Kansai News

Panasonic takes another bite into the automotive industry

2010-11-05T18:29:00.001-07:00

Osaka's Panasonic made news as it purchased a stake in American electronic car maker, Telsa Motors Inc. Previously, Panasonic purchased Sanyo - a major supplier of batteries for electric vehicles.

From Bloomberg.com - November 5th 2010
Tesla Rises After Panasonic Buys Stake in Carmaker
By Alan Ohnsman - Nov 5, 2010 5:23 AM GMT+0900

Tesla Motors Inc. rose 14 percent in Nasdaq Stock Market trading after Panasonic Corp., the largest maker of rechargeable batteries, bought a $30 million stake in the electric-car maker.

Tesla jumped $3.13 to $24.90 at 4 p.m. New York time, its highest level since the company first sold shares to the public in June. Panasonic paid $21.15 a share yesterday in a private placement for its holding in the Silicon Valley startup, which also counts Toyota Motor Corp. and Daimler AG among investors. The investment expands on a battery collaboration the companies announced this year, Tesla said in statement.

For complete article please see Tesla Rises After Panasonic Buys Stake in Carmaker

Panasonic working on handheld game player: source

2010-10-07T07:35:00.000-07:00

(Reuters) - Japanese electronics maker Panasonic Corp is developing a handheld game player in a bid to return to the video game market after a hiatus of more than a decade, a person familiar with the matter said on Thursday...
For complete article please visit the source site: Reuters - Panasonic working on handheld game player: source

Networking Kansai Style

2010-10-06T19:24:00.000-07:00

After reading recent articles, When Yes means maybe: Doing business in Nigeria and Ivy League Football `Mafia' Gives Wall Street a Talent Pipeline, the value of maintaining relationships and belonging to a network became very clear to me. If judged by the respective articles; in Nigeria, it is common that relationships with the right people are important in order to succeed whereas in the United States, being a member of a varsity team on an Ivy League school greatly increases your chances of landing a plentiful career upon graduation. But what about the Kansai region?

In Japan, a relationship will most likely not trump the law, and a varsity athlete from an elite university does not, as far as I know, give one a significant advantage in securing a position at an investment bank. But none the less, maintaining relationships with the right people and belonging to networks are essential, especially for those who are in business for themselves.

In Kansai there has been much improvement in areas such as consumer sentiment, car sales, retail sales, exports, and imports over the last year, yet Kansai companies such as Murata are moving production abroad in order to stay competitive. So for those in the region who are out of work, looking to change jobs, or even perhaps planning to expand their business, networking is key to manoeuvring your way into a new position or market.

David Leangen is president and owner of Bioscene Informatics Inc., a bioinformatics software provider, and he is also an active member of the KCBA - holding the position of Governor. Leangen is well known for acting as a link between foreign and Japanese companies and shares some of his insights into networking. “It was through networking that I met my current Japanese business partners, and in large part through their established network that I have been able to do all my business activities. Each time I start a new business project, I am able to expand my network just a little more” Leangen says as he reflects on how networking in Japan has impacted his career. While he spends most of his time at industry events communicating in Japanese, Leangen explains why he joined the KCBA, “I wanted to have more contact with the Canadian community in Kansai. So far, my experience with the KCBA has been rewarding.” Events such as the “Business Opportunities between Ontario and Kansai - An Update” and “2010 KANSAI INTERNATIONAL MEISHI EXCHANGE” are KCBA events where you can expect to find prominent members of the Kansai and Canadian business communities come together to listen to great guest speakers and establish and extend business relationships.

When Leangen was asked about his opinion on what are characteristics are needed to network in Kansai, he says “Networking in the Kansai is more than just exchanging meishi: it is based on trust.” While he admits that trust may not be only unique to Kansai, he continues “I am still surprised to see how much business is based on trust here. I must say, I like it, though. Although it may take time to build up that trust, it's really much more efficient in the long run, as you don't need those detailed, 50-page contracts for everything.” Replacing long contracts with the notion of trust in fact reflects a characteristic of the Kansai business scene, indicating that one’s success in relationship building and networking is closely related to being connected to the right people - in trust. This doesn’t stray too far away from the works of Edward T. Hall and his May-June 1960 entry in the Harvard Business Review titled “The Silent Language in Overseas Business”. Hall generally regarded Asian, South American, and Latin societies as high-context in relation to societies influenced by Anglo-saxon, Nordic, and Germanic lineage. According to Hall, a typical Asian society will put more importance on “with whom” is being communicated with, whereas in a typical Western society is “the what” carries the greater significance as was emphasized by Leangen’s example of trust and contracts.

If you’re new to Kansai, or looking just for an interesting event, be sure to check out KCBA’s Business Opportunities between Ontario and Kansai - An Update(Thursday October 21st) and 2010 Kansai International Meishi Exchange (Wednesday October 27th) in addition to the Canadian Education Alliance (CEA)’s Canada Festival in Osaka 2010 (Sunday October 24th).

Japanese Government Changes Port Strategy

2010-10-06T19:16:00.000-07:00

The government has designated two mega-ports as "International Freight Strategic Ports," which are to receive high-priority in budget allocations in an attempt to transform them into powerful international shipping hubs Land, Infrastructure, Transport and Tourism Minister Seiji Maehara announced that "Hanshin Port" (consisting of Osaka and Kobe Ports) and "Keihin Port" (Tokyo, Kawasaki and Yokohama Ports) have been chosen as the strategic ports...

For complete article please visit source: Hellenic Shipping News - Japanese Government Changes Port Strategy

Doing Business, Kansai Style

2010-03-22T16:12:00.000-07:00

An Article By Carlos Ramirez

If you were out last night singing your stress away with friends or clients at the local Karaoke shop, you may be surprised that you have Kansai to thank for it. Indeed, the Karaoke machine, like many other ubiquitous items were invented in this creative and innovative region of Japan. One of the first pocket calculators (Sharp QT-8B), the electronic marvel that swept the world in the seventies, was also made here in the Kansai. For the younger generation, the Wii would be a more familiar electronic item. Yep, that is made in here, too. The list of products created in the Kansai goes on and on from instant noodles to high tech products in electronics and equipment. The point is not only to note that Japan is made-up of many diverse regions, such as the Kansai, each with their own characteristics and strengths. But also to emphasize that commercial opportunities in Japan do not start and end in Tokyo.

These days, arriving at Osaka JR station it would be hard to conceive that we are going through a recession. With construction cranes, scaffolding and crews at every turn, the hustle and bustle of the Umeda business/commercial district, where JR Osaka station is located, just got more intense. This is in addition to another major project a stone throw away in the Hankyu Umeda main terminal area that is nearing its completion. This newly renovated shopping/office building will be 41 floors in height. These two new projects are just the tip of the iceberg of the mind-boggling 24 hectares to be developed in the Umeda district over the next 5 years covering 2.4 million m2 commercial floor space in total. For the average commuter, navigating the construction chaos today in the Umeda district has been a nightmare. However, upon completion, the Umeda district will come close to rivaling its Shibuya and Shinjuku counterparts in Tokyo.

Umeda is not the only area under redevelopment in Osaka. There are five districts in total slated for major facelifts in the city: 1) The above-mentioned Umeda District; 2) The Nakanoshima Island and Midosuji District. This project includes the just completed Nakanoshima subway/train line and will also feature the construction of of two 40 floor office towers above Watanabebashi station. 3) The Namba and Minatomachi Districts in mid-town Osaka. This area is center of socializing and leisure of Osaka. Upon completion of redevelopment the Namba area will have 410,000m2 of shopping floor space (bigger than Ikebukuro’s 310,000m2). Projects underway or just concluded include the revitalization of the waterways in the Dotombori area and the Namba Parks residential/commercial complex that is similar in theme to Roppongi Hills. 4) The Abeno district in the southern part of downtown Osaka. Japan’s tallest building will be located here at a planned 300 m.

Let there be no mistake, despite the ongoing redevelopment projects in the region, Kansai like the rest of Japan is acutely suffering from the current recession. The unemployment rate has eased from 6.4% in mid 2009 to 6.1% at the end of 2009 compared to a national rate of 5.1%. In Osaka Prefecture, the rate stands at a shocking 7.7%. The good news is Kansai will likely grow 1.6% in fiscal 2010 and 2.3% in fiscal 2011, both in real terms, according to the Kansai Institute for Social and Economic Research and should top the nationwide projected growth by 0.2% and 0.3% in 2010 and 2011 respectively.

The unemployment statistics are a reflection of the past difficulties of the Kansai economy. Unfortunately, Kansai arrived late to the globalization game. During the bubble economy days of the 1980’s, Kansai business was content to ride on the wave of easy money that flowed in to real estate and the stock market and did not bother to update its industrial infrastructure. When the bubble broke, the Kansai economy was exposed as an anachronism caught in a time warp. The region’s economy resembled more that of a developing country than that of a post-modern industrialized country. Most of Kansai’s industry was based on old fashioned industries such as textiles and steel mills that left it very vulnerable to low cost competitors in Asia especially China. In the end, it was Kansai’s labour force that bore brunt of the cost cutting and bankruptcy of its traditional industry. Declining household income had, as expected, a very negative impact on regional consumption that lead to a vicious cycle in the economy.

Along Osaka Bay in the late 90’s when driving the newly built Bay highway, all one could see were the factories of old Osaka industry – rusted out husks lying idle along the shoreline. These have now been replaced with the new gleaming factories of Sharp’s LCD and solar energy panel factories. The Sharp plant, completed last year, cost $12.5 billion to build and covers enough land to occupy 32 baseball stadiums. Sharp’s group of supplier companies have also set up shop with their own factories including Corning Inc., Asahi Glass and Dai Nippon Printing. In order to insure smooth supply chains, numerous large logistic and distribution facilities have sprung up in the bay area to support the new plants. Prior to the Lehman shock, land in the Osaka Bay area was extremely scarce with land prices rising three fold from Yen 200,000/tsubo in the mid 90’s to Yen 600,000/tsubo in the Osaka Port area in late 2008.

The new Sharp factory together with the new redevelopment projects in Osaka City, however, represents a business renaissance for the region and augurs well for the future. It appears now that both politicians and Kansai business leaders are now on the same page. The focus for both of these groups has been on two things: 1) China and East Asia in general and; 2) Decentralization of power from Tokyo to larger regional units. Osaka’s geographic proximity to China has made it the main base for distribution and logistics of products from the Chinese market. Routes to China and Asia dominate Osaka/Kobe sea terminals and Kansai International Airport with more than 500 out of 600 flights from KIX going to the Asian region.

One of the top policy priorities of the Osaka Governor Toru Hashimoto’s is to turn Kansai into one political unit. The Governor envisions one large regional political and economic entity covering all nine prefectures in the Kansai region. The benefits of this policy would be twofold. First, as one unit, the Kansai could better act economically as a counter weight to Tokyo. Secondly, decentralization would allow much of the political and taxation power that is currently concentrated in Tokyo be devolved to the Kansai. As a Canadian, I certainly sympathize with Kansai leaders’ desire for a more equitable distribution of power and a more balanced federation. Tokyo can no longer ignore the regions as many of the smaller towns go bankrupt. Indeed, a successful strategy for regional (re)development is key to reviving Japan’s prosperity and growth and thus Kansai is correct in seeking a greater say for itself.

So what does this all mean for Canadians who wish to do business in the Kansai? The most often recited economic fact by any Canadian business person in the region is that Kansai’s gross regional product is comparable with Canada’s GDP. This was true a few years ago but now Canada’s GDP has powered ahead at $1.5 trillion compared to Kansai’s at approx. $1 trillion. Nonetheless, the Kansai represents a massive market with immense opportunities. Former Osaka Consul and Trade Commissioner Allan Edwards (now posted in Nagoya) likes to think of doing business in the Kansai as “picking at the low hanging fruit”. By this he means that Canadian business has an infatuation with Tokyo leaving other areas such as the Kansai undeveloped in terms of a total Japan marketing strategy.

In many ways Mr. Edwards is correct. The market in Tokyo while larger is saturated with similar products and stiff competition. As a result of foreign business ignorance, the Kansai area is still relatively untouched by a foreign business presence and so Kansai businesses and consumers are very much willing to take a close look at new products and services. In addition, land prices, rents, wages and the general cost of doing and operating a business is less here. Yet, public transportation within the region and access to other cities is excellent (close to 300 bullet trains to Tokyo a day and two major airports with 2 flights to Tokyo every hour). Osaka also boasts a world-class educated work force with world-class educational and research facilities in the area including Osaka and Kyoto Universities.

If you are still skeptical about the Kansai, don’t take my word for it. Just ask Wayne Kim originally of Kitchener, Ontario and owner of Kinder Kids International School. Kinder Kids was established in the 1990’s in Osaka with one school and has now mushroomed into 12 schools with new ones planned in Tokyo, Nagoya and Kobe. Kinder Kids is the now the premier international kindergarten in the Kansai. Mr. Kim says that “the Kansai consumer is finicky and extremely price sensitive. If you can compete in the Kansai and be successful, then you can probably make it anywhere in Japan.” By finicky, Mr. Kim means that product maintenance and after service is the key to success in the Kansai. Other examples of Canadian success in the Kansai is Tod Baudin, President of IDA Co., Ltd a full service translation agency offering customer-tailored website design and computer solutions in English and Japanese. Mr. Baudin whole-heartedly agrees with Wayne Kim’s assessment – price and service is paramount in the Kansai.

Finally, there is Ushio Tsuda of Tsuda Sangyo Co., Ltd., the largest importer of Canadian lumber in Western Japan. Tusda Sangyo has been importing lumber and wood products from BC for the past 80 years. For Mr. Tsuda the obvious key to success in the Kansai market is long-term stable relationships. In a recent interview with the Vancouver Sun, he said he is not so concerned about the perceived decline of Japan’s importance to Canada since he has built strong personal bonds with his Canadian suppliers. "What can we not get through looking ahead?" he explained.

Notwithstanding the economic benefits of being in the Kansai, if you ask any Canadian businessperson in the Kansai why he/she set up shop in the region and the answer is invariably quality of life: average commuter times are half compared to Tokyo and residential land and rents are also very reasonable. Kansai is also known as the cultural heartland of Japan. Foreigners living in the region are spoiled with the ancient capitals of Kyoto and Nara within an easy train ride away. The people are known for their straightforwardness and good sense of humour.

With the closing of the Consulate a few years ago, Canadian business people may be weary of a not so warm welcome. That would be a mistake. In October 2008, the Kansai Canada Business Association (KCBA) held an unveiling ceremony of an Inukshuk created by Inuit master sculptor Bill Nasogaluak and donated by the KCBA to the people of the Kansai. The Inukshuk is permanently on display at Watanabebashi station. The ceremony was held to commemorate the opening of the new Keihan Nakanoshima train line in downtown Osaka. The stations on the new train line are unique in that the walls and ceilings are adorned with 10,000m2 of state-of-the-art fire retarding Canadian Western Red Cedar from BC. The wood represented another commercial success for Canadians in the region. Osaka Mayor Kunio Hiramatsu, Osaka Prefecture Vice Governor Yasuyuki Ogawa and Ambassador Fried all took turns at the podium extolling Kansai Canada relations. The event created a well of good will for Canadians in the Kansai.

The author is Chair of the Kansai Canada Business Association and Managing Director of Valhalla Management Co., Ltd., a commercial real estate consultancy based in Osaka.

Prof. Sue Bruning, University of Manitoba to speak at Kobe University RIEB workshop on "Human Resource Management Issues of Foreign Firms in Japan"

2010-02-01T17:33:00.000-08:00

Renowned Professor Sue Bruning, of Asper Business School, University of Manitoba will at Kobe University workshop titled "HR Management Issues of Foreign Firms in Japan". The workshop is organized by Kobe University, Research Institute of Economics and Business Administration.

Professor Bruning's session "Beyond the CEO: Complementarities in foreign based subsidiaries executive staffing decisions" will be of interest to executives of most Canadian and foreign firms operating in the Kansai area especially in these times of economic uncertainties.

The workshop is organized jointly by Kobe University, Research Institute for Economics and Business Administration and Duisburg - Essen University in Germany.

Workshop is scheduled for February 23 and 24 and is free and open to all interested in the main workshop topic - HR Management Issues of Foreign Firms in Japan.

For further information view the event broacher at the following link:

www.rieb.kobe-u.ac.jp/academic/ra/seminar/2009/seminar-details/20100223-241340.pdf

Hilton Osaka Commemorates Vancouver Olympics * ヒルトン大阪バンクーバーオリンピック開催記念 * Feb. 12 to 22

2010-02-01T08:03:00.000-08:00

Hilton Hotel Osaka is commemorating the Vancouver Olympics by hosting - Canada Fair .. An authentic taste of Canadian cuisine - From February 12 to 21.

Cooperation From: Kansai Canada Business Association, KCBA, the Canadian Consulate, The Kansai Canadian Association and the Canada Japan Society of The Kansai.

On February 22, 2010, in conjunction with the Hilton Canada Fair, KCBA is hosting a lunch event featuring the eminent economist Professor Noriko Hama. Professor Hama will speak on a topic that is on top of everybody’s mind, “A New Dawn? Eternal Darkness? The Japanese Economy in 2010”. For further details and to register for the KCBA lunch event ..click here..

ヒルトンホテル大阪はバンクーバーオリンピック開催を記念し、カナダフェアを催します。本物のカナダ料理の味をご賞味ください。詳細は
協力：関西カナダビジネスアソシエーション、カナダ領事館,　関西カナダ会、関西日アアデ加協会
2月２２日、ヒルトンのカナダフェアと兼ねて、ＫＣＢＡは著名な経済学教授浜矩子女史を迎えての昼食会を催します。浜教授は、新しい夜明け？　永遠の暗黒？　２０１０年の日本経済という課題でお話されます。詳細および、登録は　ＫＣＢＡランチエベント..クリク..

Sharp, Kyocera May Benefit from DPJ's Government Carbon Emissions Plan

2009-09-02T06:03:00.000-07:00

According to Bloomberg News, the new Japanese government's pledge to accelerate cuts in greenhouse gas emissions may lead to higher subsidies for makers of solar cells such as Osaka-based Sharp Corp. and Kyoto-based Kyocera Corp. while forcing utilities to pay premium prices for solar power generated by consumers.

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