Archive for the ‘Lifestyle’ Category

Roomba rules with working moms

Thursday, September 12th, 2013

There has recently been a discussion in the Japanese language media about an article that novelist and Nippon Foundation head Ayako Sono wrote for the magazine Shukan Gendai.

Roomba to move

Roomba to move

Sono, who will turn 82 next week, encouraged working women to quit their jobs after they gave birth, not so much because she believes a mother should devote all her attention to her children, but rather because it is “selfish” for working mothers to place such a burden on the companies they work for by demanding they hire them back at full pay after maternity leave. Women who make such a demand don’t understand reality, Sono says. She herself put up with being “poor” when she had her children, relying on her husband’s salary only, and thinks women today should do the same.

Regardless of Sono’s blinkered view of the reality of married life today, the amount of money that working mothers contribute to the Japanese economy is not chicken feed. It’s estimated to be about ¥6 trillion, according to a cover story in the business magazine Toyo Keizai. The Ministry of Internal Affairs and Communications reports that the average disposable income of a double income household is more than ¥4 million a year, while that of a single-income household with a full-time homemaker is about ¥3.6 million.

Moreover, a research laboratory, Dentsu Soken, says that the “direct economic impact” of women who go back to work after giving birth is ¥3 trillion, and the secondary effect of this spending, in terms of added jobs and investment, is worth something like ¥6.4 trillion.

If these women weren’t working they wouldn’t be making that money and thus wouldn’t be spending it, and much of what they spend it on has to do with saving time, because they are so busy with both their jobs and their kids. This waamama (working mother) boom has resulted in brisk sales for three home electronics products that were originally aimed at narrower, higher-income niche targets: washing machines with built-in dryers, dishwashers and robot vacuum cleaners.

It’s the last of these, spearheaded by the American-made Roomba, that has really taken off, and the appeal to working mothers is clear. They simply turn it on and the machine cleans the room by itself, while the mother does other things, like go shopping or play with her children.

The Roomba was originally promoted for seniors, and the price is pretty steep, about ¥80,000, though some discount retailers may sell it for ¥70,000 or even less. The subsequent Japanese copies, made by Toshiba and Sharp, start lower, at about ¥50,000, and are becoming popular, too, but Roomba dominates, with 73 percent of the robot vacuum cleaner market, according to Seed Planning Research. Of course, the household could probably save even more money if the husband chipped in with the housework, but since Sono didn’t talk about that we won’t either.

Build a multifunction restroom and they will come

Wednesday, August 14th, 2013

Room to move

Room to move

The big question for retailers and restaurants in Japan is how to attract seniors, regardless of what it is you sell or serve. One nonprofit Tokyo organization called Check is advising businesses to install so-called multifunction restrooms on their premises and then advertise the fact. Multifunction restrooms are larger than standard public restrooms and can accommodate wheelchairs, and the NPO’s research has found that older people are more likely to patronize a business that has one.

According to a study reported in Tokyo Shimbun, the average family with at least one senior spends four hours and ¥10,000 when they go out shopping, but 20 percent also say they will likely stay out longer and spend more money if they know beforehand the location of multifunction restrooms. The study group extrapolated on its findings and speculated that in terms of time the family would stay out 30 to 120 minutes longer, and spend ¥606 more.

Check, which was founded in 2008, has made a list of some 50,000 multi-function rest rooms throughout Japan, which it provides on its website. The NPO thinks there are about 100,000, and it is providing this information to local governments so that they can use it to promote their areas to local seniors and older tourists.

However, it should be noted that toilets in general are becoming something of a sales promotional tool. The Tokyo Metro subway system actually has TV commercials aimed at women showing how modern and clean their public rest rooms are. Lawson was the first convenience store to declare that its restrooms could be used by the public without the obligation of buying something, since people were so grateful for the service they usually bought something anyway. Most convenience stores have followed suit. And many restaurants explain their rest room facilities on their home pages and Tabelog sites, since many women won’t patronize restaurants that don’t provide separate facilities for men and women.

Golf courses adjust to harsher economics and changing demographics

Monday, July 22nd, 2013

A fairway of your own

A fairway of your own

Of all the cultural phenomena that marked the bubble era of 1980s Japan, none was more economically significant than the rise of golf. Despite its relatively small land area, Japan boasts the third largest number of golf courses in the world — 2,442 as of 2008, which accounts for 7 percent of the earth’s total (the U.S., number one, has 50 percent, with the U.K. a distant second with 8 percent).

The majority of these courses were built before 1990, when land prices were at their highest. However, what really demonstrated the profligacy of the time wasn’t so much the insane number of courses in a country where 70 percent of the land is mountainous, but the practice of investing in golf memberships. The “bubble,” of course, refers to the artificially high valuation of real estate and securities during this time, a situation that extended to almost anything that attracted investment, including golf memberships, which could be brokered as if they were stocks or bonds. Many people who had no interest at all in golf as a pastime bought golf club memberships simply as an investment.

As with all investments made during a bubble period, people who bought them got burned. According to the Kanto Golf Membership Trading Industry Association, the average price of a golf club membership in the seven prefectures that make up the greater metropolitan area in and around Tokyo rose from ¥5 million in 1980 to almost ¥50 million in 1990 and then dropped to ¥2.5 million in 2003. The price spiked briefly in 2006 at ¥5 million before plummeting to ¥1.45 in early 2012. However, it has risen slightly since then and is now around ¥1.8 million.

Continue reading about the dropping prices golf memberships →

Kanebo recall illustrates built-in resilience of cosmetics industry

Monday, July 8th, 2013

White is might: The Sex and the City cast plug their second movie in Tokyo, 2010

White is might: The Sex and the City cast plug their second movie in Tokyo, 2010

Last week, cosmetics giant Kanebo, along with two subsidiaries, announced it was recalling 54 skincare products that are believed to cause unsightly blotches. The merchandise under scrutiny contains an active whitening ingredient called Rhododenol that the company first started marketing in 2008, and it estimates that some 250,000 women in Japan alone use it on a regular basis. Since 2008, 4.36 million units have been shipped and probably about 450,000 may still be in use, including in foreign countries like Thailand and Taiwan. The Philippines, in fact, reacted to the recall by banning all Kanebo products that contained Rhododenol.

On the surface, the size of the problem sounds formidable, since Kanebo will lose some ¥5 billion on account of the recall. Asahi Shimbun reports that the company has not released sales figures for the disputed line of products, but it is believed Kanebo’s annual revenues for skin whitening agents is around ¥190 billion. Consequently, the company is not losing that much, and if one wanted to make a gambling analogy, it obviously pays to market substances that aren’t guaranteed in the long run since so much money can be made in the short run. It all depends on what people want and how badly they want it.

Women’s cosmetics, and whitening products in particular, are no-lose propositions in Japan. The main market right now is middle aged consumers, who, according to a recent article in Aera, buy almost any anti-aging product that goes on the market. This practice is now called keshohin kurujingu, or “makeup cruising.” The article profiles several women, housewives and working women, all in their 40s and 50s, who spend an average of ¥50,000 a month on cosmetics.

Continue reading about the strength of the cosmetics industry →

Local government attempts to make citizens rat on welfare recipients

Wednesday, April 3rd, 2013

A goal of the resurgent Liberal Democratic Party is to reduce public welfare expenditures over the next three years by cutting handouts to the tune of ¥67 billion, or about 10 percent. The targets of these cuts are households who receive more money in welfare than do “lower income” households who don’t, the purpose being to bring the monthly payments made to non-working poor families down to or below the monthly earnings of working poor families. Thus the public assistance payment for a family of four would drop from an average of ¥220,000 to ¥200,000.

They call it gambling: Pachinko enthusiasts waiting for their loot

They call it gambling: Pachinko enthusiasts waiting for their loot

As to what this family would have to give up, one category ripe for reduction is “recreation” (goraku), which includes everything from TV sets and PCs to books and magazines. However, according to a 2010 government survey, welfare recipients only spent 6.4 percent of their money on recreation, and due to the LDP’s prime bugbear, deflation, they are spending less in this area all the time, so the keepers of the treasury will have to find other places to cut.

One public figure, however, feels that the goraku category hasn’t been scrutinized enough. The city assembly of Ono, Hyogo Prefecture, passed a law that went into effect April 1 prohibiting people who receive public assistance from the city to use that money for gambling. The law also compels city residents to report any instance of gambling by welfare recipients to the police. Given the timing of the implementation and the nature of the law, some people may wonder if it’s a joke, but Mayor Tsutomu Horai, who wrote it, is quite passionate about the matter, which is why the media have covered it so closely.

Ono currently pays out ¥290 million in welfare annually to 120 households. The population of the city is 50,000. The new law states that anyone who observes a welfare recipient spending “too much money” on gambling has a responsibility to report it to the authorities. The model seems to be local versions of child abuse prevention laws, which state that anyone who believes a child is the victim of violence or neglect must report the abuse to police.

The bill first became publicly known in February, before it was approved, and the city received some 7,000 “opinions” from all over Japan, 70 percent of which were positive. As Horai told the weekly magazine Aera at the time, “Let’s say your friend asks to borrow money because of some trouble, and then later you see him playing pachinko. Naturally, you’re going to be annoyed.”

The problem, as he saw it, was that most people don’t care about public money, and so he wants to change that perception. There is no penalty if a person sees a welfare recipient gambling and does not report it, probably because that would be impossible to prove. Horai certainly understands this, but claims that 90 percent of the city’s residents, including welfare recipients themselves, support the law and so most of his job is already done.

The Hyogo Prefecture Bar Association has come out against the law, saying that its purpose of involving average citizens in the monitoring of welfare recipients’ behavior will result in greater “discrimination of and bias toward” the latter. In fact, Ono’s finances are healthier than most local government’s. Its treasury actually reports a surplus balance of ¥8.5 billion, and the mayor himself has said that the aim of the law is not to reduce the welfare budget. If anything, he hopes the law will also alert people who may qualify for assistance to apply for it.

As it stands, the central government provides three-fourths of a typical handout with the remainder handled by municipalities. About 1.7 percent of the national population receives welfare, while the portion in Ono is only 0.3 percent. However, both statistics are on the rise — the number of recipients in Ono increased by 64 percent over the last five years — and is certainly a reflection of the economic situation in general, but Horai thinks that it has to do with a more relaxed attitude toward government handouts. He told Aera that he first thought of devising the bill when he was at city hall and overheard several people who were waiting on line for their welfare packets. One asked another, “Where are you going to play pachinko later?”

Horai focuses on pachinko, which, legally speaking, isn’t gambling. Players can only earn money by trading the excess balls they win for premiums in the pachinko parlors and then “selling” those premiums at specially established booths outside the premises. Though no one is fooled that this isn’t betting in practice, it’s gambling by legal loophole. What’s more, the off-site payment booths are regulated by the National Police Agency, so why doesn’t pachinko qualify as legal recreation, which is considered acceptable for welfare recipients? And why doesn’t Horai induce citizens to narc on welfare recipients who, say, buy lottery tickets?

Actually, he has an answer to those questions. “People say pachinko is merely entertainment,” he told Aera. “But they don’t understand reality. People who spend too much on pachinko are addicts.” In truth, he wants welfare recipients who play “too much” pachinko to seek medical help, which they can do easily since, as welfare recipients, their medical insurance is free. Horai’s system may not make much sense, but he wants you to know his heart is in the right place.

Old technology a threat to publishers’ bottom lines

Thursday, December 20th, 2012

By the gross: cheap reads at Book Off

There was only one book published in Japan this past year that sold at least a million copies: TV personality Sawako Agawa‘s volume of essays, “Kiku Chikara: Kokoro Hiraku 35 no Hinto” (The Power of Listening: 35 Hints to Get People to Talk About Themselves), a relatively inexpensive paperback published by Bungeishunju. Though the media has been claiming for years that reading is on the decline, a single million-seller is still pretty low by Japanese publishing standards. Last year, for instance, there were ten, and two years ago five. According to the industry organ Shuppan News, the main reason is that there were no topical books for publicity departments to push effectively.

Publishers and wholesalers usually focus promotion on titles they think will sell easily, but this year couldn’t find anything they really thought would catch the public’s imagination. The conventional wisdom about million sellers is that a good portion of them are bought by people who aren’t devoted readers. Remember the phenomenal sales for Haruki Murakami’s “1Q84″? Many of the buyers were people who were caught up in the “event.” They wanted to own a copy — or several, as the case may be. Some probably didn’t even read it. Experts say this phenomenon no longer applies. Interests have become more compartmentalized, more diverse. People no longer automatically buy a book or record just because everyone else does.

According to a recent article in Tokyo Shimbun, book sales in general have dropped. The peak year was 1996, when 915 million books were sold for a total of ¥1 trillion in revenue. In 2011, the total number of books sold was 700 million and revenues were ¥819 billion. This year, the drop is expected to be even greater.

Now, before you ask about the sales breakdown between printed books and e-books, keep in mind that sales of e-books remain relatively low in Japan, owing to industry resistance that is just now breaking down. The drop in sales has less to do with technology and more to do with demographics. In fact, the number of people who read regularly hasn’t really changed despite the decline in population. That’s because the loss in general readership is being compensated for by older retired people who now have time to read. However, these people don’t really care about owning books. The real reason for the drop in sales is that they have rediscovered the library.

According to the Japan Library Association, there were 2,522 libraries throughout Japan in 1998. By April 2011, that number had increased to 3,210. Last year, library users borrowed 716 million books, CDs and DVDs, a new record, which is surprising given that local governments are hurting financially and library budgets are usually one of the first things they cut.

Obviously, some rationalization is going on, but at least one local government, Takeyo in Saga Prefecture, has come up with — no pun intended — a novel solution. The city hired the entertainment media rental and sales company Tsutaya to run its public library and has saved 10 percent of its normal operating expenses in the bargain. In return, Tsutaya opened a store next door as a kind of annex to the library, complete with a cafe.

A researcher interviewed by Tokyo Shimbun said that the recession definitely has something to do with the boost in library usage. It has also boosted the success of used book chain stores like Book Off. Sales of used books have been increasing every year. Naturally, this is bad news for publishers and, especially, new book stores despite the fact that prices for new books are fixed by the publishers and can’t be changed by resellers. These prices tend to be set artificially high by making the print larger than necessary and dividing texts into multiple volumes. But as much as the publishing industry has tried, it can’t do anything about the used book market.

According to the Yano Financial Research Center, the market for used books in 2010 was ¥130 billion. Sales at Book Off alone amounted to ¥70 billion in 2010. Even if one keeps in mind that Book Off sells merchandise other than books, the retail giant obviously has a substantial share of the market. Their system is attractive to people who just like to read. You buy a used book for a few hundred yen, read it and then sell it back to Book Off for about ¥50. It’s especially attractive when it comes to best-sellers, for which there is usually a long waiting list at the local library. By their very nature of being best-sellers, there are usually a lot of them at Book Off, sometimes for as little as ¥100 plus tax.

You can’t take it with you: Horse gambler’s system stymied by tax law

Wednesday, December 5th, 2012

People in Japan who win prizes through the lottery (takarakuji) do not have to pay taxes on their gains, even if they win hundreds of millions of yen. However, people who win money betting on horses or other racing sports are required to report those earnings on their income tax returns. Why the distinction? Is it a difference in approach? Though both are forms of gambling, which is strictly circumscribed, lotteries are purely matters of chance, while betting on the ponies can involve calculation and experience. Only the tiniest fraction of the population could make a “living” from the former, by essentially winning a jackpot once, while there is a small but dogged subculture whose members at least like to think they can profit continually at the track.

Poster commemorating Japan Racing Association’s 150th anniversary

One person recently found out just how limited such a livelihood can be. A 39-year-old salaryman, whom the media hasn’t named, was recently indicted in Osaka for tax evasion. The man’s lawyer has told the press that he makes ¥8 million a year at an unspecified job. He is married and has one child with another on the way.

In 2006 he started spending enormous amounts of money on horse racing based on the belief that he could make a profit over time. Using software that “predicts winners,” he would analyze the statistics for individual horses and then bet on multiple contestants in individual races through the internet. He would not bet on races with horses making their debut since there wasn’t enough data available, but almost anything else was acceptable.

The point was to bet as much as possible on as many “favorable” horses as he could, including combination tickets. He lost most races, but he made enough on winning bets to pool that money and then use it for the next series of races. This sort of continuous overkill methodology meant that in the long run his winnings grew exponentially. During the three-year period from 2007 to 2009, he bought ¥2.87 billion worth of tickets and received winnings of ¥3 billion, thus making a net profit of ¥140 million.

However, he didn’t report these earnings on his tax return and eventually was audited by the Osaka branch of the National Tax Bureau. The amount they cited him for was not the ¥140 million he netted, but rather ¥2.9 billion — the ¥3 billion he grossed minus an expenditure of ¥100 million. Thus his tax bill for the three years is a whopping ¥570 million, and with the added penalty it comes to a total of ¥690 million.

Continue reading about tax on revenue from gambling →

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