Richard's Eye

Japan's Seasonal Factors
Seasonal income flow & impact on consumer spending
Arbitrage & Consumers
Law of "One Price" in consumer  product markets
Japan Viewed from the Outside
"Gai-jin,"  outsiders, views of Japan uncover new insights
Mobile phone usage habits -- Japan, China, U.S.
JMR study finds culturally influenced patterns
Richard May -- interview on iTV
Video clip -- marketing research
trends in Japan now
Software-as-a-Service
SaaS changes how you acquire software

Robot dreams

Domestic Robots -- The Dream of the Masses

Despite the positive press given to sales of consumer robots, actual sales have been paltry. Nevertheless, products like Sony's "Aibo" robot and Takara's "Q-Car" are antenna products that can help to tease out hidden consumer needs and presage the mega hits of tomorrow.


Sony, Honda, and Toyota are all world leaders in the automotive world, but they are also notable Japanese firms in the manufacture of robots. In 1999, Sony began sales of "AIBO" a pet robot dog. In 2000, Honda announced its humanoid robot, named "ASIMO." A Nikkei Shimbun reported Toyota's announcement of the fruits of its "Toyota Partner Robot" development at the 2005 Aichi Expo.

American experts, however, view these product developments with skepticism, noting that "the greatest market for robots is in industry. Development of multi-function robots for household use is extremely difficult and cost prohibitive. Any talk of a profitable market for household robots is just a fantasy." To be sure, the Japanese market for industrial robots is in the hundreds of billions of yen, with several strong makers, such as Yaskawa Electric Corporation and Fanuc, Ltd.

However, for Japanese who were raised on manga comics, such as "Atom Boy" and "Gundam," and want a lifestyle that includes robot partners or pets, is it really a fantasy for manufacturers to supply this lifestyle? For those who have dreamed, "If only I could talk to a dog," toy manufacturer Takara Corp. already sells a dog translation machine called "Bowlingual" in Japan, North America and other markets. Also from Takara, a full-sized electric vehicle based on its popular "Choro-Q" toy line and that can be driven on normal roads, has also hit the market.

For older women with grown children, bedding products maker Lofty and toy maker Tomy have jointly developed a popular doll called "Good Night Yumel." As a 3-year old elf character, Yumel helps them relax by teaching the ladies sleeping rhythms and speaking to them in a manner that matches their lifestyles.

Unlike past business practices, these products are not intended to be big hits, but rather, are sold in small volumes. Q-Car, a real automobile based on the Choro-Q toy car line, is only produced in low volumes. "Good Night Yumel" has sold only around 8,000 units since its release. Only a little over 140,000 AIBO units have been sold as well, even though it is sold both overseas and in the domestic markets. While these may currently be niche markets, these efforts of slicing the market are exploratory efforts by manufacturers looking for the future of value-added businesses for mass production and sales. This new look at pop culture and commercialization of the millions of "dreams" found in the worlds of manga, anime, and games, may be one attempt by Japanese manufacturers to create new markets, transform the structure of the industry, and revitalize Japan.

AIBO and Related Niche Product Sales