Japan's new brand invasion

Forget about the Toyotas, Hondas and Canons, this 'new' Japan is about small businesses, art, youth asserting their own values and Tokyo chic making its mark on the global stage.

While this brand invasion may not always be recognisable or, as yet, even convertible into commercial dollars, it is nonetheless filtering abroad. And the Japanese Government has finally woken up to the fact, launching a global initiative to remake the 'made-in-Japan' tag from one that conjures up images of technology into a Japanese-inspired lifestyle.

"The Prime Minster, in a recent speech, set local companies an agenda to export Japan's 'soft culture' overseas. Japan's next wave will be about street culture and pop culture that's not just youth-related. It will be about exporting Japanese fashion, food brands and restaurant chains, and that will define the future of Japanese brands," says Dave McCaughan, executive VP, director, strategic planning, McCann Erickson Japan, adding that while Japan is already considered 'hot' its cool factor was established more by accident than design.

McCaughan points to the millions of Asian youth who already covet the latest fashions from Tokyo, many of which may never make it to New York or Paris. Globally, Playstation and Xbox home video games draw heavily on Japanese anime and manga for inspiration. Nintendo, which makes Super Mario and Pokemon video games, records over $3 billion in US and European sales annually.

The genius behind Japan's cultural strength is that, rather effortlessly, the country has branded itself as the epitome of what's cool, adds Ogilvy & Mather Japan KK Tokyo's head of planning Akira Shimomura.

Perversely, he argues, it may have been a decade-long recession that boosted the country's 'cool' factor - discrediting its social hierarchy, and empowering young entrepreneurs and the youth so that they faced fewer social stigmas for experimenting with art and fashion.

Now as international publishers such as Tyler Brule, whose first issue of Monocle features Japan on its cover, act as ambassadors for 'Tokyo cool'. interest in niche brands that represent Japanese quality, design and heritage is growing. "Japan is swamped with niche brands which have cult followings. Those that know about them travel here to find that one bag shop that may only have a store hidden in a sidestreet in Japan. These brands can't be found overseas yet, but some are coming up with marketing strategies to take them into international markets," notes McCaughan.

One niche Japanese brand making waves outside its home market is Muji. Last month, the environmentally-conscious retailer signed a lease for its first flagship store in the US in New York's Times Square as part of its ambitious expansion plans. McCaughan says Muji, which translates to 'no brand quality goods' is "re-invading the home of LOHAS (lifestyle of health and sustainability) in the US" based on a philosophy of simplicity, minimalism and consumer functionality. Like Muji, fashion retailer Uniqlo is adopting eco-friendly practices to win over consumers. After some intital setbacks overseas, Uniqlo overhauled its brand and merchandising strategies, and is now making progress in building a brand in international markets.

Then there's Bathing Ape, which has developed a cult-like following globally, so much so that it recently found itself caught in the middle of a bidding war between Nike and adidas. "For big brands that are facing a crisis in trying to be contemporary or cool but are too big, a deal with a Bathing Ape brand can given them street cred," adds McCaughan.

Linda Kovarik, executive planning director at Beacon Communications KK, explains that pop-up stores are one way that these brands are building their retail presence locally and in overseas markets. Their stores appear suddenly and in out-of-the-way locations and stay open only a few weeks or months. They rely on word-of-mouth and the lure of the unknown.

And don't judge them by their size. Niche brands are redefining the country's approach to brand marketing. According to Interbrand's Asia-Pacific CEO, Terry Oliver. "The belief of most Japanese companies, unlike Western firms, is that brands should not be managed out of HQ. Japanese tend to leave the brand management to local markets. What's changing is that niche brands are thinking about managing the brand globally out of Japan. This is partly because they are younger. There is a certain inflexibility of big Japanese corporations and a lack of confidence and communication skills from overseas that makes them less comfortable with managing brands overseas. "

Indeed, local corporations have traditionally focused on the corporate brand, often at the expense of the product brand, and the challenge for many today is in creating a central approach to branding. For most, the concept of brand marketing is still new, says McCaughan, adding that his agency, as recently as two years ago, was receiving requests from local chief marketing officers for job descriptions and definitions of global branding.

And while there's talk of change,it will take time. Masaharu Aiuchi, chief researcher, IMC development division, Dentsu Tokyo explains: "Japanese MNC marketers are trying to localise their brands in each country more than Western competitors. Using the same tagline and the same creative globally may be very cost-effective at first glance, but Japanese see the deliberate localisation strategy while retaining their core identities as more relevant and effective."