Japanese retailer drops local shop for JWT on $20m brief

TOKYO: Japanese home furnishings retailer Nitori Cois has dumped Public Centre and Tokyu Agency and moved its US$20 million advertising and branding account to J. Walter Thompson.

The Sapporo-based company, which has hit sales of more than US$500 million, decided to seek an international agency to provide a more strategic, brand-building approach to its business in Japan as well as support its overseas expansion, said Katsuhiko Betsushima, JWT Japan chief operating officer.

"We believe that this is the beginning of a trend where Japanese enterprises see that in order to develop their markets, they need fresh ideas for building their brands and people who understand how brands are built."

New advertising from JWT will break this summer. Media planning will be handled by MindShare Japan, who will work with Asatsu-DK as the buying partner. The Nitori win comes after JWT Japan won business from two other Japanese marketers last year - Unicharm, a leading diaper maker, and Right On, which makes jeans and casual clothing. Although more than 90 per cent of Japanese advertising is handled by domestic agencies, international firms can still expect to grow their operations. As a result of the recession, local corporations are exploring the services of multinational agencies.