An Evening of Romance: The ACCJ Charity Ball

2004-12-11: The ACCJ's 2004 "Venetian Dream" Charity Ball, held on December 11 at the beautiful Westin Tokyo, was a great success and a lot of fun. The Westin was abuzz with revelry as hundreds of members and guests arrived in their finery to enjoy excellent wines provided by Ernest and Julio Gallo Japan, fine cigars from British American Tobacco, and the romantic sounds of the Mendelsax Trio during the cocktail hour.

Members and guests found their seats and continued with the wine and conversation, accompanied by enchanting arias performed by Japan's top soprano, Ryoko Sunakawa, and tenor Satoshi Chubachi, both of the Japan Opera Foundation. The repertoire, selected from the Italian opera tradition, lifted all into the "Venetian Dream" spirit of the evening. A scrumptious dinner was followed by the most anticipated point of the evening--the raffle prize draw. Over 11 million yen in prizes, including a fantastic grand prize of first-class tickets for two on American Airlines to any AA destination in the United States, were raffled off.

The excitement continued into the night with dancing to Kaleb James' Dance Extravaganza and cabaret jazz in the Dunhill cigar bar with Lenne Hardt, along with fine cigars from British American Tobacco and complimentary port wine provided by Quinta do Noval. It was a fantastic evening thanks to the generosity of our sponsors and the impeccable support of the Westin Tokyo. Best of all, the ACCJ was able to raise 5.84 million yen, distributed in equal amounts of 1,947,500 yen between three deserving charities: Help Asian Women's Shelter, HOPE Worldwide Japan, and Second Harvest.

Debbie Howard Elected to Lead Chamber Again in 2005

2004-12-07: Debbie Howard has again been chosen to lead the American Chamber of Commerce in Japan (ACCJ) as president. Howard brings a mix of both Fortune 500 and entrepreneurial experience to representing the increasingly diverse interests of ACCJ member companies.

"I am honored to be selected to lead the ACCJ in 2005," Howard stated. "The ACCJ plays a vital role as an agent of change in offering ideas on how to achieve structural reform to improve the business environment in Japan for all businesses--foreign and Japanese. I look forward to continuing to strengthen that role, and to providing our more than 3,100 members with value-added networking and business information programs."

Selected to join Ms. Howard on the 2004 Executive Committee as Vice Presidents were:

-- Charles D. Lake II, President, AFLAC Japan
-- Kumi Sato, President and Representative Director, Cosmo Public Relations Corporation
-- Michael D. Weenick, President of NGO Architecture (Chubu)

They join the following incumbent Vice Presidents:

-- John Diefenbach, President, PAE Design and Facility Management
-- Norman R. Solberg, Attorney and Counselor at Law/Gaikokuho Jimu Bengoshi, Solberg International Law Office (Kansai)
-- David Satterwhite, Ph.D., Executive Director, the Japan-United States Educational Commission
-- Allan D. Smith, Regional Vice President of AIG Companies, Japan and Korea

Mark Baldwin, Director, KPMG, was chosen to serve as the Chamber's Treasurer.

Elected to serve as Governors were:
-- Lawrence W. Bates, General Counsel, GE Japan
-- Nicholas E. Benes, President, JTP Corporation, K.K.
-- Vicki L. Beyer, Vice President, Morgan Stanley Japan Limited
-- Ravi Chaturvedi, President--Northeast Asia, Procter & Gamble Far East, Inc. (Kansai)
-- Marc Fuoti, Senior Vice President, Asia Pacific, Twentieth Century Fox Home Entertainment
-- Harry Hill, CEO, Oak Lawn Marketing, Inc. (Chubu)
-- Thomas F. Jordan, President, Jordan & Associates
-- Todd M. McHenry, Vice President, Regional Counsel--Asia Pacific, The Walt Disney Company (Japan) Ltd.
-- Jay Ponazecki, Partner, Morrison & Foerster LLP
-- Mark Schwab, Vice President--Pacific, United Airlines

The above ACCJ officers will join these incumbent Governors:

-- Royanne Doi, Vice President and General Counsel, State Street Japan
-- Glen S. Fukushima, Co-President and Representative Director, NCR Japan, Ltd.
-- Robert F. Grondine, Partner, White & Case LLP
-- Tad Johnson, General Manager, P&W Aftermarket Japan K.K.
-- Kirk Patterson, Dean, Temple University Japan

 

October 2004

Maverick Nagano Governor Tanaka Attacks Wasteful Central Government Subsidies

2004-10-26: Maverick Nagano Prefecture Governor Yasuo Tanaka told an attentive ACCJ gathering at the Place Hotel October 26 that central government subsidies should stop being wasted on public works projects that provide little benefit for local people and businesses. Instead of building new roads and dams decided by the national bureaucracy with Tokyo-based construction companies, local governments should be given the power to tax and decide how to spend the money on higher value projects such as river, forest and road maintenance, utilizing local resources. Noting that he had won election twice over bitter resistance from the bureaucracy, and calling himself an "ultra-non-partisan" without formal endorsement from any political party, Tanaka also extolled the virtues of "Shinshu" (the original name for Nagano) as a place to invest, and called on his countrymen to speak up and require that the government officials not hide behind anonymity to avoid responsibility for their actions.

Nagano Prefecture Governor Yasuo Tanaka

Tokyo Gov. Ishihara Says Tokyo's Progress Reflects Japan's Potential

2004-10-12: Tokyo Governor Shintaro Ishihara spoke to an ACCJ luncheon audience of over three hundred on October 5 at the Hilton Hotel that included members from the Canadian, French, British and Finnish chambers as well as twenty representatives from the press. The ever-candid Governor noted that his views had often been criticized abroad, including in the U.S., China and North Korea, but that they were often distorted and the disapproval just made him more determined.

He said that since "the potential of Tokyo leads to the potential of Japan," he is promoting help for small- and mid-size enterprises (SMEs), which he termed the real drivers for innovation and economic growth, despite the indifference of central government bureaucrats. The governor also welcomed foreign direct investment, and said that he was setting up a "one-stop shop" to help foreign companies here.

Tokyo Governor Shintaro Ishihara

The Annual Europe-North America Golf Challenge:
North America Takes the Second DaimlerChrysler Cup

2004-10-04: On October 1, the European and North American business communities in Tokyo held their second friendly golf tournament at Atsugi Kokusai Country Club. The Europeans took the inaugural cup in 2003, but this year the North Americans came out on top by 0.4 strokes.

Sponsored by German-American auto giant DaimlerChrysler and 33 other companies, the tournament brought together 139 players--including nine women--from the American and Canadian chambers of commerce on one side and the European Business Community on the other side. The North American team had 72 players and the European team 67. The players represented more than 15 different nationalities: the North Americans (from the ACCJ and the Canadian Chamber) made up the largest group, about 45 players, followed by 35 Japanese, 15 Germans, 11 Swedes and 9 Finns.

The DaimlerChrysler Cup has quickly established itself as the premier golfing event for the foreign business community here. For more information and pictures of this great event, please visit the DaimlerChrysler Cup website.

The 2004 competitors in the DaimlerChrysler Cup

September 2004

Financial Services Agency Commissioner Gomi Presents an Agency Blueprint

2004-09-22: On August 15, Financial Services Agency Commissioner Hirofumi Gomi addressed over 160 members and guests at the Capitol Tokyu Hotel. Considered to be one of the founding fathers of the FSA, Commissioner Gomi spoke on the various issues facing the FSA, the immediate future of the agency, and fielded several questions from the audience.

The commissioner noted several challenges that currently face the FSA. These include the need to improve the robustness and stability of the financial system, partly by eliminating the nonperforming loan problem by the end of this fiscal year; assisting and encouraging the transition from savings to investing through structural reform; continual inspection and supervision; and continuing international negotiations and discussions to improve international policies.

In presenting his blueprint for the FSA, Commissioner Gomi expressed his belief that the FSA will broaden its focus and strengthen its policies as it continues into the 2005 fiscal year.

Financial Services Agency Commissioner Hirofumi Gomi

ACCJ Releases Major Reports on Privatization in Japan

2004-09-02: On August 30, leaders of the ACCJ Privatization Task Force held a press conference at the Japan National Press Club to announce the release of two major ACCJ reports, "Applying Global Best Practices to Privatization in Japan" and "Applying Privatization Global Best Practices to Japan Post." The event drew nearly three dozen representatives of the press and camera crews from three TV stations.

The privatization of Japan Post has been a hot topic lately. Along with its mail delivery service, Japan's postal entity is also the world's largest bank and the world's largest insurance company. The privatization of Japan Post's Yucho postal savings program and Kampo life insurance program has massive implications for the country's economy, the world's second largest, as well as international financial markets.

At the press event, Privatization Task Force Chair Allan Smith discussed global best practices for the privatization of state-owned enterprises based on lessons learned from the OECD and World Bank. These best practices include setting clear objectives, ensuring transparency and a level playing field, maintaining a strong political commitment, and an effective communications strategy.

Task Force Vice Chair Andrew Conrad applied those global best practices to the privatization of Japan Post. He stressed that these practices should be incorporated in the privatization process as the Japanese government presses forward. He placed particular emphasis on ensuring a level playing field between Japan Post and its private-sector competitors, and setting a moratorium on any new Japan Post products until that level playing field is established.

Flanked by ACCJ Chairman Robert Grondine (left) and Privatization Task Force Vice Chair Andrew Conrad(right), ACCJ Privatization Task Force Chair Allan Smith (center) makes a point.

A reporter asks a question of the ACCJ representatives of the Privatization Task Force.

August 2004

ACCJ Charity Ball 2004: "Venetian Dream--A Romantic Gala Night"

2004-08-11: The 2004 ACCJ Charity Ball has been set for December 11 at the beautiful Westin Hotel in Ebisu. The theme for this fantastic event--"Venetian Dream--A Romantic Gala Night"--reflects the ACCJ's objective of providing an evening of stylish and quixotic fun through music and dance while raising funds to help the less fortunate stand up and achieve their own dreams.

This marks the third year the Chamber has held a year-end gala with charity in mind. Foreign businesses in Japan continue to be concerned about the plight of those in our community in need of assistance, and this is one way ACCJ members and member companies can say "thank you" to the wonderful community in which we live. All proceeds earned in excess of costs will benefit some very worthy charities.

July 2004

Narita Airport Official Touts the Benefits of Privatization

2004-07-01: On June 29, Senior Vice President Harubumi (Harry) Kobori of the Narita International Airport Corporation presented his views on the airport's privatized future. Created in April of this year, the new airport corporation replaces the Narita Airport Authority (NAA) but will retain the NAA acronym because of the latter's high recognition factor. Little else, Kobori says, will stay the same, noting that the public, the NAA, and even the government all want greater freedom to do business at the airport.

The public can expect to receive more efficient and lower-priced service at a privatized Narita Airport. The government can look forward to revenues from the sale of airport stock and continued income from corporate taxes and the payment of 11 billion yen per year over the next 14 years, which will help pay for investments it has made in airport infrastructure.

The NAA is anxious for the greater latitude privatization brings despite the greater obligations that accompany it. Kobori says that several projects will enhance the airport corporation's IPO, which is scheduled for autumn 2007. One such project is the construction of a new train line that will be almost twice as fast as current trains; another is the reconstruction of the south wing of Terminal 1. The reconstruction will allow the NAA to reorganize airlines so that partners can use the same facilities.

For example, United Airlines and ANA are partners in the Star Alliance but are located in different terminals. Currently, passengers and their luggage have to be transferred from one terminal to the other for connecting flights. Pairing partners will result in more efficient use of airport facilities and, more importantly, fewer hassles and delays for passengers.

Kobori is upbeat about the effect these projects will have on lowering costs, expanding business, and better serving passengers and the community. Full privatization is the goal, and he believes these projects will promote the sale of the government's holdings, eventually getting all of the company's shares in the private market.

Senior Vice President Harubumi (Harry) Kobori of the Narita International Airport Corporation

June 2004

Garr Reynolds on Designing and Delivering Presentations Like a Pro

2004-06-29: On June 17 Garr Reynolds, former manager of Apple Computer's Worldwide User Group and currently an associate marketing professor at Kansai Gaidai University, shared tips on designing and delivering high-impact presentations. He noted that because people process verbal information and visual information in separate channels, the ideal presentation mixes narration and graphics. This has a number of implications when designing presentations in programs such as PowerPoint.

Reynolds suggests keeping your presentations simple, connecting with the audience, using the absolute minimum text on your slides, not reading your slides, and keeping those reams of supporting data as handouts to distribute afterward. Garr also demonstrated the power of simple visuals using high-quality graphics.

Finally, Reynolds reminded the audience of some good delivery skills: synchronizing speaking and transitions (in other words, showing the next item as you begin to speak about it), moving away from the podium, remembering that the "B" key makes the screen go blank in PowerPoint, using a remote control device to advance slides, making and maintaining eye contact, taking it slowly, and keeping the lights on!

Garr Reynolds

Author Robert Whiting on Japan's Diamond Ambassadors

2004-06-23: On June 16 Robert Whiting, author of the book The Meaning of Ichiro: The New Wave from Japan and the Transformation of Our National Pastime, described how Japanese players like Ichiro Suzuki and Hideki Matsui are altering the U.S.-Japan relationship for the better. Now household names in both countries, Japan's superstar transplants have done more to raise the interest of average Americans in Japan and things Japanese than all the scholars and so-called Japan experts have managed collectively to date. People in Seattle--who just a few years ago were not even aware that sushi came from Japan--now wear headbands with Japanese kanji characters on them and scream "Gambare!" (a Japanese expression literally meaning "to endure" that is typically used to urge someone on) to Ichiro from the stands. On the other side of the equation, Japanese tourists go to New York and Seattle to attend baseball games, and Major League Baseball games are shown on Japanese TV.

According to Whiting, the popularity of these players is a great source of pride to the Japanese people, is helping to break down stereotypes, and is dramatically changing the business of baseball and sports broadcasting in both countries.

Author Robert Whiting

Goldman Sachs' Kathy Matsui: Bullish on Japan's Economic Chances

2004-06-22: Goldman Sachs Managing Director Kathy Matsui is bullish on Japan's economy. The chief Japan equity strategist for her company, Matsui predicts a period of reflation, thanks largely to increased consumer demand and positive structural factors. To illustrate, she cites a rise in nominal consumption and a greater propensity to consume, particularly by the over-60 age group--a significant indicator given Japan's age demographics. The job market is also improving, with a rise in full-time employment.

Japan's capital stock is aging and inventory levels are at historic lows, too, which should lead to recapitalization and restocking. Matsui also points to a rebound in land prices in major metropolitan areas and hotter demand for both residential and commercial property as other positive indicators. Housing loan demand and mortgage rates are rising in tandem. Despite lots of new grade "A" commercial real estate hitting the market, slight increases in rents indicate growth. Moreover, the NPL crisis seems to be well on its way to resolution.

Goldman Sachs Managing Director Kathy Matsui

ACCJ Announcement: Carter Witt Media Chosen as Strategic Partner for Living in Japan 2004

2004-06-11: We are happy to announce that Carter Witt Media, publisher of Japanzine-Japan's national English-language magazine--has been selected to produce the new edition of the ACCJ's best-selling book Living in Japan.

Carter Witt Media is bringing a fresh look, new content, and a wry, engaging tone to the 2004 edition, which will be visually captivating, fun to read, and full of relevant, practical information. This is a book that will look great on a coffee table but be even more welcome in your bag or on your reference shelf.

The book will naturally cover the essentials of living here, like getting a visa, finding a place and settling in, getting medical care and getting around, finding a job and establishing your network. You'll also get plenty of help on travel, children and schooling, pets, educational opportunities, and sports and entertainment for those times when you're on your own time.

And while books on living in Japan tend to concentrate on the Tokyo area, Living in Japan 2004 will give both long-time residents and newcomers on-the-ground insights into the whole country. New to the book:

• An extensive chapter on starting a business in Japan
• Insightful information on Kansai, Chubu, Kyushu, and elsewhere
• Tips on crucial concepts in Japan and savvy advice on handling culture shock

The book is due out in mid-September, and will retail for 2,500 yen.

MARKETING OPPORTUNITY
The ACCJ and Carter Witt Media will be marketing Living in Japan 2004 aggressively with promotional events held all over the country. This marketing drive-including a dynamic advertising campaign aimed at promoting book sales as well as the services and products of advertisers-will bring the names of our sponsors to a broad demographic. (We are also offering sponsorship opportunities for firms interested in supporting this great and very high profile project.)

Yokozuna Musashimaru

2004-06-07: "Sumo hurts," was how yokozuna Musashimaru summed up his life as a wrestler in a rare, intimate discussion with ACCJ members and guests on June 2. The yokozuna and his close friend, well-known sumo artist Lynn Matsuoka, gave their views on sumo, both as a sport and as a very special culture. They also spoke about the difficulties foreigners have adjusting to the training and rising through the ancient sport?s very hierarchical system.

Musashimaru, who will be retiring officially from sumo later this year, spent the latter part of the event signing autographs and posing with attendees for pictures.

Yokozuna Musashimaru

May 2004

Merrill Lynch Japan's Jesper Koll Says Japan Is Back

2004-05-28: Jesper Koll, speaking to over two hundred ACCJ members and guests on May 18, announced that Japan "stands in front of a multi-year expansion." He predicts the start of inflation and a job-rich recovery.

He also predicts that much of the growth will be due to domestic consumer spending and that growth will come from the service sector. Using data from the MHLW, he also showed that manufacturing jobs--which stood at 38.9 percent of jobs in 1990--fell to 15.9 percent by 2003. Likewise, construction jobs went from 17.1 percent to 14.9 percent, while services increased from 20.3 percent in 1990 to 40.6 percent in 2003. Increased consumer spending coupled with the aforementioned structural change will make for job growth. He went so far as to predict the unemployment rate to "drop to 4 percent by Christmas."

According to Koll, the shift in the economy's structure is significant. He mentioned that the unwinding of cross shareholding is contributing to a more competitive marketplace and the Koizumi government and the BoJ have taken positive steps that make it easier for business to obtain loans.

Other causes of the positive outlook come from Japan being the only country in the world with a trade surplus with China. Mr. Koll warned this export favorability would be less of a growth stimulus in the future, however, as China's economy will likely slow down.

Merrill Lynch Japan Chief Analyst Jesper Koll

Northwest Airlines CEO Richard Anderson Assesses the State of Airlines and Air Travel

2004-05-25: On May 19, Northwest Airlines CEO Richard H. Anderson told a large crowd of ACCJ members and guests at the Hotel InterContinental Tokyo Bay about the tremendous changes and challenges facing the airline industry. He pointed to the deregulation of the industry--coupled with recent world events such as 9/11, SARS, the war in Iraq, higher oil prices, and new technologies--as the key drivers altering the way airlines operate.

According to Mr. Anderson, the security measures airlines are now taking at airports has made air travel safe, and the competitive climate continues to ensure high consumer value. He predicted more consolidation among carriers as well as an expansion of alliances between carriers. According to Mr. Anderson, airlines that adopt strong, sensible strategies will continue operating while other airlines will end up being consolidated. He reported that Northwest is increasing its own Alliance Partners program, and that this growth is widening the ability of Northwest and its partners to serve customers anywhere in the world.

Northwest Airlines CEO Richard H. Anderson

Former Agriculture Sec. Daniel Glickman on the U.S. Political Climate

2004-05-19: On May 14, an ACCJ audience that included former Kansas Senator Nancy Kassebaum Baker, wife of U.S. Ambassador to Japan Howard Baker Jr., got some insight into the current political climate in the United States from former U.S. Secretary of Agriculture Daniel Glickman.

Glickman, who represented Kansas for more than 18 years in the House of Representatives before joining the Clinton administration, currently teaches at Harvard University's John F. Kennedy School of Government's Institute of Politics, maintains a legal practice, and serves on the boards of several major corporations and foundations. One of his objectives is to inspire young people to enter politics and public service. Addressing a question about why young people in America seem disinterested in politics, he shared several ideas with the audience, including making politics less partisan.

Mr. Glickman commented on the current presidential election campaign, particularly from the Democratic Party's perspective. He noted that "as Iraq goes, so goes the Bush administration," and said that other key variables in the election will be the price of energy and the overall state of the U.S. economy.

Bemoaning the increasingly high cost of election campaigns in the U.S., Glickman called it a barrier that keeps otherwise qualified candidates from running. He also said the redistricting of congressional seats in recent years has led to a much more polarized House of Representatives, and added "America is more divided than it used to be."

Former Secretary of Agriculture Daniel F. Glickman


From left to right: Food and Agriculture Committee Chair Donald Nordeng, former Kansas Sen. Nancy Kassebaum Baker, ACCJ President Debbie Howard, Mrs. Glickman, Mr. Glickman, former ACCJ President Glen S. Fukushima

April 2004

WSJ Tech Columnist Walter S. Mossberg on the Future of the Internet and the Decline of the PC

2004-04-22: On April 19, respected technology columnist Walter S. Mossberg of the Wall Street Journal made some pithy predictions about the Internet, PCs, and the host of gadgets threatening PC dominance. Without a large installed base of PCs in the United States, he said, the Internet would not have enjoyed such success. "But I believe the dominance of the PC has peaked as the dominant device to reach the Internet," he added, and contends that expressions like "getting online" or "being online" will soon become quaint as most of the devices we use interface with the Internet seamlessly. In fact, Mossberg noted, the Internet itself will become a utility like the power grid.

One of the major developments required for ubiquitous use of the Internet is greater wireless connectivity. At the moment the U.S. lags behind most of the industrialized world in this regard, primarily because the U.S. government and industry failed to adapt a standard to rally around early on. However, Mossberg predicted that in a year the U.S. will have a wireless network that is better than Europe's and equal to KDDI here. He also cites major developments in the future for the U.S.-based WiMax.

Mossberg foresees greater convergence between gadgets like phones, cameras, and PDAs, and that some devices without voice capability, such as cameras, will also have Internet connectivity for sending and receiving data. He believes that hand-held phones will need to become more user-friendly, however, particularly in the area of data input functionality. In addition, he said that we will soon see some very usable portable/collapsable/roll-up keyboards.

Wall Street Journal technology columnist Walter Mossberg holds up two of the most ubiquitous connectivity devices.

New Jersey's William Watley Makes the Case for a Faster Pharmaceutical Approval Process

2004-04-20: On April 14, Secretary and CEO Dr. William Watley of the New Jersey Commerce and Economic Growth Commission gave an impassioned speech to ACCJ members, guests, and press about how important it is for Japan to speed up the approval process for pharmaceuticals. The aim is to get safe drugs that make people's lives better into the healthcare system faster. He believes this will benefit the Japanese people and improve the economic climate in New Jersey, which has a high density of pharmaceutical and related technology companies. "Three-fourths of the biggest pharmaceutical companies on Earth have a presence in New Jersey," Watley noted.

While Secretary Watley believes that countries have a right and an obligation to their citizenry to ensure that only safe drugs reach the market, he believes they have an equal obligation to approve new drugs quickly so these life-saving, life-improving medicines can reach the people who need them. He also argues that faster approval creates a more positive business climate for the pharmaceutical industry, which in turn improves the ROI outlook for would-be investors in research and development.

Secretary Watley stressed the importance of free and fair trade and that healthy competition is not a zero sum game. When asked what he thought of all the political and media attention in the US being given to job outsourcing, he stated that both "Japan and New Jersey are coming to grips with outsourcing" and that it is in fact a shared experience between the people of New Jersey and Japan. It may be easy for people to focus only on the topic of job outsourcing, he said, but this topic really must be discussed in the context of trade and foreign direct investment and how such exchanges also bring jobs and opportunities. He went on to explain that Japanese FDI to New Jersey has brought thousands of good jobs to his state, and such positive exchanges must be recognized, as must the need for retraining the workforces of declining industries for new jobs in growing sectors.

Secretary and CEO Dr. William Watley of the New Jersey Commerce and Economic Growth Commission


Secretary Watley is flanked by Information, Communications, and Technology Chair Michael Alfant (left) and Healthcare Committee Chair Mark Colby

March 2004

Wall Street Journal Pundit Forecasts Close Election

2004-03-31: In a stimulating presentation on March 19, Wall Street Journal political editor and TV commentator John Harwood predicted a close win by President Bush over Senator Kerry this fall. The economy is likely to continue to improve, although it is unclear how many new jobs it will produce. Iraq also remains an uncertain influence, especially as signs of solidarity among the coalition have emerged after the Spanish election.

Ideological polarization is causing both parties to shore up their respective electoral bases, with little crossover voting anticipated. This also makes it difficult to predict how either candidate would act once the election is over. Kerry's Senate record indicates that he is a strong free-trader, but the "export of jobs" has become a serious issue. On the other hand, the normally more free trade-oriented Republicans have taken protectionist measures recently. Redistricting has also contributed to the polarization by creating "safe" seats for one party. Only around 25 House districts having serious contests. Consequently, the Republicans will almost certainly retain control of the Congress.

National Political Editor John Harwood of The Wall Street Journal


Wall Street Journal Japan Bureau Chief Yumiko Ono and Japan-based reporter Sebastian Moffett of The Asian Wall Street Journal

Japan Consuming's Dr. Roy Larke on the Future of Japanese Retailing

2004-03-23: On March 17, Dr. Roy Larke, the editor of leading retail and distribution monthly report Japan Consuming and a professor at the University of Marketing & Distribution Sciences, described the factors behind the current state of retailing today and examined some key trends that will transform Japan's retail sector over the next five years.

In his well thought-out and interesting viewpoint on retailing during the last decade, Dr. Larke showed how the end of the asset boom paralyzed local retailers by the early 1990s and that many were still resisting changes as late as 2001. Most continued to rely on manufacturers to handle not just supply but product marketing, branding, and merchandising as well--functions normally handled by retailers in the U.S. and Europe. He mentioned Fast Retailing, Yamada Denki, Aeon Group, Point, Honeys, Cainz, Kohnan, and Comme Ca as important exceptions to the general malaise. These firms spent the 1990s growing rapidly by introducing modern retailing practices, taking control of the supply chain, merchandising, and developing their store chains as distinct brands. They showed that the 1990s were only a lost decade for companies that failed to innovate; companies that did adapt showed growth rates of as much as 500 percent.

Japan Consuming's Dr. Roy Larke

Dr. Larke then profiled three distinct trends appearing in various parts of the retail sector: changes in service, retail brands, and market concentration. Many companies, for example, have altered their staff training to promote a friendlier, more open service style. He noted that leaders such as Fast Retailing's Uniqlo, Comme Ca, Sofmap, Cainz, Sanei International, and United Arrows are forerunners of how Japan's entire retail sector will look in five years: clearly defined brands with an increasing percentage of merchandise made up of store-branded product. Dr. Larke also provided a detailed profile of French retailer Carrefour, which is showing signs of success after several years of trial and error.

Another significant trend Dr. Larke said would accelerate in the next five years is a rise in market share held by Japanese trading firms. The main trading firms, he noted, are improving their grip on both food retailing and wholesaling and have major interests in fashion distribution. Retailers themselves are forming conglomerates by building retail networks. For example, Aeon--which already has the largest retail business in Japan covering food, drugstores, apparel, home centers, and footwear--has expressed its intent to be one of the world's top 10 retailers.

Dr. Larke concluded by saying that opportunities in Japan still exist, but that the rapid changes and concentration of market share by a group of large, well-financed, and innovative local retailers mean that in another five more years Japan will be a very tough market to enter.

FAA Administrator Marion Blakey Says Safer and Cheaper Flights Are Coming

2004-03-09: On March 1, Federal Aviation Administrator Marion Blakey told a large audience of ACCJ members and aviation industry guests at the Capital Tokyu Hotel that the Asia-Pacific region was leading the way in establishing common national standards that would create "seamless" systems for managing flights across the Pacific using a combination of satellites and ground stations. Such systems would significantly enhance safety, increase the number of flights, and reduce costs. Ms. Blakey praised Japan for its cooperation and reported that progress was being made with China in coming to agreement on the modalities.

She also noted that delays in airport security, especially at smaller cities in the United States, should become shorter as officials gain experience and are provided with new equipment.

FAA Administrator Marion Blakey

FedEx EVP and CIO Robert B. Carter on the Physical and Virtual Delivery of Goods

2004-03-3: On February 25, Fedex Corporation EVP & CIO Robert B. Carter gave an ACCJ audience an unusual and fascinating perspective on trade and the movement of goods, starting from the times of the Silk Road up to the present day. He explained that the delivery of goods had two parts--the "physical" and the "virtual"--with the physical being the product and the virtual being the communications surrounding the delivery of that product. At the beginning both the physical and the virtual followed the same routes, but as trade and technology developed the route for the virtual separated from the physical. According to Mr. Carter, the main tool to master the costs of the virtual effectively is the Internet, and he is excited about that because the Internet is still in its infancy.

FedEx is so sure about the importance of developing its IT system that the company happily spends approximately 1.4 million dollars on its development annually, because they know it is saving them money. An example is package tracking; on average, a call to their call center costs approximately 2 dollars and 40 cents, while the cost for the same service via the Internet costs around 3 cents. That translates to a "cost avoidance" of approximately 25 million dollars per month. Mr. Carter predicts that in the near future not only will the system support more efficient person-to-person or person-to-system support, but that the system will allow for different tools and products to communicate and share on its own, e.g., the packaging itself will have a chip that tells the system exactly where it is at all times.

NOTE: This event was videotaped by ACCJ strategic partner iTV Japan. View Webcast.

Federal Express EVP and CIO Robert B. Carter

February 2004

Dietman Yoshimi Watanabe Examines Japan's Financial Environment

2004-02-23: Rising LDP star Yoshimi Watanabe addressed the ACCJ on February 16 in an off-the-record presentation about Japan's financial system and troubled regional institution Ashikaga Bank. Offering pragmatic suggestions for reform, Mr. Watanabe raised a number of questions regarding the role government plays in the shaping of the Japan's economic and financial environments.

Highlighting the excessively large gap between supply and demand in the Japanese economy, Mr. Watanabe stressed the necessity for change to arise from the ideas and capabilities of the Japanese private sector, not from a reliance on government safeguarding and intervention.

Dietman Yoshimi Watanabe.


ACCJ President Debbie Howard presents Mr. Watanabe with a certificate of appreciation.

ACCJ 2003 Person of the Year Yuzaburo Mogi of Kikkoman on the Value of Outreach

2004-02-20: On February 10, Kikkoman CEO Yuzaburo Mogi quickly showed why he is a trailblazer and a visionary, and why he is a significant figure in the Japan-U.S. relationship. The first Japanese to get an MBA from Columbia University, he led Kikkoman into becoming one of the first Japanese companies to widely sell their products in the U.S.--certainly the first one to get widespread brand recognition. Kikkoman was also one of the first Japanese companies to actually build a factory in the U.S.

While laying the groundwork for the Kikkoman plant in Wisconsin, Mogi participated in town meetings to help the people understand the benefits of the new plant, and says he was impressed by the grassroots nature of local politics and wished that local Japanese politics might take on these characteristics.

"No one better exemplifies the qualities and spirit of the ACCJ Person of the Year Award," commented President Debbie Howard.

Kikkoman CEO Yuzaburo Mogi makes a point.


ACCJ President Debbie Howard and Executive Director Donald Westmore show Mr. Mogi the Toko Shinoda print he received for being named 2003 ACCJ Person of the Year.

PoweredCom President Shiraishi Sees Bright Future for His Firm and Fiber

2004-02-06: PoweredCom, Inc. President Satoshi Shiraishi spoke to ACCJ members and guests on February 4 about his firm's position in the telecom industry and its strategy for moving ahead. Considering the strength and reach of PoweredCom's network in Japan, it is surprising how few people are aware of the company. One thing that makes the company (previously called PNJ Group) unique and powerful is that it is a consortium between Japan's power companies, with its main stock holder being TEPCO.

Moreover, in April 2003, TTNet became part of the company. What sets the company apart from most of its competitors is that it owns and manages its own 25,000-kilometer fiber network, which reaches every prefecture in Japan. Presently PoweredCom has over 5,000 corporate customers and installations in 23,000 buildings in Kanto, giving it the distinct advantage of not being reliant on NTT. With the price of fiber usage getting down close to that of ADSL, the use of fiber is growing, and Shiraishi sees a bright future for his company.

PoweredCom, Inc. President Satoshi Shiraishi

January 2004

ACCJ Donates 2.3 Million Yen Each to Hope worldwide Japan and HELP Asian Women's Shelter

2004-01-28: Representatives of the ACCJ today donated a total of 4.6 million yen to two worthy charities in Japan--Hope worldwide Japan and HELP Asian Women's Shelter--at a presentation ceremony at the ACCJ's Tokyo office. The money was raised at the second ACCJ Charity Ball, which took place last November 29 with over four hundred guests attending. The Charity Ball is an annual ACCJ event that allows both ACCJ members and their firms to give some of the benefits they have received back to the community. The event brings a fine American tradition of generosity and concern for the community to Japan, which has a relatively brief history of organized charity.

President Debbie Howard, ACCJ Governor Thomas Jordan--the head of the Community Services group--and Charity Ball Subcommittee Co-chair Kelly Wells presented large checks representing the donations to Mr. Koichi Miyakawa, director of Hope worldwide Japan, Ms. Adrianne Johnson, the Program Manager, and Ms. Keiko Otsu, director of HELP Asian Women's Shelter.

"We are extremely pleased to present this donation to such worthwhile organizations," ACCJ President Debbie Howard said. "Hope worldwide Japan currently focuses on domestic needs in the areas of elderly care, orphanages, and children with special needs, blood drives in coordination with the Japan Red Cross, while HELP provides telephone counseling, safe haven, and other services to women facing violence and other abuses."

From left to right: Donald Westmore, Debbie Howard, Koichi Miyakawa, Adrianne Johnson, Thomas Jordan and Kelly Wells


From left to right: Donald Westmore, Debbie Howard, Keiko Otsu, Thomas Jordan and Kelly Wells

ACCJ Welcomes in 2004 in Style

2004-01-16: Almost 450 ACCJ members and guests attended the Chamber's gala New Year's Party at the Imperial Hotel on Tuesday, January 13, including U.S. Ambassador to Japan and Honorary ACCJ President Howard H. Baker, Jr., Environment Minister Yuriko Koike, and nine Diet members. Other notables included Keidanren Vice Chairman Taizo Nishimuro, Japan Chamber of Commerce and Industry Honorary Chairman Kosaku Inaba, Japan Post President Masaharu Ikuta, and Richard Collasse, President of the European Business Community in Japan. Keidanren Vice Chairman Nishimuro, who is also Chairman and CEO of Toshiba, delivered the kanpai.

The party marked the public debut of 2004 ACCJ President Debbie Howard, who was introduced to the assembled guests by outgoing President Lance E. Lee. In her comments, President Howard talked about the improved business environment in Japan, the ACCJ's continued commitment to economic reform, and the Chamber's commitment to helping to restore Japan's economy to "full and vibrant health." In his comments, Ambassador Baker talked about the continued strong health of the U.S.-Japan relationship.

From left to right: Toshiba Chairman and CEO Taizo Nishimuro, 2004 ACCJ President Debbie Howard, 2003 ACCJ President Lance E. Lee, and U.S. Ambassador to Japan Howard H. Baker, Jr.

ACCJ and EBC Issue Joint Public Comment on Ministerial Ordinances of the Telecommunications Business Law

2004-01-15: The American Chamber of Commerce in Japan (ACCJ) Telecommunications Subcommittee and the European Business Community (EBC) Telecommunications Committee today jointly submitted comments to the Ministry of Public Management, Home Affairs and Posts and Telecommunications (MPHPT) concerning the ministerial ordinances of the Telecommunications Business Law.

The ACCJ and the EBC feel that Japan has the potential to become the most competitive and innovative telecommunications market in the world, providing the best value to consumers and businesses for both traditional and innovative services. Implementing the revised Telecommunications Business Law, through the related ministerial ordinances, will play a crucial role in this transformation. The ordinances must give the MPHPT the power to actively enforce and monitor the designation of services needed to prevent anticompetitive activity by the dominant provider, NTT.

The official bilingual press release can be downloaded from this page.

ACCJ Membership Entrance/Transfer Fees Waived

2004-01-07: If you're considering joining the ACCJ or your company is considering adding members to its membership, NOW is the time to make your move. Why? Because until JANUARY 31, 2004, we're waiving the fee for every new member application and member transfer received.

This represents a *savings* to you of 15,000 yen!

Tell your friends, colleagues, and business associates the offer holds for them, too: If they sign up for a membership of ANY KIND during this period, we'll waive their 15,000 yen one-time entrance fee!

Join NOW to be included in the 2004 ACCJ Membership Directory

We've extended the deadline for inclusion in the 2004 ACCJ Membership Directory to JANUARY 20, 2004. Tell your friends, colleagues, and business associates there's still time to be a very visible part of the ACCJ!