Big retail winners in Japan’s downturn

Here is my list of some of the few companies that have found success during the recent economic downturn. Note their domestic orientation and low-priced offerings:

Disneyland – Multiple upward earnings revisions. Popular as alternative to international travel.

Nintendo – Record earnings. Gaming as substitute for an expensive social life. Their strategy to expand the pie of gamers through educational titles and the like has paid off enormously.

McDonald’s – Record earnings. 100 yen burgers for high school girls who want a place to chat and penny-pinching single salarymen who don’t cook for themselves

Fast Retailing – operators of cheap apparel seller Uniqlo, offering reasonably fashionable cheap clothes, plus a popular line of ultra-warm “Heat Tech” thermal underwear.

Nitori – cheap imported furniture, many convenient locations and no IKEA-style assembly requirements, no-pressure shopping experience (contrast with expensive, high-pressure Otsuka Kagu).

Tsutaya – is reporting surging new membership in their Internet rental service (similar to Netflix) is surging, while rentals-plus-online numbers have posted a sixth straight record year. People apparently spend their vacations watching the entire Sex and the City series instead of traveling to Hawaii.

Anecdotally, some of the supposedly high-end shops, such as the Caldee line of imported food stores, seem to be pretty popular. For one, the yen is strong, and for two, even relatively expensive items,  are still cheap compared to the overseas trip you’ve decided to skip this year.

Writing in INSIGHT NOW!, small-business M&A consultant Shin Satake identifies four lines of business that do well in economic downturns:

 1. Education services (people who have lost their jobs turn to retraining to make them more competitive)

2. Medical services (stress is a killer!)

3. Repair/maintenance (people decide to get stuff fixed rather than buy a replacement)

4. “Escapism” businesses – (the desire to escape everyday existence is a self-defense mechanism. Includes entertainment, etc.)

F-U journalism from Matt Taibbi

Following on the heels of yesterday’s post on a 1993 long-form, take-down profile of Gregory Clark, readers might be interested in taking a look at Matt Taibbi. He is a true master of what I call fuck-you journalism, something of a subset of gonzo style. If you thought the reporter for The Australian was a little harsh, you haven’t seen anything. Taibbi has got to be the biggest out-and-out dickhead in the entire business, though I am sure he could find far more biting insults for himself. Some choice bits:

On the death of Yeltsin:

Death of a Drunk
At long last, former Russian president and notorious booze-hound Boris Yeltsin dies

Boris Yeltsin probably had more obituaries ready in the world’s editorial cans than any chronically-ill famous person in history. He has been dying for at least twenty consecutive years now — although he only started dying physically about ten years ago, he has been dying in a moral sense since at least the mid-Eighties. Of course, spiritually speaking, he’s been dead practically since birth…I once visited Boris Yeltsin’s birthplace, in a village in the Talitsky region of the Sverdlovsk district in the Urals, in a tiny outhouse of a village called Butka. I knocked on the door of the shack where Yeltsin was born and stepped in the soft ground where his room had once been. Boris Yeltsin was literally born in mud and raised in shit. He was descended from a long line of drunken peasants who in hundreds of years of non-trying had failed to escape the stinky-ass backwater of the Talitsky region, a barren landscape of mud and weeds whose history is so undistinguished that even the most talented Russian historians struggle to find mention of it in imperial documents.

Reviewing Thomas Friedman’s latest book:

When some time ago a friend of mine told me that Thomas Friedman’s new book, Hot, Flat, and Crowded, was going to be a kind of environmentalist clarion call against American consumerism, I almost died laughing.

Beautiful, I thought. Just when you begin to lose faith in America’s ability to fall for absolutely anything—just when you begin to think we Americans as a race might finally outgrow the lovable credulousness that leads us to fork over our credit card numbers to every half-baked TV pitchman hawking a magic dick-enlarging pill, or a way to make millions on the Internet while sitting at home and pounding doughnuts— along comes Thomas Friedman, porn-stached resident of a positively obscene 114,000 11,400 square foot suburban Maryland mega-monstro-mansion and husband to the heir of one of the largest shopping-mall chains in the world, reinventing himself as an oracle of anti-consumerist conservationism.

Where does a man who needs his own offshore drilling platform just to keep the east wing of his house heated get the balls to write a book chiding America for driving energy inefficient automobiles? Where does a guy whose family bulldozed 2.1 million square feet of pristine Hawaiian wilderness to put a Gap, an Old Navy, a Sears, an Abercrombie and even a motherfucking Foot Locker in paradise get off preaching to the rest of us about the need for a “Green Revolution”? Well, he’ll explain it all to you in 438 crisply written pages for just $27.95, $30.95 if you have the misfortune to be Canadian.

I’ve been unhealthily obsessed with Thomas Friedman for more than a decade now. For most of that time, I just thought he was funny. And admittedly, what I thought was funniest about him was the kind of stuff that only another writer would really care about—in particular his tortured use of the English language. Like George W. Bush with his Bushisms, Friedman came up with lines so hilarious you couldn’t make them up even if you were trying—and when you tried to actually picture the “illustrative” figures of speech he offered to explain himself, what you often ended up with was pure physical comedy of the Buster Keaton/Three Stooges school, with whole nations and peoples slipping and falling on the misplaced banana peels of his literary endeavors.

Remember Friedman’s take on Bush’s Iraq policy? “It’s OK to throw out your steering wheel,” he wrote, “as long as you remember you’re driving without one.” Picture that for a minute. Or how about Friedman’s analysis of America’s foreign policy outlook last May:

The first rule of holes is when you’re in one, stop digging.When you’re in three, bring a lot of shovels.”

First of all, how can any single person be in three holes at once? Secondly, what the fuck is he talking about? If you’re supposed to stop digging when you’re in one hole, why should you dig more in three? How does that even begin to make sense? It’s stuff like this that makes me wonder if the editors over at the New York Times editorial page spend their afternoons dropping acid or drinking rubbing alcohol. Sending a line like that into print is the journalism equivalent of a security guard at a nuke plant waving a pair of mullahs in explosive vests through the front gate. It should never, ever happen.

And on Tom Daschle (Glenn Greenwald dug this up when the tax problems that cost Daschle his cabinet position surfaced):

I know several reporters who are either officially or unofficially on “Whore Factor” duty, watching the rapidly kaleidoscoping transition picture and keeping track of the number of known whores and ghouls who for some reason have been invited to befoul the atmosphere of the next administration.

Obviously there has been some dire news on that front already. When Obama picked Tom Daschle to be the HHS Secretary, I nearly shit my pants. In Washington there are whores and there are whores, and then there is Tom Daschle. Tom Daschle would suck off a corpse for a cheeseburger. True, he is probably only the second-biggest whore for the health care industry in American politics — the biggest being doctor/cat-torturer Bill Frist, whose visit to South Dakota on behalf of John Thune in 2004 was one of the factors in ending Daschle’s tenure in the Senate.

But in picking Daschle — who as an adviser to the K Street law firm Alston and Bird has spent the last four years burning up the sheets with the nation’s fattest insurance and pharmaceutical interests — Obama is essentially announcing that he has no intention of seriously reforming the health care industry. . . .

Regarding Daschle, remember, we’re talking about a guy who not only was a consultant for one of the top health-care law firms in the country, but a board member of the Mayo Clinic (a major recipient of NIH grants) and the husband of one of America’s biggest defense lobbyists — wife Linda Hall lobbies for Lockheed-Martin and Boeing. Does anyone really think that this person is going to come up with a health care proposal that in any way cuts into the profits of the major health care companies?

That image has been burned into my head over the past week or so…

Of course, in Japan Taibbi would find himself up to his ears in defamation suits. In the US, he appears merely to be ignored as a sensationalist who can only get published in Rolling Stone.

Have keitai novels gone the way of the maid cafe?

Update on keitai novels: they’re dead! At least, it looks that way in the publishing industry.

According to J-Cast, Kinokuniya rankings show that not a single keitai novel made an appearance in the top 100 sellers of 2008, despite ongoing heavy promotion of the genre.

One publisher blames the sluggish publishing sales on a lack of an impactful release during the year. That, and the fact that “keitai novel” releases went from 1 or two titles a a month in 2007 to around a dozen in 2008, reportedly resulting in a more dispersed readership. However, the drama and movie versions of “Red String” have expanded the genre’s fan base, as evidenced by growing traffic and registered users at major site Orion.

But given the originally non-commercial and independent nature of keitai novels (really, a form of fictionalized blogging), one view, backed up by an unnamed industry insider, notes that going mainstream made the genre less grassroots and thus less cool. As a result, writers/consumers may have lost interest as the “independent” feeling of community was lost. Indeed, popularity of select titles has meant stable fan bases for particular authors, making it harder for less established newcomers to make money on a book gig (sounds like the traditional publishing industry, no?).

So that means in 2008, as NHK, Japan bloggers, and even the New Yorker marveled at this new consumer development, the actual fad had already begun to fade. Doesn’t it feel kind of dirty to have been part of the dreaded “Newsweek effect.”

Jun on Onishi

Jun Okumura, at his blog, has a long five-part series deconstructing NYT Japan correspondent Norimitsu Onishi’s recent article Japan’s Outcasts Still Wait for Acceptance.

Part 1 Part 2 Part 3 Part 4 Part 5 (Coda)

Jun’s conclusions are, in short, that there were sufficient reasons other than his burakumin background to keep Nonaka Hiromu from the premiership, and that being of burakumin background in Japan’s parliamentary system is not as serious an impediment to advancement as being black (or presumably some other minority) has been in America’s presidential system. He makes a good case for both of these points, particularly his detailed explanation of Nonaka’s resume. And note what he is NOT saying. Jun does not argue that having a dowa (burakumin) background is NOT generally an impediment to advanvement, and he also isn’t arguing necessarily that Nonaka’s background wasn’t a factor in stifling his ascent. He is merely providing alternate, equally plausible explanations, and arguing that Onishi is jumping to conclusions in such a way as to exaggerate the contemporary importance of burakumin discrimination. But accepting that Jun’s substantial criticism and correction of Onishi’s article is at least substantially correct, I am still left wondering how much of a problem is this for the original reporting?

I sometimes feel that people are overly harsh on Norimitsu Onishi. Yes, many of the criticisms aimed at his reporting are accurate, but I think the “anti-Japanese” label often tossed around is insulting and inaccurate. Being critical of Japan (or any country) is hardly the same as being “anti” Japan, as long as the writer understands the difference between criticism and attack. And not just insulting to him, but to other people who care about the various issues he likes to cover. Of course it is also worth pointing out his biases, inaccuracies, and omissions in the manner that Jun Okumura did.

Bias in a foreign correspondent like Mr. Onishi is not inherently bad, if the primary influence that this bias has is on his choice of story, as long as the content within any given story is given the proper context and balance. Onishi clearly has a bias towards stories relating to the various types of underdogs in Japan, including ethnic (or perhaps quasi-ethnic in the case of Burakumin) minorities, rural poor, etc. and I think that to a certain extent his reporting does a good service in introducing these internationally little-known topics to the Times readership. For example, Time Magazine has had only two articles on the dowa problem, one in 1973 and one in 2001. The NYT has had quite a few more over the years, particularly in the mid 90s when Nicholas Kristof had what is now Onishi’s job. (Kristof, whose bias in selecting stories is at least a bit similar to Onishi, or for that matter myself, as a reporter columnist now concentrates more on child slavery.)

It definitely seems that Onishi’s stories are on topics the NYT editors and readers crave, and his stories are also on topics of real substance, and not the “wacky Japan” reportage that seems to be almost all that comes out of popular Western media outlets on this country. But a story on a well-chosen topic can of course still be flawed. Jun Okumura makes a good case that this one in particular is flawed, and you can find plenty of other criticism of Onishi online (although you may have a hard time finding similarly reasonable examples amid the sea of vitriol and bizarre accusations of being a secret Japan-hating Korean). This sort of criticism is an essential part of the new media landscape, in which blogs and other outlets police the competence and honesty of the mainstream media (and of course, each other) in the same way that the fourth estate it itself supposed to police the other institutions of society (the first through third estates, one supposes).

But I am also left with one lingering concern. Even if this criticism is accurate, how fair is it? Norimitsu Onishi certainly is not doing a perfect job, but is his work more or less flawed than similar foreign correspondents in other countries? Does a typical Times correspondent in Africa suffer the same level of criticism from Africa hands that Onishi does from Japan hands in America? I must admit I don’t pay much attention at all to coverage of the US in the Japanese media (although perhaps I should) but I certainly run across plenty of BBC stories on US culture or politics that strike me as substantially correct in some areas, but oddly twisted or lacking in much the same way that Onishi is being criticized here. And this is for a nearby country speaking the same language. I can only imagine how comically bad Russians or Brazilians consider American, or say Japanese, coverage of their country is. How good, really, is any foreign correspondence when limited to dispatches of 750-2000 words for an audience expected to have almost no background knowledge on the subject? In fora such as Jun’s blog or this one readers can safely be assumed to be bringing quite a lot more background information to the table than in a newspaper, and that may at times lead us to view mainstream media work in a worse light then they actually deserve. Of course they do sometimes deserve it. Actual errors or deliberate misdirection cannot be excused or relativized away and should always be pointed out when they occur, but let’s at least think a little more about how much of the problem is found in any particular reporter and how much is inherent in the whole institution.

Dumbest research project ever?

I think we have a very strong contender here.

Karen, formerly a Hong Kong-based correspondent for The Wall Street Journal, seeks your input and is traveling around Asia for the next few weeks looking for people to interview.

Give your ideas below or shoot over an email. Here is Karen’s pitch:

Last month I wrote a two-part series for the Post called “Continental Divide” about the problems divorcing when you live outside your own country. I’m now in the region developing this series into a bigger project–both for the paper and as a possible book/film– on expat lives.

Expats live in a parallel universe. While they are culturally fish-out-of-water they can also live glamorous lifestyles. And while it can be a great experience for some, there is also a dark side to expat life. I’d like to further explore the issue by asking the simple question: Can marriages survive the expat life?

I’m looking for both men and women who are willing to share their experiences and willing to talk about the unique challenges they face. Men work long hours, are more stressed at work, and encounter greater temptation in the region. Women often quit good jobs at home, and while they find themselves nicely pampered at home, they often seen their identity slowly slip away as they face long days without husbands, and long months without family members or support systems.

So if you have something to say on the issue you an contact me at karen at mazurkewich dot com

I hope some people do write her with their opinions on this piece of Orientalist fantasy tripe. And this lady wrote for the WSJ? I take back everything I ever said about hoping the big newspapers survive.

What will the news look like in the future?

Happy new year everyone!

The New Yorker had a nice, concise piece on the financial state of the newspaper industry recently (it’s bad), which concludes:

Does that mean newspapers are doomed? Not necessarily. There are many possible futures one can imagine for them, from becoming foundation-run nonprofits to relying on reader donations to that old standby the deep-pocketed patron. It’s even possible that a few papers will be able to earn enough money online to make the traditional ad-supported strategy work. But it would not be shocking if, sometime soon, there were big American cities that had no local newspaper; more important, we’re almost sure to see a sharp decline in the volume and variety of content that newspapers collectively produce. For a while now, readers have had the best of both worlds: all the benefits of the old, high-profit regime—intensive reporting, experienced editors, and so on—and the low costs of the new one. But that situation can’t last. Soon enough, we’re going to start getting what we pay for, and we may find out just how little that is.

A third alternative could be to bundle a “news service” fee into your monthly Internet service provider bill, as has been proposed for “illegal” music downloading.

In his “Cyber Libertarian” column for Ascii, economist Nobuo Ikeda forecasts that newspapers in Japan will become “platforms” — meaning they will eventually shed the high-cost paper distribution system and even their newsrooms in favor of publishing outsourced content under their venerated imprints.

I am not sure what to make of it all, but it’s fascinating stuff and I would love to hear your thoughts!

IIjima Ai’s meaning to Taiwan

The mysterious death of former porn-star turned memoir author and TV celebrity IIjima Ai has been big news in Japan. I wouldn’t normally mention something like this due to lack of really caring much, but I was alerted to a rather interesting twist in a comment by Taiwanese TV Journalist Michella Jade Weng at Michael Turton’s blog. Weng linked to an a Mainichi article explaining that IIjima’s death has been unusually big news in Taiwan for a surprising and fascinating reason. I’ll give a translation of most of the article below.

Due to the import of adult videos starring Ms. IIjima in the early 90s when Taiwan was democratization and the opening of society were proceeding, Ms. Iijima became a “symbol” of freedom of expression and culture. The [December] 25th edition of China Times, one of Taiwan’s big four newspapers, had a front page article above the fold article which, along with showing a photograph of Ms. Iijima, stated that Iijima Ai “became the common shared sexual dream of Taiwanese men born in the 1960s to 1970s.”

Note that China Times now has a special feature section on their website, under the amusing folder name of “sexgirl.” UDN, another of the big four papers, also put together a special feature on Ms. Iijima, describing her as “a memory of all the men of Asia.”

Assistant Editor of China Times, Zhang Jing-wei, explained this treatment by saying “The period when Ms. Iijima was active overlapped with the period when Taiwanese politics and society were opened up. We were not trying to be funny at all, and decided that Ms. Iijima’s death has social significance.”

In 1987, Taiwan’s 38 year period of marital law ended, and restrictions on cultural expression such as newspaper publication and songs were lifted. The Japanese adult videos that began pouring into Taiwan in the 1990s were considered a symbol of social liberalization.

Weng also reports that her editor explained it in more direct terms. “In addition, she was the common link between nearly all men born in the 60’s and 70’s, because almost all of them hid in their bedroom and watched her videos at one point or another.” Including her editor.

Burying the lede?

The NYT has a new article explaining in a decent length how currency-finagling led to a codependent financial relationship between China and the US over the last few years. Yes, that’s all very informative, but as is often the case they slip the best part in towards the end, where most readers will have already given up.

In a glassed-in room in a nondescript office building in Washington, the Treasury conducts nearly daily auctions of billions of dollars’ worth of government bonds. An old Army helmet sits on a shelf: as a lark, Treasury officials have been known to strap it on while they monitor incoming bids.

With a line like that, it’s criminal that the photograph for the article was Secretary Paulson and President Hu wearing boring suits.

On The Media on Kisha-clubs

National Public Radio’s always-excellent weekly show On The Media just did a great 20 minute segment on Japan’s unique press club system. The best part of the entire piece: when segment producer Mark Phillips brought up the way in which reporters and the politician or other figure they cover often exchange questions and answers making “the actual-” and this is where I quite literally braced myself to hear the word “kabuki” but instead heard “-a mere formality.” What a relief!

Press Conference with the Taiwanese President

Following the incredible amount of discussion we had here regarding a BBC “From Our Correspondent” column on a heavily stage-managed interview with Japanese PM Aso Fukuda, I think it would be interesting to compare with this Taipei Times “Reporter’s Notebook” column on Taiwanese president Ma Ying-jieu’s press conference given at the Taiwan Foreign Correspondent’s Club. The most obvious difference of course is that Ma, who studied in the United States, is fluent in English and required no interpreter. Also unlike the aforementioned Aso Fukuda interview, this was apparently an actual live press conference, in which reporters were free to ask questions of their choice. However, according to the column, “the tough questions never came.”

Throughout the 90-minute session, Ma’s fluency held up well — but he did stumble on several occasions with figures, reverting to a quick check of the numbers in Chinese with his aides.

Consistent to a fault, however, Ma used the term “mainland” to describe China, so much so that many of the foreign correspondents found themselves employing Ma’s questionable terminology in their questions.

He also made one or two factual errors, such as accusing Democratic Progressive Party Taipei City councilors of offering a reward for anyone who could pelt Chinese envoy Chen Yunlin (陳雲林) with eggs during his visit last month, when in fact it was members of the pro-independence group Taiwan Society North.

He did impress by answering questions precisely and comprehensively, except for the terse response to a query on whether he would welcome the Dalai Lama.

Overall, however, the nature of the audience meant that questions focused on international issues, which meant that this reporter — and several others — were left disappointed that Ma wasn’t pressed on domestic problems that may yet influence cross-strait ties.

Incidentally, his response over whether he would welcome the Dalai Lama was “no.”