Presentation on theme: "Client LOGO JAPAN Current Economic Situation and Export Opportunities For British Businesses Kaoru Ohsumi UKTI British Consulate-General Osaka."— Presentation transcript:
Client LOGO JAPAN Current Economic Situation and Export Opportunities For British Businesses Kaoru Ohsumi UKTI British Consulate-General Osaka
JAPAN MARCH 11 AND TODAY Tohoku Region Pacific Coast Earthquake (M9.0) – Tohoku Region: 250miles northeast of Tokyo – 4 th largest earthquake on record & tsunamis – Nuclear issues – Most expensive natural disaster in history - Initial estimate of damage 3-5% of GDP (up to £190bn) Today – Safe to visit and conduct business in Japan – Business getting back to normal – Impacts and opportunities?
Overview of Japanese Economy 3 rd largest economy in the world GDP per capita is still 10 times of China High quality business environment JAPAN UKJapanChina Population (2010) 62 million127 million1,354 million Land Mass295,000km 2 378,000km 2 9,600,000km 2 Real GDP (estimated 2010) $2.2trillion$5.5trillion$5.9trillion Real GDP Growth (estimated 2010) 1.3%3.9%10.3% GDP Per Capita (estimated 2010) $36,000$43,000$4,400 Ease of Doing Business Index4 th 18 th 79 th Source: IMF, UN, World Bank
JAPAN Source: The Economist
Overview of UK/Japan Trade (2009) Lehman crisis hit UK/Japan trade UK still maintains its 1% market share of imports into Japan JAPAN Source: Bank of Japan, Ministry of Finance
JAPAN Major UK Exports to Japan (2009) Source: BIS analysis of HM Revenue & Customs data ₤ MillionShare Of UK Total Share Financial & Insurance2,87834%5% Other Business Services86210%2% Medicinal & Pharmaceutical Products6097%3% Transportation5697%3% Power Generating Machinery & Equipment3945%3% Royalties and licence fees3754%5% Road Vehicles (Including Air Cushion Vehicles)2793%2% Miscellaneous Manufactured Articles N.E.S.2603%2% Travel2052%1% Non-Ferrous Metals1722%4% Total8,398100%2%
JAPAN Japan in Technical Recession ⇒ Expected to Recover Earthquake dragged down Q1 (January- March) GDP – Production and consumption both ↓ – Imports ↑ to fill up the shortages Recovery expected from Q3 – Firms to resume normal operation in Autumn Source: Cabinet Office, Economic Planning Association Lehman Crisis Earthquake
Auto/Semiconductor most affected – 20% of the industry in the affected area – Shortages of parts halted production worldwide JAPAN Two Big Impacts For Industries Supply chain disruptionPower shortage Fukushima nuclear accident ( 150miles northeast Tokyo ) – Reduced/delayed business investment and supply – 15% power cut in the summer
JAPAN Reconstruction Opportunities Town-planning Risk assessment, disaster preparedness and business continuity planning Renewable energy and low carbon including “Smart Cities” - Renewable Energy And Green Building Seminar On Opportunities (London, 24 June 2011) Nuclear clean-up and decommissioning - British Decontamination Technologies seminar/showcase/ meetings (Japan, Autumn 2011) Tele-medicine Hospital reform consultancy Cloud computing Aid-Funded Sustainable Infrastructure Seminar (London, 1 July 2011)
JAPAN Key Sectors For British Exports Financial Services Automotive / Advanced Engineering ICT Life Sciences Creative Industries Retail Market / Consumer Goods
JAPAN FINANCIAL SERVICES Huge personal wealth – Aggregate financial assets in excess of JPY1,400 trillion – Asset management services Domestic loans market plateauing – Japanese financial institutions expanding overseas business Earthquake impact limited to Tohoku – TEPCO(Tokyo Electric Power Company)’s rehabilitation could impact major FS institutions Funding required for reconstruction – PFI financing???
JAPAN ADVANCED ENGINEERING ▪ Automotive▪ Energy▪ Aerospace ▪ Marine▪ Railway▪ Environment ▪ Industrial components▪ Defence▪ Security Automotive J apan is still one of the world’s leading automotive countries 2009 (Quantity) - Exports ↓ 33% / Imports ↓ 35% from (Value) - Exports ↓ 36% to 9.4 trillion yen - Imports ↓ 42% year-on-year to 0.8 trillion yen Motor vehicle production ↓ 32% to 7.9 million units Imported vehicle sales in Japan: 179,000 unites Exports of motor vehicles ↓ 46% to 3.6 million units from 2008 Global need to reduce carbon emission from transport. Japan’s Energy Conservation Law: Recommended vehicle fuel efficiency targets for FY2010
JAPAN ICT New opportunities/interests - Smart meters - Cloud based systems Opportunities - Software (including IPR – Intellectual Properties) - Devices/services to improve energy mgt quality/efficiency - Sensing technologies - Communications - Display technologies, etc Case studies (successful business in Japan) ARM, Imagination Technologies, Cambridge Silicon Radio, Novauris (speech recognition software), video games companies (Climax, Hello Games etc) Technology World (November 2011) Mobile World Congress, Barcelona (February 2012)
JAPAN LIFE SCIENCES World 2nd largest market (2009) Government’s Healthcare expenditure: £38.7 billion Fastest ageing society with 127m population 65yrs: 23.1% (2010) => 30.5% (2025) Pharma: £65 billion, 24.2% imported UK - Top overseas supplier, except 2009 Devices: £16 billion, 49.4% imported UK - 8th Overseas supplier Opportunities Pharma: Drug seeds, DDS, Biomarker, R&D collaboration Devices:Innovative products, FDA approved Earthquake: No negative impact. Demand increased. February 2012: “Ageing Mission” Trade Mission to Japan
JAPAN CREATIVE INDUSTRIES Design Services - Main areas:Product/graphic/interface designs, new materials, research work - Increasing collaboration in: Consumer electronics, medical equipment, furniture, kitchen/household goods, etc - UKTI Design Service Mission (24-28 October 2011) Music - 2 nd largest market in the world - UKTI Music Mission (3-5 October 2011) Designer Fashion - UKTI Fashion Mission (7-11 November 2011)
JAPAN RETAIL MARKET / CONSUMER GOODS (I) Retail Overall – Emerging signs of recovery and expansion/development – Fierce competition – Must: ▪ Quality▪ Delivery on time ▪ Price ▪ USP▪ Flexibility ▪ Communication/Relationship – Trend: “Petite Luxury ” Food & Drink – Many British products in Japan: Tea, jam, confectionery, cheese, soft drink, alcohol drinks, smoked salmon, etc, etc – “Safe” “Natural” “Healthy” – Regulatory barriers: BSE/F&M, Tariff, Organic, Additives – FOODEX2012, Tokyo (6-9 March 2012) – UK Pavilion?
JAPAN RETAIL MARKET / CONSUMER GOODS (II) Gift / Houseware – Quality & Design – “Cute” “Feminine” – Functionality – Kitchenware Fashion - Largest market after Europe and US - UKTI Fashion Mission (7-11 November 2011) Sports and Leisure – A wide variety of products: Brompton bicyles, Berghaus outdoor wear, etc etc – Outdoor/running boom: Innovative products “yama-ska” (mountain skirts)
JAPAN Enquiries to: Economic Advanced Creative Industries Design Designer Financial Retail Market / Consumer Goods Gift/Houseware Sports and Leisure Others including Reconstruction Opportunities
Client LOGO This presentation is based upon materials either compiled by us through independent research, or supplied to us by third parties. Property particulars are for information only, and to give a general idea of the property. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Enterprise & Regulatory Reform, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Japan is 元気！ GENKI Stay in Touch !