Research and analysis

Japan: visit by Lord Livingston

Published 6 November 2014

This research and analysis was withdrawn on 3 August 2016

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk – Japan

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk – Japan

Summary

Lord Livingston visited Japan to launch GREAT Week, the Japan-UK Tech Awards and the Japan Overseas Business Network Initiative (OBNI) partnership.

Detail

The centrepiece of the visit was the launch of the Japan GREAT Week. Targetting the fashion, retail, luxury and food & drink sectors this comprises:

• a 50-strong trade mission of new market entrants, who Lord Livingston visited at their B-B showcase
• a dedicated e-commerce site in conjunction with a leading Japanese online retailer, featuring 42 British brands
• a B-C Shopping is GREAT campaign leveraged through Mitsubishi Estate Group, who provided, free of charge, a downtown venue for a launch event and week-long programme of talk-shows; and through Time Out Tokyo, who produced a British shopping map with 80 established brands participating through their stores in Tokyo
• a British promotion at leading department store Isetan

Early feedback suggests that the campaign is generating buzz: the Facebook page has attracted 10,000 followers, the campaign is top of the content ranking on Time Out Tokyo online and the engagement rate on one Twitter creative is over 5% (average 1-3%).

The other visit priority was to retain and secure additional Japanese investment. In calls on SRM companies Mitsubishi Corporation and Hitachi, on Mitsui & Co, Shionogi and Fujitsu Laboratories and in a breakfast with other companies Ian Livingston gave updates on the UK economic and political situation, and discussed whatHMG could do to support their business in the UK.

GSK hosted a breakfast for Ian Livingston to meet FTSE 100 corporates who described the rewards and hazards of doing business in Japan. They cited one barrier specific to foreign investors: regulations that restrict the ability of foreign financial firms to offer services to Japanese companies in 3rd markets; and several that impact on all companies, to the detriment of the consumer, especially in the pharma and air services fields. Lord Livingston raised this with the Vice-Minister at the Ministry of Economy, Trade and Industry, who was keen to attract British financial and pharma investment, to address these regulatory burdens. He emphasised the UK’s commitment to the EU-Japan Economic Partnership Agreement and stressed the cross-party support for free trade.

In other cases, Ian Livingston heard how UK companies have turned challenges to their advantage. Aggreko described their success in setting up as an Independent Power Supplier in Hokkaido, a Japanese first. The Minister chaired a professionally-filmed talk-show with 10 UK companies that have succeeded in getting into the market in Japan with new technologies or ways of working. UKTI will load the edited product onto www.exporttojapan.co.uk and publicise widely as a way of encouraging other UK companies to look afresh at a market sometimes perceived, wrongly, as being uniformly difficult.

The new Japan was also represented by the roomful of venture companies and start-ups that attended the launch of the Japan-UK Tech Awards. The Minister gave an account of the benefits of the UK as a place from which to globalise your business, and an interview with Japan’s leading business-oriented TV programme. The event has received extensive coverage in print and online media.

The Minister spent time building partnerships in support of export targets. He witnessed the signing of a UKTI OBNI agreement with the British Chamber of Commerce in Japan, who will develop B-B services around the 2019 Rugby World Cup and Tokyo 2020. And he heard from partners in the public/private Export to Japan digital platform how the site is delivering volume services cost-effectively. He saw potential for rollout to other substantial but unfamiliar markets and requested a specific proposal for the OBNI programme.

Lord Livingston used his call on the Finance Ministry to encourage Japan to press ahead on automatic exchange of tax information, in line with G7/G20 commitments. Finally, in Osaka he made company visits to advocate for UK-provided wifi services to Japan’s high-speed rail network and highlight investment opportunities in HS2/3. He also confirmed the UK’s strong interest in providing privatisation consultancy services to Japanese airports, and bidders for the concession rights. He also urged Japanese carriers to consider flights to airports outside Heathrow, in order better to serve investors in the regions.

Disclaimer

The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.