The Japanese Consumer is 2.5 (at least)
Friday, June 2nd, 2006Through various channels I have had the opportunity to build an excellent profile of the Japanese consumer and through my analysis I have determined the Japanese to be an advanced alien civilization that landed on the islands of the eastern coast of Asia (or perhaps surfaced from below sea). They may also be the machine civilization ala the Matrix.
A couple of key concepts have led me to this phenomenon:
Mobile Activity: In Japan, every free moment of time is addressed through all types of mobile activity. In every segment there is a killer app offered by NTT DoCoMo: Mobile social networks for youth; location based marketing and NFC purchasing for the mass and truly affluent; financial management for the money minded. US based humans tend to enjoy particular places for activities: bank branches (1 for my banking, a different one for my investments), PCs at home and at work, networking parties and bars. I don’t think there is a true understanding of the opportunity cost of having to stand still.
Preference for Non-Human Interaction: Japanese consumers love buying everything at vending machines. This is nothing new, but I was not aware of the fact that the largest loan volume (total) is delivered by super-ATMs called ALMs (automated lending machines). These robot loan sharks give out cash after having adjudged your risk as within the acceptable range. $150 Billion dollar market. Would you go to a machine for a loan? Maybe not.
Keiretsu: This is just a shock to the system for anyone who cut their teeth managing a US domestic business and then moves to a global focus. Japan operates with corporate cooperation that makes bus. dev. guys cry. I mean we are talking about banks, PC makers and mobile phone operators under the same umbrella. Not some small time MVNO or regional bank, super majors, market makers. Media companes, game developers and wireless in one building. This makes US and EU based innovation efforts look just silly as we try to build non-competitive tie ups with our future competitors today. Organized collusion for Japan-based companies. Non-Japanese Multi-Nationals are locked out of such arrangements by anti-collusion laws.
Well what does this all mean for companies? The Japan market is over served in nearly all segments. And the comunication channels to customers are nearly direct neural. Capabilities are so developed because of corporate cooperation that they are looking 10 years ahead of major western markets. So, great place to pilot strategies or do market research. Rollout in US and EU in 10 years. Domo arigato Mr. Roboto.
