Successful in Japan
think: act CONTENT
2007
In the fast lane
"What happens in Tokyo will happen elsewhere in the world tomorrow. It’s home to the most sophisticated customers in the world." Yves Carcelle, President of Louis Vuitton
Luxury brand Gucci's largest flagship store is not in Milan, New York or Paris. The eight-story "Gucci Ginza" with its three purse departments, café and sky lounge opened its doors in early November 2006 in Tokyo. The building was erected in one of the world’s most expensive locations, where the price per square meter of land is an estimated USD 140,000. Gucci's reasons are clear: Japan is quite simply its most important market. More than 22% of its worldwide sales in 2005 were generated in Japan. For its competitor Louis Vuitton, the figure was around 30%.
Japan is the world's second largest economy. Its 130 million citizens enjoy enormous purchasing power. This makes it a highly attractive market – and not just for producers of luxury goods. In many respects Japan's economy sets the trends. Some 60% of new animated movies and around three-quarters of industrial robots are developed and produced there. And the fate of new mobile telephone applications and digital cameras lies – literally – in Japanese hands.
And yet Japan's potential is still often underestimated. The fact that Toyota will soon be the world’s biggest automaker is evidence of the West's arrogance. Likewise in consumer electronics, traditional European brands are being swept off the market – today nearly three-quarters of all digital cameras and DVD recorders and roughly half of all new plasma TVs bear the label "Made in Japan". And in the mass market for video games, only the American giant Microsoft has been able to hold its own against Nintendo and Sony.
Japan looks likely to be the center of attention for a while to come. According to the Economist Intelligence Unit, the Japanese economy is set to grow faster than the Euro zone in 2006 and 2007. Together with China it may even take over from the US as the motor driving the world economy, some economists believe.
