BAE bags GSDF deal

UK-Japan News May 2016

BAE Systems plc is to produce new Assault Amphibious Vehicles for Japan’s Ministry of Defense as part of ongoing developments to support amphibious capabilities within the Ground Self-Defense Force, according to a press release issued on 7 April.

The multinational firm will provide 30 new vehicles as well as tools and test equipment to support maintenance, and training aids for the Japanese military.

Production is expected to begin at BAE’s Pennsylvania, US, facility in August, with final delivery to Japan expected by the end of 2017.

Mitsui eyes London firm to help expand in Asia–Pacific

UK-Japan News May 2016

London-based data analytics firm Black Swan has received an investment of £3mn led by Mitsui & Co., Ltd. that is to support its expansion into Asia, www.growthbusiness.co.uk reported on 21 March.

The move follows Mitsui’s investment in predictive analytics and data science start-ups across the Asia–Pacific region. Junichi Shibuta of the firm said that utilising Big Data is becoming increasingly important to maintain and strengthen businesses.

Steve King, chief executive of Black Swan, said: “After three years of organic growth [the investment] is going to dramatically change the pace of our international plans”.

More external chiefs in UK

UK-Japan News May 2016

According to a new study, the proportion of chief executives in the UK hired from outwith firms is double the global average, while Japan’s is negligible, The Financial Times reported on 19 April.

The research, conducted by professional services network PwC, also found that the turnover rate of chiefs at the world’s 2,500 largest public firms rose from 14.5% in 2014 to 16.6% in 2015. Brazil, Russia and India topped the list for this turnover, followed by the UK and Japan.

Ashley Unwin, UK consulting leader at PwC, said: “Hiring a CEO from outside the company used to be seen as a last resort. That is not the case anymore”.

UK, Japan rank high on global aid budget list

UK-Japan News May 2016

A global study of the aid budgets of 28 industrialised nations has ranked the UK and Japan second and fourth, respectively, in terms of spend, The Daily Mail reported on 13 April.

The Organisation for Economic Co-operation and Development—which works “to promote policies that will improve the economic and social wellbeing of people around the world”—found that, in 2015, the UK spent £12.2bn while Japan spent the equivalent of £6.1bn.

Meanwhile, the US was ranked first (£20.3bn), Germany third (£11.6bn), and France fifth (£6.0bn).

London museum feting writer to close

UK-Japan News May 2016

A museum in London dedicated to Soseki Natsume (1867–1916), a famous novelist who spent two years in the UK from 1900, is to close due to financial problems, The Japan Times reported on 5 April.

Ikuo Tsunematsu, museum director, will make the move in 2017, the year that marks 150 years since Natsume’s birth.

The building houses more than 2,000 items related to Natsume, who was sponsored by the Japanese government to study English, and British literature during his time in London.

In an unrelated event, Shinjuku Ward is to open a museum celebrating Natsume’s life in 2017, The Japan News reported on 9 May.

Theme park home to popular site models

UK-Japan News May 2016

A theme park in Tochigi Prefecture is home to 120 replicas of famous sites around the world—including a number from the UK—created at a 1:25 scale, The Daily Mail reported on 13 April.

The replicas were made for Tobu World Square by Toho Eizo Bijutsu, the film production firm renowned for creating the sets for the blockbuster film Godzilla.

The British contingent includes Buckingham Palace, Dover Castle, Tower Bridge, Westminster Abbey, Big Ben and the Houses of Parliament.

Sherlock manga to hit UK shops

UK-Japan News May 2016

A manga, based on the hit BBC drama Sherlock starring Benedict Cumberbatch, is to be translated into English and sold in the UK, The Metro reported on 23 March.

Publisher Titan Comics made the move following the manga’s popularity since its launch in Japan four years ago.

The publication, due for release in June, will have an extended page count and new artwork by designer and illustrator Alice X Zang. The first issue tells the story of Sherlock Holmes and Dr Watson’s first encounter and adventure.

Travel firm to extend Japan cruise season

UK-Japan News May 2016

Princess Cruises UK is to offer its longest Japan cruise season in 2017, with a total of 39 departures, Travel Daily Media reported on 6 April.

The Diamond Princess’ voyages, which range from five to 17 nights in length, will accommodate viewings of Mount Fuji and Hashima Island, which was the setting for scenes in the James Bond film Skyfall.

Guests can choose solely to travel around Japan or to incorporate other Asian countries. This reflects the fact that Asia is the second-most popular destination for the firm’s passengers.

Bargain taxi rates seek to blunt Uber’s entry

Japan news May 2016

On 5 April, according to Nikkei Business (18 April), Nihon Kotsu Co., Ltd., a major taxi firm, submitted an application to reduce its fare for the first kilometre of a journey to ¥410—from ¥730—in the 23 wards of Tokyo, as well as the cities of Musashino and Mitaka in greater Tokyo. If approved, the reduction would go into effect in April 2017.

It is hoped that lower initial fares will take some of the bite out of tourists’ impressions that Tokyo’s taxis are overpriced. (Currently London’s charge the equivalent of ¥370 for the first 260 metres, while New York’s charge ¥270 for the first 320 metres.)

Reducing fares for short rides may also appeal to seniors commuting between home and hospital, or home and shopping areas.

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Possible splurge before next tax rate hike

Japan news May 2016

While the decision to proceed has not yet been finalised, in less than 11 months, Japanese consumers may very well be looking at yet another mark-up in the consumption tax rate, from the current 8% to 10%. The Nikkei Marketing Journal (1 April) surveyed 1,000 adults via the Internet to ask about their kakekomi yosan (last-minute rush budget) for outlays ahead of the tax rate increase.

In contrast with the 2013 survey—conducted ahead of the last rise (from 5% to 8%), and in which 21.1% of respondents said they planned to spend “up to ¥50,000”—this poll shows 46% of participants have planned minor splurges.

While 68.1% of the sample said they did not anticipate any changes in their spending patterns ahead of the tax rate hike, 25.5% revealed that they did plan more outlays. Some 6.4% said they would reduce expenditures.

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Changes reflect reality

Japan news May 2016

Advertising agency Dentsu Inc. estimates that there are about 10mn lesbian, gay, bisexual and transgender (LGBT) individuals in Japan, accounting for about 8% of the population. Yet, it was only in 2015 that articles about marketing to sexual minorities first appeared in the Nikkei Ryutsu Shimbun (a trade newspaper, also known as the Nikkei Marketing Journal) and other mainstream business publications.

The 23 April issue of the Weekly Toyo Keizai features the move, in April 2015, by Tokyo’s Shibuya Ward to create a “partnership system” for LGBT couples. It became the first municipality in Japan to issue an official document recognising same-sex unions. As of the end of March 2016, eight couples had so registered.

Meanwhile, its much larger residential neighbour, Setagaya Ward, offers a Pledge of Partnership system whereby same-sex couples submit to the ward office an oath of their commitment. The ward office will then issue a certificate confirming receipt of it.

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Leaders for new business

UK-Japan News April 2016

Japan and the UK have been placed among the top four in the Best Countries: Entrepreneurship ranking by BAV Consulting and the Wharton School of the University of Pennsylvania, U.S. News reported in March.

The ranking was created based on responses from 16,000 people about various countries’ capabilities in 10 areas: global connections, education, entrepreneurism, innovation, access to capital, labour, technological expertise, business practices, infrastructure and legal framework.

Meanwhile, in the overall Best Countries ranking, the UK and Japan were placed third and seventh respectively.

New high-speed train

UK-Japan News April 2016

Virgin Trains has unveiled a new high-speed train designed by Hitachi Rail Europe that will go into operation between London and Edinburgh in 2018, The Telegraph reported on 18 March.

The train—which can travel at 201kph and thus cut the journey by more than 20 minutes—is one of 65 trains being built at Hitachi’s plant in Newton Aycliffe, County Durham. It is part of an investment totalling £3.3bn.

Sir Richard Branson Kt, founder of the Virgin Group, said: “We have called the train Azuma because I have been very impressed when I have travelled by train in Japan—and the word azuma [is the archaic term meaning] east in Japanese. This is a new dawn for rail in this country”.

UK design skills to help Japan firm win new deals

UK-Japan News April 2016

Nippon Koei Co., Ltd. has announced that it will acquire BDP Holdings, a British design consultancy, for about £102.2mn, Nikkei Asian Review reported on 4 March.

The move was designed to utilise BDP’s strong expertise in information modelling in the hope of winning contracts for rail construction and related development projects in India and South-East Asia.

BDP generated more than £81mn in sales in 2015, the second-largest reported sales figure for a firm in its field. Following the acquisition it will be operated as a wholly owned subsidiary.

Germs clean up quake zone

UK-Japan News April 2016

A UK–Japan research project is being scaled up to help clean water contaminated with radioactive material at the Fukushima Daiichi Nuclear Power Plant, according to a press release issued on 16 March.

The technology—initially developed in the UK—uses a bacterium to produce hydroxyapatite, a mineral that captures radioactive elements in contaminated seawater, surface water and groundwater.

The work is being undertaken in collaboration with the Japan Atomic Energy Agency, with funding from the UK’s Biotechnology and Biological Sciences Research Council, Engineering and Physical Sciences Research Council and Natural Environment Research Council.

Japan trails in global study of women in senior roles

UK-Japan News April 2016

Japan has been ranked bottom in a study by accounting and advisory consultancy Grant Thornton LLP on the proportion of senior roles held by women in firms worldwide, The Independent reported on 9 March.

While women hold 25% of senior business roles globally, that total falls to 21% in the UK and 7% in Japan, significantly behind the top three: Russia (49%), the Philippines (39%) and Lithuania (39%).

Eastern European nations performed well; researchers said this may be due to the legacy of communism, which promoted equality.

GSK leads on diversity

UK-Japan News April 2016

GlaxoSmithKline K.K. announced it was stepping up its diversity and inclusion initiatives ahead of implementation of the Promotion of Women’s Career Activities Act on 1 April, according to a press release issued on 25 March.

The ongoing plan includes encouraging working fathers to take childcare leave, promoting flexible working arrangements, and emphasising pay for performance rather than the length of time spent working.

Philippe Fauchet OBE, president of the firm, said: “We are committed to creating a workplace where men and women … work together to generate innovation, thereby contributing to the needed evolution of the employment model in Japan”.

Scholars team up for study on the Bard

UK-Japan News April 2016

Waseda University and the University of Birmingham are to undertake joint research on the work of William Shakespeare as part of the 400th anniversary of his death this year, Redbrick reported on 14 March.

The collaboration arose from a British Council workshop in 2015 that focused on UK–Japan work in research and education. Both universities are to contribute £60,000 to a fund that may support joint research in robotics, linguistics, drama, as well as sport and exercise science.

Professor Adam Tickell, University of Birmingham provost, said: “It is important for both the University of Birmingham and our country to develop closer engagement with our counterparts in Japan, especially in areas of shared research strength”.

Chefs get local lessons on food tour

UK-Japan News April 2016

Seven chefs from the UK, who travelled to Japan as part of the British Hospitality Association’s Seven Samurai competition, have completed their nationwide gastronomic tour, the Daily Mail reported on 5 March.

They visited Tsukiji Fish Market, food stalls in Osaka, a soy sauce factory, a bonito fish smokehouse, and a dive site where women hunt for abalone. The chefs also undertook training in making tempura, sashimi and dried seaweed.

Having returned to the UK, the chefs are competing to create a dish for All Nippon Airway’s new business class menu.

Japan model good for teaching children soft skills

UK-Japan News April 2016

Schools in Japan may be better than their British counterparts in teaching soft skills, thanks to discipline, The Telegraph reported on 12 March.

While the UK government had promoted teaching children resilience through sport, particularly rugby, Andreas Schleicher, director for education and skills at the Organisation for Economic Co-operation and Development, said there was no reason for rugby being a more suitable way of doing this than mathematics.

He added that schools in Asia are successful in teaching children cooperation, teamwork, resilience and how to manage themselves.

Help given to ship plutonium to the US

UK-Japan News April 2016

Two British ships arrived in the village of Tokai, Ibaraki Prefecture, to load plutonium and transport it to a US government facility in South Carolina under a pledge made by Japan in 2014, The Telegraph reported on 21 March.

The shipment will be moved from the site of the Japan Atomic and Energy Agency by Pacific Egret and Pacific Heron, both operated by Pacific Nuclear Transport. The consignment is reportedly the largest of its type since 1992.

The 331kg of plutonium—mostly from the US with some from France—was used for research purposes.

More shops allow photos

Japan news April 2016

The general rule at shops in Japan has been to prohibit the snapping of photographs without permission from management. But perhaps with the ubiquity of smartphones and increasing popularity of photo-sharing services such as Instagram and Flickr, this rule may be changing.

The Nikkei Marketing Journal (18 March) noted that more businesses are dropping the ban. While such photos may enable leakage of data to competitors or risk violating the privacy of customers, shops are beginning to acknowledge that the advantages outweigh the risks. Some may even be incorporating such a practice into their marketing strategy.

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UK styled shop opens

Japan news April 2016

On 19 March, Shibuya-based apparel maker Hit Union Co., Ltd. opened its new Fred Perry Japan outlet, which was designed, built and decorated following close input from the firm’s UK team.

Located in Jingumae 5-chome in Shibuya Ward, the building boasts 370m² of floor area—more than double the size of the shop it has replaced. According to the Nikkei Marketing Journal (23 March), Hit Union intends to use its flagship shop to help the brand penetrate other Asian countries.

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China’s online market grows

Japan news April 2016

The so-called bakugai (explosive buying) in Japan by Chinese consumers is by no means limited to shopping forays by short-term visitors.

Nikkei Business (21 March) takes note of the rapid growth of e-commerce in China by Alibaba Group Holding Limited’s JD.com. Others can be expected to open up new opportunities for firms with products to sell. In China, the percentage of electronic transactions relative to the total is expected to rise from 19.6% this year to 33.6% by 2019 (projections for over the same period are 7.8–9.8% for the US, and 11.4–15.3% for Japan).

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High-tech bike parking to be available in the UK

UK-Japan News March 2016

An exclusive UK licence has been obtained for an automated bicycle parking system developed by Tokyo-based engineering firm Giken Ltd., Bikebiz reported on 28 January.

Eco Cycle, which has been used successfully in Japan since 2002, is suitable for local authorities, universities, railway stations, and new-build high-rise housing and commercial buildings.

The system is able to securely store up to 204 bicycles and any belongings left on them. It uses a slotted rack equipped with a robot arm to clasp the front wheel of a bicycle and pull it into, or retrieve it from, the unit in 13 seconds.

Travel agents rank town in Wales best for beauty

UK-Japan News March 2016

Some 300 travel agents from the Japanese Association of Travel Agents have named Conwy, in north Wales, as one of the most beautiful European towns and villages, The Telegraph reported on 29 January.

This market town, which features a mediaeval castle, was the only British location to be included in the ranking. It will be promoted in upcoming tourism expositions and conferences throughout Japan, as well as in national media.

In celebration, a restaurant in nearby Llandudno has created “wushi”, a Welsh version of sushi, featuring lamb, leek, cheddar, cockles, sea trout and laverbread.

First kei car hits race track

UK-Japan News March 2016

The first kei (lightweight) vehicle that Caterham Cars Ltd. exported to Japan has been raced at Fuji Speedway, Shizuoka Prefecture, to determine Japan’s best kei racing driver, Forbes reported on 12 February.

Having been banned from racing for being too fast, the firm put into its Caterham Seven a 0.6 litre Suzuki engine to cater for the Japanese kei market, of which the firm has a share of 40%.

Caterham is the first exporter of kei vehicles to Japan, which receives one fifth of the firm’s annual production of 500 cars, making the country by far the firm’s largest export market.

Japan market still open to royalty-driven model

UK-Japan News March 2016

While Jaguar Land Rover Japan cannot make its latest Defender model available in the country due to modern stringent environmental and safety requirements, importing a new one is easy, Forbes reported on 31 January.

Production of the car, famously driven by Queen Elizabeth II, finished in January. In the US, Defenders made within the last 25 years cannot be imported—rules are waived for those aged over 25—but it is possible in Japan.

As the regulations do not apply for small private import purposes, it is possible to obtain a Defender in Japan without too much paperwork.

Hitachi prefers the UK to stay in the European Union

UK-Japan News March 2016

Ahead of the referendum on the UK’s membership of the European Union (EU) scheduled for 23 June, Hitachi, Ltd. has claimed it will continue to invest in the country regardless of the outcome, The Telegraph reported on 31 January.

Hiroaki Nakanishi, chief executive of the firm, said: “For us, having the UK in the EU is always preferable. But we cannot say Brexit is the wrong way”.

The firm’s global rail headquarters is based in the UK, and it opened a new factory in Newton Aycliffe, County Durham, in 2015.

M&A deals break record

UK-Japan News March 2016

Japanese mergers and acquisitions recorded in the UK in 2015 were the highest level so far this century with deals totalling £6.6bn, according to analysis by Deloitte, City A.M. reported on 16 February.

High profile takeovers include Nikkei’s acquisition of the FT Group for £844mn as part of its strategy to increase its international presence.

According to Iain Macmillan, head of global M&A at Deloitte, “Japanese acquirers are already compelled to look abroad, faced with a shrinking home market compounded by a decline in real earnings and an ageing population”.