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The Japanese consumer market

12/05/2010

The Japanese consumer market

The Japanese consumer market
Mariko Fujiwara
Hakuhodo, Inc., Tokyo Japan
Demographics
Average life expectancies grew significantly
Fastest aging population in the world today
The very old dominate the senior population
Labor force will continue to decrease in size
Labor force
Japanese population pyramid 1950-2050
Japanese households decreasing rapidly in size
More couples live by themselves and more alone
Most significant demographic facts are:
Fastest aging society in the world
Fertility rate continues to drop very fast
Total population began decreasing in 2005
The population is highly urbanized
Live in smaller families
More live as couples or alone
How they translate into consumer behavior?
They are not interested in large quantities
They need smaller/ individual portions
They can exercise discretion easily
They can focus on what they really want and forego others because nobody suffers
They can afford more expensive things
Japanese  families
Marriage and divorce
Younger generations are marrying later
First marriages
Marriage and starting a family
Fewer marriages
Marrying later
Waiting longer to start a family
Having fewer children
More having no children
More divorces
More remarriages
Greater variety of families
Half of them have members 2 or less
Parents and two children not so typical any more
Single-person households grow fastest
Husband and wife (couples by themselves)
One-parent and children less
Other
The rest in special care facilities
Japanese women
Japanese women receiving increasingly  more education
1954-2005
Lifecycle of Japanese women today
More Japanese  now work part time
Signs of recovery?
More companies report profit
More companies began higher many more new recruits
The prices of property has begun recovering
Consumers replacing their old appliances with more  new ones sooner
Some suffer from negative equity while the first time buyers enjoy relatively affordable housing costs
Consumers have begun replacing old with new
Market regains consumer confidence?
Internet access by age group
New and altered behavior
ICT and e-Commerce or m-Commerce
ICT and info-communication industries altered the lifestyle of Japanese consumers
ICT empowered consumers with voice
ICT allowed consumers to actively shape the market
Consumer values and preferences
Recent experiences for the Japanese “Seikatsusha”
Prolonged recession has forced Japanese “Seikatsusha” to reexamine their consumer behavior
We saw negative growth in some years,  and the record high unemployment rates in post WWII deprived the younger workers of good jobs
Changes in “Japanese” employment pattern and salary structure had an impact on consumer confidence
Some suffer from negative equity
Promising targets
Women in the Japanese market
Better educated
Highly qualified women enter the workforce
An increasing number of young women  are working and the wage gap is narrowing for them
More women are pursuing careers
Women are becoming more visible in well-paid positions and in higher management positions
Seniors
Today’s Japanese seniors
Young Seniors
The generation who worked hard to rebuild and modernize the economy.
They are the first to have accepted and adopted Western ideas and technology.
They have ample time with disposable income and / or sizable savings to enjoy life.
They are actively seeking ways to enjoy life for themselves.
They try to remain young at heart.
They try to remain active and want to look stylish and attractive.
The First Postwar Baby Boomers
80% of assets held by individuals in Japan belong to those aged over 50.
They are in late 50s now and are well aware that they are getting older.
Most of them feel that they are young and capable of competing with their younger colleagues in many areas.
The First Postwar Baby Boomers
Finally, they are seeking ways to live their lives for themselves.
They like to think of themselves as being fashion conscious and fashionably dressed.
They have interest in maintaining good health through healthy diet.
Japanese seniors today want to serve themselves
Japanese seniors want a lot of communication
Quality of Life Issues
Good health
Sensible diet
Focus on healthy lifestyles
Interest in sports
Participation in sports events
Quality of Life Issues
Quality of Experience
Time Value
Focus on Leisure
Focus on Style
Slow and genuine process
Slow life
Younger generations
The New Breed Generation
Born in ’60s  (9.3 million)
The first generation to have grown up in the affluence generated by the rapid economic growth after the war.
They have an entirely different value system from their parents
Martians ~ their attitudes toward life are extremely alien to the older generations
The New Breed Generation
First generation to have cultivated a lifestyle that puts emphasis on enjoyment and  leisure activities.
They want to enjoy freedom.They do not want to look far ahead into the future. They did not have to.
They are willing to pay premium prices for information in order to remain well informed and thereby enjoy life.
They are the first generation of parents who do not want to give up their preferred lifestyles for the sake of their children.
The New Breed Generation
“Life is to be enjoyed”
Strong sense of “entitlement”
“I am important”, “ and therefore I deserve a lot” “I do not want to give up anything”
The society and the environment “must accommodate us”
The Second Postwar BabyBoomers
Born in early ’70s  (8.1 million)
The first generation born into a predominantly middle-class environment.
They assume that everybody lives in much the same way as they do.
The Second Postwar Baby Boomers
They also believe life is to be enjoyed and assume a “let it be” attitude.
They are self-conscious and protective of privacy in their lives.
They want to be well informed but they tend to reject anything that has the power of authority.
They have strong desire to try new things and explore the unknown in trying to establish their “personal style”.
The Second Postwar Baby Boomers
“Make life just as I want  but do not lecture me”
Today’s Young Recruits
Born in the early ’80s. (7.3 million)
Growing up when the population of young people began to decline significantly.
Water Spiders
Today’s Young Recruits
They are perceptive and discerning.  They are quite realistic and practical.
They are more tolerant and more accepting of other people’s values and standards.  They are open to people from a wide variety of cultures and backgrounds.
They are quite sociable and outgoing.
They are quick to adapt new trends and high-tech innovations.
Today’s Young Recruits
“ Live and let be”
The Japanese consumer marketMariko FujiwaraHakuhodo, Inc., Tokyo JapanDemographics
Average life expectancies grew significantlyFastest aging population in the world todayThe very old dominate the senior population
Labor force will continue to decrease in size Labor forceJapanese population pyramid 1950-2050Japanese households decreasing rapidly in size  More couples live by themselves and more aloneMost significant demographic facts are:Fastest aging society in the worldFertility rate continues to drop very fastTotal population began decreasing in 2005The population is highly urbanized
Live in smaller familiesMore live as couples or alone
How they translate into consumer behavior?They are not interested in large quantitiesThey need smaller/ individual portions
They can exercise discretion easilyThey can focus on what they really want and forego others because nobody suffersThey can afford more expensive things
Japanese  familiesMarriage and divorce
per 1,000Younger generations are marrying laterFirst
marriagesMarriage and starting a family Fewer marriagesMarrying laterWaiting longer to start a familyHaving fewer childrenMore having no children
More divorces More remarriages
Greater variety of families
Half of them have members 2 or lessParents and two children not so typical any moreSingle-person households grow fastestHusband and wife (couples by themselves)One-parent and children less Other  The rest in special care facilities
Japanese womenJapanese women receiving increasingly  more education
1954-2005Lifecycle of Japanese women today
More Japanese  now work part time
Signs of recovery?More companies report profit
More companies began higher many more new recruits
The prices of property has begun recovering Consumers replacing their old appliances with more
new ones sooner
Some suffer from negative equity while the first time buyers enjoy relatively affordable housing costs
Consumers have begun replacing old with newMarket regains consumer confidence? Internet access by age groupNew and altered behavior ICT and e-Commerce or m-CommerceICT and info-communication industries altered the lifestyle of Japanese consumersICT empowered consumers with voiceICT allowed consumers to actively shape the market
Consumer values and preferences
Recent experiences for the Japanese “Seikatsusha” Prolonged recession has forced Japanese “Seikatsusha” to reexamine their consumer behavior
We saw negative growth in some years,  and the record high unemployment rates in post WWII deprived the younger workers of good jobs Changes in “Japanese” employment pattern and salary structure had an impact on consumer confidence
Some suffer from negative equity
Promising targetsWomen in the Japanese market
Better educatedHighly qualified women enter the workforceAn increasing number of young women  are working and the wage gap is narrowing for themMore women are pursuing careersWomen are becoming more visible in well-paid positions and in higher management positions
SeniorsToday’s Japanese seniorsYoung SeniorsThe generation who worked hard to rebuild and modernize the economy.They are the first to have accepted and adopted Western ideas and technology.They have ample time with disposable income and / or sizable savings to enjoy life.They are actively seeking ways to enjoy life for themselves.They try to remain young at heart.They try to remain active and want to look stylish and attractive.The First Postwar Baby Boomers80% of assets held by individuals in Japan belong to those aged over 50.They are in late 50s now and are well aware that they are getting older.
Most of them feel that they are young and capable of competing with their younger colleagues in many areas.The First Postwar Baby BoomersFinally, they are seeking ways to live their lives for themselves.They like to think of themselves as being fashion conscious and fashionably dressed.
They have interest in maintaining good health through healthy diet.Japanese seniors today want to serve themselvesJapanese seniors want a lot of communicationQuality of Life IssuesGood healthSensible dietFocus on healthy lifestylesInterest in sportsParticipation in sports eventsQuality of Life IssuesQuality of ExperienceTime ValueFocus on LeisureFocus on StyleSlow and genuine processSlow lifeYounger generationsThe New Breed GenerationBorn in ’60s  (9.3 million)The first generation to have grown up in the affluence generated by the rapid economic growth after the war.They have an entirely different value system from their parentsMartians ~ their attitudes toward life are extremely alien to the older generationsThe New Breed GenerationFirst generation to have cultivated a lifestyle that puts emphasis on enjoyment and  leisure activities.They want to enjoy freedom.They do not want to look far ahead into the future. They did not have to.They are willing to pay premium prices for information in order to remain well informed and thereby enjoy life.They are the first generation of parents who do not want to give up their preferred lifestyles for the sake of their children.The New Breed Generation“Life is to be enjoyed”
Strong sense of “entitlement”
“I am important”, “ and therefore I deserve a lot” “I do not want to give up anything”
The society and the environment “must accommodate us”
The Second Postwar BabyBoomersBorn in early ’70s  (8.1 million) The first generation born into a predominantly middle-class environment.
They assume that everybody lives in much the same way as they do.The Second Postwar Baby BoomersThey also believe life is to be enjoyed and assume a “let it be” attitude.They are self-conscious and protective of privacy in their lives. They want to be well informed but they tend to reject anything that has the power of authority.They have strong desire to try new things and explore the unknown in trying to establish their “personal style”.
The Second Postwar Baby Boomers“Make life just as I want  but do not lecture me”Today’s Young RecruitsBorn in the early ’80s. (7.3 million)
Growing up when the population of young people began to decline significantly.Water SpidersToday’s Young RecruitsThey are perceptive and discerning.  They are quite realistic and practical.
They are more tolerant and more accepting of other people’s values and standards.  They are open to people from a wide variety of cultures and backgrounds.
They are quite sociable and outgoing.
They are quick to adapt new trends and high-tech innovations.Today’s Young Recruits“ Live and let be

The Japanese consumer marketMariko FujiwaraHakuhodo, Inc., Tokyo JapanDemographicsAverage life expectancies grew significantlyFastest aging population in the world todayThe very old dominate the senior populationLabor force will continue to decrease in sizeLabor forceJapanese population pyramid 1950-2050Japanese households decreasing rapidly in sizeMore couples live by themselves and more aloneMost significant demographic facts are:Fastest aging society in the worldFertility rate continues to drop very fastTotal population began decreasing in 2005The population is highly urbanizedLive in smaller familiesMore live as couples or aloneHow they translate into consumer behavior?They are not interested in large quantitiesThey need smaller/ individual portionsThey can exercise discretion easilyThey can focus on what they really want and forego others because nobody suffersThey can afford more expensive thingsJapanese  familiesMarriage and divorceYounger generations are marrying laterFirst marriagesMarriage and starting a familyFewer marriagesMarrying laterWaiting longer to start a familyHaving fewer childrenMore having no childrenMore divorcesMore remarriagesGreater variety of familiesHalf of them have members 2 or lessParents and two children not so typical any moreSingle-person households grow fastestHusband and wife (couples by themselves)One-parent and children lessOtherThe rest in special care facilitiesJapanese womenJapanese women receiving increasingly  more education
1954-2005Lifecycle of Japanese women todayMore Japanese  now work part timeSigns of recovery?More companies report profitMore companies began higher many more new recruitsThe prices of property has begun recoveringConsumers replacing their old appliances with more  new ones soonerSome suffer from negative equity while the first time buyers enjoy relatively affordable housing costsConsumers have begun replacing old with newMarket regains consumer confidence?Internet access by age groupNew and altered behaviorICT and e-Commerce or m-CommerceICT and info-communication industries altered the lifestyle of Japanese consumersICT empowered consumers with voiceICT allowed consumers to actively shape the marketConsumer values and preferencesRecent experiences for the Japanese “Seikatsusha”Prolonged recession has forced Japanese “Seikatsusha” to reexamine their consumer behaviorWe saw negative growth in some years,  and the record high unemployment rates in post WWII deprived the younger workers of good jobsChanges in “Japanese” employment pattern and salary structure had an impact on consumer confidenceSome suffer from negative equityPromising targetsWomen in the Japanese marketBetter educatedHighly qualified women enter the workforceAn increasing number of young women  are working and the wage gap is narrowing for themMore women are pursuing careersWomen are becoming more visible in well-paid positions and in higher management positionsSeniorsToday’s Japanese seniorsYoung SeniorsThe generation who worked hard to rebuild and modernize the economy.They are the first to have accepted and adopted Western ideas and technology.They have ample time with disposable income and / or sizable savings to enjoy life.They are actively seeking ways to enjoy life for themselves.They try to remain young at heart.They try to remain active and want to look stylish and attractive.The First Postwar Baby Boomers80% of assets held by individuals in Japan belong to those aged over 50.They are in late 50s now and are well aware that they are getting older.Most of them feel that they are young and capable of competing with their younger colleagues in many areas.The First Postwar Baby BoomersFinally, they are seeking ways to live their lives for themselves.They like to think of themselves as being fashion conscious and fashionably dressed.They have interest in maintaining good health through healthy diet.Japanese seniors today want to serve themselvesJapanese seniors want a lot of communicationQuality of Life IssuesGood healthSensible dietFocus on healthy lifestylesInterest in sportsParticipation in sports eventsQuality of Life IssuesQuality of ExperienceTime ValueFocus on LeisureFocus on StyleSlow and genuine processSlow lifeYounger generationsThe New Breed GenerationBorn in ’60s  (9.3 million)The first generation to have grown up in the affluence generated by the rapid economic growth after the war.They have an entirely different value system from their parentsMartians ~ their attitudes toward life are extremely alien to the older generationsThe New Breed GenerationFirst generation to have cultivated a lifestyle that puts emphasis on enjoyment and  leisure activities.They want to enjoy freedom.They do not want to look far ahead into the future. They did not have to.They are willing to pay premium prices for information in order to remain well informed and thereby enjoy life.They are the first generation of parents who do not want to give up their preferred lifestyles for the sake of their children.The New Breed Generation“Life is to be enjoyed”Strong sense of “entitlement”“I am important”, “ and therefore I deserve a lot” “I do not want to give up anything”The society and the environment “must accommodate us”The Second Postwar BabyBoomersBorn in early ’70s  (8.1 million)The first generation born into a predominantly middle-class environment.They assume that everybody lives in much the same way as they do.The Second Postwar Baby BoomersThey also believe life is to be enjoyed and assume a “let it be” attitude.They are self-conscious and protective of privacy in their lives.They want to be well informed but they tend to reject anything that has the power of authority.They have strong desire to try new things and explore the unknown in trying to establish their “personal style”.The Second Postwar Baby Boomers“Make life just as I want  but do not lecture me”Today’s Young RecruitsBorn in the early ’80s. (7.3 million)Growing up when the population of young people began to decline significantly.Water SpidersToday’s Young RecruitsThey are perceptive and discerning.  They are quite realistic and practical.They are more tolerant and more accepting of other people’s values and standards.  They are open to people from a wide variety of cultures and backgrounds.They are quite sociable and outgoing.They are quick to adapt new trends and high-tech innovations.Today’s Young Recruits“ Live and let be”The Japanese consumer marketMariko FujiwaraHakuhodo, Inc., Tokyo JapanDemographicsAverage life expectancies grew significantlyFastest aging population in the world todayThe very old dominate the senior populationLabor force will continue to decrease in size Labor forceJapanese population pyramid 1950-2050Japanese households decreasing rapidly in size  More couples live by themselves and more aloneMost significant demographic facts are:Fastest aging society in the worldFertility rate continues to drop very fastTotal population began decreasing in 2005The population is highly urbanizedLive in smaller familiesMore live as couples or alone
How they translate into consumer behavior?They are not interested in large quantitiesThey need smaller/ individual portions
They can exercise discretion easilyThey can focus on what they really want and forego others because nobody suffersThey can afford more expensive things
Japanese  familiesMarriage and divorceper 1,000Younger generations are marrying laterFirst marriagesMarriage and starting a family Fewer marriagesMarrying laterWaiting longer to start a familyHaving fewer childrenMore having no childrenMore divorces More remarriagesGreater variety of familiesHalf of them have members 2 or lessParents and two children not so typical any moreSingle-person households grow fastestHusband and wife (couples by themselves)One-parent and children less Other  The rest in special care facilitiesJapanese womenJapanese women receiving increasingly  more education 1954-2005Lifecycle of Japanese women todayMore Japanese  now work part time Signs of recovery?More companies report profitMore companies began higher many more new recruits
The prices of property has begun recovering Consumers replacing their old appliances with more new ones soonerSome suffer from negative equity while the first time buyers enjoy relatively affordable housing costsConsumers have begun replacing old with newMarket regains consumer confidence? Internet access by age groupNew and altered behavior ICT and e-Commerce or m-CommerceICT and info-communication industries altered the lifestyle of Japanese consumersICT empowered consumers with voiceICT allowed consumers to actively shape the market
Consumer values and preferencesRecent experiences for the Japanese “Seikatsusha” Prolonged recession has forced Japanese “Seikatsusha” to reexamine their consumer behaviorWe saw negative growth in some years,  and the record high unemployment rates in post WWII deprived the younger workers of good jobs Changes in “Japanese” employment pattern and salary structure had an impact on consumer confidence
Some suffer from negative equityPromising targetsWomen in the Japanese marketBetter educatedHighly qualified women enter the workforceAn increasing number of young women  are working and the wage gap is narrowing for themMore women are pursuing careersWomen are becoming more visible in well-paid positions and in higher management positions

SeniorsToday’s Japanese seniorsYoung SeniorsThe generation who worked hard to rebuild and modernize the economy.They are the first to have accepted and adopted Western ideas and technology.They have ample time with disposable income and / or sizable savings to enjoy life.They are actively seeking ways to enjoy life for themselves.They try to remain young at heart.They try to remain active and want to look stylish and attractive.The First Postwar Baby Boomers80% of assets held by individuals in Japan belong to those aged over 50.They are in late 50s now and are well aware that they are getting older.Most of them feel that they are young and capable of competing with their younger colleagues in many areas.The First Postwar Baby BoomersFinally, they are seeking ways to live their lives for themselves.They like to think of themselves as being fashion conscious and fashionably dressed.
They have interest in maintaining good health through healthy diet.Japanese seniors today want to serve themselvesJapanese seniors want a lot of communicationQuality of Life IssuesGood healthSensible dietFocus on healthy lifestylesInterest in sportsParticipation in sports eventsQuality of Life IssuesQuality of ExperienceTime ValueFocus on LeisureFocus on StyleSlow and genuine processSlow lifeYounger generationsThe New Breed GenerationBorn in ’60s  (9.3 million)The first generation to have grown up in the affluence generated by the rapid economic growth after the war.They have an entirely different value system from their parentsMartians ~ their attitudes toward life are extremely alien to the older generationsThe New Breed GenerationFirst generation to have cultivated a lifestyle that puts emphasis on enjoyment and  leisure activities.They want to enjoy freedom.They do not want to look far ahead into the future. They did not have to.They are willing to pay premium prices for information in order to remain well informed and thereby enjoy life.They are the first generation of parents who do not want to give up their preferred lifestyles for the sake of their children.The New Breed Generation“Life is to be enjoyed”Strong sense of “entitlement”“I am important”, “ and therefore I deserve a lot” “I do not want to give up anything”The society and the environment “must accommodate us”The Second Postwar BabyBoomersBorn in early ’70s  (8.1 million) The first generation born into a predominantly middle-class environment.They assume that everybody lives in much the same way as they do.The Second Postwar Baby BoomersThey also believe life is to be enjoyed and assume a “let it be” attitude.They are self-conscious and protective of privacy in their lives. They want to be well informed but they tend to reject anything that has the power of authority.They have strong desire to try new things and explore the unknown in trying to establish their “personal style”.The Second Postwar Baby Boomers“Make life just as I want  but do not lecture me”Today’s Young RecruitsBorn in the early ’80s. (7.3 million)Growing up when the population of young people began to decline significantly.Water SpidersToday’s Young RecruitsThey are perceptive and discerning.  They are quite realistic and practical. They are more tolerant and more accepting of other people’s values and standards.  They are open to people from a wide variety of cultures and backgrounds.They are quite sociable and outgoing.They are quick to adapt new trends and high-tech innovations.Today’s Young Recruits“ Live and let be

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