General Edition Sunday, May 28, 2006 Issue No. 376
+++ INDEX
- What's new
- Services lineup
- News
- Candidate roundup
- Upcoming events
- News credits
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| +++ WHAT'S NEW |
Earlier this week, Canon announced that it will stop
developing film cameras. This makes it the third major
Japanese camera maker to come to the conclusion that
producing film cameras isn't worth the effort. Apparently
the global market for Japanese-made consumer cameras is
around 70m units, and of these, only 5.38m were film based.
The remaining 64.77m units were digital.
These numbers explain why those companies who moved early
to acquire the core digital technology and took early
losses until imaging sensors gave good enough photos are
all doing so well now, e.g., Canon and Nikon, while those
who dallied too long with film are not.
The leader in film in Japan and thus a die-hard champion
for the medium is of course Fujifilm, or Fuji Photo Film
as it is officially called. By virtue of the fact that
Fujifilm is the second largest camera film maker in the
world, after Kodak, it is no wonder that the company has
been slow to switch to digital consumer imaging products -- although through their components business, they have been
well positioned to do so.
In fact, looking at Fujifilm's performance in moving from
film to digital, it seems that the management back in the
early 2000's was quite oblivious to the possibility that
the film market might suddenly collapse -- which it did
with the advent of 4 megapixel cameras. This is
particularly surprising because Fujifilm even back then was advanced in imaging sensors (the one good thing about their FinePix cameras), and thus you'd think their senior engineers would have signalled the alarm.
At 4 megapixels, consumers not only have the ease of
digital shoot-review-erase-reshoot, but also the quality of images reproduced on photographic paper (i.e., regular
photos) is good enough to satisfy the average doting
parent. After this benchmark was met in 2004, there was no turning back for digital cameras.
Unfortunately the company's management did delay on R&D in
the consumer sector, probably lulled by the excellent 2003 business results when the accelerating digital components
business off-set the impact of a softening film business. In that year, the company made a record JPY 180bn (US$1.6bn) in
profit. As a result, the company is now having to play catch-up and is paying dearly for it. Restructuring and R&D costs have
blown out and this year's consolidated net profits plunged 63%, from JPY84bn (US$750m) down to a disappointing JPY37bn
(US$330m).
This is not to say that Fujifilm is on the skids, indeed,
far from it. The management is finally fighting back, announcing back in January 5,000 lay-offs -- 1,000 in Japan and 4,000
overseas, and a more than 30% cut-back on production of photosensitive materials typically used to make film. Furthermore,
the effort to move the business out of consumer film and into new areas of core competency such as chemicals and
professional imaging have become quite noticeable since 2004, which is when management finally got galvanized and
announced their Vision75 policy of restructuring and aggressive investment.
Since then, investment has included hundreds of millions of dollars in M&A and venture money for inkjet dye makers,
electronic imaging distributors, pharma start-ups, BluRay optical media factories, and general domination of flat panel display
films. For R&D alone, the company is planning to invest around JPY600bn (US$5.35bn) over the next 3 years.
The M&A part of Fujifilm's new policy is the most
interesting to watch and thinking about who they will go
for next is rather fun. It would not be a major leap of the imagination to see them make a try for a really big acquisition --
possibly someone like Lexmark in the USA -- who would make a great footprint for 75%-owned subsidiary Fuji Xerox. Then
back here in Japan, there is another struggling imaging competitor in the form of Konica Minolta.
Given that this company has just suffered an ugly drop from JPY7.52bn (US$67m) in profit last year (JPY2004)
to a net loss of JPY54.31bn (US$488m) this year, they could be a viable target.
To wrap up, a number of hard-grind Japanese companies like Fujifilm have been caught napping,
but luckily for them, the current economic improvement has given them a second chance.
As with Sony, we think they will pull it off and in the process create a moch more powerful chemicals-to electronics conglomerate.
Perhaps the transformation going on here in Tokyo might be useful for Kodak to study in dealing with their own problems.
...The Information Janitors/
| +++ SERVICES LINE-UP |
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BiOS is Recruting Due to continuing expansion of our systems integration and outsourcing > businesses, BiOS is actively recruiting BILINGUAL engineers and IT > trainees. Wide range of positions open, with competitive salaries and > working conditions. Join our team of more than 50 engineers and get > the BiOS stamp of quality on your resume. |
| +++ NEWS |
-Foreign assets dip slightly
- Thai girls targeted by traffickers
- Dyson leading in Japan
- Japanese Tech R&D to increase massively
- Livedoor Auto seeks court-ordered split
-> Foreign assets dip slightly
Although the nation's net foreign assets dipped slightly in 2005,
the Finance Ministry says that Japan is stll the world's largest holder of overseas assets.
World Bank figures give a total of JPY180trn (US$1.6trn), well ahead of
Switzerland with JPY48.85trn (US$436bn), and Hong Kong with JPY44.23trn (US$39bn).
The total increased by 16.7% to JPY506trn (US$4.5trn) in 2005, as Japanese institutional investors sought to diversify
and also to reinvest recent earnings.
The figures include all assets held by government, businesses and individuals.
(Source: TT commentary from mainichi-msn.co.jp, May 26, 2006)
A Thai newspaper, the Bangkok Post, reckons that at least
5,000 Thai women, and particularly young and poor ethnic women,
have been lured into prostitution in Japan each year.
The newspaper says that the women are recruited
through advertisements purporting to be from Japanese men seeking wives.
After travelling to Japan they are met by underworld operators and forced into prostitution. The claim came from the Vice-commander of the Chiang Mai Provincial Police,
speaking at a seminar on human trafficking.
***Ed: The UN says that there were 48 prosecutions in Japan in 2004 for human trafficking,
just the tip of the iceberg.
** (Source: TT commentary from upi.com, May 26, 2006)
http://tinyurl.com/grg2p
As amazing as it may seem, UK vacuum cleaner company,
Dyson, now has the top selling machine in Japan. Dyson has enjoyed an astounding 177%
increase in sales over the last fiscal year, and for FY2005 revenues leapt to JPY9.6bn (US$85m).
The secret behind the success is an ultra-compact version of their cyclone technology, the DC12.
This 4kg machine has the same suction power as a full-sized machine, and in the process has
impressed fastidious Japanese housewives by how clean it gets the floor. No more hair or mites.
(Source: TT commentary from timesonline.co.uk, May 24, 2006)
http://www.timesonline.co.uk/article/0,,5-2194229,00.html
We've said for some time now that the difference between
this economic recovery and previous ones is that Japanese
firms are not going to share much of their earnings with the employees.
Instead, they're going on M&A and R&D binges, the likes of which Japan has not seen before.
The Nikkei says that 11 high-tech firms: Hitachi, Toshiba, Mitsubishi Electric, Matsushita, Sony, Sharp, NEC,
Fujitsu, Canon, Fujifilm, and Ricoh are between them spending JPY3.53trn (US$18.7bn) on R&D this fiscal year,
up 5.4% on last year. Naturally the R&D represents each firm's strategic direction, with
Canon spending on new consumer products, environmental and medical technologies, and biotechnology.
Toshiba will primarily be working on new chips and small fuel cells, Fujifilm will be investing in pharma,
and Hitachi in energy conservation.
(Source: TT commentary from nikkei.co.jp, May 25, 2006)
http://www.nni.nikkei.co.jp/AC/TNKS/Nni20060525D25JFF02.htm
->Livedoor Auto seeks court-ordered split
Livedoor Auto, previously JACS, has gone to court to try and nullify its capital and business relationship
with Livedoor. The law suit is based on the claim that during the takeover of JACS, Livedoor misrepresented that it was a "lawful" company.
Livedoor Auto wants to take back control of its own destiny,
particularly now, in light of a deadlock with Livedoor over who should buy out Livedoor's majority stake.
Livedoor Auto has also filed a JPY1.6bn (US$14m) damages lawsuit against Livedoor on the basis that the Livedoor scandal has significantly hurt Livedoor Auto's business -- just to make sure that the parent board of directors get the message.
***Ed This will be an interesting case, since, to our knowledge, no one has ever tried to use the courts in this way to force a divorce between acquirer and target.
We don't think they will be successful, else this will deal a serious blow to the M&A industry in Japan.
** (Source: TT commentary from nikkei.co.jp, May 24, 2006)
http://www.nni.nikkei.co.jp/AC/TNKS/Nni20060524D25JF445.htm
NOTE: Broken links
Many online news sources are now removing their articles after just a few days of posting them, thus breaking our links -- we apologize for the inconvenience.
| +++ CANDIDATE ROUND UP |
DaiJob, Inc's executive placement team, Daijob Consulting
-----------------------------------------------------------------------------------------------
DaiJob has great candidates. Contact Andrew Peters at
[email protected], or Ph: 03-3499-3040 for details.
-> Business Consulting/Marketing Manager
Male, early 40s, native Japanese, business English
Experience:
- 15yrs Sales & Marketing in Advertising, Media, Publishing for Consumer Products and Service Industries
- Excellent history of sales success, consistently exceeding individual and team targets
- 8yrs office management
- Strategic Marketing and business development
*Looking for JPY10M. Available in 4-6 weeks.
--------------------------------------------
-> Translator (E-J)
Male, early 30's, Japanese, fluent English
Experience:
- Academic background in linguistics
- Computer game localization project (3M words)
- Assistant manager for 5-member translation team
- 2 book translation projects
- Office admin for US Univ. Dept. for International Students and also personnel dispatch agency
* Looking for JPY4.5M. Available immediately.
- Masters degree in commerce (ERP and SCM)
- 2yrs, Presales, IT solutions company
- IT Project management and development
- Excellent written and verbal communication skills
- Programming languages: JAVA, JavaScript/VB, HTML
- Other: UML, XML, Apache, Tomcat, LAN, Cisco routers, MS Office, VC++, Oracle/SQL2000
--------------------------------------------
-> Presales SE
Female, 32, native Chinese, advanced Japanese & English
Experience:
* Looking for JPY4.5M. Available 2 weeks notice.
DaiJob has great candidates. Contact Andrew Peters at
[email protected], or Ph: 03-3499-3040 for details.
| +++ UPCOMING EVENTS/ANNOUNCEMENTS |
Entrepreneur Association of Tokyo Interested in expanding your business into the world's fastest growing economy? If so, then you are in luck because EA-Tokyo will be gathering a panel of experts on doing business in China for their third anniversary panel discussion. The panelists will be addressing some common questions, such as how to get started up in China and the major cultural and bureaucratic issues encountered there. Website: http://www.ea-tokyo.com. |
IT events announcements are priced at JPY50,000 per week. |
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| +++ ABOUT US |
Written by: Terrie Lloyd[email protected].
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