Targeting the younger generation in newly emerging countries
JETRO has released a summary of its 2008 White Paper on International Trade and Foreign Direct Investment.
JETRO is an independent administrative agency of the Ministry of Economy, Trade and Industry. It promotes Japan’s trade enterprise and conducts economic research in developing areas.
The proposals are very good, but their wording is unfortunately somewhat difficult to understand, so I’ve reworded them for simpler expression.
The proposals are as follows:
Recently, the prices of resources and food have been skyrocketing. In Japan, which is heavily dependent on imports for these items, costs are much higher than before.
On the other hand, the benefits of such price hikes are felt in resource-rich newly emerging countries, meaning that they now have much more money than before. Consumerism in these newly emerging countries is expected to become active, so for Japanese companies, it would be wise to target this trade.
It should be noted that newly emerging countries in particular have a large population of young people with high levels of disposable income.
Income from parents will also be transferred in the future. The impact of this is larger than it appears; in these countries, it is the younger generation that leads consumption.
Japanese companies should study the consumer behavior of the younger demographic in the markets of newly emerging countries.
Sales strategies need to be developed on the basis of such research.
Newly emerging countries are the following:
Brazil, Russia, India, China, Vietnam, Thailand, Turkey, the United Arab Emirates, Pakistan, Mexico, South Africa, Venezuela, Saudi Arabia, Peru, Poland, Argentina, Romania, Hungary, Nigeria, Egypt.
Japan is popular with many young people in these countries. However, Japanese companies have not thought until now that such passion was real and that it would make young people into visitors.
The JETRO 2008 White Paper says that ninety percent of companies are planning expansion of their overseas sales, and that domestic demand-type companies are also positive toward overseas sales.The view of Japanese companies has also begun to change.
Young people in newly emerging countries have to spend the money they earn.They might well spend it on the Cool Japan brand.
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