Archive for the ‘Lifestyle’ Category

Supermarkets finally get serious about shopping bags

Thursday, November 21st, 2013

A few weeks ago we were waiting at a checkout counter in an Aeon supermarket and placed in the basket one of those laminated cards that say you don’t need a shopping bag. When our turn came the cashier gave us a funny look and asked us if we really needed a bag for one item. We then read the card, which said that you should put it in your basket if you want a shopping bag.

Card saying bags cost ¥2 each

Card saying bags cost ¥2 each

We made a false assumption because we don’t usually shop at Aeon. The supermarket we normally patronize asks you to indicate if you don’t want a bag, and they’ll knock ¥2 off the total if you do. Apparently, that practice is now giving way to the opposite tactic: You have to tell the cashier if you want a bag, in which case they will charge you for it.

Aeon, Japan’s biggest supermarket chain, started this practice way back in 2007, and as of Nov. 1 every outlet follows the policy, which is ¥5 for an extra large bag and ¥3 for a large bag. Even Aeon’s discount food chain, MaxValu, has adopted the charge-for-bags policy. For that matter, so has every other major supermarket chain. Ito Yokado charges ¥2 per bag, Uny ¥5, Seiyu ¥2 for a medium and ¥3 for a large, and Daiei ¥3 to ¥5, depending on the size.

According to Sankei Shimbun, Aeon donates all the money it collects for bags to various environmental causes, while Uny donates half the money it collects. Saving the environment is what bag reduction is all about, though the government stresses it from a different angle than you might think. A study sponsored by the Environmental Ministry looked at the shopping bag problem in terms of resources. One bag requires 18.3 ml of oil and Japan uses 30.5 billion shopping bags a year, which is the equivalent of more than 600,000 kiloliters of oil.

The study also calculates that 967 shopping bags are given away every second in Japan, or the equivalent of 8.82 two-liter PET bottles of oil. The study says that shopping bags waste precious resources, which is of course a relevant situation in resource-starved Japan, though in most other countries the plastic bag problem is associated with pollution.

The main reason bags aren’t considered a waste problem in Japan is that they are routinely incinerated here. In America plastics generally are not burned, which is why the campaign against shopping bags is older, since most end up as landfill. Then again, more European countries are starting to burn plastic refuse, but they are also more strict about shopping bags. In Ireland, for example, a shopping bag will cost you ¥15, which is why there are almost none in Ireland any more.

Card saying no bags and it's ¥2 off your purchase

Card saying no bags and it’s ¥2 off your purchase

Refuse officials in Japan say there is no problem with burning plastic. Dioxin emissions are almost non-existent because Japanese incinerators use very high temperatures, an assertion some environmentalists are skeptical of. But in any case, people still use shopping bags and plastic bags mandated by local governments to dispose of household waste, and the real problem with incineration isn’t plastic but organic waste and kitchen scraps, which tend to be wet and thus require a lot more heat to burn up.

So while the bags themselves may not be a problem, what they contain is. San Francisco realized this and went beyond limiting plastic bags, requiring residents to dispose of organic waste in composting boxes, and it’s been a success.

So while every reduction helps, environmentalists belief that only limiting shopping bag usage isn’t enough. One person on the Internet (scroll down to commenter qqme9839) calculated that in 2009 burning garbage accounted for only 3 percent of all CO2 emissions. And since plastic constituted 45 percent of the garbage being burned, it created only 1.35 percent of the CO2 that was emitted that year. And since production of shopping bags in 2009 accounted for 0.55 percent of all discarded plastic by weight, that means plastic bags’ contribution to CO2 was 0.075 percent. Reducing people’s reliance on shopping bags is a good thing, but it’s not the only thing.

Young women’s life preferences acknowledge workplace reality

Friday, September 27th, 2013

Preference or default?

Preference or default?

Social media has been buzzing about the results of a survey released this week by the Ministry of Health, Labor and Welfare. The survey was carried out last March among men and women, both single and married, between the ages of 15 and 39. The results that provoked the most discussion had to do with attitudes toward marriage, or, more precisely, a woman’s role in a marriage.

When asked if they want to be full-time homemakers, 34.2 percent of the female respondents said “yes” or “probably.” And while more women, 38.5 percent to be exact, said they didn’t want to be homemakers, the portion who said they did was apparently higher than people expected, especially now that the government is pushing an agenda to make it easier for women to join the workforce and contribute more directly to the economy.

Some people are saying that these results indicate a regressive attitude among women, but it’s impossible to say from the results that the women who want to be homemakers are being guided by some kind of cultural gender identification.

When men were asked in the survey if they wanted their wives to be homemakers, 19.3 percent said “yes” or “probably,” which implies that the other four-fifths want their wives to work. That’s because they know that a single income isn’t enough any more to support a household, especially one that does or will someday include children.

When the women were asked how much income they thought their husbands should make a month, 40.8 percent said ¥200,000-¥300,000, 24.8 percent said ¥300,000-¥400,000 and a mere 4.2 percent said “it doesn’t matter.” So much for marrying for love.

A more likely reason for this desire to stay at home is a perceived understanding of workplace norms, something the labor ministry didn’t ask about. In a different survey conducted by the Japan Management Association, young men (751) and women (249) already in the workforce were asked if they aspired to be leaders among their colleagues. Of the female respondents, 81 percent said they would rather be “supportive.”

One of the more pressing issues in Japan is the paucity of women managers, a situation that is blamed on implacable male dominance in the workplace. The association analyzes this result as meaning that women value their private lives over their careers. In other words, they don’t think they can raise children or have families if they are in leadership positions. And, in fact, this is still a widely held belief.

You are where you eat: McDonald’s Japan sets prices by region

Thursday, September 19th, 2013

According to retail marketing research firm Soft Brain Field, McDonald’s is overwhelmingly the most popular fast food in Japan, with 68 percent of survey respondents saying they patronize the American hamburger chain regularly. When asked which fast food they like the most, the answer for 33 percent is also McDonald’s, with Mos Burger second at 25 percent and Mister Donuts third at 17 percent. Forty-two percent of McDonald’s users patonize an outlet once a month, and 29 percent do so two or three times amonth, more often for lunch (43 percent) than dinner (29 percent).

Why do they prefer McDonald’s? The most common answer is that it’s inexpensive and they can order as little as possible, meaning they can go there when they’re not in the mood for a full meal.

High overhead: McDonald's Roppongi Hills

High overhead: McDonald’s Roppongi Hills

The main underlying attraction of fast food is predictability. People who patronize national or international chains know what to expect in terms of quality and, more significantly, price. They probably think that prices are uniform from one outlet to another. The British newsweekly The Economist exploits and reinforces this perception with its occasional Big Mac Index, which analyzes relative values of national currencies by comparing the prices of Big Macs in all countries using the assumption that the value of a Big Mac is uniform.

However, if you go to McDonald’s American home page, prices are not listed, and if you do a web search you find that prices seem to vary slightly from one state or city to another, though it isn’t clear for what reason. Some people seem to think it has to do with differences in wages or local taxes or the fact that some stores are franchises while others are corporate-owned, but according to a recent article in Forbes, production costs have no impact on McDonald’s pricing, only competition. McDonald’s sets prices according to what the company reasonably believes it can get for its products in a given market at a desirable volume.

McDonald’s Japan also does not list prices on its home page, but it is fairly well known that prices differ from one outlet to another. These prices are not set by the outlets themselves. They are set by the headquarters, and on Sept. 10 the company announced that it was expanding the range of prices on its menu as well as increasing prices by as much as ¥50 per item. Since last year, the company’s profits have been dropping and it has pinpointed outlets that McDonald’s believes “can absorb price increases” without undermining its loyal customer base.

McDonald’s Japan first set up regional price schedules in 2007 by dividing Japan into six zones. Under the new system there will be nine zone categories, but these zone categories are not necessarily prefecturally-based. Urban outlets within a prefecture will have higher prices than suburban or rural outlets. Realistically, this means there will be seven different prices for a Big Mac, depending on the zone, ranging from ¥310 to ¥390, up from four different prices ranging from ¥290 to ¥340.

The highest prices will, of course, be in Tokyo. There is one zone within central Tokyo, made up of 10 outlets, that boasts the highest prices in Japan, and the overall price scheme has been formulated to support urban outlets, which serve the largest cross-section of customers. Rents and other overhead in the centers of large cities are multiplicatively greater than they are in the boonies, though prices are not multiplicatively different. The largest gap in prices between zones is ¥80, up from ¥50 before the changeover. Unaffected will be the prices for promotional loss leaders, like the “¥100 Mac” and Chicken Crisps, not to mention certain meal sets. In a sense, the countryside is helping support city folks’ fast food habits.

According to the Asahi Shimbun, the strategy is simply to maximize profits and has nothing to do with regional wage demands, local taxes or cost-of-living conditions. The company tested the new pricing system last April in a select number of outlets and determined that the number of patrons did not change when prices went up slightly. Overall, about 40 percent of the menu items will be affected by the price changes.

McDonald’s predicts that the price increases will boost its profits by 1 percent, which doesn’t sound like much but with an outfit as huge as McDonald’s that should amount to billions of yen. In any case, the lower yen has increased the price of imported ingredients, particularly meat and potatoes.

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 →

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