In our third report on communications trends in Asia, counselor Ray Josephs consults with Japan's powerhouse agencies to offer an overview of PR trends in the world's second largest economy.
Japan is enjoying a long-awaited upturn in its economy. The liberalization of previously restricted sectors such as finance and telecommunications are resulting in a surge of foreign investments, according to Seisuke Fukuda, special advisor for global projects at Dentsu Public Relations.
Merrill Lynch, for example, acquired the bankrupt Yamaichi Securities Cos., and Renault has taken control of operations at auto maker Nissan. Those international companies venturing into Japan are using PR to expand their interests. At Dentsu, foreign companies now account for 25 percent of annual billings, compared with less than five percent a decade ago. Dentsu is the largest PR firm in Japan, with 300 employees.
Similarly, IPR Shandwick, which previously boasted a large representation of local Japanese firms, now does more than 60 percent of its business in U.S., British and international companies. The exception to the rule is KYODO PR Co., Ltd., which continues to juggle mostly Japanese accounts (PRN Dec. 6).
Although investor relations is still a relatively underdeveloped discipline compared with the U.S. and U.K., Fukuda expects the need for I/R to skyrocket, given the current economic "big bang" spurred by deregulation. Japan plans to introduce its own version of 401k-pension system by the year 2002. This will mean more individual shareholders, who need to be informed - through PR - about investment opportunities in both Japanese and international companies.
Finally, sociological factors also are expected to spur growth in the PR business in the coming years. The population of Japan is getting older and living longer, thus signaling opportunities for the provision of new home care, health care, recreational and financial services, not to mention pharmaceutical products and medical equipment. Almost every major international pharmaceutical company - whether American, Swiss, British, French, etc. - is using PR to build brand equity among not only consumers, but also government officials and doctors in Japan.
Ray Josephs founded the International Public Relations Co., Ltd. (IPRC) in New York in the 1950's. In 1958, he traveled to Japan to report on PR trends for the Christian Science Monitor. During its existence, IPRC boasted a most substantial representation of Japanese clients, and carried American corporations like GM and American Express into Japan. 212/758-1313.