| 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 |
 Over 10 million rice balls, known as onigiri, are sold per day by Japan's convenience stores. At 100 yen each, rice ball sales in Japan's food stores and convenience stores rack up sales of 400 billion yen per year. Onigiri are a staple food in Japan and popular with people of all ages. Onigiri are simplicity itself: a fist-sized ball of rice, wrapped with a paper-thin slice of dried seaweed, encasing a range of items common to the Japanese diet, such as a plum or small bits of tuna. This ubiquitous handful of rice tells us a lot about the preferences and behavior of the Japanese consumer. |
| Mom's home cooking takes a new turn |
| Those over 40 fondly recall their mothers preparing rice balls in the morning for their elementary school lunches. For this middle-aged, and older, crowd, the onigiri brings to mind images, tastes, and smells of mom's home cooking. But the rice ball is popular with all ages. A typical quick lunch for the young businessman or student, for example, is a couple of rice balls, a carton of juice, and a container of ready-made salad. More recently though, few housewives regularly make rice balls; they prefer to buy them fresh at a nearby convenience store. There are two main reasons for this. The rise in the number of working mothers with little time in the morning is one reason. The other is that a homemade onigiri are now more expensive to make than simply buying them fresh from the stores that make them in large volume throughout the day. Initially, store-bought and home-made onigiri competed for a place in consumers' eating habits. But things have changed. Starting in the 1970's, the robot-and-conveyor-belt-equipped onigiri factories, run by the large convenience store chains, have taken over the role of Japanese homemakers in making this popular food item. The onigiri food-processing industry now ranks as one of the largest ready-made food markets in Japan. It generates big cash for the both the makers and the major sales channels, primarily convenience stores. The simple rice ball has also gone global: onigiri sales across Asia are booming on the back of the spread of convenience stores in places like Seoul and Shanghai. |
| Convenience stores rolling in rice ball sales |
| Seven-eleven Corp., the largest convenience store chain in Japan, is the leader in this market place. It is interesting to note that 7-11 stores' sales of rice balls have outstripped both rivals' and good-old mom's offerings. Freshness is their secret weapon in developing their gargantuan role in the rice ball marketplace. To maintain freshness to its customers, 7-11 is fanatical about keeping fresh supplies of rice balls on the shelves of its nearly 10,000 outlets in Japan. So, going up against both homemade onigiri and fierce competition from rival convenience store chains, 7-11 has to keep on it toes. In addition to freshness, 7-11 has developed a wide array of product variations. In addition to standard offering such as pickled plum, non-traditional combinations such as mayonnaise and shrimp help maintain consumer interest. Another innovation has been to improve the outer wrapping so that the rice ball is easy to unwrap and hold in the hand. |
| Selling freshness to consumers |
| As part of a study of consumer lifestyles and convenience store shopping patterns, JMR recently investigated exactly from where on a store's shelf a consumer is likely to select a rice ball. We learned that nearly half (46%) of shoppers take the trouble to reach to the back of the shelf to get their onigiri. Buyers stated that they believed that the freshest of the fresh rice balls had been stocked by store clerks at the back of the shelf. This extra effort suggests the degree to which the consumer here is devoted to freshness. Indeed, the concept of freshness is not just a product feature of onigiri, but it is an objective in itself. Selling freshness is a core concept for retailers here. |
| Maintaining freshness |
| Seven-eleven Corp. has developed a system to keep its onigiri fresher than its rivals' offerings. To supply their 10,000 stores around the nation, 7-11's onigiri factories crank out onigiri 24 hours a day. One rice ball factory is even situated so that it supplies 50 stores within a 7-11 region and makes 3 deliveries a day to each franchisee using its own transportation network. Rivals cannot match 7-11's end-to-end supply chain, and are struggling to make the additional investment in their supply chains to keep from falling further behind 7-11 in the rice ball race. |
| Freshness - in consumers' DNA! |
| Appreciating consumers' devotion to freshness - we liken it to an addiction to freshness - are keys to success in many of Japan's consumer markets. From food processing products - potato chips, mayonnaises, to the durable goods - electric appliances, cars, films, freshness is of paramount importance. Market leaders here have each worked out their approach to satisfying their customers' addiction to freshness. Firms whose marketing communication programs stand out for their attention to conveying the freshness message include well-known international brands, such as Toyota and Fuji Film. Another group of brands, such as Calbee (Japan's top potato chip maker) and Qupee (the kingpin in mayonnaise) may not be familiar to those outside Asia, but have become household names here based largely on the basis of marketing programs touting the freshness theme. |
 Cultural roots of freshness |
| So why are Japanese such big adherents to the freshness faith? Let me propose a historical and cultural link. In Japan, the four seasons are very distinct with clear on-set and ending times and temperate differences. Snow falls in winter, warming weather that revives the cherry blossoms, and tropical typhoons coming towards the end of summer. Generations have adapted to the seasonal changes and environmental conditions; these weather adaptations have, in turn, created the lifestyles that make for comfortable living under changing weather conditions. To illustrate this, take the case of autumn and the early winter season. Various fruits, such as persimmons, grapes, and chestnuts are consumed in winter. Checking the nutritional elements of these foods the abundant supply of vitamin C, for protection against colds, is evident. Of course, in ancient times when these cultural patterns were being developed, people did not have access to scientific analysis; they used pragmatic wisdom and experience to guide them. Over successive generations, these patterns have become ingrained and passed on to modern descendants. In this manner, lifestyles can be said to be printed in the DNA of the Japanese. Although consumers in Tokyo today may not be able to explain why they behave as they do, the addiction to freshness is due to this process. Failure to appreciate all of this accounts for more than a few overseas providers of products and services stumbling in their marketing efforts here. Understanding the addiction to freshness is a first step in formulating consumer marketing communication programs and reaching out to customers in Japan. |
