Groupon in Japan Faces Growing Pains

Groupon isn't just a hit in the U.S. -- it's rapidly expanding overseas as well, with 50 million subscribers in 35 countries.   Part of its expansion strategy, however, is to acquire local startups rather than compete with them, which has led to some growing pains for Groupon.  Most recently, a nationwide deal in Japan went bad, forcing Groupon founder Andrew Mason to post an online apology to Japanese customers (above).  The two-year-old company now pulls in more than $1 billion in revenue, and the business model of offering huge discounts to popular goods and services looks set to flourish in international markets.  Apparently a good deal transcends all cultural barriers.

Groupon in Japan Faces Growing Pains - NYTimes.com: "- Sent using Google Toolbar"

Rising China Bests a Shrinking Japan

It's official -- China is now the world's second largest economy, displacing Japan from a position it's held since 1967. At the same time, it's still one of the world's poorest economies, with over 100 million citizens living on less than $2 a day. This dichotomy is explored in today's WSJ article, as well as the video above.

Rising China Bests a Shrinking Japan - WSJ.com

McDonald's Bets on Japan Big-Burger Blitz

Japan's top restaurant by number of outlets, McDonald's, rolled out its Big America 2 campaign last week, featuring the Texas burger (above).  It comes with chili, three buns, cheese and bacon, and comes in at 645 calories.  The Idaho burger features a quarter-pound patty, cheese, a hash brown, bacon, onions, and pepper-and-mustard sauce, for 713 calories.  In Japan, going big and unhealthy, and emphasizing its American roots, works well for McDonald's.  The company made $91 million in Japan last year.

McDonald's Bets on Japan Big-Burger Blitz - WSJ.com

Japan’s Farmers Oppose Pacific Free-Trade Talks

Japan maintains a 777% tariff on imported rice, as well 252% on wheat, 360% on butter, 320% on sugar, and 38.5% on beef.  As a result, Japanese consumers have to pay some of the highest prices in the world for basic foods.  Now, Japanese industry groups are urging the government to reduce tariffs in return for greater market access to big economies such as the U.S.  Japanese farmers, however, are terrified that dismantling the tariffs will lead them to ruin.

Japan’s Farmers Oppose Pacific Free-Trade Talks - NYTimes.com

Captain's Release Sparks Furor in Japan

The Chinese boat captain captured by Japan and arrested for being in territorial waters claimed by Japan has been released after China began to withhold exports of rare earth minerals to Japan late last week.  That has sparked a furor in Japan, where many Japanese citizens believe the government caved in to China.  Now, China is demanding an apology and compensation from Japan, something Japan has flatly denied it will do.  Japan in turn is seeing compensation from China for damage caused to its naval vessels during the incident.  Above, protesters rally in Hong Kong with signs saying "Japan Get Out."

Captain's Release Sparks Furor in Japan - WSJ.com

China's Premier Threatens Japan Over Boat Dispute

Japan's arrest of a Chinese fisherman in disputed waters is causing a major rift between China and Japan. For the Chinese, this is a chance to show domination over a former invader. For Japan, it's a chance to stand up to a growing power. For the U.S., it's a chance to countervail China's growing influence in the region. No resolution is in sight.

China's Premier Threatens Japan Over Boat Dispute : NPR

Lack of Security Leads Japanese to Seek 2nd Jobs

An interesting phenomenon is taking shape in Japan, long known as the land of lifelong job security.  The workplace is transforming, more companies are willing to let workers go, and salaries have stagnated or declined. As a result, more and more Japanese, such as Hiroko Yokogawa (above), are taking on second and third jobs.  In fact, a startling 17% of workers between 20 and 50 have a side job.
Lack of Security Leads Japanese to Seek 2nd Jobs - NYTimes.com

New Dissent in Japan Is Loudly Anti-Foreign

 In famously polite Japan, a new wave of ultra-right citizens are protesting the presence of all things foreign, from Korean workers to Halloween.  The result is embarrassing for the majority of Japanese, and hopefully not a sign of things to come for visitors to Japan.

New Dissent in Japan Is Loudly Anti-Foreign - NYTimes.com

Japanese Retailer's New Policy: 'English Spoken Here'

What is the universal language of business? English of course! In Japan, Rakuten is joining a growing list of companies that moving to an English-only policy even for Japanese employees. The movement is driven by the desire to expand overseas and attract/retain top talent.

Japanese Retailer's New Policy: 'English Spoken Here' - WSJ.com: "- Sent using Google Toolbar"

Chinese Tourists Flock to Japan

Last year, China became Japan's top export market, replacing the United States. Rising wages and an emerging middle class means more and more Chinese can afford to buy Japanese goods, and in the next logical step, visit Japan as tourists. In response, Japan has relaxed visa restrictions for Chinese citizens, which will allow a tenfold increase in the number of Chinese tourists to Japan. No surprise -- on average, Chinese tourists outspend Taiwanese and American tourists combined on trips to Japan.

Chinese Tourists Flock to Japan - WSJ.com

Revealed: Japan’s bribes on whaling

Japan is trying to convince the international community to lift the ban on commercial whaling. In order to gain some smaller countries' votes, officials have been promising aid to the countries. When that fails, they've taken to offering cash and prostitutes for the votes, as this newspaper report reveals.


Revealed: Japan’s bribes on whaling - Times Online

iPad Hits Japan, and Magician Goes Crazy

IPhone Cracks Japan's Tough Market

Nokia, Samsung and Blackberry have all failed in Japan's smartphone market, where Japanese manufacturers dominate with highly sophisticated devices. The iPhone, however, is a huge hit and is making everyone examine their assumptions that the Japanese won't adopt a foreign phone brand. Even though the hardware is less sophisticated than the local competition, the software and aggressive pricing, as well as the App store, are winning over thousands of new customers. Which just goes to show once again how important the PRODUCT is to business success!

IPhone Cracks Japan's Tough Market - WSJ.com

Japanese Makeup Companies Have Trouble Cracking the U.S. Market

Japanese cosmetic manufacturers have a strong reputation, especially in Asia and Europe. After years of trying to make inroads into the U.S., however, several are giving up and quietly pulling out of department stores. This is happening even as American and Japanese standards of beauty are converging, highlighting the difficulties foreign companies have in entering the U.S. market without a clear marketing strategy.

Japanese Makeup Companies Have Trouble Cracking the U.S. Market - WSJ.com

Wasabi Kit Kat

In spite of Japan's victory in preventing a proposed export ban on bluefin tuna, fish consumption in Japan has dropped below meat consumption for the first time. More and more, younger Japanese consumers are turning away from fish as Japanese diet becomes more Westernized, as this WSJ video report demonstrates

U.N. Rejects Export Ban on Atlantic Bluefin Tuna

Sushi lovers can breathe a sigh of relief that tuna will still show up on the menu, at least for now. The U.N. has rejected a U.S.-backed plan to place an export ban on Atlantic bluefin tuna. The bluefin tuna is mainly fished in European countries, and the E.U. abstained from supporting the U.S. proposal. The decision is a victory for Japan, which consumes most of the bluefin tuna caught. Tuna stocks are down 80% since 1980, and the U.S. expressed great disappointment in the failure of the U.N. to protect the fish from further population decline.
U.N. Rejects Export Ban on Atlantic Bluefin Tuna - NYTimes.com

Uniqlo Parent Fast Retailing Pursues Global Deals - WSJ.com

If you've never heard of Uniqlo before, you may soon. The Japanese fashion retailer (think Japanese version of Gap) announced plans yesterday to spend up to $11 billion to acquire a strong U.S. or Europe company to become bigger than Gap or H&M. Chairman and Chief Executive of Fast Retailing Co., Uniqlo's parent company, Tadashi Yanai (pictured here and one of Japan's richest men) told the WSJ that "we could grow organically,, but it would take a long time." The solution therefore is to buy another company! "The bigger the better" he says.

The company won't necessarily bring in the Uniqlo brand. It tried several years ago in the U.S., and all closed down except the outlet in SoHo. Yanai believes Uniqlo should only expand in major urban areas more accepting to foreign brands.

So what kind of U.S.-based clothing retailer can $11 billion buy these days?

Uniqlo Parent Fast Retailing Pursues Global Deals - WSJ.com

Did a Secretive Culture Lead to Toyota's Problems?

It seems like hardly a day goes by without more bad news for Toyota. It went from sticking floor mats to sticking gas pedals to faulty brake electronics to faulty steering components and now, today, a recall for a power steering hose in 2010 Camrys. How did a company so famous for its manufacturing processes, obsession to detail, prized for its quality and lean efficiency, stumble so badly? In a provocative Page 1 article, the Wall Street Journal suggests that the answer may lie in the secretive Japanese culture that surrounds Toyota, depriving the U.S. subsidiary of any real decision making authority and understating the problem until it was too late. The most startling part of this story is description of NHTSA officials when they found out Toyota knew about the runaway acceleration problems for almost a year before telling them -- they were "steamed."

Delay in Response Led to Rift Between Toyota and U.S. Regulators - WSJ.com

Tuna May be Off the Menu Soon

If you like tuna sushi, it may be time for you to enjoy it one last time. Today, the United Nations group that oversees the Convention on International Trade in Endangered Species recommended that the world should ban the fishing and export of Atlantic bluefin tuna. This follows on the heels of news that the European Union is close to banning the export of bluefin tuna as well, with France being the latest member to join in the calls for a ban, as long as there's a two-season transition for their fishing industry to adjust. Stocks of Atlantic bluefin are down 80% over the last century, so there's a lot of evidence to suggest the species has been hunted to near extinction. So go ahead, enjoy your last tuna roll, because it really may be the last one you'll enjoy.