Retailers in Japan are increasingly targeting female workers. Kim Kyung-Hoon/Reuters
Retailers in Japan are increasingly targeting female workers. Kim Kyung-Hoon/Reuters
Retailers in Japan are increasingly targeting female workers. Kim Kyung-Hoon/Reuters
Retailers in Japan are increasingly targeting female workers. Kim Kyung-Hoon/Reuters

Japanese working women a new target for retailers


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Many companies in Japan are increasingly promoting products towards working women.

The Tokyo-based major snack food maker Calbee's granola is a case in point. In 2011, the company, best known as a potato chip maker, decided to try to triple sales of its Frugra (a contraction of fruits and granola) brand to US$100 million. It did so and the firm then doubled that target two years later.

But its promotions team, headed by Yumiko Aboshi, a working mother, had their work cut out for them. As opposed to North America and Europe, where granola is considered a health food, it was seen by Japanese consumers as a sweet snack.

The team decided to market Frugra towards married working women, as they are the food-buying decision-makers in the household, their numbers are increasing, and they need to prepare breakfasts fast, Ms Aboshi tells The National.

For its sales promotion, the team adopted the strategy of making Frugra "the friend of yoghurt," as yoghurt is very popular in Japan, with annual sales of about ¥300 billion. In-store promoters offered Frugra with yoghurt tastings to supermarket shoppers. The slogan was, "A good thing in the morning: Frugra", Ms Aboshi says.

"This tells people that Frugra is superior to other breakfasts in terms of preparation time, nutrition [dietary fibre, reduced salt] and good taste," she says.

The promotional effort certainly bore fruit. Frugra sales jumped seven-fold over five years to the equivalent of about $266m in fiscal year 2016. In the past year, Calbee announced almost $100m of investments in two new granola factories, partly to supply shipments to China, where it is also becoming popular.

Other products are riding the marketing towards working mothers trend. Japan's biggest convenience store operator, Seven & i Holdings, is starting a food delivery service offering meal kits that take less than 10 minutes to prepare. The kits are primarily aimed at working women, women raising children as well as elderly people, the company's public relations officer Sandor Timar tells The National.

"As women's social advancement is accelerating in Japan, they have less time for cooking," Mr Timar says.

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The Japan branch of the US company iRobot, meanwhile, markets its self-operating vacuum cleaner Roomba towards working parents and those raising children. "People who do not have time for cleaning because they are working or raising children can use Roomba at any time, without needing to devote time or effort," says the iRobot Japan marketing group senior manager Yojiro Mochizuki.

Akira Kawaguchi, a professor at the Faculty of Policy Studies of Doshisha University in Japan's ancient capital of Kyoto, tells The National that he thinks that as the proportion of working women increases, the consumption of commodities and services that replace domestic duties will increase. A good example is the "chushoku" industry, says Mr Kawaguchi, who counts labour relations and gender studies among his fields of interest.

"'Chushoku’ is a new word that means prepared food such as daily dishes, lunch boxes and sandwiches, which are available at convenience stores and supermarkets," he says.

Ms Aboshi says that if her company's granola division, where women make up half of the staff including Ms Aboshi's boss, had been dominated by men, its success in raising Frugra sales might not have been achieved. "Opinions of multiple perspectives cannot spring up from meetings of only senior-aged men in Japanese companies," she says.

Japan Women's University's department of studies on contemporary society professor Machiko Osawa concurs. Also the director of her university's Research Institute for Women and Careers, Ms Osawa tells The National that as women are the main household purchasing consumers in Japan, they have a better grasp of consumers' mindsets when they undertake marketing activities.

"We are now at a time when experiences such as child rearing become a plus even when doing business, so I think that women's success is to be expected" in business, she says.

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5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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31% in UK say BBC is biased to left-wing views

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19% in UK say BBC is not biased at all

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