The key to Nippon’s new branding lies in the 20th century model!
Nippon’s new branding may be in the 20th century model.
From a U.S. perspective, we considered the price disparity between the U.S. and Japan.
The yen continues to depreciate, and there is talk of 130 yen to the dollar, which, considering that when the yen was 100 yen, Japan’s economic value to the world (dollar) has dropped by 30%.
For 30 years since 1990, the price of goods has not risen in Japan. And salaries have not risen either.
In the U.S., prices of goods have risen 2.5 times over the past 30 years, and salaries have risen in tandem.
If each country were to complete its own independent consumption, this disparity would not be a problem, but as long as there is trade, there will be all kinds of problems.
It is easy to compare with the price of ramen. A bowl of ramen costs 1,000 yen in Japan, but $25 in Los Angeles. Multiplied by the current exchange rate of 126 yen, the price is 3,150 yen, more than three times higher. But if an American ramen lover eats the best ramen in Tokyo, he will be super happy with 1/3 of the price!
It is the same as when people used to go shopping in Thailand or Shanghai when the Japanese economy was booming. Today, Japan’s high quality products, parts, sightseeing trips, etc., are all attractive to foreign countries.
Before Corona, many hotels were built in Kyoto as part of the inbound policy, but due to Corona’s closed-door policy, no one comes to Kyoto anymore. As a result, hotels that cost 20,000 yen per night now cost 3-5,000 yen per night.
At $300 (37,800 yen) per night in Los Angeles, you can only stay in a business hotel at best.
Doing business in the U.S., as I do, allows me to look at Japan from a dollar perspective. Japan has to rely on imports for many of its resources, but it can strengthen its exports of domestically made automobiles, steel, and parts because of its low labor costs and high technological capabilities. Branded apparel can be sold at high prices. Of course, we must also focus on increasing tourism demand in the future. The selling price of domestic real estate such as Okinawa and Hokkaido to foreign countries should be more than doubled. The same goes for entertainment. ) should be proposed to the world.
Since it is too costly for the Japanese to go overseas, why not make everything domestically and sell it overseas at a higher price? In other words, the 20th century model (remember the Japan of the 1960s-1980s) is needed now more than ever.
You may not travel abroad for a while.
Even if the Western countries unite to contain Russia, the ruble’s decline will be fleeting, and it has already returned to its pre Ukrainian conflict level. This is because oil-producing countries (even Saudi Arabia!) ) have teamed up with Russia (OPEC plus). Not a single country has joined in sanctioning Russia.
The reason is that they hate the US (Biden). Because they want the US to reduce oil production and reduce its value for their own convenience, or increase production only when it is convenient. Decarbonization will cause the Middle East and Russia to lose wealth. The US is fine because of shale gas, and the only country losing money is Japan, which has no resources. So, no one is going to help the yen weaken. Try selling a lot of US Treasuries already, or go ahead with the new nuclear power plant research that Bill Gates is promoting.
Japan should do better with its own strategy, or rather, its own self!