'Firms asleep at the wheel won't survive': Biz leaders sound alarm on Japan's global decline April 6, 2025 (Mainichi Japan) Japanese version Generations of Sony PlayStations are seen in Tokyo's Minato Ward in this 2019 file photo. From left, the PS, PS2, PS3 and PS4. (Mainichi) TOKYO -- Japan once led the world with its manufacturing prowess but has entered the 21st century a digital transformation laggard, severely diminishing its international competitiveness. With rapid advancements in generative artificial intelligence (AI) now forcing a response, can Japanese companies change course in time? In February, one of the world's largest technology expos was held in Saudi Arabia, where cutting-edge technologies such as AI and 'Web 3.0' -- the next iteration of the World Wide Web -- were showcased. Approximately 2,500 companies and organizations participated, drawing around 200,000 visitors over four days. At the event, one Japanese figure stood out in particular: Ken Kutaragi, 74, known as the "father" of Sony Corp.'s PlayStation (PS) and a former vice president at the electronics giant. After delivering a talk about technological challenges, Kutaragi was eagerly approached by attendees from various countries. Crowds formed lines asking for autographs, some visitors exclaiming that they had grown up with the PS while producing first-generation consoles released in 1994. Questions poured in: What's your view on AI? Any new ideas for innovation? Surrounded by cutting-edge global technology and boundless curiosity, Kutaragi said excitedly
偽物ブランド "They are far ahead. It's thrilling." Yet, he expressed concern as well: "Japanese companies that have spent the past 10 or 20 years asleep at the wheel probably won't survive. Brilliant minds connect globally now, and progress is so accelerated that what took a year before now takes only a day -- even just 10 seconds." A Honda Super Cub C100 scooter is seen in this image provided by Honda Motor Co. Only Toyota remains After World War II, as Japan aimed to rebuild from devastation, manufacturing spearheaded the recovery. From the 2000s onward, technological innovation shifted primarily to the United States and China -- but Japanese products and services unmistakably changed lives worldwide. Hayakawa Electric Co. -- present-day Sharp Corp. -- was Japan's first mass producer of black-and-white televisions in 1953. The appliance joined refrigerators and washing machines in becoming one of Japan's iconic postwar "Three Sacred Treasures." In 1955, Koshinsha (now Sankosha Corp.) developed the world's first automated electric rice cooker, which Tokyo Shibaura Electric Co. -- Toshiba Corp. -- marketed, earning high praise as a "revolution in the kitchen." In 1958, Nissin Food Products Co. launched the world's first instant noodles, "Chicken Ramen," the original "quick-cooking" innovation that went on to transform dining tables. Other landmark Japanese innovations followed, boosting the nation's reputation and driving its rapid economic expansion period: Sony's "Trinitron" color TV (1968), Honda Motor Co.'s Super Cub scooter (1958), and Toyota Motor Corp.'s affordable Corolla car (1966). Ezra Vogel's 1979 bestseller "Japan as Number One: Lessons for America" epitomized this enviable position. This widespread impact was reflected in 1989, the peak of Japan's economic bubble, when Japanese companies accounted for 32 of the world's top 50 firms by market capitalization, including giants such as Toyota, Nippon Steel Corp. (then Shin-Nippon Seitetsu), and Hitachi Ltd., alongside financial institutions. However, following three decades of economic stagnation -- the "Lost Thirty Years" triggered by the bubble's collapse -- only Toyota remains in today's global top 50. American IT giants like Apple, Nvidia and Microsoft now occupy the highest ranks. Japanese corporate visibility has drastically declined. How has their prominence diminished to this extent? Former Sony Corp. President Kazuo Hirai speaks during an interview in Tokyo's Shinagawa Ward on Feb. 19, 2025. (Mainichi/Kentaro Ikushima) Caught in the "innovator's dilemma" "We were slow in integrating the transformative impact of digitalization and network technologies," reflected Kazuo Hirai, 64, president of Sony (today's Sony Group Corp.) from 2012 to 2018, describing the situation when he took charge. Founded immediately after World War II, Sony developed groundbreaking products like the Walkman portable music player, impressing even Apple's late co-founder Steve Jobs, who once called Sony's products role models. Yet Hirai recognizes those past successes became shackles, leading to complacency. "We were overconfident, convinced that existing technologies would continue generating profits," he noted. This flawed assumption delayed necessary reforms. Sony's signature flat-screen TV business suffered massive losses amid intensified price competition from overseas manufacturers, resulting in a historic net loss of 456.6 billion yen (about $5.7 billion at the time) for the fiscal year ending March 2012. Sony had fallen into an "innovator's dilemma," Hirai admitted. Taking leadership at the company's lowest point, Hirai spun off the struggling audio/visual equipment division. Internally challenged by voices insisting, "The business cannot continue without market share," he nonetheless halved annual TV sales to a little more than 10 million units, sold off the computer and battery divisions, and executed drastic restructuring across the traditional electronics business. As an unfettered "outsider" from the music and game divisions
スーパーコピーブランド Hirai said, "I might have appeared ruthless, but unless we took those steps, we couldn't have moved forward." Sony rebounded strongly, achieving record earnings in the fiscal year ending March 2018, and he exited as president. Following this experience, Hirai now worries about Japanese leaders' low tolerance for risk-taking. "The attitude of 'failure might harm my career' prevents anything new from emerging and causes a lack of urgency. Hence few firms properly embrace and utilize AI," he remarked. Hirai added that the digital market, dominated by giant IT firms with billion-tier user bases, is a winner-takes-all arena: "In this environment of just one strong market leader, waiting passively means sure defeat." Without discarding past glory, embracing change, and pursuing innovation, progress isn't possible. Fast Retailing Co. President Tadashi Yanai speaks during an interview in Tokyo's Koto Ward on March 7
ブランドコピー財布 2025. (Mainichi/Kaho Kitayama) Heavy domestic focus hinders growth "Japanese companies lack genuine growth ambition. They likely find comfort just sticking to their current conditions," pointed out Tadashi Yanai, 76, chairperson and president of Fast Retailing Co. Fast Retailing, operator of global clothing brands Uniqlo and GU
ブランド激安コピー reported consolidated sales of 3.10 trillion yen (about $20.71 billion) and net profits of 371.9 billion yen (approx. $2.48 billion) for the fiscal year ending August 2024, setting new records. It continues aiming for 10 trillion yen (approx. $66.74 billion) in sales to surpass global fast-fashion giants Zara of Spain and H&M Group of Sweden. Yanai insists, "You cannot survive without a global orientation." Conversely
スーパーコピー靴 many domestically oriented companies in Japan remain complacent, caught in what he calls a "Japan-only mindset." Despite Japan's nominal GDP surpassing 600 trillion yen (approx. $4 trillion) for the first time ever in 2024, finally overcoming the stagnation endured since reaching 500 trillion yen in 1992, Yanai dismisses this milestone harshly: "GDP measured in dollar terms has peaked and actually been declining recently. The feeling of increase is an illusion." Indeed, Japan was ranked fourth globally for 2024, trailing the United States, China, and Germany; India is also expected to surpass Japan by 2025, highlighting once second place Japan's significant global economic retreat. "For listed corporations especially, improving business performance is obviously essential. Without growth, companies become worthless in financial markets." Yanai strongly warns, "Unless we seriously reconsider what actions are needed for growth, the entire country will spiral downward even further." Logos for Fast Retailing Co. clothing brands Uniqlo and Gu. (Mainichi) Japan's executives in need of urgent mindset change Data supports claims of Japan's slow responsiveness to change and inward-looking tendencies. In the latest World Digital Competitiveness Ranking, released in November 2024 by Switzerland's International Institute for Management Development (IMD) and assessing nations' capabilities in leveraging transformative digital technologies, Japan improved by one rank compared to its previous, worst-ever result in 2023. It now stands at 31st among 67 countries and regions. While excelling in broadband wireless penetration and global robot market share, Japan ranked at the bottom in areas such as corporate responsiveness to business opportunities or risks, and international experience among senior executives. IMD emphasized that weaknesses potentially fixed through senior-level initiative remained unchanged over many years, strongly urging Japanese leaders to change their mindset. Transform or decline -- the choice now clearly confronts corporate Japan. Its resolve is being profoundly tested. (Japanese original by Kazuki Sakuma and Shiho Fujibuchi, Business News Department) Font Size SML Print Go to The Mainichi Home Page Related Articles Business leaders weigh in on Uniqlo chief's 'Japanese people may perish' remarks
