Dentsu in the News, Part 1: The Good News

Lots of Dentsu-related stories in the pipeline these days. But first, the good news:

* Dentsu reports revenue exceeding 2 trillion yen, but sees slower growth ahead

From Asahi:

On May 11, Dentsu reported 2.939 trillion yen, or a 6.7% boost, in consolidated revenue for the 2006 fiscal year, the first time the company’s total has ever topped 2 trillion. Revenue in the major media (TV, newspapers, magazines, radio) all slightly dropped, but ticket sales for the 2006 World Cup in Germany, which was undertaken by a Dentsu subsidiary, pushed up the total.

Operating profit (which is mentioned last in the Asahi report) grew at a similar pace of 6.9% (30.6 billion yen or approx $1.7 billion). To compare, OmnicomGroup, the largest Madison Avenue ad company, posted $11.3 billion in revenue and $1.5 billion in operating profit.

Revenue in the 4 mass media, which make up 65% of the company’s non-consolidated profits (or 48% of consolidated revenue, which would mean that the Dentsu parent company’s total of 2.169 trillion make up 73% of total Dentsu group revenue), dipped 0.7% to 1.410 trillion yen.

A surprising note in this profit announcement is that Internet ads are not Dentsu’s biggest growth area, as earlier reports from Dentsu might have seemed to indicate. Internet ad growth of 14.8% (21.5 billion yen) lost out to outdoor ads, such as train ads, grew 19.2% (43 billion yen) with the rise of ads coordinated with web content (infrared bar codes, search keywords). Note, however, that these two areas remain small compared to Dentsu’s traditional businesses. However, Dentsu is predicting huge growth in the Internet sector in general, and sees its share in the Net ad market going from a present 15% to 20% by the end of FY 2009.

But the overall outlook for Dentsu is for slower growth, for reasons which an AP’s report goes into more detail about (unsurprising for an article aimed at investors):

Dentsu, the world’s fifth-biggest advertising company behind Omnicom Group , WPP Group , Interpublic Group and Publicis, said growth might also be held back by a wave of mergers among its client base.

The company, whose rivals in Japan include Hakuhodo DY Holdings Inc. and Asatsu-DK Inc., forecast group operating profit to rise 1.6 percent to 63.8 billion yen ($532.2 million) in the current business year to March 2008 on sales of 2.107 trillion yen, up 0.6 percent.

The profit estimate is in line with the consensus of 64.2 billion yen from a poll of 13 analysts by Reuters Estimates, but the forecast for sales growth is decidedly below the expected growth rate of about 2 percent for the Japanese economy.

The seemingly conservative forecast also comes with Japanese corporate profits at a record high.

“We are always told that our forecasts are conservative, but one factor probably at play here is the fading correlation between corporate profits and the economy on one side and growth in advertising spending,” Dentsu Managing Director Setsuo Kamai told a news conference.

Kamai said the trend could be explained by a handful of factors including booming industry consolidation in Japan, which leads to fewer advertisers, and a move by an increasing number of companies to lower costs by combining their brands.

For 2007/08, Dentsu expects its revenues to get a boost from the IAAF World Championships in Athletics Osaka 2007, elections in Japan and the Tokyo Motor Show, but no event on schedule is likely to match last year’s soccer World Cup in Germany.

Dentsu logged strong revenue gains to the information and technology, food and retail sectors, which offset declines to makers of cosmetics and toiletries, producers of home appliances and electronics, and consumer finance firms.

Speaking of profits, Hakuhodo just posted its first loss (due to lower than expected real estate revenue and dips in auto ads and government PR work) since converting to holding company status in 2003. It posted a 2% loss in revenue (1.884 trillion yen) and a 1% loss in operating profits (24.4 billion yen). Bad news for Hakuhodo, good news for Dentsu.

A new president will be leading Dentsu:

Dentsu to name Takashima president
Kyodo News

Dentsu Inc. is set to appoint Executive Vice President Tatsuyoshi Takashima as president of Japan’s biggest advertising agency, while the current president, Tateo Mataki, will become chairman, company sources said Saturday.

He is expected to accelerate a shift in Dentsu’s business base from newspapers and television to relatively new media such as the Internet by continuing the efforts of Mataki, who aggressively concluded capital and operational tieups with startup companies specializing in Net advertising.

Meanwhile, Dentsu is consolidating some of its various Net ad subsidiaries (in the affiliate advertising section [similar to the Amazon Associates program]) to form a more unified strategy:

Dentsu to Merge, Amalgamate Action Clip
May 10, 2007

Dentsu and Cyber Communications (CCI, a member of the Dentsu Group) announced that they intend to merge Dentsu subsidiary Action Clip and CCI subsidiary Criteria Communications.

CCI will continue to exist but will amalgamate the two companies in a cash tender offer. The ban on cash tender offers to shareholders in the case of an amalgamation merger that absorbs the target company was lifted as of May 1.

Action Clip’s affiliate operations will be united with Criteria’s advertisement distribution network with the goal of consolidating the Dentsu Group’s affiliate business.

FAKE DISNEYLAND IN CHINA

Amazingly creepy! The pandas are going to haunt my nightmares for sure. Video is in Japanese, but you don’t need to understand to get creeped out with the fake Disney characters.

Unfortunately, Shukan Bunshun reports that the extra attention this Bizarro wonderland has gained is causing the managers of the state-run park to cut back on the flashier piracy.

22.5% of food left uneaten at Japanese wedding parties

That’s a whole course! Maybe for my wedding party I should volunteer 1/5 of my wedding meals to get sent to North Korea.

Other stats from this Shukan Toyo Keizai article:

Average cost of a wedding: more than 3 million yen (US$25,000) in 2006. The cost of weddings has been rising since 2003, when the Japanese economy started turning around. (Source: wedding planning site Zexy.net)

Japan’s Ministry of Agriculture, Forestry, and Fisheries (MAFF) researched how much food is left uneated at wedding parties (披露宴 routinely make up 3/4 of the cost of an entire wedding) by surveying 40 wedding halls nationwide. The figure of 22.5% (19.2% when you exclude drinks) is light-years away from the amount of food left uneaten at home (1.1% according to a 2005 survey) or in restaurants (3.1% as of 2006). And it’s a high percentage even compared to food at regular banquet-style parties (宴会) that offer alcohol, 15.2% of which goes to waste.

Perhaps that has something to do with the sheer amount of food served at wedding parties, which is averages an enormous 2230g — almost four times the average 600g served at cafeterias and restaurants. That means people who simply can’t finish more than what they usually eat in an entire day are wasting an entire meal’s worth of food, or 500g.

Why so much food? The STK conjectures that since people want to give their guests the best possible service, it’s either become a tradition or people are trying to be ostentatious by offering more food than necessary. But as someone planning a wedding party myself, I think the most obvious explanation is that the event halls need to justify charging 10,000 yen per plate plus open bar charges.

Tokyo Shimbun on the Faltering Council for Economic and Fiscal Policy

Even though today is a lamer-than-lame newspaper holiday, I thought I’d take some time out of my busier-than-usual schedule to introduce a sharper-than-you’d-think editorial from the unexpectedly-lucid-and-candid Tokyo Shimbun:

[Editorial]
A Thought to Begin the Week: The CEFP Has Forgotten How to Fight
May 6, 2007

The Council for Economic and Fiscal Policy, which is supposed to be an “engine for reform,” has started to lose steam. Most papers emanating from the Council look like they were written by the bureaucrats, and we do not see an attitude of striking at the vested interests.

The CEFP debates the Basic Policy (an outline of the Kantei’s budget proposal) and critical issues of economic and fiscal policy an advisory body to the prime minister. The meetings are attended by the PM, who serves as chairman, the Minister of State for Economic and Fiscal Policy, who runs the meetings, along with 4 private-sector members, the Chief Cabinet Secretary, the Minister of Finance, the Minister of Economy, Trade, and Industry, the Minister of Internal Affairs and Communications, and the Governor of the Bank of Japan.

Legally, the Council is no more than a forum for “investigative deliberations,” but during the Junichiro Koizumi administration it had become a de facto “policy-making institution.” How did it get that way? It had a lot to do with their dynamic style of infighting.

Strategies Formed at Behind-the-Scenes Meetings

Former MIC Minister Heizo Takenaka, who was a key actor in the Koizumi-era reforms, wrote in a recent book that there were 3 interrelated keys to managing the Council: “strategizing at behind-the-scenes meetings,” “unified statements from private-sector members,” and “authoritative statements from the prime minister.”

You may think: “What? There were secret meetings?!” But in fact that’s what happened. Prior to Council meetings, Takenaka held detailed discussions with his small group of trusted staff made up of secretaries and reformist bureaucrats, finalized policies, and submitted them to the Council as private-sector member papers. In other words, he finished deliberations behind the scenes before his policies were brought out in the open for debate.

And that’s not all. He made backdoor preparations for critical policies and objectives that were close to being finalized, and even the occasional conclusion to debate on policy details, by meeting with the prime minister beforehand. He would then allow the opposing forces to speak for as long as they like at the actual meetings, then have the prime minister make a definitive statement when he saw that the debate had played itself out.

And statements from the prime minister carry considerable weight. The last word would then become the conclusion, finalizing the direction of reform. It may not have gone exactly according to plan all the time, but this sort of scrupulous planning was absolutely critical to promoting reform. It feels like this is a secret that needs to be told now.

Make Proposals that Kasumigaseki Won’t Like

In the same book, Takenaka points out that “passion of the minister of state” and “conflict with the opposing forces” are golden rules for reform. In order to garner public interest and get public opinion on the reformists’ side, dramatic battles with the opposing forces within Nagata-cho (Tokyo’s political district) and Kasumigaseki (location of most bureaucratic offices) are essential. Takenaka pragmatically states that “Battles are actually welcome.”

Compared to the previous Council meetings, at present we are forced to conclude that they have lost the power to reform. That is made obvious by the conspicuous absence of scuffles with the opposing forces.

At the start of 2007, Kasumigaseki went after proposed reforms to the civil service with vigor. The placing of retiring bureaucrats in private-sector jobs using the government’s authority and budget to pressure companies will be banned completely. But even after this bill is submitted to the Diet, the opposing forces in Kasumigaseki are poised to continue their fight against the new proposal from behind the scenes.

Yet except for civil service reform, we can’t fight the impression that the Council is lamely debating topics with little element of conflict with the bureaucracy, such as economic growth, globalization, and productivity issues. One bureaucrat gave us the inside story:

“That’s because Minister Ota has avoided battles with Kasumigaseki and started meeting with bureaucrats at the paper-writing stages. If the bureacrats get their hands on something beforehand, it’s already clear who will win. There is just no chance for fierce conflict at the meetings.”

The last word from PM Shinzo Abe have also tended to fall short at “Please continue to consider this thorougly.” The number of reporters attending post-meeting press conferences has also shrunk.

Policies such as using IT to boost productivity are certainly important policies. Compared to before, the economy is steadily recovering, and we can understand that there is a diminished sense of crisis. Still, there will be no reform if all the Council talks about are general topics that receive unanimous approval.

Looking at the policy challenges listed early this year, they include issues such as fundamental reworking of government functions/organization (including reform of Independent Administrative Corporations), creation of a progress schedule for fiscal spending reform, and regional autonomy, but they have yet to be debated. These are just the sort of issues that Kasumigaseki hates, and therefore the ones that should be prioritized.

There are those who say “There is little benefit in making a show of bureaucrat-bashing.” However, isn’t breaking the current enmeshed system of vested interests, as seen in bureaucrat-led bid-rigging, what reform is about? If the Council aims to be the engine of reform, it cannot avoid a fight.

Economic and Fiscal Policy Minister Hiroko Ota, who worked as Deputy General Director for the Minister and Director General for Economic and Fiscal Management under Takenaka, should understand this. Before she became minister, she even published a book titled “The Battles of the Council for Economic and Fiscal Policy,” from which we quote the following:

“Even if the Winds are Strong”

“Both the fight with vested interests and tension with the government ministries and agencies will likely continue. We should be much more concerned if the tense relationship evaporates easily… We must keep on fighting even if the winds are strong, and I think that if the pressure dies down under the current conditions, that means that the Council’s allure and raison d’etre have disappeared.”

We’d like her not to forget that original feeling.

Comment: I wouldn’t count on it. Abe’s pet causes, like constitutional reform and education, along with the possibly disruptive results of the upcoming Upper House Election, leave little room on the agenda for the relatively less sexy issues of economic reform. Abe will be happy to leave economic issues relatively out of the public light as long as the economy remains stable. And if an easy victory on civil service proves elusive, watch for that to fall to the wayside as well (which is sort of already has).

But with the Abe administration, the practice of setting up kantei-led committees to take the lead on policymaking (essentially to take the lead away from the traditional committees that operate under the auspices of various ministries) has caught on in the areas he really cares about, and while none of them have escaped derision in some corners of the press, they have continued to produce results in one form or another, such as the attempt to create a US-style National Security Council. While Koizumi was never able to get the LDP consensus he needed for his pet issues, Abe has the allies on national security etc (and the Diet numbers) to go the more traditional route.

The straight dope on getting a Japanese credit card

I was interested in this topic, but Googling it just led to a bunch of conflicting anecdotes, some from foreigners who couldn’t get credit and others from foreigners who could get lots of credit. Here’s what Wikipedia has to say about it in Japanese:

To get a credit card, one must first undergo a review by the card issuer. The standards for the review vary by card type and issuer, but essentially, the review is conducted based on the applicant’s “attributes” (occupation, income and credit history).

Generally, because it is mandatory for the applicant or their spouse to have confirmed regular income, it is difficult for unemployed people (excluding students and pensioners) to pass the review. On the other hand, in many cases, a person with real estate, investment, inheritance or gift income who is doing business with a financial institution, even if they are unemployed, can receive a card from an issuer within that insitution’s keiretsu.

In the past, “freeters” and dispatched employees (other than dependents) would not pass the employment and income review of many issuers because they were viewed as having uncertain employment, but due to the changes in working patters in recent years, this is currently less stringent than it was before.

Moreover, in cases of past lateness in credit card payments or periods of nonpayment due to debt restucturing (whether voluntary or through legal restructuring such as bankruptcy), a new credit card cannot generally be issued for the following five or ten years as a penalty, although this varies from case to case. This information is stored at a credit information institution in which the various card issuers participate, so if a person were to apply for a new card from another issuer, in many cases, they would be denied credit during that period. However, because the reviewer is given discretion (there are no laws or regulations on point), there are rare cases where a card is issued. Also, even credit cards which have been regularly paid may be stopped by the card issuer, but the handling of this varies among issuers.

Now, the anecdotes from foreigners in Japan suggest that:

  1. “Dedicated” credit card companies, like American Express and Saison, will issue a card to anyone, while issuers tied to banks, like Sumitomo Mitsui, are much more difficult to deal with (in part because their cards are much sexier).
  2. There are some foreigners who get credit cards on the day they land in Japan; there are others who live in Japan for years and can never pass a single credit review. Oddly enough, when they talk about this on the internet, they never speculate as to why this might be the case. (Maybe it’s because a NOVA salary barely pays the rent?)
  3. Being a permanent resident helps a lot.
  4. Being a lifetime employee (as opposed to working on a fixed-term contract) REALLY helps a lot.
  5. It is completely unnatural for a country to be this stingy about consumer credit. (Especially considering that in the US, a Doberman/newborn baby/ice sculpture can get a credit card in the mail without even applying for it.)

Personally, I’m amused and appalled that reputable American financial institutions have given me something like $10,000 in additional credit lines this year when I’m living off of student loans. But I’d like to know: do any of our loyal readers have experience with the Japanese credit review game?

In the news

Although I did end up doing a post yesterday on the Kokaryo case, I’m sure you’ve all noticed that I have been on a vacation from the blog for about a month. To catch up a little bit, here are a few headlines of interest to my themes on this blog that have been kicking around my desktop for the past couple of days. I normally don’t like to do the “here’s a bunch of links” format, but putting them here is as much for my own future reference as for everyone else’s enjoyment.

  • The Japan Times has a FAQ about the new National Assessment of Academic Ability exam, given to all sixth year elementary and third year junior high school students in Japan. Of special relevance to some recent discussions on this blog over Japan’s adaptation to foreigners is this sentence. “Foreign students who take classes with Japanese nationals at Japanese schools are also required to take the test, but are allowed to receive support from interpreters.
  • In September of 2005 I posted about Osaka’s Kongo Gumi (金剛組) construction firm, which was then probably the world’s oldest continually operated company, having remained a family firm ever since its founding in A.D. 578, over 1410 years ago. Sadly, Kongo Gumi is now no more. Read the tale of how a decline in construction by their traditional Buddhist temple clients and excessive borrowing during the bubble period in an ill-advised attempt to expand into other areas of construction led to the bankruptcy of the world’s oldest company. They technically still operate as a subsidiary of Takamatsu Construction, but it’s just not the same without the 40th head of the Kongo family as CEO. According to Wikipedia’s list of the world’s oldest companies, this now leaves formerly second place Hoshi Ryokan, formerly just the world’s oldest hotel, as the world’s oldest independently operated company. Founded in 717, they are nearly 140 years younger than the former Kongo Gumi.
  • Historian and journalist David Halberstam has died in a car crash, at the age of 73. I mention it because several months ago I read his excellent book The Reckoning, on the history of the American and Japanese automobile industries from the very beginning to the mid 1980s when it was published, focusing largely on the stories of individual personalities in Ford and Nissan-the number two car companies of respectively the US and Japan, as well as some key bureaucrats in the case of Japan. This is recommended reading for people who are interested in learning generally how Japanese industry developed, thrived on technology transferred from abroad, to specifically why Japanese car companies and Toyota in particular are now leading the market. I strongly believe it should be on the short list for people interested in these topics, along with such better known books as Charlmers Johnson’s MITI and the Japanese Miracle, particularly for the chapters in which Halberstam explains precisely how Nissan management created a company union, crushed the independent labor movement within their company, and created the harmonious management/union structure we see throughout Japan, which the misinformed believe to be a symptom of Japan’se traditionally harmonious culture.

Japan’s continuing influx of foreigners and what it means for YOU

Quiz time! What percentage of Tokyo is non-Japanese?

Answer: 2.93% – that’s the percentage of registered foreigners in Tokyo as of January 1, 2007 (an increase of 1.8% over last year), says Shukan Toyo Keizai. That means that 3 out of every 100 people you see in Tokyo are foreign (one of whom could be a white dude staring at the Daily Yomiuri [picture courtesy STK]). There are 371,000 registered foreigners among Tokyo’s overall population of 12.69 million. The information comes from a “population movement survey” conducted by the Tokyo Metropolitan Government.

white-dude-47_1.jpgTop nationalities:
Chinese – 126,000
Korean – 109,000
Filipino – 31,000

Most foreign districts:
Shinjuku-ku (where Tokyo’s Koreatown is located): 30,000
Adachi-ku: 21,000
Edogawa-ku (home to Indiatown in Nishikasai): 21,000

Tokyo’s foreign population has surged 2.5-fold over the past 20 years, going from a mere 150,000 in 1987 to the present 371,000 (18.5% of the estimated 2 million registered foreigners, or about 1.5% of the total population).

These numbers may just be the tip of the iceberg. The ‘registered’ foreigners are merely the people in the country legally for purposes other than tourism, some of whom are temporary visitors who have no intention of making a life here. But many do plan to (there were 349,804 permanent residents that are not zainichi Koreans/Chinese as of 2005). According to Immigration Bureau statistics, there were approximately 190,000 people illegally residing in Japan (presumably concentrated mainly around Tokyo) as of 2006. Though the number of illegal immigrants has decreased as controls have gotten stricter over the years, Japanese manufacturers have no intention of turning back from their use of cheap, often illegal, foreign labor to stay competitive as the numbers of Japanese workers decrease and fewer people are willing to take such jobs. On top of that, other industries, including the medical, restaurant, and agricultural industry are eager to expand their use of foreign labor.

While many of the legal immigrants were educated at least partly in Japan (and in the cases of Chinese and Koreans, their families may have been in the country for 3 generations or more) and lead normal, middle class lives, the conditions for illegal workers in Japan can be downright dreary. A recent government-produced documentary depicting the daily activities of immigration officials features a scene in which the “Immigration G-Men” break up a textile operation in a small Tokyo apartment that was making handbags for local consumption. The workers are Korean, speak poor Japanese, and look like they rarely leave their work stations. Even among legal residents of Japan, many are “trainees” at manufacturing companies whose “training” consists of full time work on an assembly line for low pay.

The regular publication of statistics like these, and the regular, adversarial reporting of developments in this issue, should remind the public as well as the authorities that real “internationalization” based on economic interests, rather than the abstract concept of peace, cooperation, and English study that is usually associated with that term, has already arrived in parts of Japan, making it necessary to adjust and respond. Recently publicized cases of some issues facing foreign laborers, such as abuse in the “trainee” system the difficulty that children of foreign residents face in getting an education, have resulted in increased attention by the authorties, and even some incremental reform. Justice Minister Nagase is heading efforts at the ministry to provide a legal framework to tap unskilled workers, a move that would give legal credibility to the current practice but at the same time would give the foreign workers rights and proper status. The Ministry of Education has begun requiring children of permanent residents to attend school.

These are necessary steps forward, but I feel like the current developments facing foreign residents in Japan have yet to receive the top spot on the agenda that they deserve. Back in 1990, Japan began a program to accept Brazilians of Japanese descent as temporary guest workers. I wasn’t around at the time, but it’s clear that the issue received very wide coverage that I think helped prepare people mentally for the small-scale but significant change in policy. Today, with the foreign population exploding (by Japanese standards), where are the public opinion polls, dramas featuring foreign laborers, rants by unqualified political commentators, etc etc?

Corporate-led Social Revolution

Generally, Japan’s immigration policies are much more liberal than the US – in the rare case that you speak Japanese fluently and have connections within the country. For the rest of the world, Japan’s immigration policies focus on attracting skilled foreign workers in areas such as computer programming where Japanese skills aren’t enough to meet demand. Some industries, meanwhile, are calling for an addition to that policy of allowing more low-skilled workers in to either fill shortages or drive wages down. The most recent victories for advocates of such policies were the “free trade agreements” signed with the Philippines and Thailand, which will allow foreign nurses and chefs, respectively, to work in Japan. However, the Japanese side insisted on language requirements that guarantee virtually no significant numbers will be let in.

This is a radical change for Japan, which has traditionally coddled its low-skilled workers with decent wages and living standards and kept out large numbers of non-Japanese foreigners. Like the US, Japan has a valuable currency and lots of industry, making it an attractive destination for low-skilled workers. Bringing in lots of foreign unskilled labor would make Japan’s immigration structure more like the US, which imports millions of unskilled laborers with poorly enforced immigration laws while making highly skilled jobs very difficult through unofficial barriers such as difficult licensing requirements and tight visa quotas. From the perspective of an average citizen who wants to see the best people in the right jobs, I would advocate opening up the books for all levels of jobs. The US situation is a nightmare for both the illegal immigrants from Mexico who have no prospects back home but must leave their families and live as an outlaw to support their families in the US, and the Americans who have seen low-skilled jobs with decent pay evaporate as a result of the immigration and outsourced manufacturing.

Japan, meanwhile, has relied almost exclusively on what the Japanese government coyly calls “international division of labor” and less on importing labor. Large Japanese corporations are major investors around the world, particularly in China and SE Asia, and employ hundreds of thousands if not millions throughout the region. This decision by the Japanese companies no doubt increases the supply of labor for the companies and allows them to save on wages. But Japan managed to avoid the US situation by maintaining stable employment in domestic industries such as service and construction, sometimes at the expense of efficiency or economic rationality.

But the business community has changed its tone over the years, and now the two top business lobbies, the Keidanren (made up of manufacturers) and Keizai Doyukai (a more brazenly neo-liberal group of top executives), are calling for massive importation of labor to avoid a drop in GDP due to the shrinking native work force that will accompany Japan’s population drop to 100 million by 2050.

No more – Economic analysts have been pointing out for years that Japanese consumer consumption is low relative to other developed countries, and that poor consumption is holding back Japan’s GDP growth. The low consumption is blamed on two factors – deflation that makes people delay large purchases, and stagnant wage growth – the latter of which Morgan Stanley economist Stephen Roach argues stems from the “powerful global labor arbitrage that continues to put unrelenting pressure on the labor-income generating capacity of high-wage industrial economies.” In other words, Japanese labor is in competition from foreigners, a prospect that means money for the global corporations but hardship for the domestic workers.

Japan’s media has been sensitive to this issue, if a bit reluctant to blame it on globalization. Economic disparity between the rich and poor (known succinctly as “kakusa” in Japanese) has been a persistent buzzword over the past 2 years. A host of phenomena – growing income disparity, the collapse of stable employment and the rise of fluid ‘temporary’ employment, a jump in the welfare rolls, the rise in prominence of a new wealthy class, the bankrupt finances of local governments, the near-collapge of the social insurance system, low economic growth for more than a decade, a shrinking/aging population, and on and on – have given average Japanese people the sense that the future looks rather dim.

Now the manufacturing interests, among others, are calling for more foreign labor to come to Japan, and as we’ve seen above it is on its way, putting perhaps more pressure on the average worker. But in my opinion this is only a problem if only labor is allowed to be fluid while corporations with stable management and shareholders reap the profits. Highly skilled laborers such as lawyers, doctors, professors, journalists, and especially corporate managers/investors should be allowed into Japan. Allowing a full spectrum of business opportunities into Japan, which with a highly educated population, peaceful society, and hyper-developed infrastructure, would allow for a wealth of more business and labor opportunities.

But of course that’s a silly proposition. The stewards of Japanese society will continue to hoard the top positions and continue making hypocritical appeals to racial harmony out of one side of their mouths when it comes to reform of corporate boardrooms while pushing for internationalization of cheap labor from the other side. Like it or not, the choice average citizens have is how to deal with the situation that’s been thrust upon us.

Where East and West meet

It’s easy to see a disconnect between, say, the interests of English teachers, IT workers, and businessmen that make up the bulk of Japan’s semi-permanent Western population, and those of the “low-skilled” world of immigrants from Asia.

But that would be wrong. Apart from entry requirements and visa stipulations, Japanese law treats all foreigners basically the same. And while perceptions of foreigners is different based on skin color and culture, the rights of foreigners and the level of their acceptance in Japan will depend on the experiences of other populations. There are already many examples of this connection. The question of whether zainichi Koreans will be accepted as a distinct “Japanese-Korean” identity or whether they will end up mostly assimilated and forgotten will decide how future populations will be dealt with. And if human rights activist Arudo Debito is successful in his campaign to get a national law passed banning racial discrimination, that legal framework will be enforceable for the entire foreign population.

At the same time, the bad deeds of a small group of people can ruin things for everyone else, fairly or not. Crimes committed by foreign nationals are often highly publicized thanks to a xenophobic police force that I suspect is in search of a scapegoat to help market security equipment and grab bigger budgets. Whatever the case, the anti-foreign crime campaign has resulted in bothersome ID checks and humiliating signs warning citizens to watch out for suspicious foreigners. And as limited as its impact was (thanks mainly to successful protests that cut its shelf life to mere months), the “Foreign Crime File” book, a despicable, short-lived multimedia diatribe against the foreign population in Japan, did not distinguish between Asians, Africans, or Westerners in its cheap attempts to cast foreigners in a negative light.

My biggest worry is that without proactive efforts to make this immigration smooth and easy, Japan will start to experience something like the US illegal immigration problem, with all the poverty, crime, and mistrust that goes with it. Occasional statements from high-level politicians, like Education Minister Bunmei Ibuki’s statement that Japan is a “homogeneous nation,” should remind people that race consciousness and nativism are not dead and work as appeals to a conservative voter base. The time to lay the groundwork is now to prevent a backlash against foreigners that would prove a major headache for the entire foreign population, and a loss of the culture of tranquil co-existence with neighbors that has defined Japanese society.

Notice to gaijin: The new smart way to get to the city from Narita

By which I’m referring to the new Suica/Narita Express deal. For 3,500 yen, you get a Suica card which provides (1) a one-way trip to anywhere in Tokyo via Narita Express and (2) 2,000 yen in Suica credit which you can spend on just about anything.

Considering that the Narita Express alone usually costs 3,000 yen just to get you to Tokyo Station, this is an incredible deal. The only catch is that you need a foreign passport to get it. (Discrimination!)

Living on the cheap in Tokyo

How to live cheaply in one of the world’s most expensive cities? Well, it really isn’t that expensive unless you want it to be, and I will submit that living a broke life in Tokyo is MUCH better than living a broke life anywhere in America.

Here are some ideas:

Lodging

This is the big kahuna that makes life in Tokyo expensive. If you want a swank apartment in the middle of the city, it might set you back ¥400,000 a month. Fortunately, there are cheaper ways to do things.

  • Best way: seduce someone of your preferred gender who has a nice apartment. If they’re female, they’ll even make you breakfast in the morning! (And if they don’t, find one who will; Japan is a buyer’s market.)
  • Stay with a host family. You get conversation, you probably get meals, and you might even get your laundry done. On the other hand, host families have their drawbacks; you can’t go out partying late at night, and they might turn out to be batshit crazy. (I never had the former problem in high school; I definitely had the latter problem.)
  • Get a place in the middle of nowhere, like a ¥40,000 room in Nishi-nippori located a cool 20-minute bus ride from the Yamanote Line.
  • If you insist on living in the middle of the city, you can ditch your bathroom and live in a 6-mat room 5 minutes away from Shibuya for the same price. Granted, you have to go to a sento to clean yourself up, and your toilet is shared… but still!
  • By the way, Yahoo! Japan Real Estate is an excellent resource for scouting out really cheap places to stay, assuming you know enough Japanese to navigate around. If English is your only language (or if you aren’t staying for a year or so), you might be relegated to the hell that is Sakura House.

Food

  • There are always noodle products, of course, and those sketchy pasta sauces they sell in foil pouches at Don Quijote. Yum!
  • If you want slightly better food, you can live on a diet of convenience store bentos, gyudon and curry for under ¥2,000 a day. Pretty easy, if not all that healthy.
  • If you’re into eating out, my advice would be to get used to having big lunches. Many of the smaller restaurants around the business districts of Tokyo will sell you a massive lunch prepared with good ingredients for ¥1,000 or less. Then you can make your other calories for the day more or less blank.
  • One of the best money-savers out there—as much as it might pain some of you to consider it—is to avoid booze. “What you say! No drinking in Japan? Heresy!” But it’s true: consider that a beer or chuhai will cost you ¥300 even at a cheap place.

Transportation

This one is easy. Ditch the subway and get yourself a bicycle. You might still want to hop on the Metro when it’s raining, but biking around is a great way to see the city, burn some calories and save some money. (I was spending ¥5,000 a month on Metro cards before I got my bike; at ¥10,000 it paid for itself after two nice winter/spring months, although it got pretty unbearable during the summer. If you have a cheap sento near your workplace, go for it! If you work at a sento, double points!) But if you want a convenient yet still an affordable way to reach your destination, it might be worthwhile to research options like a limousine service.

Lonely Girl wasn’t viral marketing, it *aspired* to be viral marketing

I’d state the obvious and say that Lonely Girl is the lamest bunch of crap that ever existed, but then I might hurt my own chances of a sweet product placement deal with Pocky.

Lonelygirl15 Breaks Ice With Hershey’s

MARCH 20, 2007 –

Lonelygirl15, the pseudo-video diary that became a YouTube phenomenon last year, has signed its first major product placement deal with Hershey’s for its Icebreakers Sours Gum brand.

In a video posted on March 20 on the official Lonelygirl site, Lg15.com, the show’s main character Bree is seen offering her friends a piece of Icebreaker’s gum, and a closeup of the product is shown. The sponsored episode of scripted teen drama is slated to eventually be featured on YouTube and other video-sharing sites in the near future, said officials.

This level of product integration marks one of the more sophisticated examples of branded entertainment to emerge from the rapidly-evolving world of amateur-created online video. The deal was initiated by the Dallas, Texas-based agency TracyLocke. Ad sales were handled directly by the agents from Creative Artists Agency who represent the Lonelygirl creators. “It’s empowering for us to have major international brand like Hershey’s treat us like they would any other major entertainment property,” says Greg Goodfried, Lonelygirl15co-creator. “Deals like this are good for the community – they help us pay our operating expenses, which has been an ongoing struggle.”

(from MediaWeek)