With a population of approximately 127 million, Japan is characterised by consumers with high levels of disposable income and companies with a strong global orientation and willingness to invest in sustainable, long-term products and services.
Japanese buyers are drawn to premium, high-end goods and services offering higher returns on trade investment. Japan has made a name for itself as a nation of quality and innovation and has staked its future on this value proposition. Along with this comes a strong commitment and loyalty to business partners, once acquired.
The mainstream of the Japanese economy remains cashed up, both in terms of individual savings and liquidity and in terms of corporate balance sheets. Japan is now faced with the dilemma of how best to utilise its significant assets in uncertain times. Many hope that the early positive results of ‘Abenomics’ (the economic stimulus reforms introduced by Prime Minister Abe’s LDP government) may jolt the country back into growth.
The Japanese are showing resilience and often demonstrate a stronger predilection for change under pressure. Understanding where and how changes will lead to new opportunities for Australia is both a challenge, but also a unique window of opportunity.