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There are so many different kinds of gift products. How are they classified?
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| B: |
As you say, there are gifts of almost every kind. Even foods are included in the category of gifts. Although it's hard to classify gifts, here are some broad categories and how much Japanese spend in each category. People spend 4 trillion yen (100,000 yen per household × < 40 million households) on personal gifts, more than 1 trillion yen (only half of the previous figure of 2 trillion, due to the recession in recent years) on corporate gifts, and between 1.5 and 2 trillion yen on gifts for company sales promotions (called SP goods). This makes the market worth 7 to 8 trillion yen annually. |
| A: |
What are corporate gifts?
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| B: |
These include the many gifts presented by companies on various occasions: Chugen and Seibo (traditional mid-year and year-end gifts), New Year's, occasions such as the start and completion of construction of new facilities, company foundation anniversaries, decorations, company funerals, employee merit and service recognition ceremonies, and company sports days. |
| A: |
Can gifts given for promotional purposes be included in the category of corporate gifts?
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Yes, they can. For example, gifts that banks and post offices give to customers are corporate gifts. Japan is unique in that there are initial gifts and gifts presented in return. People in other countries do not normally give a return gift. These return gifts, called "okaeshi", make up a huge market. One such custom peculiar to Japan is that of women giving chocolates to men on St. Valentine's Day (February 14) and the men returning the favor with sweets on "White Day" (March 14). White Day was invented by industries to increase sales. |
| A: |
I understand the basic categories of the gift industry, but can you break them down into more detail?
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| B: |
The category of bridal gifts includes wedding, presents from the bride and groom to the wedding guests, gifts given to guests at the post-wedding reception party, and engagement remembrances. Gifts related to Buddhism mass, which is synonymous with dying, include gifts given in return for an initial condolence gift to the bereaved family, and gifts given to attendees of a funeral. There are gifts for joyous occasions such as birthdays, a new baby-and the appropriate return gift given by someone after he or she gets out of the hospital, gifts for those moving to a new house, and again the return gifts. There are also the summer and year-end gifts mentioned above. There are gifts for students entering and graduating from the various levels of school, for landing a job after graduation, and return gifts for these. Children receive gifts on Children's Day, their birthdays, Doll's Festival, and the "3-5-7" festival (for children of these ages). There are gifts celebrating a long and healthy life, given on Respect for the Aged Day and on certain milestone birthdays. Young people attaining adulthood, considered as 20 years old in Japan, receive a present from their parents, as well as a souvenir when they attend the corresponding Coming of Age Day ceremony at their local town hall. There are gifts given to people in the hospital, souvenirs brought back from trips, gifts for Father's and Mother's Days, presents for Halloween and Christmas, gifts for St. Valentine's Day and White Day as mentioned above, gifts given to celebrate someone's presentation such as piano or ballet recital etc., and gifts given when visiting a performer backstage. As you can see, the Japanese love giving gifts. |
| A: |
They sure do. How do people decide what to give?
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| B: |
People used to go out and look at products in stores. But nowadays, more and more people, particularly the younger generation, choose from items in gift catalogs. This is why manufacturers and importers do everything they can to get their products in the catalogs put out by the large gift companies. Once your product is in these catalogs, you've got an effective year long advertisement. On the other hand, you also have the responsibility to have a supply of the product on hand all year. |
| A: |
What percentages of total gift products are made domestically, imported, and exported?
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| B: |
Since there are no firm statistics, we cannot say for sure. However, we can estimate that about 70 to 80% of the gifts purchased were produced here in Japan, with the remaining 20 or 30% being imported. Products are not exported as gifts, but as products from a specific region of Japan, such as cooking ware from Tsubame City in Niigata Prefecture, and the many electric products that Japan exports from its manufacture. We said that 20 to 30% of gifts are imported, but this does not include the large quantities of materials, such as vinyl sheets and wood, that are imported and used for the gifts. |
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What categories of products are the biggest sellers as gifts?
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| B: |
Pottery and lacquer ware used to be the most popular gifts. Nowadays, the most popular gifts are food and laundry detergent, followed by textile goods sets such as floor mats, slippers, and towels, followed by interior decorative items and sundries. Overall, famous brand products sell well. This is because Japanese believe that a brand name means quality. Big sellers for children's gifts include products from Walt Disney, Hello Kitty (a popular Japanese animated cat character), and Snoopy from the Peanuts comic. Fancy goods are also used as gifts and products made especially to appeal to women. Also popular are clocks, jewelry boxes, cosmetic cases, maps, educational products such as books, and wine glasses. Picture frames and frame stands with children's photographs are popular as return gifts. |
| A: |
How are the large gift catalogs classified?
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| B: |
There is no special classification. A certain catalog is divided into novelties, stationary, leisure and health products, accessories, interiors, bags, electric goods, table ware, bath and beauty goods, textiles, kitchen ware, and food. Other catalogs are similar. |
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Do gifts change with the seasons?
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Yes. For example, in the category of textile goods, blankets and futons are popular in winter, while in summer it's sheets that sell well. |
| A: |
How does one go about deciding on a gift to give?
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First of all, you must know how much you want to spend before anything else can be decided. Once you've fixed this, you can focus on goods in that price range. Then, you must know who the gift is for: Is it specifically for a man, woman, or child, or just anyone in general? Whether the gift is for a happy or sad occasion is also a deciding factor. |
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How much do people spend on gifts?
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| B: |
Prices start at 500 yen like telephone cards. Above this, the standard price levels for gifts are 1,000 yen, 2,000 yen, 3,000 yen, 5,000 yen, 8,000 yen, 10,000 yen, 20,000 yen, 30,000 yen, and 50,000 yen. Very rarely will a gift cost more than 50,000 yen. |
| A: |
What are the most common imported gifts?
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| B: |
Imported gifts are generally cheaper than domestically made items. I think these gifts are usually 3,000 yen or less. It seems that labor- intensive products and made from natural materials sell well. |
| A: |
What about the unique handicrafts that come from the Philippines and Indonesia?
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| B: |
Although the products themselves are attractive, they don't often appear in the major catalogs because it's hard to guarantee a year- round supply. Since the Japanese distributors are cautious buyers, they don't start off by purchasing an entire container of a product, but merely a small quantity. Even if you know that the goods will sell, because they are handmade means that you may not be able to secure a big enough supply to keep up with demand. This is one risk with such handicrafts and a major reason why large companies don't include them in their catalogs. I think there will be more demand in future for imported goods that are somewhat more refined. Traditionally, most imported gift goods have come from Asian countries, followed by Europe and the U.S. A. I think this will continue. |
| A: |
Do the uniqueness of a product and its packaging play a role in its success?
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Uniqueness is not necessarily a major factor. There are certain standard gifts that most people buy, and few people vary from this norm. However, this does not mean that it wouldn't help to make your product a little different to set it apart. Attractive packaging is definitely a must. |
| A: |
Do all companies have insurance to cover consumer claims under the Product Liability Law?
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| B: |
All manufacturers and importers have such insurance, but there have been no product-related accidents so far. There are no products in the gift category that can be considered dangerous, except perhaps for electric goods, but all the manufacturers have sound base. Even if there were a product-related accident, the manufacturers would likely settle it privately with the consumer and not go through the Product Liability Law. |
| A: |
What's does the future hold for the gift industry?
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| B: |
I think we will see an even greater variety of products entering the gift category. An increase in quality will bring in gradually more imported goods. There will also be more shops selling a wider selection of gift products. Essentially, the Japanese love gift giving, and the custom of return gifts will remain with us. However, competition in the market will intensify. |
Cooperation: SELECT Co., Ltd
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