Planners Interpret the Appeal and Challenges of the Japan Brand: "Japanese Products" Edition

The Japan Brand Survey, a proprietary research conducted by Dentsu Inc. targeting overseas middle-to-high-income consumers, underwent a major renewal in 2022 (overview available at here ), this series examines the current state of Japan brands and Japan's future potential.

This installment's theme is "Japanese Products."

The Power of Free Thought and Collective Intelligence

Before delving into the main topic, I'd like to touch on the social context.
Since the latter half of the 2010s, the notion that Japan is lagging behind in digital transformation has become increasingly common. Furthermore, regarding the social environment, arguments frequently appear suggesting that compared to Japan's economic golden age, a sense of stagnation and stagnation prevails, and both individuals and organizations have lost the leeway to enjoy breathing room.

That said, each of us in this environment cannot simply be bystanders. Many are desperately searching for solutions, struggling within their respective positions.

Strangely enough, despite the uncertainty, complexity, and lack of precedents or clear answers, we find ourselves, for better or worse, rushing headlong to pursue "clarity we can grasp."There's a growing tendency to value approaches that frame things in binary oppositions—left brain vs. right brain, digital vs. analog, global vs. domestic, traditional corporations vs. startups, market-in vs. product-out, lifetime employment vs. performance-based systems, top-down vs. bottom-up—and attempt persuasion through seemingly logical analysis.

However, in the irreversible societal currents brought by the VUCA era and the novel coronavirus, confronting the grand theme of the Japan brand's current position and potential requires more than the wisdom of one individual, a single winning formula, or a single approach. Breaking through the barriers Japanese products face is no longer possible with these alone, and creating new appeal is harder than climbing to the heavens.

One data point, multiple interpretations. This series may fall short of providing answers that instantly resonate with everyone, but we hope it serves as a catalyst to draw out diverse insights. With respect for free thinking and the power of collective wisdom.

Logos, Ethos, Pathos

In his "Rhetoric," Aristotle argued that three elements are essential for persuasion: Logos (logic), Ethos (character/trust), and Pathos (emotion/empathy). The essence of purchasing a product is precisely the multiplication of Logos, Ethos, and Pathos.

This time, we will explore product image through:
① Functionality
② Price
③ Service
④ Usability
⑤ Safety
⑥ Brand Image
⑦ Design Appeal
We conducted a high-resolution survey by categorizing these into 7 categories and further breaking them down into 33 items.
Here, we will add our analysis while using the three essential elements for Japanese products (Logos, Ethos, Pathos) as our framework for thought.

A. Logos: "Functionality, Price, Service, Usability" (Logic) – where rationality and comparative evaluation strongly influence decisions
B. Ethos: "Safety" representing the character and trustworthiness of the product/company (=Personality/Trust)
C. Pathos: "Brand image and design aesthetics" reflecting the brand's story and aesthetics (= emotion/empathy)

A. Logos: "Functionality, Price, Service, Usability" (Logic) – where reason and comparative evaluation strongly influence decisions
First, over 70% of respondents hold the image that Japanese products are "superior in functionality." This means Japanese products demonstrate significant advantage over foreign products in the "Logos" aspect.
Furthermore, within functionality, "high performance" and "high-tech" received the highest evaluations, significantly outpacing other items.
Other characteristics common to many Japanese products, such as "meticulous craftsmanship," "practicality," "attention to detail," and "durability/long lifespan," were also highly valued.

B. Ethos: "Safety" representing the character and trustworthiness of the product/company (= character/trust)
Next, regarding safety, which corresponds to "ethos," the image of "seeming safe to use" is strong, and the sense of "reliable Made in Japan" is firmly established.

C. Pathos: "Brand Image/Design" reflecting the brand's story and aesthetics (= Emotion/Empathy)
Regarding brand image and design, defined as "Pathos," "high quality" and "reliability" received the highest ratings. This can be seen as reinforcing the "Logos" (high performance, high tech) and "Ethos" (reassurance) aspects.
On the other hand, items like accumulated history and culture, good taste, and beauty scored relatively low. When viewed through the lens of brand narrative and aesthetics, a slight sense of incompleteness remains.

Bird's-eye view and insect's-eye view

We often casually use broad geographical categories like "Europe and America," "ASEAN," or "Asia." In certain situations, such categorization is indeed very convenient.

However, from the perspectives of marketing and cognitive psychology, such classifications often become sources of error and preconceptions. There is a risk that they unnecessarily oversimplify thinking and approaches that should fundamentally engage with complexity and diversity.

In this survey, even among Western European countries, significant differences were observed in perceptions of Japanese products across many categories.
For example, regarding "high-tech," the perception in the UK was nearly on par with the overall average, significantly higher than in Germany and France.

Conversely, France had the highest proportion (about 1 in 5 people) reporting "no particular image." In other words, the percentage of people in France who show neither particular interest nor concern for Japanese products is relatively high. For those who admire France, this is indeed a disappointing result.

Turning to Asia, significant differences also exist between Taiwan and Thailand, both countries with high favorability toward Japan. In Taiwan, images like "meticulous craftsmanship," "delicate," "durable/long-lasting," "luxurious," and "advanced" are held very strongly, whereas this was not as pronounced in Thailand.

For Thai consumers, Japanese products are more strongly associated with "high performance," "good value for money," and "stylish." Observing these subtle differences reveals that even within neighboring Asian regions, it is necessary to adjust the points of appeal.

Striving for the ideal, yet never neglecting reality

In Parts 1 and 2, we introduced various data using inbound tourism as a lens. According to the Japan Tourism Agency and the Japan National Tourism Organization (JNTO), East Asia accounted for 70.1% (※1) of all foreign visitors to Japan in 2019 and represented 64.4% (※2) of total spending by foreign tourists in Japan.

The fact that East Asia represents the largest volume segment for inbound tourism is both a reality and an undeniable truth. The phenomenon of people gathering from geographically and culturally close neighboring regions is observed in many countries; it is by no means unique to Japan.

While firmly grasping this reality, I believe Japan must extend both its temporal and spatial horizons to discuss and make decisions regarding the ideal vision (Idea) it should pursue as a tourism-oriented nation. Needless to say, a gap inevitably exists between this Idea and reality.Inbound tourism, not limited to travel, has a broad base. Naturally, the ideal vision differs depending on the business sector involved, and it's easy to imagine that the accompanying gap is not uniform either. Data suggesting this gap was also confirmed in this survey.

When surveying purchase intentions for Japanese products, nearly all Asian countries and regions saw product categories representing Japan brands—such as televisions, refrigerators, washing machines, mass-market cars, and air conditioners—dominate the top rankings. The sheer numbers alone convey the high level of interest.

In contrast, within Western cultural spheres, while mass-market cars and televisions appear, unfortunately, "None of the above" also ranks highly. Despite presenting a list covering nearly all major product categories, deliberately selecting "None of the above" is synonymous with a lack of interest.

Particularly notable is the lack of desire to purchase Japanese products in the UK, Germany, and France, which ranks among the worst in the Western world. This phenomenon is also visible in inbound-related metrics. When aiming for business growth through attraction promotion or sales expansion targeting Western countries, extraordinary creativity in "Logos (Logic), Ethos (Character/Trust), and Pathos (Emotion/Empathy)" will undoubtedly be required.

Know your enemy and know yourself, and you will fight a hundred battles without danger.

The 5th century BC, when the "Art of War" by Sun Tzu—widely read even in Japan—is said to have been written, was roughly the same era as ancient Greece's Socrates and Plato. It is truly fascinating that military strategy from such ancient times can be directly applied to today's competitive strategies.

Inversely proportional to the extension of human lifespan, the period during which a company can continue winning and remain part of the so-called "winning group" has shortened compared to the past. However, as long as free competition is necessary, efforts to win and survive must be made. As the subheading suggests, here we aim to highlight the characteristics of Japanese products from the perspective of product image through comparison with products from other countries (German, French, Chinese, and Korean).

First, I will briefly explain the product images of the four countries other than Japan.

German products are closest in image to Japanese products. On many evaluation axes, the two are in a close race, and German products may be the true rival for Japanese products.

French products stand out with exceptionally high evaluations for brand image and design, such as "stylish," "luxurious," and "beautiful," aligning well with traditional perceptions of France.

Chinese products maintain their traditional image of being "inexpensive" and "simple," with "inexpensive" scoring particularly high. However, in categories like "easy to use," "good value for money," and "popular," they are largely on par with Japanese products.

Korean products seem to be perceived as "stylish," "cool," and "beautiful." This is likely due to the increasing competitiveness of Korean manufacturing itself, coupled with a strong focus on global expansion. A key factor is the continuous production of globally successful content (dramas, movies, music, etc.), which is at the forefront of soft power.

Now, regarding Japanese products themselves—has their brand value fallen so much compared to these competitors that we should be pessimistic? Absolutely not. In fact, there's absolutely no need to feel inferior.

The facts speak for themselves: Japanese products are highly valued, particularly for their functionality. They are clearly superior to products from other countries in key evaluation areas such as "high-tech," "high performance," "meticulous attention to detail," "durability and longevity," "superior quality," and "reliability."

However, as already demonstrated by Japan's lagging behind in building a digital ecosystem, the functional catch-up and overtaking by certain countries where innovation occurs more readily than in Japan will inevitably become a reality sooner or later.The spirit of pursuing the "Idea" of manufacturing centered on advanced technology deserves great respect. Yet, without being bound by it, the question increasingly arises: How can we know the enemy and know ourselves? How can we observe the "reality" of the ever-changing market with an open mind and make agile course corrections?

The Awareness of Ignorance

Including experiences both public and private, many people unconsciously tend to underestimate the diversity and differences of other countries or show a quiet rejection of what is different.

In Japan's case, the excuse "Japan is an island nation" is often used. While I can understand this to some extent, I strangely couldn't fully empathize. This is because, as an island nation off the coast of the Eurasian continent, Japan is a rare "mille-feuille nation" layered with diverse cultures from throughout history and across the globe, possessing unparalleled depth and richness. Observing without bias reveals that the foundations for diversity and inclusivity are already present throughout society.

I suspect the core issue lies less in the geographical factor of being an island nation and more in the unique success achieved through uniformity during a specific historical period, and the strong comfort zone that success created.Ultimately, within an era of seemingly limitless golden age and a high-context, highly homogeneous environment, there are few opportunities to relativize differences within society, organizations, and individuals. This can lead to a structure where people "are unaware that various differences objectively exist."

This phenomenon is not unique to Japan; it can occur in any country or group. However, its detrimental impact on the long-term prosperity of Japan's brands, including its products, is as clear as day. The most problematic pattern is "not realizing that one is unaware of the existence of differences."

Whether it's "not knowing differences exist" or "not realizing one doesn't know differences exist," Socrates' ancient concept of "the wisdom of knowing one's own ignorance" from the 5th to 4th century BC offers a valuable starting point for resolution. Essentially, it means beginning with the awareness that "one doesn't know differences exist."

Considering that this wisdom remains valued over 2000 years after ancient Greece, drawing insights from the sages' thinking is essential wisdom, especially in our highly uncertain times.

Above, drawing on timeless teachings from our predecessors—persuasion techniques, multifaceted observation, ideals versus reality, contrast, self-awareness and inquiry—we've examined consumers and Japanese products in this ever-changing world, using the Japan Brand Survey as a foundation for recognizing and understanding differences.

In our daily pursuits, are we becoming narrow-minded by rushing to concrete solutions or conclusions? Do we dismiss global perspectives and diversity as irrelevant to our own world?It's entirely possible that, unknowingly, blind spots in our cognition darken the fertile margins of our individual perspectives. To prevent this, alongside diversifying resources and approaches, we must intentionally create margins for thought. This may seem somewhat unconventional and abstract, but I hope it offers at least some reference. Next time, we'll explore the world of food.

Source:
※1: Calculated based on Japan National Tourism Organization (JNTO) "Number of Overseas Visitors to Japan in 2019"
※2: Calculated based on Japan Tourism Agency "Annual Report on Consumption Trends of Inbound Foreign Visitors 2019"
Page URL: https://www.mlit.go.jp/kankocho/siryou/toukei/content/001345781.pdf

【Contact for Inquiries Regarding This Matter】
Dentsu Inc. Japan Brand Project Team
japanbrand@dentsu.co.jp

Japan Brand Research Hub Page
https://www.dentsu.co.jp/knowledge/japan_brand/

[Purpose of the Dentsu Inc. Japan Brand Survey]
Dentsu Inc.'s proprietary survey launched in 2011 to understand how the Japan Brand was perceived globally when reputational damage affected Japanese agricultural and marine products and inbound tourism following the Great East Japan Earthquake. In 2022, it evolved into a cross-company project activity to enhance expertise through a fundamental restructuring of survey design, analytical approaches, and outputs.In 2025, it will newly plan and build a knowledge portfolio for the general public, aiming to create social value grounded in consumer insights.
The Japan Brand Survey regularly gauges the awareness and actual attitudes of overseas consumers regarding the Japan Brand as a whole, covering areas such as inbound tourism, regional revitalization, food, Japanese products, content, values, lifestyles, and social trends. It visualizes the changing sentiments of consumers and the challenges and potential of the Japan Brand, contributing to increasingly complex corporate activities while also promoting cross-cultural understanding within Japanese society.

【Dentsu Inc. Japan Brand Survey 2022: Survey Overview】
・Target Areas: 22 countries/regions (United States, Canada, Mainland China, South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia, Vietnam, Philippines, India, Australia, Saudi Arabia, United Kingdom, France, Germany, Italy, Spain, Russia, Finland)
・Sample Size: 8,220 (Breakdown: United States 960, Mainland China 1,260, Other countries/regions 300 each)
・Survey Period: December 2021 to January 2022
・Respondent criteria: Men and women aged 20–59 (middle-income and above)
・Survey Method: Online survey
・Research Organizations: Dentsu Inc. (Principal Investigator), Video Research Ltd. (Implementation Support)

[Notes and Disclaimers]
※1: Mainland China coverage primarily includes Tier 1 cities; India coverage includes Delhi and Mumbai; Australia coverage includes the Sydney metropolitan area; Southeast Asia coverage is limited primarily to metropolitan areas.
※2: Definition of middle-income level: Criteria set per country based on national average income (OECD statistics, etc.) and social class classification (SEC).
※3: Samples were collected with equal allocation by gender and age group for each country/region, then weighted to match the population composition.
※4: Proportions in this survey are rounded to the second decimal place (or first decimal place for some integer values), so totals may not add up to 100%.
※5: Country and region names used in this survey report and on the website follow the longstanding views of the Japanese government, Japanese social norms, and business practices.
※6: In creating the charts and graphs for this survey, the names of the countries and regions analyzed use the international standard ISO Country Code (ISO 3166-1 alpha-2/3), with some exceptions.
United States/US/USA, Canada/CA/CAN, Australia/AU/AUS, United Kingdom/UK/GBR, Germany/DE/DEU, France/FR/FRA, Italy/IT/ITA,Spain/ES/ESP, Finland/FI/FIN, United Arab Emirates/UAE, Saudi Arabia/SA/SAU, India/IN/IND, Indonesia/ID/IDN, Singapore/SG/SGP, Malaysia/MY/MYS, Philippines/PH/PHL, Thailand/TH/THA,Vietnam/VN/VNM, Mainland China/CN/CHN, Hong Kong/HK/HKG, Taiwan/TW/TWN, South Korea/KR/KOR
※7: The names of countries and regions used in this survey are for statistical or analytical convenience only and do not indicate any political stance or viewpoint.
※8: The maps used in this survey (world map and Japan map) have been partially modified and cropped to suit the analysis content and page layout. They do not necessarily accurately reflect national borders or territorial boundaries.