| Q: |
What is the proportion of the domestic production of umbrUmbrella
ellas compared that of imports?
|
| A: |
In 1995, domestically produced umbrellas accounted for about 6. 5 million units or 7% of the umbrellas sold in Japan. Whereas imports accounted for 84.26 million units. An overwhelming 93% majority! The umbrella business has changed into an aggregate of imported goods shops. Almost all umbrellas priced below 3,000 yen of the retail price are imports. The majority of these are vinyl umbrellas priced at between 300 to 500 yen. Recently, imported umbrellas with "UV-cut" effect, in other words, reducing ultraviolet rays, sold at the price of 6,000 yen or so. Of these, only the higher end products are made domestically. |
| Q: |
What are the major exporting countries to Japan?
|
A:
|
Previously, Taiwan was in sole possession of first place, followed by Korea, but at present the overwhelming majority of imported umbrellas come from China. Some Taiwanese manufacturers have made advances into the Fuchien and Kuangtung Provinces of China. Major exporters of umbrellas to Japan (1995).
| Country |
Units |
Sales(million yen)
|
Proportion(%)
|
| China |
77,470,000 |
19,159 |
91.9 |
| Taiwan |
2,603,000 |
1,446 |
3.1 |
| Korea |
87,000 |
46 |
0.1 |
| Others |
4,106,000 |
1,464 |
4.9 |
|
| Q: |
Did imports cause the price destruction in Japan?
|
A:
|
Yes. Imported umbrellas lowered the price to one third of the cost what they were before. Domestic manufacturers are now less competitive and they have no choice but to rely on imports. |
| Q: |
What is the reason for the increase in imports to Japan?
|
A:
|
The main reasons are because of the appreciation of the yen and wage increases. In addition, consumers tend view umbrellas as devices used to only protect themselves from the rain. Therefore, the feel that they need not buy an expensive one because umbrellas are often lost it. As a result, they buy practical reasonably priced umbrellas, which will not be a great loss if they lose it. Moreover, the lack of shops able to repair a broken high quality umbrella is also a factor. This is another reason why consumers usually buy imports priced at about 1,000 yen. |
Q:
|
Please tell me about the advance of domestic manufacturers into overseas countries.
|
A:
|
It has been many years since they have advanced. Thirty years ago, a Japanese exporter foresaw that umbrellas would not be profitable in Japan because of rising wages and entered the Taiwanese market. He taught the Taiwanese manufacturing skills and this was the beginning of the gradual increase of umbrella production in Taiwan by foreign companies; with Japanese manufacturers at the top of the list. Wage increases have moved production sites from Taiwan to Korea, and now, to China. A recent report states that the industry is not profitable even in Shanghai and it is searching for other countries or districts, where comparatively low wages are paid. Although they have advanced into the Chinese market, Taiwanese manufacturers are also in search of future production sites. As far as Japanese makers are concerned, one can find only three or four joint ventures in China and hardly any other advances into other countries. Japanese joint ventures reimport all of their finished goods back into Japan.
|
| Q: |
Where are top brand-name umbrellas produced?
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A:
|
Though some are produced in Japan, most are produced in China, Taiwan, and Korea. |
| Q: |
Where do volume sales shops purchase their umbrellas from?
|
A:
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Though some mail-order dealers and volume sales agents buy articles from wholesalers, most of them import goods directly from foreign countries such as China, Taiwan, and Korea. |
| Q: |
Are there any problems as a result of the Product Liability Law (PL Law)?
|
A:
|
There was some concern about the possibility of an accident caused by the so-called "Jump-umbrellas", a self-opening umbrella. Fortunately, there have been no problem to date and each union is collectively insured under the PL Law. |
| Q: |
What are the percentages of folding umbrellas compared to other umbrellas?
|
A:
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Common-style umbrellas make up 75% including imports, while folding ones 25%. But, just concerning imports, common-styles form 81.2%, and folding ones 18.8%. The output of parasols has decreased to half of its peak, and golf umbrellas are not big sellers. |
| Q: |
Are exports of umbrellas still evidenced?
|
A:
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In the past, there were great exports to the U.S.A. and Europe, but now we export only a small fraction of goods to Japanese- capitalized department stores which have advanced into Hong Kong, Taiwan, and Korea. |
| Q: |
Please elaborate upon the fashion, design, or market trends.
|
A:
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Umbrellas have become lighter and plain-colored umbrellas are quite popular. As people's builds have become larger so have the umbrellas. Standard ribs are now 60Elong. In< addition to these trends, shiny or transparent articles are in vogue this year. |
| Q: |
What are the future prospects for umbrella industry?
|
A:
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There is the need for selective joint developments with other Japanese makers of umbrella materials and ribbings to develop new umbrellas to suit the Japanese market. Also, the need to produce new fashion-oriented goods such as folding umbrellas made of compound materials retaining original shapes plus goods with the umbrella made with carbon or glass fiber shaft and an umbrella that resembles a Japanese-style paper. Moreover, one way to regain industry prominence is to do as the U.S.A. and French makers have been doing and deal in "alternative" goods such as baggage, hats, and sunglasses in order to lower the reliance on umbrellas for business. It is time to reconsider how the Japanese can initiate new practices. |
Note: All of the above figures are courtesy of the Ministry of Finance, customs statistics.
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