BizCast Japan #6: Real estate, Investment funds, Billy’s Boot Camp, and Fast Retailing seeks to aquire Barneys

Filed under: Trans-Pacific Radio, BizCast Japan
Posted by Ken Worsley at 1:41 pm on Monday, July 9, 2007

This edition of BizCast Japan returns to our full discussions format, with headlines, two quick picks and a focus issue.

In the headlines portion of the program, Albrecht Stahmer and Ken Worsley discuss the reported 1 trillion yen being currently spent by Japan’s five large real estate developers on current projects, issues surrounding Steel Partners and other investment funds in Japan, media portrayals of investment funds, the poor performance of domestic car sales in Japan, a new scandal surrounding the Goodwill Group, and a bit on corporate social responsibility in Japan.

For his quick pick, Albrecht elects to discuss the recent success of Billy Blanks, the founder of Tae Bo, and his “Billy’s Boot Camp” series of fitness videos, which have sold over 500,000 copies so far in Japan. We discuss how Billy’s Boot Camp has fulfilled the first half of the “New markets, new products” equation, and wonder if some strategic brand-stretching might be able to keep the trend alive in a market with a notoriously short attention span.

For his quick pick, Ken decides to discuss a recent government white paper that claims better use of IT in Japan’s workplaces could lead to an increase of around 1% in GDP. The report also chastises Japan’s IT firms for being so inward looking and focused solely on the domestic market, and increasingly unable to complete in the global marketplace.

For our focus issue, we discuss the bid to acquire the Barneys New York by Fast Retailing, the parent company of Uniqlo. How does this move fit in with Uniqlo’s existing portfolio? We discuss the issues surrounding this potential move, and what may be motivating Fast Retailing to make this move at this time.

Listen Now:


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Comment by DeOrio

July 10, 2007 @ 10:20 pm

OK, I was waiting for someone else to call you on it first, Ken, but:

“Well, buildings are usually made out of some steel and, often in Japan, some concrete, so you might say the steel and the concrete become partners, so I’d like to take a look at Steel Partners. . .”

?

Worst segue ever.

Good show overall, though.

Comment by DeOrio

July 10, 2007 @ 10:31 pm

Oh, and do you guys have an address on this forthcoming Nakano project?

Nakano is like a Shimo-kitazawa for non-hippies that gets no love. It is, supposedly, the single most crowded neighborhood in Japan (in terms of residents per square kilometer), but it’s “Green Space” (the site of the infamous Nakano spy school) looks likely to be sold to developers, thus putting Nakano even further into violation of earthquake safety regulations stipulating a certain amount of open space per square kilometer per resident. As it stands, Nakano has pretty much no open space larger than a baseball field.

While it is very well-served by the mass transit network, it’s hard to see how placing such a project here could be justified. It is, after all, a convenient spur off the central hub more than a part of the hub itself.

Comment by ken

July 10, 2007 @ 10:38 pm

We were laughing like crazy when I was doing that segue. I think there were four takes.

Here’s the site of the new project. I think you’ll find it familiar:

http://maps.google.co.jp/?ie=UTF8&ll=35.707562,139.662387&spn=0.008886,0.01502&t=h&z=16&om=1

Comment by Garrett

July 11, 2007 @ 12:21 am

Oh man! The fucking Green Space?

There are so many reasons that’s a horrible, terrible, no good, very bad idea and not one that it makes any sense.

I don’t have time to type it all right now, but that’s just a wretched plan.

The inevitable question, in most matters economic or political in Japan, is: Why the fuck do the powers that be think the answer to everything is overpriced, unnecessary construction?
How many crooked brothers-in-law can politicians have? Can’t we just pay them off to grow clover and leave something of a country worth having behind?

Comment by ET

July 11, 2007 @ 8:23 am

Could the whole focus on global warming have any affect on the number of cars sold? More people could be taking public transport or riding “Mamachari’s”?

Just a thought…

Comment by ken

July 11, 2007 @ 2:00 pm

ET, I doubt it. I bet that if you take the number of people of ‘driving age’ and divide it by the cars sold, the numbers will be close to what they were ten years ago. The fact is that 25% of the population of Japan is elderly. They don’t drive much.

Comment by willieami

July 12, 2007 @ 10:56 am

Nice show a lot of good discussion… the segues seems a little scripted, though.

Scandal comment:
I was a little disappointed that no one pointed out the media’s role during these scandals, some going on for 27 years. Seems that western world scandals are much shorter, perhaps because they maybe quick to feed their scandal thriving media.

My old Billy Blanks tapes are going on EBay!

Comment by Ken Worsley

July 12, 2007 @ 4:00 pm

I think the media’s role is similar to that in other countries in that it reports what will sell. Of course, there is certainly less investigative reporting than Westerners may be used to.

Comment by Ken Y-N

July 22, 2007 @ 10:33 pm

Thanks, another enjoyable show folks!

About the iPhone and SmartPhones - perhaps two reasons SmartPhones haven’t worked here is (1) the lack of WiFi as you point out, and (2) that Japanese portables tend to be smaller so there’s less of a need for something smaller than your laptop?

I just realised, in fact, in the article I wrote on what the iPhone needs I described a device that was less of a PDA and more of a keitai.

Oh, and continuing on WiFi, two nights ago I stayed in a very large central Osaka hotel (New Hankyu Hotel) which features absolutely no net connectivity, not even in public areas, barring a modem port on the room phone. There was also a catalogue in the room for other top hotels around Japan (200+ locations, mostly business rather than leisure, I felt) yet there was no symbol in the quick feature guide to say there was internet available, and neither did the text describe if hotels did have this. In contrast, I was in a wee leisure hotel a bit off the beaten track near Salzburg, and they had wireless routers all over the place, but I had no PC to check it out!

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