Streets of Japan. Japan experienced a long economic stagnation since 1990 called the ‘lost two decades’. The GDP per capita in Japan was around $30,000, and the country was home to an aging society. (Image : kobizmedia / Korea Bizwire)
SEOUL, Sept. 9 (Korea Bizwire) – Analysts from Korea Investment & Securities have said that by analyzing Japan’s ‘lost’ decades, Korea can find answers about the business fields that could show structural growth.
Lee Su-jeong, a researcher at Korea Investment & Securities, explained that under similar national income levels and population structures, similar lifestyles occur. “Japan experienced a long economic stagnation since 1990 called the ‘lost two decades’. The GDP per capita in Japan was around $30,000, and the country was home to an aging society. Also, the level of consumption of common people contributing to growth kept dropping. The situation is very similar to current Korean society. If we study the consumption patterns of Japan at the time, we can get insight on the types of businesses that have potential for growth.”
The three key words suggested by the research team were ‘saving’, ‘consolation’ and ‘silver’.
During the long period of economic stagnation in Japan, cheap items sold at ’100 Yen shops’ were popular, while ‘small luxuries’ like high-end Onigiris consoled consumers who were sick and tired of saving so much.
In the late 2000s, the ‘Sugomori’ consumption trend became popular, with people staying at home, playing TV games, and eating home meal replacements. The ‘Sugomori’ trend is starting to be observed in Korea recently, with the popularity of home meal replacements and VOD services. CJ E&M is suggested as one of the leading brands in the VOD market.
As well, the PB (private brand) business in Japan developed continuously. In Korea, private brands like BGF Retail and GS Retail are currently showing differentiation in goods.
In addition, the aging population resulted in the growth of the health care market. Many Japanese pharmaceutical companies were reborn during the 1990s. The key words for the pharmaceutical business in Korea are predicted to be research, development, going global, restructuring and new growth (especially in bio fields).”
By Francine Jung (francine.jung@kobizmedia.co.kr)
