Insights from Our Partner in Japan

It’s a small world after all – but that doesn’t mean it’s a simple one.

For many companies, increasing globalization has brought with it increasing complexities of language and culture. Having people on the ground who are part of the culture in foreign markets is essential.

That’s why we’re pleased to bring you today’s post from TrainTracks Inc., our strategic marketing communications partner in Japan. As a fellow member of IPREX, a global network of independent public relations agencies, TrainTracks helps us understand and connect with audiences in a key Asian market.

Here are some recent insights from Ron Huber, a TrainTracks director.

Japan’s Media Landscape

It's been more than six months since the Great East Japan Earthquake. For the many victims of the disaster and the regions directly affected, the effects will continue to be felt for years. For the rest of the country, many struggles still remain, but for many businesses in Japan, the economic outlook appears more positive than initially expected. The general social atmosphere here has largely returned to its peculiar version of normalcy, and for international and global businesses exporting goods and services to Japan the high yen has created an ideal opportunity to grow their market share.

Due in part perhaps to this high yen, but more so because of our growing number of global PR partners, we at TrainTracks have seen a measurable increase in multinational client work. For new clients one of the most important tasks for us is always highlighting the unique characteristics of Japanese media. Every domestic market around the world will of course have key differences when dealing with the media, but Japan is the second-largest advertising and communications market in the world. Therefore it is especially important to recognize and adapt to these idiosyncrasies when planning your communications strategy for Japan.

There are two main aspects to the media landscape in Japan, the first being the way that journalists operate and the second being the ways each specific medium (newspapers, television, magazines, etc.) influence society. For part one of this two-part series let us have a look at the way journalists operate.

Just as with any country, journalists in Japan have their own particular way of doing business. The first aspect of this that our global clients are often exposed to when trying to attract media coverage is that there is tremendous pressure on the journalists to focus on domestic companies. To get past this as a foreign business, you need to localize the news and make the domestic relevance obvious to the target audience. This may involve something as simple as explaining how Japanese investors can utilize the information, but more often you need to explicitly explain how the news will impact Japanese businesses or the economy, even if it seems obvious.

Japanese journalists prefer in-person interviews, whether with the corporate spokesperson or with the agency representative. This means additional time, effort and costs that could be mitigated by phone interviews in markets where that is acceptable or the norm. On top of that most journalists will only do interviews in Japanese – even if they do know some English. In addition the media still prefers Japanese spokespeople even if a professional interpreter is used, so having a local spokesperson is crucial. Top tier executives like CEOs and CTOs from overseas are still welcomed and relatively easy to set up media interviews with, but unless they are willing to spend one week in Japan every month you are going to be missing out on many PR opportunities.

Finally, reporters here do not write articles solely based on press releases as often as they seem to do in other markets, and this is especially true when it comes to the most influential media. While this may also seem obvious to some, reporters like to find their own perspectives and almost always look for objective information based on their own research. This also means that if a press release relies on statistics or other figures, reporters here will often require them to be backed up by an independent third party before including them in an article. Another result of this tendency is that bylined articles (articles prepared by corporations but published as news) are quite uncommon in Japan.

Next month we will look at the media landscape from a publication and market perspective.

Google vs. the Great Firewall

What would you say Google stands for?

Innovation … Collaboration … Freedom …

Yep, sounds about right.

Now, how about the Chinese government?

… Something had to give.

And so we have the latest escalation of tensions between Google and China.

Of all the American companies making a go of it in the People's Republic, Google’s venture has been among the most conflicted. Why was a company with a reputation as a progressive leader going along with censorship by a repressive regime?

And yet that’s what they were doing—until recently. Doing business with China was necessary to further Google’s mission of providing fast, free access to information around the world. You have to engage China to change China. Or so the argument went.

But one man’s “constructive engagement” is another’s “destructive capitulation”—especially for somebody like Google founder Sergey Brin, who grew up behind the Iron Curtain.

So Google has dramatically reversed its play-nice approach, opting as of now for a defiant end-run around censorship by redirecting Chinese users of Google through the company’s unfiltered Hong Kong-based site.

Some argue that this is all just a convenient cover for a necessary business decision—pulling out of China because increasingly nationalistic policies and persistent bureaucratic corruption make it nearly impossible for foreign companies to turn a profit.

And that may be, in fact, the bottom line.

Meanwhile, Google certainly benefits from publicly reaffirming its commitment to freedom, innovation and other principles that have made it the global force it is today.

Let’s Hear It for U.S. Manufacturing

It’s nice to see someone sticking up for U.S. manufacturing, for a change. Example: Rockwell Automation Inc. chairman and chief executive officer Keith Nosbusch, has been visible and vocal lately advocating for more investment in the sector.

"U.S. manufacturers absolutely must have innovative energy-efficient and productivity-enhancing technology to be competitive," he told a press briefing last week at the National Press Club in Washington, D.C.
The good news is that many manufacturers are applying these lean technologies. The not-so-good news: Too few people are aware of this success.

That’s why it’s refreshing to hear an industry leader like Nosbusch speaking out. We’ve talked a lot in this space about the need for manufacturers to market their individual companies with differentiating brands. Today, the need for more powerful communications may be equally important for the manufacturing sector as a whole.

After all, despite the tough times and fierce overseas competition, manufacturing remains a vital backbone of the U.S. economy. This sector deserves and needs support, and manufacturers should not and cannot allow themselves o be overlooked.

Kudos to Nosbusch for putting himself out there on this front. Now, are there any other manufacturing leaders ready to lend their voices?

There’s Room to Grow in the Global Economy

Wisconsin manufacturers may be lagging the world’s best companies in doing the things they need to do to thrive in the 21st century.

But therein lies opportunity.

Take, for example, expanding overseas operations. That’s one area for improvement cited in the “Next Generation Manufacturing Study,” an extensive new survey released by the Wisconsin Manufacturing Extension Partnership.

The study shows, as highlighted by The Business Journal of Milwaukee, that many Wiscoinsin companies simply aren’t yet doing much international business. Just 7 percent of the 500-plus firms in the survey reported non-U.S. sales growth of 51 percent or higher. Nearly two-thirds of (63 percent) said that they have no sales or distribution facilities beyond the United States.

So there’s plenty of room to grow globally for Wisconsin manufacturers. “Global engagement” is one of the six key tenets of so-called Next Generation Manufacturing, a set of forward-looking strategies to drive growth and profitability in the 21st century (per the WMEP).

Of course, international business is rife with challenges. Whether from an operations or a marketing communications perspective, success overseas takes a strong commitment to consistency, balanced with flexibility for local customization. You’ve got to make the effort to understand and respond to what customers really want in each market.

That’s a tall task to undertake on a limited budget, but a few good strategic alliances can help. For example, our agency helps ensure consistent, relevant messaging around the world for global clients through IPREX, one of the world’s largest networks of independent public relations agencies. Read more about our relationship with IPREX.

In the meantime, read the full WMEP report for many more fascinating insights on Wisconsin manufacturing. An executive summary and the full report are available for download at WMEP’s website.