japon. “Our motto is ‘Evolution and innovation’.” Since 1912, Dormeuil has been present in the Japan market and has grown together with — and influenced — the history of men’s suits in Japan. •

Yukari Kagami Representative Director, Dormeuil Japon

48 EUROBIZ JAPAN • AUGUST 2017 At the intersection of design and technology, Paradigm delivers world- class digital creative Design solutions Strategising, exploring, imagining, crafting and refining innovative products and services

Technology Have an exciting project coming up? Developing, testing, Let’s talk. Call 03-5719-4660 deploying, scaling and or mail [email protected] hosting outstanding websites and web applications

paradigm.co.jp EUROBIZ JAPANEUROBIZ AUGUST 2017 THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE IN JAPAN IN JAPAN IN (EU) COMMERCE OF CHAMBER COUNCIL EUROPEAN / THE BUSINESS EUROPEAN THE OF MAGAZINE THE

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