Otsuka Pharmaceutical and H. Lundbeck Tackle

2013 Masao Torii Boehringer Ingelheim Japan 09

THE MAGAZINE OF THE EUROPEAN BUSINESS COUNCIL IN JAPAN / THE EUROPEAN (EU) CHAMBER OF COMMERCE INTHE (EU) CHAMBER JAPAN EUROPEAN OF COMMERCE / THE BUSINESS EUROPEAN THE MAGAZINE OF COUNCIL IN JAPAN

Let’s do global – global do Let’s the barcode in Japan in barcode the internationalisation the for Reaching panic button Tracking technology challenges challenges technology Tracking Radio-frequency Radio-frequency ID – may cross the border and why and border the cross may Q&A with Prof Ayumi Takenaka on who who on Takenaka Ayumi with Prof Q&A

Japan’s immigration imperative – imperative immigration Japan’s Innovation Innovation – alliance frontier final medicine’s tackle Otsuka Pharmaceutical and H. Lundbeck H. Lundbeck and Otsuka Pharmaceutical

independent Proudly Proudly

ISSUE FORTY FIVE // SEPTEMBER 2013 C

CMY

Voted Europe’s Best Airline 2013 at the Skytrax Passenger Choice Awards. www.turkishairlines.com C

CMY

Voted Europe’s Best Airline 2013 at the Skytrax Passenger Choice Awards. www.turkishairlines.com East-West Connection A global hub

nce again, Turkish Airlines Similarly, during that period, yearly that mission – and taking tourists to has garnered top honours passenger numbers have risen from Turkey – is often more important than Oat the 2013 Skytrax World 10.4 million in 2002 to 38.5 million in making money.” Airline Awards, being named “Best 2012. And the airline predicts a further Airline in Europe” for three years rise to 46 million in 2013. Business Class Catering are three choices for the main dishes, Comfort Class Catering as well as throughout the fl ight, a full running. The Istanbul-based global Kotil, a former university academic The pleasure is in the details. On also drawn from the best of Turkish Also on extended range fl ights, a range of specially selected alcoholic carrier also walked away with “Best turned airline executive, has a extended range fl ights, a hot towel and World Cuisine. A wide variety of special and unique service programme and non-alcoholic drinks is offered. Business Class Catering”, which relationship with his staff resembling is provided as soon as passengers dessert selections includes ice cream, – unlike many other airlines’ standard includes its unique “Flying Chef” that of a professor with his students. are seated, and offered before and fruit and cheese. Turkish coffee, economy meal in economy-plus Genuine Hub service for Business Class passengers “Communication is not ‘I say it, you after meals during the fl ight. Vintage cappuccino, espresso and fi ltered sections – offers a specially designed Turkish Airlines fl ies to 237 destina- on long fl ights. Over a 10-month do it’. It’s ‘let’s do it together’,” he Champagne and fresh orange juice are coffee are complemented by hot upgraded menu. Passengers are tions in 104 countries, making the period, Skytrax surveyed more than explains. There is a very noticeable served as a Welcome Drink. Menus chocolate and a variety of herbal and welcomed with aperitif drinks or other Istanbul-based global carrier number 100 nationalities from more than 160 number of young people in senior are personalised for each passenger fruit teas. beverages, nuts and Turkish mezze. one in terms of countries served. countries in determining the results. positions working at the airline’s and have been specially designed for On overnight fl ights, fresh fruit The restaurant-quality service includes Gunay says the airline saw “Very nice” is a turn of phrase that headquarters in Istanbul, in part a Business Class. Drinks and meals are juices and smoothies are served after fresh ingredients such as salad and opportunities – fi rstly from the Temel Kotil, president and CEO, is refl ection of the age demographics of provided according to the passengers’ waking up, and are eye openers before green vegetables, with a choice of hot location of the country. “We could fond of using and which he employs to the Turkish population, but also Kotil’s choices, while the service components breakfast, which consists of fresh meals created from Turkish and World see clearly that Turkey could be a real describe the successes of his company. trust in their ability. adapt to the time of day, and sensibly fruit, cold cuts, cheeses, fresh yoghurt cuisine. The meal is topped off with hub, geographically. We always knew Some striking statistics state just how “Surprisingly few people know differ between daylight and night and muesli, as well as three hot meal dessert, fruit and cheese selections. from the beginning the importance nicely. about the reality that one of our fl ights. choices. Before landing, a second meal of the location,” he says. “On the one Financial development has seen main missions is to represent the Passengers choose among Turkish Throughout the fl ight, there is service is offered with hot or cold hand, we are in the middle of fi re; it’s operating revenues rise from $1.96 Republic of Turkey, together with our mezze (selection of small dishes) and available a wide variety of alcoholic and options, and passengers may also geographically challenging. But, even billion in 2002 to $8.12 billion in embassies,” says Halil Gunay, Japan hors d’oeuvres prepared according to non-alcoholic drinks and beverages, choose lighter selections. During the as we are taught in school, the location 2013, says the airline, which forecasts general manager. “People often come Turkish and World Cuisine recipes, including wines from exclusive Turkish entire journey, a full range of snacks is very strategic – linking Asia, Africa the 2013 fi gure to rise to $9.75 billion. to us for information on Turkey, and followed by a soup service. There and World cellars. is available. Accompanying the meals, and Europe. It is in the centre of everything.” Kotil uses a mantra – “We are building a bridge [from East to West] using Istanbul as a hub” – to explain how the city’s position between Europe and Asia, as well as the Middle East and Africa, allows passengers to transfer in less time and at a lower cost than is possible elsewhere. East-West Connection A global hub

Cover photograph Irwin Wong

2 September 2013 2438 4648

COLUMNS

7 From the Editor 21 Chamber Voice into the global market. By Jennifer Zylinski-Spargo. Piotr R Suszycki, Chairman, Polish Chamber 12 Q&A of Commerce and Industry in Japan. 42 Upcoming Events David C Hulme talks to Prof Ayumi By Jennifer Zylinski-Spargo. Takenaka about Japan’s immigration Events for the European business conundrum. 26 Investing in Japan community in Japan. Boehringer Ingelheim plays a unique role in 43 EBC committee schedule 15 Executive Notes the Japanese pharmaceuticals market. Andrew Staples argues for diversity and By David C Hulme. 44 EBC Personality inclusion as a strategy to boost the bottom line. 28 In Committee John Mader straddles the borders between design, construction and real estate 16 Event Report Medical diagnostics offers a solution to finance. By David C Hulme. rising healthcare costs. By Geoff Botting. Japan is invited to join the global smoke- Lens Flair free worksite challenge. By Jennifer 37 Shop Window 46 Zylinski-Spargo. Benjamin Parks visits master sword-smith Japanese online fashion sales are climbing Yoshindo Yoshihara. 17 Green Biz fast. By Roy Larke. Pioneer distributors of organic food stay 38 Culture Shock 48 Work Place true to their origins. By Alena Eckelmann. Nicolas Soergel brings Japanese culture Nespresso Japan wakes up coffee lovers across the country.

The Mission of the European Business Council To promote an impediment-free environment for European business in Japan.

September 2013 3 The World

® Moves With Us Publisher Vickie Paradise Green European Business Council in Japan (EBC) [email protected] The European (EU) Chamber of Commerce in Japan The EBC is the trade policy arm of the seventeen Editor-in-chief David C Hulme European national chambers of commerce and [email protected] business associations in Japan Senior Editor David Umeda Contact UniGroup for Chairman Duco Delgorge Creative Director Paddy O’Connor Senior Vice-Chairman Michel Théoval a Free Moving Quote! Designer/Illustrator Iree Torii Vice-Chairman Danny Risberg Treasurer Erik Ullner Advertising Sales Executive Director Alison Murray Hélène Jacquet Akagawa, Tapo J Mandal Policy Director Bjorn Kongstad [email protected] Communications & PR Victoria Fang

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One World, One Connection® Contributors published Nippon Pop, the first book in Steve McClure English on Japanese pop music. In 2009 he discovers the launched McClureMusic.com – an e-mail unigrouprelocation.com advantages of newsletter covering the Japanese and Asian tracking by radio music industries. signal, page 24 “When I was asked to write a story about Relocating can be stressful. Having to reorganize your radio-frequency ID in Japan, I had to go on whole life is overwhelming at best, and more so if you a rather steep learning curve. Despite many Steve is a Tokyo-based freelance journal- years of writing and editing Japan-related have added concerns of how your loved ones will be ist and broadcaster. A native of Vancouver, business stories, RFID wasn’t something I able to settle into a new environment, a new home, Canada, he has lived in Japan since was familiar with. I discovered that RFID has 1985. Until 2008 McClure was Billboard had a low profile in Japan and is only now a new workplace. magazine’s Asia Bureau Chief. In 1998 he starting to come into its own.”

UniGroup Relocation is here to alleviate your worries. Alena underwent business training in Tokyo With our worldwide network of experienced on the Executive Training Programme, then began to write about business, culture, Alena Eckelmann professionals, we can offer a seamless door-to-door travel and people in Japan. A researcher finds out what it takes to at heart and by profession, she enjoys on- service for your precious household goods, your internationalise the-ground investigation and observation. Japan, page 8 cherished pets, and specialized items such as pianos She contributes articles to magazines and and vehicles, both domestically and internationally. websites in Japan and in Europe. “Despite prolonged governmental efforts, Simply contact UniGroup Relocation Japan and let us practical English-language skills seem a much more difficult will the acquisition of a rarity amongst Japan’s professionals. At least global mindset be when there is no standard help make the start of your new life smooth sailing! TOEIC scores are measurable, although they and no matrix to measure success? The do not necessarily reflect real ability. How challenge is on!”

writing mainly about business, the economy Part of the UniGroup family of companies Geoff Botting and travel. gets the lowdown “The standard approach to therapy, that on “personalised of developing a single drug that everyone medicine”, page 28 takes for a single ailment, may well give way to ‘personalised medicine’. This involves If you have any queries, or would like a quote for your therapies tailored to the condition of the forthcoming move, simply contact UniGroup Relocation: individual patient. The diagnostics industry TEL: (+81)-3-5777-5591 Geoff, a former newspaper and wire service is playing an important role in this exciting reporter and copy editor, has been living in new paradigm, as members of the EBC E-MAIL: [email protected] Japan for the past quarter of a century. He Medical Diagnostics Committee explained is now a freelance journalist and translator, to me.” Welcome to Japan 3 ways of Living 7 lives in Tokyo

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Humans have long been a migra- research in medicine’s “final frontier” of educators, consultants and coaches tory species. These days, currents of central nervous system drugs. about what Japan must do to better humanity still flow between a multi- Our Investing in Japan segment, equip its smartest youngsters for pri- tude of regions, impelled by war, strife, also, features a standout pharmaceu- mary roles in international business. opportunity and ambition. There are ticals specialist: the Japanese arm Internationalisation is even coming always departures and arrivals, and of Germany’s Boehringer Ingelheim to rural areas and traditional Japanese arrivals involve two issues. How well (Proudly independent, page 26). craft businesses. Nicolas Soergel can the migrants adapt? How well will Boehringer Ingelheim Japan chairman (Culture shock, page 38) appeared in the locals adapt to them? Prof Ayumi Masao Torii reveals that science is far exactly the same segment of the July Takenaka, in our Q&A this month from the only driver of competitive 2010 issue of EURObiZ Japan as the (Japan’s immigration imperative, page advantage for his company. He is a Umeboshi Man. His model for revitalis- 12), provides fascinating insight into the strong advocate for developing talented ing and globalising one small, tradi- migrations implied by Japan’s relent- young Japanese into global-minded, tional Japanese craft business, it turns less demographic squeeze and evolving multicultural executives who can out, applies just as well to dozens, pos- economy. contribute directly and decisively to sibly hundreds, of other venerable craft Two pharmaceuticals companies that the leadership group at Boehringer businesses. He now aims to earn the have shown how to adapt to ferociously Ingelheim’s worldwide headquarters. larger title of Mr Japanese Culture. competitive global markets as well Torii blames Japan’s education system as starkly different local cultures are for failing to produce enough graduates Japan’s Otsuka Pharmaceuticals and with the communications skills and David C Hulme Denmark’s H. Lundbeck. Julian Littler mental flexibility for top-flight interna- Editor-in-Chief (Innovation alliance, page 18) describes tional careers. [email protected] how and why these two have joined Alena Eckelmann (Let’s do global, forces to ensure the continuation of page 8) talks to management experts,

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Reaching for the internationalisation panic button Text ALENA ECKELMANN

8 September 2013 FOCUS

GIVE PROFESSIONALS WHO VOLUNTEER TO WORK OVERSEAS AN OPPORTUNITY BY PLACING THEM IN A GLOBAL ENVIRONMENT Tomoya Nakamura

Internationalisation is not a new topic on Japan’s agenda, but championing the idea of giving overseas students who gradu- it is gaining in urgency. ate from Kyoto University the right to permanent residence in “A much deeper level of engagement is needed now, which Japan. requires people with a global mindset,” argues Andrew “The aim of all this is to develop people from a young age Staples, director of the Economist Corporate Network (ECN) in to have a global mindset and who are familiar with, and com- Japan. “This is what Japanese people are waking up to in edu- fortable in, a diverse international environment,” says Staples. cation, in business and management – and even in society.” Currently, many Japanese companies have separate Japanese companies and industries have been active glob- domestic and global career paths, which limits options for ally for decades. recruits right from the start. To give employees who are on “Japan is fully plugged into the global economy, as we see the domestic career path a taste of the global environment, with the impact of financial shocks and the development of companies should consider putting them through interna- complex supply chains,” says Staples. “The real challenge is a tional MBA programmes in Japan. domestic one.” “It is important to give professionals who volunteer to work The Japan Exchange and Teaching (JET) programme was set overseas an opportunity by placing them in a global environ- up in 1987 to help teach English-language skills, a prereq- ment, to give them exposure to global business,” says Tomoya uisite in the international arena, at Japan’s schools and to Nakamura, dean of Globis University’s Graduate School of coordinate international relations at local government offices. Management. The International Baccalaureate (IB) is also being promoted Globis founder and president, Yoshito Hori, himself a gradu- to globalise aspects of Japanese education. Currently 26 IB ate of Harvard Business School, has been championing a World Schools offer IB programmes in Japan. global mindset for years. Increasing the number of foreign students and workers in “Our students’ global mindset is monitored by closely Japan is also part of the domestic process to internationalise. looking at their understanding of regions and nations, their In 2008, the Ministry of Education, Culture, Sports, Science appreciation of diversity and their communication sensitiv- and Technology launched the Global 30 initiative in an ity,” says Nakamura. attempt to encourage Japan’s universities to become more There are executive training solutions other than an MBA globally active by, for example, offering full degree courses in that prepare young executives well for dealing successfully English and accepting greater numbers of foreign students. with global business situations. One is the Japan Market The government has also introduced a points based immi- Expansion Competition (JMEC), a training programme that gration system with the aim of making Japan an attractive begins in November, with announcement of winners in June. Reaching for the internationalisation and easy place for highly skilled foreigners to live and work, Participants first take part in a six-Saturday lecture series although the take-up rate has been embarrassingly low to about doing business in Japan and writing a business plan for date. At the local level, the mayor of Kyoto this year suggested the Japanese market. In January, they are placed into teams, panic button offering permanent residence status to overseas students with each preparing a business plan for an assigned inter- who graduate from Kyoto University. national project client, which may be a large corporation or With the introduction of the points system in immigration, small to medium-sized enterprise. someone with a Master’s degree, at a certain salary level and “Think of JMEC as a crash course. It combines a real-world with some years of work experience does not have a prob- business situation with a multicultural conflict-prone envi- lem getting a work visa. The Mayor of Kyoto, Keiji Yamada, is ronment,” states JMEC vice-president Pekka Laitinen.

September 2013 9 FOCUS

IF JAPANESE COMPANIES ARE TO BE COMPETITIVE IN THE FUTURE, THEY NEED TO ACQUIRE A GLOBAL MINDSET Trond Varlid

JMEC aims to provide a stimulating environment whereby domestic mindset and do not want to take the risk of chang- both participants and project clients are very diverse. In the ing. In most Japanese companies, it is still impossible for 2012/13 business programme, for example, the 65 partici- people in their twenties or thirties – though they may have a pants came from 20 countries and the 11 project clients global outlook – to become a manager or director. represented five countries. “Companies should change the current practice of promo- “You acquire a global mindset by doing and learning from tion by age and lifetime employment, and restructure the globally minded people around you. It needs empathy to system little-by-little, starting from the younger generation cross the cultural gap and self-confidence to get your ideas or in a small division, and then work the global thinking across to people with different backgrounds. The JMEC net- into the whole company,” says Yohei Shibasaki, founder and work helps participants get through the moments of doubt CEO of Fourth Valley Concierge, a global consulting firm in that are inevitable in situations of change,” says Laitinen. recruitment. Greg Story, president of Dale Carnegie Training Japan, Although Japanese decision-makers in many businesses would like to see people develop beyond requiring that every- understand the need for change, they do not know how thing be the way it is done in their hometowns. to go about it. This is where Shibasaki sees opportunities “Insularity of geography, language, education and culture for global HR consulting and for seminars aimed at senior work against this perception change, despite the fact we are management. in a totally interconnected world,” he explains. In the Dale “We promote and raise awareness of a ‘different system’ Carnegie corporate training practice, Story has seen time and and become a bridge between the domestic and a global again that people can change, and be innovative and flexible. mindset,” he says. He says this means helping people expand their comfort Trond Varlid, president at EMC Quest, which provides zones. coaching programmes in careers and communications, sees “Doing new things in new ways is challenging because of a lack of global communication skills and behaviour among the change required, but you cannot embrace change if you Japanese professionals. cannot move out of your comfort zone – where the same “Without such a [global] mindset, it is difficult to keep on things are done in the same way and produce the same top of the global trends influencing their industries,” he says. result,” Story says. “This is ‘nurture versus nature’. Give people EMC Quest organises regular events in its “World Class the tools and they can break free of restraints. However, it Speaking System”, at which Japanese and foreign business must come from within – or it will never come.” professionals have discussions with thought leaders from a In order for Japanese companies to be truly global, a change range of industries. in structure from a human resource point is necessary. Even “If Japanese companies are to be competitive in the future, at those firms operating internationally, many managers and they need to acquire a global mindset and adapt to interna- decision-makers in their late fifties or sixties are caught in a tional best practices and trends,” says Varlid.

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David C Hulme talks with Prof Ayumi Takenaka Photo DAVID C HULME

Ayumi Takenaka is an associate professor of sociology at Bryn Mawr College, a private women’s liberal arts college in Pennsylvania. Recently, as a visiting instructor at the brand-new Nakano campus of Meiji University, she taught courses on immigration and multiculturalism. With research interests centred on the movement of people, ideas, goods and food, her fields of expertise include race and ethnicity, social inequality and the global competition for talent.

Does Japan have a coherent immigra- particular skills, and their immigration to be concerned. The future of Japan tion policy? policies target specific occupations, depends on it. Increasingly, countries No. But very few countries have a coher- according to the nation’s labour market. are competing for the same categories ent immigration policy. There are always It is a global trend. Competition has of people. internal struggles and disagreements, been going on for decades. Some coun- and it is very hard to pinpoint whose tries are more successful than others. It What are the criteria for success? views are actually reflected in policy. is hard to attract the migrants that are First of all, the meaning of success In Japan’s case, there is a set of poli- needed. Japan has not done well. varies from one individual to another, cies, but they are not formulated from Immigration is a good thing. No and it changes over time as well. Also, a clear consensus. Worldwide, immi- doubt about it. Nations and societies what success means probably differs for gration has always been politicised. In benefit. Of course there are costs, and policy makers, employers and so forth. Japan, the debates involve business sometimes conflicts, but the positives I have interviewed immigrants of organisations, the community and non- outweigh the negatives. various nationalities. I have learned government organisations, as well as I believe Japan benefits from diver- that their aspirations change over time. the various ministries. sity, not only in economic terms but Initially, they may have wanted to make The underlying issue to which policy- also culturally, including ethnic cuisine. money. Ten years later, the top priority makers refer is Japan’s skewed demo- Unfortunately, Japan is still in its own may be the children’s education. graphics and the size of the working- bubble to some extent. Peruvians and Brazilians I have age population relative to the number spoken to here say they are just happy of elderly people. Why are you concerned about how to be living a peaceful, stable life, even immigrants are faring in Japan? though they may still be labourers. Is Japan competitive when it comes to How immigrants fare relates to how They used to be aggressive about attracting the right kind of talent? long they stay in the country, because moving up the economic ladder, but Japan has not fared well. There are they may leave if they do poorly – as now they are content just to be com- shortages of people in some occupa- well as to how many and what kinds of fortable and live like their Japanese tions, such as IT and high-tech spe- people come in the first place. Unless neighbours. They have assimilated and cialists, teachers and nurses. Also, immigrants fare well here, Japan will become a little more conformist. many universities are suffering from a not attract and retain the kinds of shortage of students. They need more immigrants they say they want. In order In the bigger picture, is there a simple students just to survive. to succeed, Japan should provide immi- relationship between geographical Many countries are moving in the grants with opportunities. mobility and social mobility? direction of importing people with I believe Japan is losing out. We need That’s a big question. Yes, there is. Most

12 September 2013 Q&A

INCREASINGLY, COUNTRIES ARE COMPETING FOR THE SAME CATEGORIES OF PEOPLE

people cross national borders in the for 12 months or more. Other than that, excludes those who go overseas. hope that they will achieve some kind definitions vary according to where Dual citizenship may not be a realistic of upward social mobility. Some achieve each government wants to draw the option for Japan at this point, so it it and some don’t. When people move line. Though it is hard to define who is is important for companies to open to another country, especially from a an immigrant, the general trend is that up more towards people of diverse poorer country to a richer one, they immigration is increasing. backgrounds. Unfortunately, Japanese typically experience downward mobil- companies still prefer to hire fresh ity initially – because they don’t speak Is Japan really trying to attract people of university graduates, who go through a the language, or their credentials are a global mindset? uniform process. It is hard for outsiders not recognised by the host society. Later, That is part of what they say they want, to come in. they gradually move up the socioeco- but it is difficult with the traditional Many young people are reluctant to nomic ladder. Japanese companies. go abroad because of that. They feel Increasingly, I see that geographic It depends on the sense of urgency. they would be handicapped if they mobility may be key to explaining social There is a lot of talk, but not enough wanted to come back. inequality, in the sense that there are action. They talk about a possible crisis, people who are able to move more but I am not sure they have a real sense Can European employers be agents of easily. People with more resources, of it. change? better education and more information European companies could play a cen- are more mobile. Geographic mobility How important is it for Japanese to see tral role, because it is hard for Japanese is becoming more important for many Japan from the outside? companies to implement changes they of us to achieve upward mobility in the Very important. But many people who say they want to make. European com- global economy – to such an extent leave Japan find it difficult to get back panies are more capable of setting an that many countries are trying to entice into the system, to be accepted or to get example regarding diversity of person- skilled workers and are restricting the a job. Many sever ties altogether. Japan nel – and hiring and promoting women entry of unskilled workers. should encourage them to maintain ties. – and of bringing Japanese employees Japan implemented a points system, Unfortunately, the whole system would into this setting. emulating such countries as Australia, have to change for that to happen. External pressure sometimes works New Zealand, Canada and the UK, so quite effectively in bringing about as to effectively target certain kinds of How would Japan tap those resources? changes in Japan. immigrant. Many countries do this by allowing Personally, I would like to know more dual citizenship. India, for example, has about how things work inside European In general, is the volume of immigration policies that make it easier for Indian companies and how they handle diver- increasing? migrants and their descendants to sity issues. Perhaps those that have Yes, but not fast. About 3% of the world invest in India, on the expectation that successfully managed diversity, and population is migrants – including they will maintain ties and contribute to promoted it, should speak up more and people fleeing conflict. the economy. let the Japanese public know they suc- The standard definition of an immi- Japan does not have a very large ceeded and what they gained from it. grant is a person who resides in a overseas population, but it is still a Japan should open up to more foreign country other than their country of birth waste of resources to have a system that companies as well.

September 2013 13 Industry Expert | Wealth Management

Live Long & Prosper

I’m sure you all have ideas about your assets and asset classes that produce an retirement – the things you will do, the inflation-beating return year-on-year. places you want to see, the people you The return on cash is zero – irrespective will go and visit. However, a question I’m of all major currencies – and, as most often asked is, “I need some ideas about would agree, fixed income or bonds are my pension; what should I be doing?” expensive. Therefore, equities provide the best value for a long-term return on your Records suggest that a male retiring in capital. It is a fact that there has never 1980 at age 65 had a life expectancy of been a 30-year period since records 10 more years, or to age 75. In 2013, have been kept when the global dividend the average 65 year old can expect to stream from companies had not risen. live until age 85, a 100% increase over Between 1935-2011, the annualised the previous generation. For a married inflation rate was circa 3% in the United couple aged 65 today, who are in good States. In the same time period, the health, there is a 25% chance that one dividend return from the S&P Index was of them will reach 99. Given this greater 5.1%, not including capital appreciation. longevity – coupled with historically low It is also worth noting that the S&P 500 interest rates and increased stock market Index stood at 110 on 14 June 1982. And volatility – we all have to save more. Yet, today? As of 1 August 2013, it stands at “As investors, we have we also can expect to retire later with 1685.73! to look to the future with a reduced standard of living unless we confidence and awareness” adopt different investment practices Given recent events, it is perfectly Trevor Webster ACSI, and take our financial planning more normal to doubt the financial system – Area Manager, de Vere Group seriously. to have mistrust and a certain degree of antipathy. However, we have seen Assuming we will all have extended lives, this happen before, and the world has investors will end up poor in their later there is a very real risk that many will recovered from previous economic and life and left wondering where it all went run out of money before they run out financial crises – as it will again. As wrong unless they take their financial of life. While risk means different things investors, we have to look to the future planning matters seriously now. to different people, what we cannot with confidence and awareness, and try avoid – irrespective of age and nature of and overcome the day-to-day volatility employment – is the threat of longevity driven by events, the central bankers and and of inflation. In short, there will be the politicians. It is better to accept the decreasing spending power in the money risk of volatility associated with equity- in your wallet. based investment when compared to the risk of longevity and inflationary risk In 1982, a pint of beer in the UK cost brought about by the weapons of mass Azabu East Building, 4th Floor, approximately 62 pence; today it would destruction such as cash and long-dated 1-25-5 Higashi Azabu, cost £3.20 – a rise of over 400% in fixed-income investments. Minato-ku, 30 years! This analogy also applies to Tokyo 106-0044 property, where a three-bedroom, semi- So the good news is we are living longer detached house in London that sold and we have to plan accordingly. The for £28,000 in 1982 would amount to bad news is that we are living longer, but Tel: +81 (0)3-3568-2745 £375,000 today! Like it or not, your £, no one can predict the future with any Mobile: +81 (0)90-3403-1780 $, ¥, € or any other currency will lose degree of certainty. Nonetheless, from Email: [email protected] its value unless you invest in suitable our experience, we predict that a lot of www.devere-group.com EXECUTIVE NOTES Industry Expert | Wealth Management Diversity

Live Long & Prosper and inclusion Not just a matter of political correctness

I’m sure you all have ideas about your assets and asset classes that produce an In a globalised economy, it’s important Making diversity work requires commit- retirement – the things you will do, the inflation-beating return year-on-year. IF HARNESSED that we have some common under- ment, leadership and much hard work. places you want to see, the people you The return on cash is zero – irrespective standing of the language we use to A workforce comprising individuals CORRECTLY, DIVERSITY will go and visit. However, a question I’m of all major currencies – and, as most manage people and run businesses. of different nationalities and ages, with often asked is, “I need some ideas about would agree, fixed income or bonds are However, the results of a recent event a variety of language skills, educational CAN BE A my pension; what should I be doing?” expensive. Therefore, equities provide the that I moderated for the Economist backgrounds and experiences can, for best value for a long-term return on your Corporate Network (ECN) suggests this example, offer far more perspectives on TREMENDOUS WELL OF Records suggest that a male retiring in capital. It is a fact that there has never is not always the case, but that some a given problem or challenge than can INSPIRATION AND 1980 at age 65 had a life expectancy of been a 30-year period since records simple steps can remedy the matter. a homogenous workforce. Managed 10 more years, or to age 75. In 2013, have been kept when the global dividend One of the joys of my role is that I poorly, however, the same team can CREATIVE THINKING the average 65 year old can expect to stream from companies had not risen. am able to reach out to people at the collapse through a lack of mutual live until age 85, a 100% increase over Between 1935-2011, the annualised top of their game in terms of leader- understanding and acceptance. That as much as they could – or would like the previous generation. For a married inflation rate was circa 3% in the United ship, management, academia or public would be a failure to create an inclusive to. What manager would want an couple aged 65 today, who are in good States. In the same time period, the service and invite them to share their environment. employee group like that? health, there is a 25% chance that one dividend return from the S&P Index was knowledge as keynote speakers or Yet these are not simply politically For both Japanese and non-Japanese panelists. I recently put together such correct “touchy feely” terms that look executives, the “value” added by this of them will reach 99. Given this greater 5.1%, not including capital appreciation. a panel around the theme of diversity nice when plastered all over corporate kind of event is that motivated and longevity – coupled with historically low It is also worth noting that the S&P 500 and inclusion (D&I) management. The websites. Indeed, our panelists rejected engaged individuals can come together interest rates and increased stock market Index stood at 110 on 14 June 1982. And event was part of the Global Executive the notion of D&I as a bolt-on to train a neutral space to better grasp the volatility – we all have to save more. Yet, today? As of 1 August 2013, it stands at “As investors, we have Programme run for ECN members. This ditional HR policies. Instead, they sug- meaning and understanding of key we also can expect to retire later with 1685.73! to look to the future with programme seeks to support firms in gested that D&I is better approached as concepts relevant to business and a reduced standard of living unless we confidence and awareness” their efforts to develop global talent. As a business strategy designed to perme- management today. There is no ulterior adopt different investment practices Given recent events, it is perfectly Trevor Webster ACSI, such, the audience of 60 or so consisted ate through an entire organisation so motive or attempt to promote the and take our financial planning more normal to doubt the financial system – Area Manager, de Vere Group mainly of mid- to senior-level execu- as to impact positively on the bottom “right” perspective on an issue. Rather, seriously. to have mistrust and a certain degree tives (both Japanese and non-Japanese), line. Moreover, a D&I strategy can – and concepts such as diversity and inclu- of antipathy. However, we have seen predominately from foreign multina- should be – measureable and related to sion, innovation, sustainability and so Assuming we will all have extended lives, this happen before, and the world has investors will end up poor in their later tionals. The panel included senior D&I a set of key performance indicators. on can be explored with the help of there is a very real risk that many will recovered from previous economic and life and left wondering where it all went practitioners at major multinationals as How so? Well, it is not difficult to highly experienced specialists, while run out of money before they run out financial crises – as it will again. As wrong unless they take their financial well as a highly successful consultant – agree that employees who feel valued participants are invited to reflect on of life. While risk means different things investors, we have to look to the future planning matters seriously now. all positively bursting with a passion for and respected are more likely to be the session with reference to their own to different people, what we cannot with confidence and awareness, and try their roles. motivated and engaged than those firms and roles. In this way, individuals can come to their own conclusions avoid – irrespective of age and nature of and overcome the day-to-day volatility Diversity for many firms and manag- who are not. As a result, they are ers in Japan, we learned, has until quite likely to remain in post longer, have through enquiry and discussion. At the employment – is the threat of longevity driven by events, the central bankers and recently been understood mainly in higher levels of job satisfaction, and very least, 60 or so executives got up for and of inflation. In short, there will be the politicians. It is better to accept the terms of trying to address the gender contribute more to the organisation. work the following morning with some decreasing spending power in the money risk of volatility associated with equity- imbalance and dealing with sexual har- All this is measureable. In engagement common understanding of what D&I in your wallet. based investment when compared to the assment. Inclusion has been viewed in surveys, employees are asked to agree means and does not mean. risk of longevity and inflationary risk terms of a legal obligation to hire people or disagree with statements around Neuroscientists have now largely In 1982, a pint of beer in the UK cost brought about by the weapons of mass Azabu East Building, 4th Floor, with disabilities. traditional D&I concerns such as gender, refuted the claim that we utilise only approximately 62 pence; today it would destruction such as cash and long-dated 1-25-5 Higashi Azabu, Diversity refers to gender, of course – age and nationality. They may, for a fraction of our brain power. It would cost £3.20 – a rise of over 400% in fixed-income investments. Minato-ku, but also to age, nationality, experience, instance, be asked to agree or disagree seem to be a sound strategy also to be 30 years! This analogy also applies to education, religion and so on. Inclusion with a statement that “this department able to refute the claim that we only Tokyo 106-0044 property, where a three-bedroom, semi- So the good news is we are living longer positively recognises diversity and seeks values all employees regardless of use a fraction of the “word power” of detached house in London that sold and we have to plan accordingly. The to create an environment in which gender”. If most male employees concepts like diversity and inclusion. for £28,000 in 1982 would amount to bad news is that we are living longer, but Tel: +81 (0)3-3568-2745 individuals from diverse backgrounds agree, but most female employees £375,000 today! Like it or not, your £, no one can predict the future with any Mobile: +81 (0)90-3403-1780 feel respected and valued. If harnessed disagree, one may be sure that an ANDREW STAPLES $, ¥, € or any other currency will lose degree of certainty. Nonetheless, from Email: [email protected] correctly, diversity can be a tremendous inclusive environment has not been Director of the Economist its value unless you invest in suitable our experience, we predict that a lot of www.devere-group.com well of inspiration and creative think- achieved. This, in turn, suggests that Corporate Network, Japan ing. Getting it wrong, however, can some employees are not as engaged, be expensive, destructive and messy. not as motivated, and not contributing

September 2013 15 EVENT REPORT

Global smoke-free worksite challenge: What your organisation can do

Tokyo American Club, 21 August 2013 Text and photo JENNIFER ZYLINSKI-SPARGO

overnments, medi- researchers in how to help smokers cal institutions and quit, and serves as chair of Global private companies Bridges: Healthcare Alliance for all over the world are Tobacco Dependence Treatment, which working to improve has trained thousands of healthcare the health and providers in more than 30 countries. productivityG of employees by protect- He explained the process by which ing them from the harmful effects of the Mayo Clinic became one of the second-hand smoke. The Global Smoke- first smoke-free medical centres in the Free Worksite Challenge, launched at United States over 20 years ago. He the Clinton Global Initiative of 2011, was in Japan to speak at the 10th Asia encourages employers worldwide to Pacific Conference on Tobacco or Health make their worksites smoke-free and (APACT), an event held the previous day to help nicotine addicts to stop using at Makuhari Messe in Chiba prefecture. tobacco. “Participation in the challenge is Richard D Hurt Taking part in a panel discussion growing steadily,” he said as a panelist to explain how businesses can get at the Tokyo American Club (TAC). of the MHLW and Japan’s National involved were three representatives of An estimated 6,000 people die each Cancer Research Center both expressed Leading Partners in the Challenge. They year in Japan due to second-hand interest in joining Leading Partners in were Richard D Hurt, MD, founder and smoke – which increases the risk of the Challenge, according to panellists. director of the Mayo Clinic Nicotine cancer, heart disease and stroke. Hurt The question remains as to whether Dependence Center; Ross Rowbury, said the figure almost certainly under- the revised law will require employers president and CEO of Edelman Japan; estimates the true toll by a significant to merely “make efforts” or actually and Bruce Ellsworth, director of govern- amount, since the fatality figure for achieve a goal, and whether the law ment affairs for Johnson & Johnson in the US (with a little over three-times will give employees of bars and restau- Japan. Japan’s population) is 50,000 per year. rants, for example, the right to demand Global companies that aim to make He used the experience of Olmstead smoke-free working environments. their worksites completely tobacco- County, Minnesota, home of the Mayo “People just don’t realise the impact free include Edelman and Johnson Clinic, to illustrate the benefit to a com- of passive smoking,” says Ellsworth of & Johnson. Other Challenge leaders munity of going smoke-free. Johnson & Johnson, relating a recent include the American Cancer Society; “The implementation of smoke-free conversation with an employee of GBC Health (a New York-based coalition ordinances was associated with a 33% Hotel New Otani Tokyo who was com- of more than 230 companies working drop in heart attacks,” Hurt said. pletely unaware of the problem. While to improve the health of their work- Fellow panelist Rowbury of Edelman APACT conference participants were forces and communities around the said, “We seriously believe in assist- guests, the hotel went smoke-free for world); the Campaign for Tobacco-Free ing our employees to become more several days, but reverted as soon as Kids; and the US Department of Health healthy. Helping them quit smoking they were gone. and Human Services. Besides sharing is good for them, and we believe it is TAC, a private membership club, best practices on implementing smoke- good for business.” has accommodated those keen to risk free policies, they are also committed Japan’s Ministry of Health, Labour inhaling carcinogenic particulates by to supporting government efforts to and Welfare (MHLW) plans to revise the installing a Smoking Cabin, at which extend 100% smoke-free policies to all Industrial Health & Safety Law in 2014 Hurt scoffed. indoor worksites, public transportation to require employers to take steps to “Smoke particles are so energised and indoor public spaces. protect employees from the harmful that some of them will always escape,” Hurt is one of the world’s leading effects of second-hand smoke. Officials he said.

16 September 2013 GREEN BIZ Certified organic Pioneers stay true to their origins Text ALENA ECKELMANN

hile home delivery of fresh organic produce has recently become a battlefield for large Japanese organisations, the small, family-run niche suppliers have been around for years. Saitama prefecture- based Tengu Natural Foods and Gifu Wprefecture-based Warabe Mura have been delivering organic dry foods for 25 and 20 years, respectively. Tengu Natural Foods is a nationwide mail order service that was created by American Jack Bayles and his Taiwanese wife Fay Chen, who is CFO. They set up Alishan as the importer and wholesaler.

At first, in the mid-1980s, the Bayleses had begun importing ALISHAN

organic and natural foods for themselves and friends. Volume Alishan Cafe grew steadily throughout the 1990s, and the business now serves customers nationwide. There are approximately 400 and macrobiotic foods. There are about 700 products in their items, 75% directly imported by Alishan, in the catalogue. English-language catalogue and over 1,000 in the Japanese- “We have a loyal [customer] following of regulars who language catalogue. appreciate our flexibility and willingness to accommodate “Mail order offers more variety to customers in certain loca- individual requests, such as specific requirements for packag- tions in Japan where there are no large shops. Also, some of ing and delivery,” says Briton Heather Takano, a long-term our customers are vegan, vegetarian, or have allergies. They staffer at Alishan/Tengu. know exactly what they will get if they buy from us,” says Hope, adding that, for him, a passion for food precedes the business aspect. “It is the thrill of being able to offer healthy IT IS THE THRILL OF BEING ABLE food and the joy of knowing who produced it and who eats it,” TO OFFER HEALTHY FOOD AND THE he says. Customers who want certified organic products rather than JOY OF KNOWING WHO just organic will find the relevant information clearly spelled PRODUCED IT out in the Tengu Natural Foods and Warabe Mura catalogues. Martin Hope “Some imported products are sold as ‘certified in the country of origin’ rather than ‘JAS certified organic’ – as the makers cannot be bothered with the separate certification needs of Though the initial focus was on retail, the main business the Japanese market,” says Bayles, explaining that the word now is wholesale. Alishan-branded products are sold at retail “organic” must not appear on certain categories of products outlets such as National Azabu, Nisshin, Gaia, Natural House from North America that are not approved as such under and Meidi-ya, as well as at online importer Food Buyers’ Club. Japan Agricultural Standards (JAS). Organic shops in Japan carrying imports invariably have “Our numerous EU-sourced organic products have it much Alishan products, which are also available via multiple online easier in meeting Japanese standards, not due to their stand- services, including Rakuten. The retail side of the business can ards being stricter, but rather because of government-to- be volatile, however. government agreements,” Bayles adds. “If a TV personality says that something is good for you, we Despite the growth of Oisix, Radish Boya and similarly large get a surge in demand from retail customers, but it only lasts home delivery operations, both Warabe Mura and Alishan/ for a short time. Recent examples are dried apples to counter Tengu wish to avoid the more aggressive strategy that this radiation and broccoli sprouts to fight cancer,” says Takano. type of expansion would entail. Warabe Mura has been offering organic foods to the The further impact of the worldwide web remains to be general public through mail order since 1993. Turned into a seen as packaged organic foods from abroad can be ordered nationwide business by Yuko Sakurai with help from manager online, then imported into Japan relatively cheaply using Martin Hope, Warabe Mura mainly sells organic whole foods shopping sites like iherb.com.

September 2013 17 Innovation alliance Otsuka Pharmaceutical and H. Lundbeck tackle medicine’s final frontier

Text JULIAN LITTLER

s the pharmaceutical The World Health Organization has the other steps in whenever they have industry cuts back on pronounced that CNS disorders are an edge that brings an advantage to research and develop- one of the leading causes of disabil- the team. Of Lundbeck’s 6,000 or so ment for central nervous ity worldwide. Yet, notes Klaus Abel, staff worldwide, upwards of 700 are system (CNS) drugs, Lundbeck vice-president for the Otsuka working on projects related to Otsuka two leaders in the field Pharmaceutical alliance, dispropor- Pharmaceutical, he says. Ahave formed an alliance to fill the void, tionately more research is being done “Basically, it is not so important who where they see a multi-billion-dollar worldwide on cancer than CNS because is working on it. All decision-making and opportunity. The alliance, between of difficulties associated with brain priority-setting is done on a 50-50 part- Tokyo-based Otsuka Pharmaceutical and pharmacology. nership basis,” says Abel. For now, the H. Lundbeck, headquartered in Valby, Nobuyuki Kurahashi, Otsuka focus on the financial aspect is less than Denmark. Pharmaceutical’s vice-president for on the details of collaborating closely Otsuka is known in Japan for its range global CNS operations, emphasises the regarding every facet of joint research of holistic-health nutraceuticals, includ- long-term nature of the agreement. His and marketing effort, he adds. ing soy-based health foods, as well as company reached out to Lundbeck due The two companies communicate the increasingly successful pharmaceu- to respect for the Danish company’s regularly, having weekly face-to-face ticals business that it began in 1970. CNS work and the lengthy relationship meetings for some projects. Other col- Otsuka Pharmaceutical’s strengths are between the two firms prior to formalis- laborations require monthly meetings, tied to the United States and Asian ing the agreement. The two companies along with quarterly executive meet- markets. Lundbeck, with a history of had been working together for around ings. Teams with products closest to over 60 years building pharmaceutical nine years on various individual CNS market-readiness currently meet in New expertise in Europe, is famous as one of projects before the idea of any alliance, York City, Copenhagen and London. the first to market anti-depressants and according to Abel. “It’s all about the patients and coming anti-psychotics. Kurahashi was one of three Otsuka up with innovations, because no one An agreement committing the two Pharmaceutical researchers awarded else is producing innovations in this companies to a long-term collaborative the highly prestigious Imperial area,” says Abel in reference to the prior- effort was signed in November 2011. Invention Prize by the Japanese Institute ities of the alliance. Its size and intended They will share market knowledge and of Invention and Innovation for synthe- length are unusual. “I think this is the research experience to drive develop- sising the compound Aripirazole. This largest within one disease area, as the ment and commercialisation of new compound is sold in the EU and the US collaboration will be 25 to 30 years at products for 25-30 years. under the brand name Abilify for the least,” he adds. The move bucks a trend of unimagi- treatment of schizophrenia and other Such protracted cooperation would native acquisitions of foreign compa- disorders. It was among the 10 best- commonly trigger merger talks in this nies by Japanese companies flush with selling drugs worldwide in 2012. industry. But Otsuka Pharmaceutical cash as the yen soared relative to other According to Abel, the two companies and Lundbeck believe in being differ- major currencies, following the global manage to smoothly complement each ent and building strengths from those economic crisis. other’s strengths and expertise. One or differences.

18 September 2013 FOCUS

IF WE DON’T HAVE DIFFERENCES IN OPINION, THEN THERE IS NO INNOVATION Nobuyuki Kurahashi OTSUKA PHARMACEUTICALS OTSUKA

IT’S ALL ABOUT THE PATIENTS AND COMING UP WITH INNOVATIONS, BECAUSE NO ONE ELSE IS PRODUCING INNOVATIONS IN THIS AREA Klaus Abel H. LUNDBECK

“Major companies usually embark on lead to more long-term business. The Lundbeck Foundation, which funds mergers and acquisitions, but that is collaboration also means that Lundbeck research in the medical and biologi- more a vertical integration of two com- may have greater impact in the US cal sciences, with a focus on Danish panies,” says Kurahashi. “Otsuka believes market. research. Otsuka Pharmaceuticals is that difference in opinion is a driver for Otsuka Pharmaceutical will pay a wholly owned subsidiary of Otsuka success. If we don’t have differences in Lundbeck around $150 million for Holdings. These ownership structures opinion, then there is no innovation.” development and commercialisation of afford the alliance partners a high level The first commercial breakthrough Lu AE58054, a new Alzheimer’s disease of assurance when pursuing such costly for the alliance came in March, with drug. There is the potential for up to research, even if returns cannot be approval from the US Federal Drug $675 million more upon reaching regula- expected in the immediate future. Authority for distribution of Abilify tory and sales milestones. While these Kurahashi cites as an example the Maintena. The new monthly-injection R&D figures are large, the returns could story of an earlier expensive failure of an form of Otsuka Pharmaceutical’s best- be enormous. An estimated 36 million Abilify prototype. Otsuka Holdings, rather selling Abilify is currently distributed people in the world suffer from demen- than simply scrapping the project, sub- in the US by Bristol-Myers Squibb in tia today. Most of them are yet to be sidised the R&D using funds from other tablet form. The injection dosage is diagnosed, and dementia is a symptom sectors. Likewise, Abel notes, control by an important development brought of Alzheimer’s disease. the Lundbeck Foundation means that H. about by both companies using Otsuka “There is a huge potential, no doubt- Lundbeck can wait 10 years or more, if Pharmaceutical’s compound. Forgetting ing that,” says Casper Rose, a professor necessary, to realise returns on a billion or avoiding medication is a serious prob- of law and business at Copenhagen dollar’s worth of research. lem for many sufferers of schizophrenia. Business School’s Center for Corporate “What others think of as risk is The new form of medication is designed Governance. “But it is also very risky, and our vision. If no one does anything to increase the likelihood of reliable it needs a lot of money. That’s really what thought to be a risk, then there will be regular dosage. this is about.” Rose says that, overall, the no future development,” says Otsuka The alliance is based on two Otsuka alliance between the two companies is Pharmaceutical president and CEO Pharmaceutical compounds for short- positive, but he wants more open com- Dr Taro Iwamoto. “Our biggest risk as term commercial development and three munication with investors about the a company is having researchers and Lundbeck compounds. From Otsuka goals and processes. employees who stop looking towards the Pharmaceutical’s perspective, this will Lundbeck is 70% owned by the future.”

September 2013 19 TAR RO Y

I N L T A E N R N A T I O

TokyoTOKYO HirooHIROO rROTARYoTary ClubCLUB welcomes business business and and professional menprofessional and women men to and Tokyo’s women intercultural Rotary society

Fellowship inin CommunityCommunity and and International ServiceService

Meetings: ThursdayThursdays 12:30-1:30 12:30-1:30 at at Roppongi HillsHills ClubClub

Information: 03-6406-600103-5789-2592 CHAMBER VOICE

Piotr R Suszycki Chairman, Polish Chamber of Commerce and Industry in Japan www.pccij.or.jp Text JENNIFER ZYLINSKI-SPARGO

Upon arriving in Japan in July 2012, the relations between Poland and Japan ambassador of the Republic of Poland to regarding business, culture, tourism and PCCIJ Japan, Cyryl Kozaczewski, hit the ground other areas. running, to the delight of the Polish “Dom Polski is a private business, Chamber of Commerce and Industry in combining a commodity shop and a Japan (PCCIJ). small café. People can go there for a “The new ambassador is very dynamic, cup of coffee, learn something about and he has already travelled all around Poland, have the opportunity to buy Japan,” says PCCIJ chairman Piotr R Polish goods or, in the evening, have a Suszycki. Polish beer,” Suszycki explains, noting The Polish embassy and the PCCIJ strong interest from local media in both work closely together, with each ambas- prefectures. There are many sador being the chamber’s honorary A programme aimed at building rela- chairman. The cooperation is crucial tions on the local level began in 2010, he great places in Japan to one of the chamber’s key objectives, adds. “Besides the major cities, there are which is to boost the image of Poland in many great places in Japan and Poland and Poland that Japan, where knowledge and awareness that could be conducting exchanges, but could be conducting of Poland is limited. they don’t know about each other. So we “Fortunately, the image of Poland in are encouraging match-ups.” exchanges Japan is neutral,” says Suszycki. “We Laying the foundation for another are able to make a good impression on relationship began in June, with an and hopes to arrange a mission to Japanese visitors to Poland. They are sur- official visit by ambassador Kozaczewski Poland next year that will include some prised to discover this new and interest- to historic Ise city. 20 Japanese business people, local politi- ing place to go.” “We started very good communica- cians and some media. Ties between the two nations are get- tions with the mayor of Ise, the Ise Because there are just a few Polish ting stronger, he adds, and were given Chamber of Commerce and Ise Shrine,” companies in Japan, most PCCIJ mem- a significant boost in June by the visit says Suszycki. “We plan to add other bers represent Japanese companies of Japanese prime minister Shinzo Abe Japanese cities in the future, but for now doing business with Poland. to Warsaw for a meeting with regional we want to build on relationships we “We help by matching them with leaders. have already started.” companies in Poland,” says Suszycki. “He was there for almost two days, As he speaks, preparations are under “Developing new business is our most and his wife spent almost four days trav- way for the 27-29 September Polish important function.” elling around the country,” says Suszycki, Festival at Roppongi Hills, organised by There is plenty of activity as the Cool who was deeply involved in preparations the Trade and Investment Promotion Japan programme brings promotion of for the visit. Section of the embassy, and supported food and culture to Warsaw and other Further contributing to awareness by the PCCIJ and the Polish National Polish cities. Suszycki notes that there of Poland in Japan was the opening Tourist Office in Tokyo. This is the third are now over 300 sushi bars and other last September of a Dom Polski (Polish such event, and it is still growing, says Japanese restaurants in Warsaw alone. House) in Toyama prefecture, followed Suszycki. Reciprocally, the first Polish restau- by another in Okinawa in March. The The chamber continues to hold regu- rant, named Polska, opened in the purpose of both sites is to deepen lar seminars and business luncheons, Nihombashi district last September.

September 2013 21 LOGISTICS SPECIAL Cross-border Solutions

Text DAVID UMEDA

he major issues that need to to be far more successful in their host coun- The human part of the service remains be addressed in the logis- try,” adds Muldowney. “It helps put compa- behind the technology shield at a.hartrodt. tics sector as FTAs are put nies on a stable footing earlier, dramatically “Nonetheless, a better IT-integrated into effect “revolve around reducing the stresses of an international logistics service will help to deliver needed eliminating preferential treat- assignment and the risk that culture shock information as the service progresses,” says ment for Japan Post versus can pose to its success.” Ghiselli. Operators focus on the execution Tinternational express operators,” says Mark of the service itself. “The result is reduced Slade, president and representative director Advances disruptions and lowering the possibility of of DHL Global Forwarding Japan. “We are UniGroup Relocation is able to provide mistakes that would otherwise arise due to seeking efficiencies through the FTA process short-term and long-term storage services. a fragmented operational flow.” on Japanese customs clearance rules and “Our facilities are fully air-conditioned and The UniGroup Relocation network system procedures – districting and standardisa- climate-controlled, enabling a longer stor- enables electronic uploads and downloads tion of reporting requirements.” age period and larger cargo volume,” says of necessary paperwork, and timely sharing FTAs represent excellent business oppor- Aki Nitta, general manager and executive of all documents between their worldwide tunities to expand into new markets. “From officer. partners. Their timely cargo tracking system a relocation perspective, companies face a a.hartrodt (Japan) sees portable tech- on international shipping lines and airlines wide range of often-unexpected challenges nology creating an environment where keep customers updated. Keeping costs when entering a new location,” explains information is basically immediate, readily down keeps their most-valued customers Dennis Muldowney, general manager, available via smartphone or portable happy. Japan, Crown Relocations. “Having on- devices. “Such a technological revolution is the-ground support can help set realistic actually forcing the logistics service provid- Around the corner expectations, and streamline the process ers to shift from a pull condition to a push For 2014, Japan is likely to see a return of for registering a business and applying for condition, whereby they send information foreign expertise, with the weakening yen, the appropriate work visas.” directly to the customer, thereby improving and Abenomics fuelling confidence in the DHL is working with the relevant ministry communication while providing a leaner economy, says Muldowney. “We are well- through the EBC to see more common service,” explains Guido Ghiselli, managing positioned to support and partner with standards globally and clearer guid- director. existing and new clients, and assist them ance from the Japanese government on UniGroup Relocation offers personal with a wide scope of relocation services to security enhancements like known-shipper assistance with visa application, orienta- ensure they hit the ground running upon regulations. tion tour, housing service and concierge-like arrival.” “Without proper consulting and guid- services to make relocations “borderless”. According to Slade, “No logistics company ance, relocating to new markets can be Their local living cost-analysis service helps has DHL’s scope of coverage or depth of time-consuming and costly for companies corporate customers plan an employee’s expertise in the marketplace. Our value- just starting out,” says Muldowney. After assignment smoothly. added service portfolio is developing very registration and filing for proper work visas, Asian Tigers Mobility focuses on commu- nicely in Japan, as we move up the value there is finding a new office location, home, nication. “Getting things clearly under- chain and away from the traditional com- schools for children. “If managed correctly stood from both sides is a huge element moditised approach to logistics.” and effectively, these have a positive return of success on an international relocation,” More customers are looking to DHL for on investment for the company,” explains Andrew Olea, director of sales & an intermediate speed and cost between Crown Relocations offers intercultural marketing, Japan, and country manager. airfreight and sea freight, especially on training. “There’s a big difference between They guide the process based on having the trade lanes between Japan, China and going to work in another country and relocated thousands of families. “This is Korea. 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Radio-frequency ID

Tracking technology challenges the barcode in Japan

Text STEVE MCCLURE

ll of us have trouble keeping track of stuff. electronically and can be read by sensor devices. RFID tags have Where are my keys? Why isn’t my wallet on the a big advantage over barcode-recognition systems because dining room table where I left it? Who moved they can be embedded in the object that’s being tracked. The my cheese and, more important, where is it? tags are increasingly used to keep track of physical goods, Factories, warehouses, retailers and just including library books, train tickets, baggage, retail goods, fac- about every other type of business face the tory and warehouse inventory – and even people. Asame problem. Keeping track of products and inventory can The global RFID market is estimated to be worth nearly make the difference between success and failure. $7.5 billion. Seiichiro Toda, a spokesperson for major Japanese This is where radio-frequency identification (RFID) technol- electronics company NEC, estimates the size of Japan’s RFID ogy comes in. RFID tags contain information that is stored hardware market at ¥20 billion, and that for the software side

24 September 2013 WE EXPECT MORE FOREIGN COMPANIES WILL ENTER AREAS WHERE THEY HAVE A FOCUS COMPETITIVE EDGE IN QUALITY, COST AND DELIVERY Ikuhei Kimura

appreciate how RFID can help keep tabs on leased equipment. While it is still early days for RFID in the medical field, some Japanese hospitals have introduced the technology to help

ACE KOGYO keep track of surgical equipment. Helping to spread the word about application of RFID in Japan is a shop in central Tokyo’s Yaesu district. It is operated by of the market at ¥60 billion (about $800 million). Ace Kogyo, a company based in Chiba, east of the capital city, Industry sources point out that barcodes are still more that markets packing materials, RFID tags and related products widely used in Japan than in other markets, but it is not likely online. Ace Kogyo opened the RFID/NFC Real Touch Shop in to stay that way. January 2012 to take advantage of what the company believes “We think optical barcodes will gradually be replaced with is a growing potential for RFID and NFC technology among RFID technology,” says Ikuhei Kimura of Kyoto-based Murata both industries and consumers. Manufacturing, a producer of electronic devices made from A spokesperson for the shop – which had no customers fine ceramics. “RFID technology is expected to create a new when a reporter visited recently – says RFID faces an uphill market for automatic recognition systems, which optical bar- struggle for acceptance in Japan because barcodes are so codes haven’t realised. We are devoting our energy to this field.” widely used. With applications such as RFID tags attached to Industry sources also say that while the technology of high- clothes to prevent theft, the technology has already saturated frequency band NFC (near field communication) has become the apparel industry, he adds. fairly widespread in Japan, it’s still early days for band technolo- “Unlike in the US, the market for RFID products in Japan gies of low frequency and ultrahigh frequency (UHF). Recent is very limited so far,” he notes, adding that mobile carrier easing of Japan’s regulations concerning the use of UHF in RFID Softbank recently changed its signal frequency, making it quite systems, in line with global standards, will likely spur growth. compatible with RFID technology. “So RFID technology may For European high-tech firms, that means more opportunities grow in the cellphone market.” to get in on the action. Also helping to boost RFID’s profile in Japan is a store in “European companies have already been active in the Tokyo’s trendy Daikanyama district operated by Tsutaya, a well- Japanese RFID market, having a certain level of market share known nationwide retail chain specialising in sales and rental and business presence,” says Kimura. “We expect more foreign of CDs, DVDs, books and other culture-oriented wares. Tsutaya companies to enter areas where they have a competitive edge introduced an RFID system using an inventory tracking Denshi- in quality, cost and delivery.” Tag (electronic tag) in November 2011. It is believed to be the Murata Manufacturing’s flagship RFID product is Magicstrap, biggest such system at any retail outlet in Japan. which adds RFID functions to printed circuit boards, enabling “At first, RFID is expected to be used for in-house purposes,” life-cycle traceability of electronic devices and components. says NEC’s Toda. “Companies will gradually begin to introduce “Magicstrap is also very useful when ultra micro RFID tags RFID as the number of successful examples increases and are required,” adds Kimura, noting that their clients include positive effects on return-on-investment become evident. But Cisco Systems, Jabil Circuit, Schneider Electric, Systronic and RFID use for supply chain management is unlikely to increase Beta Layout. rapidly.” While RFID has so far stayed mainly in the background to Japan’s rapidly greying society presents another opportunity barcodes, one exception is the Osaifu Keitai (wallet mobile for RFID technology. For example, Asahi Kasei, a Japanese phone) launched in 2004 by Japan’s number-one mobile carrier, technology conglomerate, markets an RFID device using Sony’s NTT DoCoMo. RFID enabled users to pay for everyday items FeliCa IC card that allows doctors and paramedics to instantly such as subway and train tickets by passing their handsets over access the owner’s medical data, such as blood type and pads at a station’s electronic ticket gates. Other companies allergies. followed with similar applications. A spokesperson for the Tokyo-based Distribution Systems More and more Japanese apparel companies are using Research Institute says that consumer use of RFID tags RFID in their supply chain management systems. For won’t take off until some visionary company takes the lead example, RFID tracks consignments of clothing, as well in popularising the technology. But the trade body is bullish as the returnable boxes in which they are shipped. Many about RFID’s overall potential. “We think the Japanese market local Japanese governments are using RFID at libraries, is expanding, and will become an attractive market for Western and equipment management companies are beginning to companies.”

September 2013 25 Proudly independent Boehringer Ingelheim

Text DAVID C HULME Photo IRWIN WONG

26 September 2013 INVESTING IN JAPAN

Nippon Boehringer gradually resolving a severe shortage of backgrounds to read between the lines. Ingelheim (NBI), pharmacists, BI sees a big future for the Silence is not rewarded,” says Torii. “So the prescription OTC market here. we try to give employees exposure to medicine arm “We would like to establish SSP as a different cultures while they are young.” of Boehringer switch professional in Japan,” says Torii. Ingelheim (BI) “SSP has well-established brands. We Japan, is climbing will reinforce their brand and market WE KNOW THE steadily up the position.” FACES OF OUR ranks of pharmaceuticals in Japan, from With its research facility in Kobe being 16thN in 2011 to 15th last year, and 14th part of the BI worldwide R&D effort, BI SHAREHOLDERS. WE CAN as of July this year. Japan has a strong pipeline of com- CONCENTRATE ON THE “NBI’s sales have doubled over the pounds for the treatment of type 2 dia- past seven years, to more than ¥200 betes, cancer, hepatitis C and respiratory ESSENTIALS billion,” says BI Japan chairman and diseases. NBI plans to enter the oncol- representative director Masao Torii. “And ogy field in 2014, with lung cancer being Masao Torii sales have grown faster than the market the first targeted treatment area. There in every month since July 2010.” is much more to come after that. These facts illustrate why NBI is such “During the next five years we expect For a research-driven company such an important part of global prescription to bring 15 new launches onto the as BI, persistence is also important, operations for family-owned BI, which market,” says Torii. “Innovation is the key. and Torii sees BI’s status as the only was founded in 1885 in Ingelheim am Fortunately, Japan has a pricing system non-listed company among the world’s Rhein, Germany, and now has 140 affili- that is designed to reward innovation. top 20 pharmaceuticals as a distinct ates worldwide, 20 production sites in In other markets, pricing is based on competitive advantage. 13 countries, and more than 46,000 affordability.” “We know the faces of our share- employees. Sales in Japan are double the With innovation looming large in holders. We can concentrate on the figure for Germany and account for 14% the BI culture, talent development has essentials, without watching the stock of BI’s global sales (even though Japan’s become a high priority for Torii, a native price every day and being obsessed with total pharmaceuticals market is only of Kanagawa prefecture who earned an quarterly profit,” he says. This means 10% of the world market). MBA in International Business at Sophia that BI can invest heavily in R&D and The relative importance of NBI is no University and completed the Advanced achieve steady organic growth, mainly accident, as it was established in 1961, Management Programme at Harvard from the work of its own laboratories at even before there was a BI subsidiary in Business School. He has served the sites in Germany, Austria, the US, Italy the United States. pharmaceuticals industry since joining and Japan. “It is typical for a foreign company to Nippon Roche in 1971, before coming to Globally, BI dedicates over 20% of its start in Japan with a Japanese partner. NBI in 2010 and assuming his current sales of pharmaceuticals to R&D. That Ours was Tanabe Seiyaku. The partner- position at the beginning of 2011. amounted to €280 million in 2012, up ship meant we had an established sales “The shareholders and management 11% over 2011. network, and it helped with product of BI have high expectations of Japanese Torii puts the huge investments in registration,” Torii explains. “Later, we personnel. They ask me what I am doing context by explaining that a new com- developed our own distribution system to develop Japanese talent to eventually pound may take more than 10 years to and sales force, and began operating come and sit on the board in Germany,” develop, and that an average of only one independently about 20 years ago.” he says. in 30,000 molecules investigated ever BI began working closely with, and For employees who want to work becomes a viable product. investing in, local over-the-counter abroad, BI Japan runs an intensive “That means a company might (OTC) drug producer SSP some 15 years programme that culminates in the research 30,000 molecules and still not ago, and made SSP a wholly owned employee making a presentation in get a product,” he says. subsidiary in 2010. The acquisition not English about what the company should Torii notes that BI’s values are sum- only gave BI access to SSP’s formulation change. Language is only a small part of marised in four words: trust, respect, technologies and highly successful prod- the challenge, however. empathy, and passion. ucts such as the painkiller Eve, but also “The key is diversity. Japan is not a “All these address how we interact enabled SSP to develop OTC products diverse society,” Torii emphasises. He with people. It’s not about commitment from BI pharmaceutical ingredients. blames the Japanese education system or performance. If people keep these Two outstanding recent successes for pumping information into young values, we will have good results,” he in Japan are anti-allergic Alesion and heads, rather than stimulating inde- says, reiterating that BI is proudly and western herbal medicine Antistax. The pendent thought. One result is that determinedly independent. “BI has been former is a switch OTC (a prescription many Japanese are too reserved to family-owned for over a century, and drug that becomes an OTC drug), while thrive in international business. will remain family-owned for the next the latter is a direct OTC. With Japan “We can’t expect people of diverse century.”

September 2013 27 Medical Diagnostics// A solution to rising health care costs Text GEOFF BOTTING

he medical diagnostics recently with the approval of two com- industry has been busy Medical Diagnostics panion diagnostics products and their working on a revolutionary corresponding drugs, a first in Japan. approach that can dra- Key advocacy issues “We got the diagnostics approved matically improve medi- before the target drugs, which was cal treatments and lower k Companion Diagnostics – The really good for us,” the committee head healthcare costs over the long term. It’s MHLW should give consideration to says. “The reimbursement prices were T the importance of timing when issu- called companion diagnostics. also good.” In short, this new paradigm exam- ing approval for these products and The move came after an extensive their corresponding drugs. ines a patient’s biomarkers, including and coordinated industry effort. In ones carrying genetic information, to k Product approval – Both the EU and October 2011, the EBC Diagnostics determine a specific drug therapy for Japan should accept the approval of Committee, the Japan Association of products in each other’s markets as the patient’s particular biological condi- Clinical Reagents Industries (JACRI) equivalent to approval in their own tion, in contrast to a one-size-fits-all markets. and the American Medical Devices and approach. Conversely, the testing can Diagnostics Manufacturers’ Association be designed to preselect patients for a k Reimbursement – The reimburse- (AMDD) jointly submitted a proposal ment price for in vitro diagnostics particular drug. to the MHLW, as well as to the Cabinet should reflect clinical value, taking “Companion diagnostics holds the Office and the Pharmaceuticals and into consideration quality, speed and biggest potential for our industry,” says overall contribution to patient care. Medical Devices Agency. The paper Makoto Tamura, chairman of the EBC proposed what kind of “infrastructure” Medical Diagnostics Committee. issues for the healthcare system in Japan would need to link the diagnos- For Japan – which is desperately Japan.” tics equipment and reagents with the looking for solutions to the problem of However, the testing itself and the corresponding applicable drugs. rising healthcare costs tied to its rapidly companion drugs tend to be consider- A key issue was the timing of the ageing population – a tailored approach ably more expensive than those used in approval. Diagnostics systems should holds much promise. conventional approaches, which does be approved before the corresponding “If you can select the most applicable not appear to sit well with cost contain- drugs, as setting up and testing the patients for the drug, then maybe the ment within the healthcare system – a equipment and training operators takes side effects can be avoided, and there policy of the Ministry of Health, Labour considerable time. would be a savings in terms of cost,” and Welfare (MHLW). “The drugs, however, can be delivered explains Tamura. “These are critical Still, a breakthrough was recorded to patients quite quickly,” says Tamura.

28 September 2013 IN COMMITTEE

The industry’s fear was that the leading to the prevention of full-blown MHLW would grant approval with- illness and ultimately lessening the out any consideration of such timing. burden on the healthcare system. COMPANION However, the regulators appear to have “Early detection and early treatment DIAGNOSTICS HOLDS THE heeded the industry’s concerns on this, generally lead to good results,” Tamura as well as for reimbursement fees. notes. BIGGEST POTENTIAL FOR “There used to be a ceiling of around Reimbursement fees have long been OUR INDUSTRY ¥20,000,” Tamura says, noting that a key issue of contention. The MHLW reimbursement is ¥100,000 for one of has tried to keep these fees as low as Makoto Tamura the newly approved diagnostics sys- possible, while the industry has coun- tems and ¥65,000 for the other. tered that the fees need to reflect the Diagnostics equipment makers in true value of cutting-edge diagnostics products. For the past four years, JACRI Japan now hope that the approval systems. One danger of low fees is that and the AMDD have conducted annual was no flash in the pan, and that the it will discourage innovation, according surveys on approval periods and have so ministry will continue to issue similar to the industry. In the worst scenario, far detected no improvement. approvals in a consistent manner. foreign manufacturers may give up on One reason could be the sophistica- “This was good for the industry,” says the Japanese market altogether. tion of the latest systems. Miwa Nishida, a committee member, In recent years, the MLHW has “The current parameters are more “But I’m concerned about whether come to appreciate the advantages of complicated, so they’re more difficult the ministry will only find high reim- providing the Japanese with the latest to review,” says Nishida. “There are no bursement prices acceptable for niche diagnostics equipment and reagents clear regulatory requirements for these markets, while keeping its low reim- available elsewhere, according to the parameters.” bursement prices in the case of large committee members. Given the vast potential of medi- markets.” “Right now, the ministry is receptive cal diagnostics contributing to the The medical diagnostics industry has to our requests,” Tamura says. sustainability of Japan’s burdened long argued that cutting-edge diag- “Maybe they are going to put all the healthcare system, it seems the task nostics equipment and reagents, while right measures in place,” Nishida adds facing ministry officials has never been generally more expensive than older or in agreement. so important. That being the case, the conventional systems, can save money In contrast, there has been little MHLW will face many challenges keep- over the long term. The new systems progress regarding the time it takes for ing up with the industry’s technological pinpoint a patient’s condition earlier, regulators to approve new diagnostics advances.

September 2013 29 EDUCATION SPECIAL A Lifetime of Learning International education shapes lives

Text DAVID UMEDA

In Japan, international education engages explains Kirsten Welbes, director of unique power of concentration, coordina- multi-culturally experienced administra- admissions. tion, independence and self-confidence, tion and faculty, and encourages students Multiage education at New as well as laughter and love.” to become global citizens. International School of Japan is done in J’s teachers try to cater to each child’s “Children learn to love learning the “Vygotskian” style using a thematic needs especially in academics, points out – as long as its fun,” explains Gilma approach and the Scottish curriculum. Koyasu. “Many graduating students have Yamamoto-Copeland, director at St. “Diversity is what is wanted and appre- been accepted and enrolled into the best Alban’s Nursery. “It’s the time when a ciated in each class,” says Steven Parr, international schools in Tokyo, sometimes child develops a life-long foundation of founding director and head of school. being placed above their age grade.” confidence, creativity, sense of humor, “This includes age, cultural, linguistic and CA hosts a series of Headmaster’s values, respect and many other life skills.” proficiency diversity.” Symposiums that seek a cross-cultural One of the goals at the American According to Ladd, “We see cultural dialogue with students, faculty, parents School in Japan (ASIJ) is “developing diversity as a strength that enables us to and alumni. “We also host a traditional global citizens who have an understand- reflect the world at large within the class- International Food Day that brings our ing and respect for a variety of cultural room and engage students in developing community together to enjoy each other’s points of view,” says Ed Ladd, head of a multicultural lens while recognizing the foods, drinks, entertainment and friend- school, “as well as the ability to empa- commonality of our humanity.” ship,” says Welbes. thize with other cultural perspectives.” At J. International School (J’s), the St. Alban’s Nursery is observant of Firmly committed to international- preschool years are very special. “It is the parents’ needs, explains Yamamoto- ism and multiculturalism, St. Mary’s well known that the first five years of life Copeland. “Parents learn daily with International School has a Philosophy and are the most formative,” explains Irene their children, and teachers should be Mission whose ideals promote a spirit of Koyasu, headmistress. “Personalities, their partners in this. Communication is tolerance, cooperation and understand- friendships, academic, social skills, life- essential.” There are individual parenting. Students from all nationalities and long habits are some of the many traits teacher conferences twice annually, and a faiths are welcomed and valued. “The formed during this crucial time. J’s takes popular Open House and Children’s Work international nature of the school creates the responsibility of investing in these Exhibition every spring. Firemen visit in an education in itself,” states Saburo foundations seriously.” The teachers summer, and policemen in autumn. They Kagei, headmaster. “Students are con- believe J’s loving home-away-from-home have seasonal parties and events which stantly exposed to cross-cultural issues, environment provides an important step- are all posted on the social media. and classroom/co-curricular activities ping stone from home life to school life. J’s families to come to introduce are designed to raise awareness of global St. Alban’s Nursery aims to meet each their country and foods, and wear their issues and world citizenship.” child’s individual needs. “This means cre- costumes. On graduation day, the whole The different perspectives find their ating an ordered, interest-filled environ- school joins in to celebrate the occasion. way into the classroom at Canadian ment, and exposing each child to various “Grandmothers, grandfathers, cousins, Academy (CA). “The curriculum at our opportunities for discovery, adventure and aunts and uncles all come to see and school offers multiple opportunities social interaction,” explains Yamamoto- enjoy the big feast with a delicious buffet to investigate our students’ cultures,” Copeland, “Each child develops their own lunch,” says Koyasu. “We also have school

30 September 2013 field trips and picnics.” Sakura House has been providing to provide learning experiences that are The broad commitment to interna- monthly apartments, share house rooms engaging, relevant and challenging,” tionalism might appear through any and dormitories to the foreign commu- points out Kagei. “Students learn to use combination of the following, explains nity in Tokyo since 1992. “Thanks to our technology tools to communicate, collabo- John Searle, president of the Japan 20-plus years of experience as one of the rate, and improve their learning.” Council of International Schools (JCIS). leading real estate agencies, Sakura House JCIS president Searle says the use of “The member schools generally value the can now offer over 1,700 rooms in 167 technology is important in that it helps development of critical thinking skills and locations in Tokyo, as well as an efficient students to realize “the potential for new open mindedness that will be reflected service and reservation system,” says media to reach out beyond the classroom in the curriculum.” Teachers will use Masayo Namiki, sales manager of Sakura and help in the development of thorough various authentic assessments that can House and Sakura Hotel. research skills”. determine the extent to which concepts, “Offering daily and weekly stays, Sakura skills, knowledge and attitudes have been Hotel is a great alternative for students on Challenges up ahead learned. “Multilingualism will be explicitly a short program,” she adds. The four hotels Parr of New International School feels the encouraged and expected in many schools, and hostel are all conveniently located challenge is to meet the needs of a more as will discussions about culture and in Ikebukuro, Hatagaya, Jimbocho and diverse student body. “This parallels the perspective.” Asakusa. “Thanks to our multilingual staff, problems of the Japanese school system, Sakura House and Sakura Hotel provide a as they are ill-equipped to handle the Young adults friendly and personalized service,” Namiki increasing cultural and linguistic diversity St. Mary’s Alumni Association members, says. “Our wide range of accommodations of their students.” who can be found worldwide, “play a sig- in numerous locations allows students Regarding Japanese universities, “Japan nificant role in the continuing life of their to be close to their language school and still has a long way to go in creating a alma mater, and stay connected through university.” fundamentally sound and broad-based chapters in several cities,” say Kagei. system for teaching English as a means to Temple University, Japan Campus (TUJ) Online increase its international competitiveness,” is specifically designed for Japanese stu- “Technology has been one of the biggest says TUJ’sStronach. “Although Japanese dents who have not only studied English catalysts for change in curriculum develop- universities are aware of the problems but, more importantly, want to have an ment over the past decade,” says Craig they face – and have created some solu- education that truly challenges their mind. Coutts, head of Yokohama International tions for those problems – the challenge “TUJ is the ideal place for those who want School (YIS). International schools have will always be changing their inner struc- to pursue the type of rigorous American been quick to respond through initiatives tures to implement those reforms.” liberal arts education that will develop such as the “1:1 laptop provision” and use Coutts at YIS thinks one of the greatest critical thinking and communication of handheld devices. “The most important challenges is “finding the right balance skills, as well as subject knowledge,” says consideration, however, is making sure between keeping a global perspective, Bruce Stronach, dean. “They can earn an technology enhances the learning that is and still considering and celebrating each American university degree that will put happening in the classroom and beyond,” student’s personal identity and culture.” them on the path to graduate study or a Coutts cautions. “Our Connected Learning The IB program is very strong on this. “It is professional career, while remaining close Community places a lot of emphasis on something we consciously address in our to their family in Japan.” this, helping to increase collaboration, teaching and learning, as well as in how Formal business studies may include enable flexible progression and differenti- we operate as an organization.” executive seminars and leadership work- ated instruction, and more actively reflect For JCIS in 2014, “We will all be shops. “These activities keep managers on a real-world learning environment while interested to see how Japan’s economy top of new developments in their fields,” fostering good digital citizenship.” develops through Abenomics, after the explains Philip O’Neill, director, McGill Instead of the three “Rs,” ASIJ teaches economic downturn and the effects of MBA Japan Program, Desautels Faculty of the three “Cs” – communication, collabo- the tsunami,” Searle says. “In addition, Management of McGill University. “It also ration, and creativity. “It is not only the as JCIS schools continue to strive to be at gives an opportunity for busy managers to amount of information available to stu- the cutting-edge of educational provision step out of their day-to-day challenges and dents, but it is the constant accessibility to in Japan and the world, how we can reflect on their work.” this information that is changing the face work together to achieve this will be an The McGill MBA Japan Program is an of education,” explains Ladd. “Teachers are important discussion.” outstanding way for companies to develop no longer the font of information. Instead, According to Welbes of CA, the their future leaders in an international, the teacher is a coach or facilitator who challenge is in addressing the question of English-language setting, while they are helps students analyze information, syn- how to prepare students to enter a world able to continue to contribute to their thesize it, and use it to solve problems.” of fast-paced change and cross-cultural organization, says O’Neill. “I am happy to Technology provides St. Mary’s teach- understanding. No longer is it enough to speak with companies, either HR managers with tools to enhance instruction and acquire information. “Successful people ers or business managers, who are inter- assessment, support school productivity, today are adept, and are working and ested in sending their employees into our connect the school community, and help leading a group, problem-solving and program. Small companies, in particular, students achieve the school’s Schoolwide offering analysis,” she says. “Education can benefit from our weekend format Learner Expectations. “Teachers inte- must also strive to instill a passion for program.” grate technology within the curriculum lifelong learning.”

September 2013 31 Japan Council of International Schools

he ﬁ rst school in Japan to include the word others specialise in certain age groups. Some are faith- “international” in its name was founded in 1924. based while others are strictly secular. The smallest JCIS However, there has been a long history of interna- member school has fewer than 100 students and the larg- tional education in Japan, with schools offering an est has more than 1,500. Teducation in English and serving members of the expatri- Collectively, our schools currently enrol just short of ate community in Japan since 1872, and four current JCIS 10,000 students from 109 countries. About half of the member schools can trace their origins to before the First member schools are located in Tokyo or Yokohama. The World War. others are spread throughout the country from Fukuoka in Many more were founded in the 1950s and 1960s, and it the west to Sapporo in the north. was in October 1965 when representatives of such schools The heads of member schools meet twice a year met formally for the ﬁ rst time to discuss mutual matters of – usually in September and April. Meetings are held at administration and curriculum. The value of such meetings member schools: once a year in the Kanto region and once was immediately apparent, and schools started meeting on elsewhere in Japan. A President (Chair), Vice President, a regular basis. Secretary and Treasurer are elected by, and from among, On January 12, 1972, a number of schools met and the heads of member schools. founded the Japan Council of Overseas Schools (JCOS). It JCIS schools network on collective issues such as was originally decided that membership would be based on changes in employment legislation, actions concerning pan- schools being in EARCOS, the East Asia Regional Council of demics and disasters, and advice about service providers. Overseas Schools, and that school heads would meet regu- JCIS also encourages professional development among larly to exchange information and discuss matters of mutual member schools and faculty. Opportunities are taken interest. In 1982 a constitution was adopted that opened to share the cost of visiting speakers or performers membership to schools offering an English-based curricu- with neighbouring schools, to coordinate professional lum, irrespective of membership in EARCOS. In 1987, the development initiatives, to bring together specialist staff, name of the organisation was changed to the Japan Council and to support schools introducing new educational of International Schools (JCIS), following the lead of the programmes. European Council of International Schools (ECIS). JCIS schools are being asked for their input into the devel- Schools applying for membership to JCIS must meet a opments within Japanese education. JCIS exists to create number of important criteria including authority, stability, a forum for the continued development and improvement continuity, professionalism, and an explicit commitment of international education in Japan and the enhancement to internationalism. Underpinning this is that the educa- of the school experience for all families seeking an interna- tion must be offered in English. Beyond that, however, tional education. there are no requirements concerning curriculum, ethos or ownership; there is a variety of curricula and backgrounds. John Searle Some schools offer programmes of the International President, Japan Council of International Schools Baccalaureate. Others offer an education rooted to a greater www.jcis.jp or lesser degree in a national curriculum. Some schools Head of School, Osaka International School offer a full “kindergarten to grade 12” education while www.senri.ed.jp

Japan Council of International Schools Links to the member schools may be found at www.jcis.jp

American School in Japan International School of the Sacred Heart Seisen International School Aoba-Japan International School Kyoto International School St. Mary’s International School British School in Tokyo Marist Brothers International School Saint Maur International School The Canadian Academy Montessori School of Tokyo St. Michael’s International School Canadian International School Nagoya International School Tohoku International School Christian Academy in Japan New International School Tokyo International School Fukuoka International School Nishimachi International School Tsukuba International School Hiroshima International School Osaka International School Yokohama International School Hokkaido International School Osaka YMCA International School ad_eurobiz_sakura20130830.pdf 1 2013/08/30 20:09:18

CMY

American by name, ASIJ: international by nature. 38 student nationalities

faculty from 13 countries

7,500 alumni in 55 countries around the world

graduates at top tier universities in Europe, Japan, Australia and North America

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e-dressing Japanese online fashion sales climbing fast

1500 for around 8% of the entire apparel-and-accessories market in Japan. There is real traction in both sales and investment to 1250 support this growth, not only from e-commerce firms and speciality retailers, but also from department stores, 1000 catalogue firms and TV shopping channels. Isetan Mitsukoshi, for example, has invested around ¥ billion 750 ¥1 billion to build a new distribution centre for online sales and has just merged the non-store operations of 500 Isetan and Mitsukoshi. The leading TV shopping firms, QVC and Jupiter, are 250 expanding online broadcasts. QVC now takes a reported 10% of apparel sales from online and has just launched 0 a new fashion brand, Chapter One, in a tie-up with 2011 2012 2013 2014 2015 online fashion store Yumetenbo. Non-store retailers that have traditionally sold The share of fashion sales taken by e-commerce in Japan through catalogues now take much more share from is growing fast. So fast and so diverse is the field that e-commerce. Senshukai already garners more than 53% there is a problem with measuring the market size. The of sales through e-commerce, while Nissen takes 49%. Ministry of Economy, Trade and Industry (METI) says Both are leaders in mobile commerce (orders over port- total online apparel sales hit ¥144 billion in fiscal 2011, able handheld devices). The mobile fashion market is set but its analysis misses several key non-store retailers to see a further jump in activity following the takeover and is actually a serious underestimate. Yano Research of Magaseek by NTT DoCoMo (the number-one mobile Institute’s estimate for fashion goods (apparel, accesso- carrier) this spring and Rakuten’s recent acquisition of ries and jewellery) was ¥636 billion in fiscal 2011, rising Stylife. to ¥702 billion in fiscal 2012, with a forecast of ¥950 Further M&A activity is expected as major players look billion for fiscal 2015. Yet, this is a conservative projec- to consolidate market share and buy in innovation. tion, given that the three largest online firms – Rakuten, Amazon and Zozo – sold a combined ¥480 billion in ROY LARKE apparel and accessories in fiscal 2011. JapanConsuming is the leading pro- JapanConsuming’s estimate, on the other hand, which vider of intelligence on consumer and retail markets in Japan. The monthly includes the main portals and brands as well as retailer- report provides news about, and in owned sites, suggests online apparel and accessory depth analysis of, current trends. sales of ¥746 billion in fiscal 2011, rising to ¥872 billion in fiscal 2012. We expect online apparel sales to rise to JC JapanConsuming between ¥1.3-1.4 trillion through year 2015, accounting For more information, please see www.japanconsuming.com or contact Sally Bedown at [email protected]

September 2013 37 Soergel chats with Kashiwagi Art Foundry operator Teroyuki Kashiwagi, descendant of a cast metal master who moved to Odawara in 1686

Craft crusade Text and photos JENNIFER ZYLINSKI-SPARGO

38 September 2013 CULTURE SHOCK

ake a deeply traditional worldwide who take Japanese profi- every company I visited became a Japanese craft business, ciency tests, on the assumption that member,” says Soergel. “Twenty new lacking successors and they have at least some interest in ones joined in three months.” struggling against the Japanese culture. His language blog, Part of the process that Soergel odds for survival in modern nihongoichiban.com, gained popularity clearly relishes is learning from master times, and launch it into and led to step two, the Nihon Ichiban craftsmen about the finer points of theT firmament of glittering global fash- blog. This featured things to do, eat, their craft. ion brands. drink and buy as gifts in Japan. “In order to write accurate product Such is the ambition of Nicolas “Connected to Facebook, it worked descriptions I had to figure out how to Soergel, managing director of Chinriu extremely well,” he says. explain in English things that were dif- Honten and its online store Nihon Step three was to build what is now ficult even for Japanese to understand Ichiban. Chinriu Honten, founded in one of the most complete directories in Japanese,” he says. 1871 in Odawara, south-west of Tokyo, for Japan-related blogs, with some 400 It is impossible to predict the next is in the business of pickled plums, or bloggers. With a total social media hot product. Pickled cherry flowers umeboshi, and related products. audience of about 65,000, Soergel quit were dormant among Chinriu Honten’s “What worked in the past will not his IT job and got to work on the online offerings until they were covered by a work in the future,” says Soergel. “For shop. To get suppliers, he began with popular US food blogger. example, our products all go with rice, the business owners he knew best. One “Suddenly we were selling pickled and rice consumption is declining. Also, of the first to join had one revealing sakura flowers throughout the year, by many young Japanese are abandoning stipulation. the hundreds,” says Soergel. the tradition of seasonal gift-giving. “You can sell my product as long as He was amazed when sales of glass The trends are against us, and the same no foreigner ever contacts me,” the wind chimes took off. With the addi- is true for many Japanese traditional craftsman said, according to Soergel. tion of other types of wind chime, sales food-and-craft businesses.” “You take responsibility for all that.” swelled to over 100 units per month. French-German Soergel, whose wife Soergel visited companies all over With improved presentation, more is the family company’s fifth president, Japan. A fortuitious introduction led efficient shipping and a spreading repu- discovered this firsthand as a member to a tour of Sumida ward, with fur- tation in Japan, Nihon Ichiban contin- of the association of producers that ther introductions to local craftsmen, ues to gain momentum. exhibit at Takashimaya department including a producer of Edo kiriko cut “We work in niches, but it works well stores’ Aji Hyakusen (100 flavours) glass who had previously rejected because we have many of them, with festivals. Nihon Ichiban as superfluous, yet who little competition in each area,” he “The owners all know each other. responded positively to the personal explains. Over a beer or two we realised that contact. Since December, Soergel has begun many of us face similar challenges,” Soergel emphasises the supreme selling selected products through says Soergel, who understood that, importance of this element. a growing list of local Amazon.com despite a stagnant domestic market, “When I visited the owner, I had a outlets, such as Amazon US, Amazon Japanese food and culture are becom- 95% success rate. With phone calls I had France, Amazon Germany and Amazon ing increasingly popular around the 100% failure,” he says. UK. This requires a bank account in world. “There are very few authentic Some of the craftsmen, at first plainly the country of delivery and a barcode products, while in Japan there are pro- disinterested, opened up when Soergel system. ducers with a wonderful heritage but began asking questions. “Japanese craftsmen don’t have any with no idea how to tackle the overseas “You have to show real interest in of that. We have become an enabler for market.” what they are doing,” he observes. Japanese companies and designers so Slipping back into an IT industry job “They will be offended if you treat their they can sell abroad,” he says. for a couple of years, the former head work as just another product.” The online shop now lists about of East Asia operations for Deutsche By the time of its mid-2012 launch, 1,300 items, from 60 suppliers. With Telekom spent his spare time experi- the online shop had 50 suppliers. food and craft well established, Soergel menting and developing his master Membership received a boost is working hard to add more designers. plan: Make Chinriu Honten the exem- through the Greater Nagoya Initiative, “Craft is easy,” he says. “With design- plar for revitalisation and globalisation where officials recognised the value ers, you have to search for them.” of dying local craft businesses. of matching Nihon Ichiban with local Again, the rule is to expect surprises. Step one was to connect with enterprises. The Vegetabrella, a cute umbrella some of the millions of non-Japanese “They were extremely efficient, and that looks just like a head of lettuce,

September 2013 39 CULTURE SHOCK

Ishikawa Lacquer wood-turner Tomoko Suzuki explains her part in crafting a lacquer-ware cup was available through small umbrella to be dissatisfied with such enviable specialist Tokyo Noble, but not through success, so he consulted with friends, Nihon Ichiban, when it was featured on visited a psychiatrist (who managed to WHEN I Japanese TV last September. The owners assure him that he was not crazy) and VISITED THE knew Soergel, however, and they called undertook a rigorous reassessment of him in panic. his private and professional objectives. OWNER, I HAD A “They had had 800 emails in two “It took me two years to figure it out. 95% SUCCESS RATE. days, including many from overseas, and In the end, when I got rid of big financial were totally at a loss,” he recalls. Within goals, I found there was no separation WITH PHONE CALLS a couple of hours he had provided the between private and professional objec- I HAD 100% shop owners with an appropriate email tives,” he says. “Now my mission in life is response and added Vegetabrella to to become ‘Mr Japanese Culture’.” FAILURE Nihon Ichiban. As such, he sees the leveraging of With a background in finance and French culture into stellar fashion business administration, Soergel worked brands as a model for his adopted durable,” says Soergel. “The potential is for Sony in Germany before teaming homeland. there, but their bags look very old-fash- up with a friend to launch a success- “Japan has a similarly rich heritage, ioned to Western eyes. If that company ful startup there. He and his wife but there is very little branding and could work with foreign designers it then moved to Osaka, where he spent almost no professional development of could be the Louis Vuitton of Japan.” two years re-integrating Boehringer the brands,” he notes. Soergel even sees Chinriu Honten Ingelheim into the German pharmaceu- A prime example (he draws it from his acquiring some companies now head- ticals company’s global structure. Next, pocket) is Koshu Inden deerskin leather, ing for oblivion and energising them he was jetting about Asia for Deutsche made using techniques developed for enough to attract young talent. Telekom. the production of parts of samurai “Young people will not join a craft “I was unhappy,” he remembers. armour four centuries ago. company if it has no future,” he notes. “There is no emotion in IT services.” “It takes months to make a wallet “And if craft companies are allowed to It seemed bizarre, even to Soergel, like this. It’s beautiful and extremely close down, the culture disappears.”

40 September 2013 Everyone’s a winner, as proceeds will go to Run for the Cure® Foundation in its fight against breast cancer as a life-threaten- ing disease in Japan. • Poker • Roulette • Big Six Wheel • Blackjack • Craps • Slot Machines Let the good times roll...

Date: October 4th, 2013 (Fri.) Time: 18:00 – Midnight Guest Chef Sohan of Bourbon Street, Venue: The Westin Tokyo Tokyo's very own N'Orleans restaurant, will be Tickets: ¥15,000, table of 10 ¥150,000 adding his magic to the culinary team at The (including dinner & drinks) Westin Tokyo. As he says - "The Cajun 'n' Creole cuisine is partly French, partly African, partly Book now as available tables are limited Soul with a sprinkling of fun and lots of love." To Tel: 03-6420-0860 add to the N'Orleans festivities will be DJ Silver- www.runforthecure.org/en/casino-night fox, along with live jazz and blues acts. Dress code: Business attire

www.runforthecure.org PARTNERS EVENTS

any airlines reduced study tour to Japan for about 25 And his answer is an unequivocal Yes! services to Narita representatives of the German travel “Japan is in a difficult situation, but International Airport industry in early August, allowing deci- the trend is positive rather than nega- as European business sion makers to gather information and tive,” Benz says. “European business Upcomingtravellers cancelled get a firsthand impression of the post- travellers will return in full by next tripsM following the triple disaster of 11 disaster situation. year.” March. But now European airlines are “They got a clear picture that Tokyo is coaxing passengers back to Tokyo. a safe place, and that tourists can visit,” “We are trying slowly and steadily to Benz says. “It was important they came getevents the whole business back to normal,” here because only when the agents are says Jenny Fürstenbach, passenger convinced Tokyo is safe will they gener- sales> Aus managertrian Business for Japan Council at SAS, which ate12 September, new programmes.” Thursday, 09:00-12:00 celebratedwww.abc-jpn.org 60 years of business in Japan Venue:For Finnair,Nissan Oppama 2010 saw Plant, Japanese Yokosuka sales in April. Fee:overtake ¥3,000 Finland-based sales, and it SEPTEMBER TheSAS putBusiness a lot of energyof Soccer: into coun Visiting- Contact:is no surprise [email protected] that the airline aims to S M T W T F S teractingKawasaki the Frontale negative image of Japan boost the number of Japanese leisure following26 September, revelations Thursday, 16.00-18.00 of the (18.00-20.00) meltdown Jointpassengers Nordic visiting Luncheon Europe. Meeting 1 2 3 4 5 6 7 atVenue: the FukushimaKawasaki Stadium nuclear (optional plant. bus at 25 September.Finnair was Wednesday, helped 18:30-21:00 by the fact that, 8 9 10 11 12 13 14 Shinagawa“For a long Station) time the foreign media Speaker:along with Pekka Lufthansa, Vauramo, CEO, it is Finnairone of only portrayedFee: ¥5,000 the(members), image that¥6,000 Japan (non- Venue:two airlines Grand Hyattthat flyTokyo, daily 3F, Tarragonservices Roomto 15 16 17 18 19 20 21 members). Fee includes networking reception. had sunk in the sea, everything was Fee:Central ¥6,000 Japan (members), International ¥8,000 (non-members) Airport Contact: [email protected] Contact: [email protected] 22 23 24 25 26 27 28 radioactive, and we all lived in shelters,” near Nagoya, and Kansai International 29 30 Fürstenbach> Belgian-Luxembourg says. “So, we Chamber realised of that >Airport German near Chamber Osaka. of Commerce and weCommerce needed to in help Japan our crew and sales IndustryFinnair promotes in Japan the shortest flight staffwww.blccj.or.jp understand that the situation in timeswww.japan.ahk.de/en/ to a number of regional European Tokyo is quite normal.” locations where no direct Japan flights PR Event in English “Closing OCTOBER BeLuxIn May shop and June @ Mitaka SAS ran a points exist, such as Manchester. It is also S M T W T F S campaignInternational for travellers Exchange looking Festival to Culturalhoping to cashGaps in foron the Bigger natural beauty visit22 September, Tokyo throughSunday, 10:00-16:00 the end of 2011. Businessof the polar in lights. Japan” 1 2 3 4 5 12 September, Thursday, 9:00-11:00 MembersVenue: Inokashira of the WestSAS EuroBonus Park mileage “We compete with other countries 6 7 8 9 10 11 12 programFee: free of have charge the chance to visit Japan Speaker:and regions Craig –Saphin, such aspresident Canada and and representative director, en world Japan K.K. forContact: 40,000 [email protected] points for an economy class Alaska – for ownership of the aurora, 13 14 15 16 17 18 19 Venue: GCCIJ, conference room, Hanzomon/ seat on a roundtrip basis, compared to but this is really something for Japanese Belgian Beer and Food Academy: Kudanshita stations 20 21 22 23 24 25 26 the standard 80,000 points. Fee:people free-of-charge to come and see,” says Sakari 27 28 29 30 31 food-pairingLeisure travellers remain wary about Contact:Romu, sales [email protected] director Japan. 1 October, Tuesday, 18:00-21:30 visiting Japan, but SAS has seen a pick Opinions differ on when the Japanese Venue: Hilton Tokyo, Shinjuku up in business travellers. “That is a good Germanmarket will Wine fully recover. Festival 2013 Fee: ¥19,000 (members), ¥20,000 22-23 October, Tuesday-Wednesday, 18:30-21:30 (Tokyo) sign,(non-members) because if business travellers feel Romu believes that European travel- Venue: safeContact: then [email protected] leisure travellers will follow,” lers areHAPPO-EN, unlikely toNuit, return Shirokanedai until spring IJCC & BCCJ Joint Chamber Fürstenbach says. Fee:2012. ¥6,500 The forFinnair each daysales director has > Finnish Chamber of Commerce in Contact: [email protected] Networking Event Turkish Airlines set up a special fare advised Japanese tourist authorities to 12 September, Thursday, 19:00-21:00 Japan in April and May, donating part of the conserve all their energies for a market www.fcc.or.jp > Ireland Japan Chamber of Commerce Venue: Irish ambassador’s residence proceeds of ticket prices to the victims reboundwww.ijcc.jp then. Fee: ¥5,500 (members), ¥7,000 (non-members) ofFCCJ the disaster, Tour to according Nissan to information “Next year’s cherry blossom viewing Contact: [email protected] on the company’s website. A donation is the next key period for Europeans to of ¥3.9 million was made to the disaster return,” Romu says. area through the Japanese Red Cross But SAS’s Fürstenbach is reluctant to Society. write off 2011 yet. For Lufthansa German Airlines, which “Three weeks after I arrived in March Latin American celebrated 50 years of doing business in 2010, we experienced the Icelandic ash Tokyo in January, the Japanese market cloud, and we said ‘Oh! This is not a cuisine is the second most important intercon- normal year’,” she says. “2009 wasn’t a tinental market after the United States. normal year either as we had the swine at its best! The company intends to focus on Japan flu. So, if you start looking at it that way, during the autumn and winter period, you will never have a normal year. Buena Comida offering attractive prices. “Tokyo has been back to normal for “We want to show that Japan can be some time, and we want to mirror that one of the more attractive places when as much as possible,” she adds. it comes to cost,” says Otto F. Benz, Lufthansa’s Benz asks a rhetorical general manager for Japan. question: Is this the country to invest Lufthansa also organised a one-week in? www.chefstable.jp > Italian Chamber of Commerce in > Polish Chamber of Commerce and > Multi-chamber event Japan Industry in Japan www.iccj.or.jp www.pccij.or.jp Mercedes-Benz Japan Cup 2013 The North America – Europe Networking: Aperitivo della Polish Festival 2013 Golf Challenge Camera 27-29 September, Friday-Sunday, 11:00-19:00 (-20:00 Sat) 4 October, Friday, 08:00-17:30 26 September, Thursday, 19:00-21:00 Venue: Roppongi Hills, Oyane Plaza Venue: Atsugi Kokusai Country Club, Venue: Panino Giusto Aoyama, Gaienmae Fee: free of charge Kanagawa. Fee: ¥1,000 (members), ¥2,000 Contact: [email protected] Fee: ¥24,000 (non-members) Contact: www.dccgolf-japan.com Contact: [email protected] > Swedish Chamber of Commerce and Industry in Japan > European Institute of Japanese > Netherlands Chamber of Commerce www.sccj.org Studies in Japan www.hhs.se/eijs/ www.nccj.jp Crayfish Party 11 October, Friday, from 19:00 Academy Seminar Briefing and Drinks – A brief Venue: to be confirmed “Papa no Shohi” (Fatherly guide to Japanese rule-making Fee: to be confirmed consumption) – Ikumen* and the Contact: [email protected] procedure rise of a new market opportunity 17 October, Thursday, 18:00-21:00 > Swiss Chamber of Commerce and 11 September, Wednesday, 18:30-21:00** Speaker: Takeo Nishitani, chairman, Weber Industry in Japan Speaker: Dr Florian Kohlbacher, senior Shandwick www.sccij.jp research fellow and head of Business and Venue: Randstad K.K., New Otani Garden Economics Section, German Institute for Court, Akasaka-mitsuke September Luncheon: Japanese Studies Fee: ¥4,000 (members), ¥5,000 Venue: Alfred Nobel Auditorium, Embassy of (non-members) “Communication Challenges Sweden, Roppongi Contact: [email protected] between Japanese subsidiaries Fee: ¥3,000 (payable at the door), free for and European headquarters” students > Norwegian Chamber of Commerce in 19 September, Thursday, 12:00-14:00 Contact: [email protected] Japan www.nccj.or.jp Venue: Grand Hyatt Tokyo, 2F Anise Room * Ministry for Health, Labour and Welfare Speaker: Prof. Franz Waldenberger, Munich project: men who enjoy parenting or wish to do so in the future, and grow through it NCCJ 10th Anniversary School of Management Fee: ¥ 8,000 (members and non-members) ** drink & snack followed by lecture & 11 October, Friday Contact: [email protected] discussion (19:00-21:00) Upcoming meetings

R Animal Health R Human Resources R Railways 28 November, Thursday, 15:00, off-site 6 November, Wednesday, 19:00, EBC 21 October, Monday, 09:00, EBC

R Asset Management R Legal Services R Ta x 27 September, Friday, 12:00 noon, EBC 12 September, Thursday, 18:30, off-site 17 December, Tuesday, 12:00 noon, EBC

R Automotive Components R Logistics and Freight R Telecommunications Carriers and 10 October, Thursday, 16:00, EBC 10 September, Tuesday, 17:00, EBC Equipment 19 September, Thursday, 10:00, EBC R Energy R Materials 12 September, Thursday, 14:00, EBC 11 November, Monday, 17:30, EBC

R Food R Medical Equipment 11 September, Wednesday, 09:00, EBC 26 September, Thursday, 14:00, off-site

Committee meeting dates are subject to change. Please contact the EBC secretariat for confirmation. Tel: 03-3263-6222. E-mail: [email protected]

Compiled by DAVID UMEDA John Mader

Straddling borders

Text and photo DAVID C HULME

44 September 2013 EBC PERSONALITY

John Mader’s little brother, push- yielded a tome on the electoral decline of Do you like natto? ing his tiny toy car through a model the religious parties in the Netherlands city built of Lego blocks in the family in the 1960s. Title: Senior Project Manager, Lend basement, was oblivious to his error. Uncertain of how to build a career Lease Japan “Bob!” admonished the miniature city’s on his arts degree, Mader contacted a Time in Japan: “14 years” builder. “You can’t drive down that street. Gallup-affiliated pollster in Amsterdam Career highlight: “Shiodome City We’re in the Renaissance. It’s 1653!” who hired him for his language skills (a Center” Mader, now senior project manager knack for computer programming helped Career regret: “Could have competed harder for choice design work” for Lend Lease Japan, uses the anecdote as well) and willingness to conduct Favourite saying: “Economics is a social to explain his childhood fascination with research in five European countries. After science” both urban planning and history. Add to moving to the Gallup Organization’s Favourite book: “La Méditerranée et that a talent for draughtsmanship. Princeton, New Jersey headquarters, he le monde Méditerranéen à l’epoque de “I was drawing floor plans of houses at continued a mix of market research and Philippe II, by Fernand Braudel” age six,” he recalls. public opinion polling. He then enrolled Cannot live without: “Espresso” Then mix in an aptitude for languages. at Princeton University to study for a Lesson learned in Japan: “More Mader is able to conduct business in Master of Public Administration degree empathy” German, Dutch, French and Japanese in International Economics. Secret of success in business: “Always as well as English. Born in Wilmington, Graduating in 1983, Mader made the think first of how you can help the Delaware, he spent a couple of sum- rounds of interviews at banks on Wall people you meet” mers in Germany with his grandpar- Street. Do you like natto?: “No” ents, taught himself German grammar “I’m applying for jobs I don’t want,” he while still in primary school and began realised. “This is crazy.” Toward the end of the IUC course, a subscribing to the German weekly news Accordingly, and despite a thin design Japanese friend introduced him to Tokyo- magazine, Der Spiegel, around the age portfolio, he successfully applied to the based architecture and engineering firm of 12. University of California, Berkeley, and Nihon Sekkei. A Princeton-educated “I was an odd child,” he concedes, earned a Master of Architecture degree. manager hired him. explaining the diverse and turbulent He then worked for architectural firms “I had seven years of experience in backgrounds of his immediate forbears for a decade or so in California before San Francisco, so that helped. Even back that fuelled his interest in history. coming to Japan in 1995 with his wife, then, a lot of the work was already in He cites a large collection of love let- Susan Lawson. Asia. I had projects in Osaka, Shenzhen, ters held by his German grandmother, “We brought our wedding date for- Shanghai and Taipei in my portfolio,” written during WWI by his grandfather ward so Susan could get a spouse visa Mader reflects. to a woman of his acquaintance in and we could come to Japan together,” For most of his five years as a pro- France. The relatives in Germany spoke he explains. ject architect for Nihon Sekkei he was mostly in Bayreuth dialect, and WWII “Susan’s parents were artists and involved with the Shiodome City Center had swept some in from as far afield as showed her kokeshi dolls and Hiroshige project (43-story office tower and retail Ukraine. prints when she was a child,” Mader center) in Tokyo. He describes the project Never interested in sports or in being recalls. “When working for a Japanese now as one of the most satisfying of his popular in school, straight-A student architect in San Francisco in the 1980s, career. Mader was comfortable exploring a on the design of a housing project for “That is where I saw most of the pro- nearby stream and forest, drawing Nishi-Azabu, she decided she needed to cess. It was a lot of fun,” he says. houses, building miniature cities and learn Japanese to read the Tokyo building Mader adds a swarm of professional obsessing about Noam Chomsky’s theory code.” activities, such as public speaking and of transformational-generative grammar. Mader’s own interest in Japan burned EBC committee work, to his demanding “I was nerdy. All I wanted for Christmas on several fronts. His mother had a job. He maintains some artistic activities, was a renewal of my Der Spiegel sub- particular interest in Japanese gardens, including ceramics, and shares his wife’s scription and a copy of Der grosse Duden, Japan was a hot topic when he was interest in calligraphy and Japanese the nine-volume authority on the studying economics, and architectural painting. German language.” school put him in touch with the coun- “I do just enough at the health club For his Harvard University Bachelor of try’s foremost designers. to stop myself from falling apart,” he Arts degree, he majored in government Having started learning Japanese at laughs. “It is incredible how much we because the most interesting courses summer school in the United States, work in Japan. I don’t even give the dogs were in political science. he won a grant from the Blakemore a proper walk any more.” “I was into history, though, not power Foundation that allowed him to study What drives him, he says, is not posi- or politics,” he says. Japanese at the Inter-University Center tion or money, but interesting work. He Then he picked up a book and taught (IUC) in Yokohama. has been at Lend Lease Japan since 2009, himself Dutch, which helped him obtain “I arrived with no prospects,” he relishing the challenges and managing a Harvard scholarship for thesis research relates. “All I had was the grant to pay for to straddle the borders between design, in Europe. Three months in Holland tuition and living expenses.” construction and real estate finance.

September 2013 45 46 September 2013 LENS FLAIR

The Craft of the Japanese Sword Yoshindo Yoshihara’s family has been involved in the craft of sword-making for 10 generations. He began learning how to make swords at the age of 12 from his grandfather, and continued to become renowned as one of the world’s finest practicioners of the craft. Along the way, he has garnered many prizes, co-authored The Craft of the Japanese Sword, and been named an Important Cultural Property of Tokyo. He now works with his son and trains five apprentices at his Tokyo workshop. Visit www.samuraisword.com to see Yoshihara’s craftsmanship.

Photos and text BENJAMIN PARKS

September 2013 47 WORK PLACE

Loïc Réthoré Nespresso Japan Nestlé Nespresso is a world leader in the business of portion-pack coffee systems. In Japan, the company sells coffee machines, premium coffee capsules and accessories across the country through a network of 19 boutiques, as well as by telephone and the Internet. “Our club members can order their coffee 24 hours a day, seven days a week by phone and the web, and they receive their orders the following day,” says Loïc Réthoré, president and representative director of Nespresso Japan. “My role is to make sure that the service we provide to our customers is the best that is possible.”

Photo IRWIN WONG

48 September 2013 advertisement data_0902 SIZE:w190 x h277 / TrimSIZE:w210 x h297