New Japan, New Consumer Mantra?

By Anna Novick

As Japan recovers gingerly from what Prime Minister Naoto Kan called its ?worst crisis since World War II?, there?s a question that won?t go away for trend watchers and businesses alike: exactly how will a nation famous for a conspicuous consumption habit adjust to longer-term life after March 11? ?What can you sell the Japanese, and how?

In the immediate aftermath of the earthquake, consumers here felt voluntarily abstaining from consumption was the right thing to do. Stores closed early to save power; convenience stores restricted sales of some basics to try to ensure more people could get what they needed with supplies disrupted; and people spent less on leisure goods and services, ate out less and stayed home as they absorbed the moment. Unsurprisingly, consumer spending slid in March from the same month a year earlier: according to cabinet office statistics, household spending in March fell by 8.5% compared to last year.

But consumer watchers expect the ?freezing? of consumption to be temporary, and when consumers return to the market, they will come equipped with different demands and attitudes than before the quake. Marketers believe honing in on these new demands will be crucial to not only recovering from the disaster, but also rebuilding Japan?s presence in the global economy.

What are these new consumer demands? According to Tetsuya Honda, CEO of marketing and PR specialists Blue Current Japan Inc., consumers will look for services and products that ameliorate their anxiety about the future and also eradicate the image that consuming is wasteful.

In post-World War II reconstruction-era Japan, slogans to capture the aspirations of an expanding middle class became current: a riff on the ancient tradition of three treasures being passed on from emperor to emperor, or ?Sanshu no Jingi,? became popular in the 1950s, referring to goods like washing machines, refrigerators and black and white TVs as a new ?Sanshu no Jingi.? From the late 1960s on, the consumer treasures became ?the three Cs? ? meaning ?car, cooler (air conditioning) and color TV.?

Post-March 11, Mr. Honda said that consumers will have a new mantra: ?The 3Ss?Social, Sustainable, and Shareable.?

?Japanese have always been craftsmen,? said Mr. Honda in an interview. ?But recently, simply producing novel products for consumption hasn?t been working.? Mr. Honda said that more than ever, post-quake Japanese consumers will have sustainability on their radar.

To be sure, as in other industrialized nations, consumers in Japan have already been increasingly attracted to environmentally friendly consumer trends in recent years. But Mr. Honda said that post-quake, Japan will shift from an ?eco? trend that focuses on saving money at a personal level to consumption that promotes a sustainable environment. ?Japan has an opportunity to become a leader in the global consumer economy by satisfying peoples? desires to be helpful to others and the environment.?

Japanese are sensitive to trends, or atmospheres, said Mr. Honda.? ?Once Japanese are aware of a particular atmosphere, like one that discourages spending in a time of crisis, they follow along without really evaluating the atmosphere itself.? But when the collective atmosphere works to propel spending in certain ways, instead of weighing it down, Japan?s momentum could build.

There?s little prospect, nor need, for a recovery of the post-war scale in a country that remains extremely rich by any definition. But Mr. Honda believes that consumers may now embrace a different definition of wealth than the trappings of the high-growth era. In post- March 11 Japan, Mr. Honda said, it may be that, ?Wealth won?t be defined by how many ?things? you have, but by how those ?things? make you feel.?

Source: http://blogs.wsj.com/japanrealtime/2011/06/17/new-japan-new-consumer-mantra/?mod=WSJBlog

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