Japan’s smes uphold tradition amid global challenges

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Japan’s bustling manufacturing sector continues today to be characterized by a blend of ancient craftsmanship and modern innovation. This unique fusion, known as monozukuri, encapsulates the essence of the Japanese manufacturing philosophy — a commitment to excellence, precision, and continuous improvement.

Amidst the challenges of globalization, technological shifts, and economic fluctuations, Japanese small and medium-sized enterprises (SMEs) stand as the guardians of this revered tradition. Amongst these small yet pivotal Japanese manufacturing firms, companies are resiliently navigating contemporary hurdles while championing the monozukuri spirit.

Osamu Yamaji, President of Toray Opelontex – a specialist in industrial products centered on technologies in organic synthetic chemistry, polymer chemistry, and biochemistry – highlights the strategic pivot Japanese firms have made towards niche markets, particularly in highly functional materials.

“The ability to actively develop new opportunities by closely analyzing the market has been generating good results,” Mr. Yamaji notes, emphasizing the resilience and adaptability of Japanese firms in the face of international competition and the aftermath of the COVID-19 pandemic.

Masaaki Nishikawa, President of cosmetics firm Saishunkan Pharmaceutical, points to the stringent quality demands of the domestic market as a crucible for excellence. “This has empowered Japanese companies to strengthen their skill set and deliver high levels of quality,” Mr. Nishikawa asserts, suggesting that the domestic market rigors have equipped Japanese firms to excel on the global stage.

In the realm of luxury goods, Shun Tsuji, President of KISHUN, sees the current economic climate as an unprecedented opportunity. With the yen’s weakness attracting foreign tourists, Mr. Tsuji believes that “introducing those tourists to Japanese cultural heritage and craftsmanship” could not only boost sales but also elevate the global appreciation for Japanese jewelry. He also highlights the concept of “Urban Mining,” leveraging Japan’s accumulated wealth of gemstones and metals as a sustainable resource that underscores the nation’s innovative approach to craftsmanship.

Norimasa Kitazawa, President of Pigeon Corporation – a leading global baby care company – addresses the challenge of the “Galápagos effect,” where uniquely Japanese products fail to resonate overseas. By focusing on market-specific demands and incorporating emotional storytelling into its products, Pigeon has managed to capture hearts across diverse markets. “Our company has successfully built a reputation for promoting products that meet customer expectations on a global scale,” Mr. Kitazawa proudly states, showcasing how empathy and understanding are as much a part of monozukuri as technical excellence.

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