TT-717 -- Used Clothing Recycling Boom, ebiz news from Japan

* * * * * * * * * T E R R I E 'S T A K E * * * * * * *
A weekly roundup of news & information from Terrie Lloyd.
(http://www.terrie.com)

General Edition Sunday, July 07, 2013, Issue No. 717

+++ INDEX

- What's New -- Used Clothing Recycling Boom
- News -- Fukushima radiation is not done yet
- Upcoming Events
- Corrections/Feedback
- Travel Picks -- Organic Cakes in Tochigi, Washi in Tokyo
- News Credits

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----------------------DELTA AIR LINES-----------------------

GREAT DEALS TO SELECT ASIA CITIES, NOW FROM JPY37,000.

Delta is offering special fares to Beijing (PEK), Bangkok (BKK), Singapore (SIN) and Manila (MNL) for travel in July. The roundtrip fares(*) from Narita (NRT) are now as low as JPY37,000 to Beijing or JPY55,000 to Bangkok or Singapore. There is also a special fare from (Nagoya) to Manila from JPY52,000.

Find out more about these offers at: http://www.delta.com/content/www/en_US/shop/deals-and-offers/deals-from-...

Book now at delta.com or call Delta Reservations at 0570-077733.

*Seats are limited. Fares/fees are subject to change without prior notice. Additional taxes/fees/restrictions/baggage charges may apply. Terms and conditions apply.
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+++ WHAT'S NEW

A popular destination for residents in the Shibuya area over the weekend is the occasional clothing flea market held at the NHK-Yoyogi Park Amphitheater. The last market, held about a month ago, had over 400 stalls, selling tons (literally) of used clothing in good condition. As our teenage kids already know, although the flea market starts at 10:00am, the best time to get over there is around 14:30, as stall holders are starting to pack up prior to the 15:00 closing time. It is in that 30-minute period that you can get a JPY5,000 pair of jeans, already marked down to JPY1,500, for JPY500 or less. Why? Because the stall holders are typically university students selling for a bit of extra pocket money, and since they get the clothing in bulk (by the kg, actually) from recycle shops, they don't want to lug all that stuff back home again.

Held by the Friends of Recycling Association (Recycle Suishin Tomonokai), the Yoyogi event is the most visible part of a broad movement towards recycling happening in Tokyo, and for that matter across the country. The flea markets are indicative of the massive attitude shift by Japanese in terms of used goods and clothing. When we first arrived in Japan in the 1980's it was almost impossible to give used things away, let alone sell them. Japan had the reputation of being the ultimate consumer society and apart from some Catholic and Salvation Army used clothing stores, you had to trash things to get rid of them. The first signs of change and the move from trash to chic came in the 1990's, post-bubble, when people really were becoming needy and having to find ways to reduce their costs -- and yet, being addicted to shopping, they still wanted that form of entertainment.

We remember a Japan Inc. magazine story about a company called Treasure Factory back in 2004 (http://www.japaninc.com/article.php?articleID=1286), which was one of the early players in the commercial recycling business, being founded in 1999. Their business model was to exercise good product curation coupled with clever marketing that pitched a huge range of new-looking products at amazingly low prices. It worked and with very little outside capital the company went public (3093) in 2008. It now has sales of JPY7.9bn and is making an EBIT profit of JPY639m or 8%. Not bad, and very much in line with the industry standard.

[Continued below...]

----------------------- MORI LIVING -----------------------

ROPPONGI HILLS RESIDENCES: A PLACE TO SETTLE DOWN

The Roppongi Hills Residence is the perfect place for foreign families to start life in Tokyo, one of the world`s most vibrant cities. Current residents agree that it provides comfort, luxury and most of all safety for the whole family.

"It feels like home," says a wife and mother of three. On-site workout and medical facilities along with easy access to transportation, schools, and a variety of community events make daily life simple and fun. Completed in 2003 using state-of-the-art construction, the complex includes a high-rise office tower, movie theaters, restaurants, designer boutiques, and a world-renowned art museum. The Roppongi Hills Residence is a spectacular starting point for life in the city.

Please find out more about the Roppongi Hills Residence and other serviced apartments from MORI LIVING under: http://www.moriliving.com/en/
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[...Article continues]

The used consumer goods recycling business is now a hot sector, and the main players are going all out to grow their market shares as new entrants try to muscle their way in. The leader is probably BookOff, which has divisions selling not only books but many other products as well, and which recently started expanding overseas. BookOff had revenues of JPY76bn last year but had a stock price hiccup after a significant fall in EBIT earnings. BookOff reckons the setback was due to their making significant investments both overseas and in new business segments, so as to fend off competitors. Hmmm, we'll see.

One of those competitors is HardOff (ahem, yes this is one of those Japanese names that won't travel well abroad...), which is originally a Niigata company. On consolidated revenues of JPY12bn last year, they managed to churn out a very respectable 12% EBIT of JPY1.4bn. They're enjoying massive growth thanks to their mix of in-company and franchise stores. As of May 31st this year, they had 199 self-owned stores and 489 franchised ones.

Clearly there is money in junk, and it's a business that pretty much anyone can do because the cost of inventory is minimal (between JPY50 and JPY500 per kilo to the person selling HardOff the clothing). Indeed, it's better than "minimal", because you have the suppliers of that inventory (the customers themselves) laundering it, transporting it to the shop, and most likely spending the money they receive to buy more product before they get out the door..!

What caught our attention with HardOff is their clothing brand ModeOff, possibly the cheapest place in Japan to find clothing (yes, cheaper than the Salvation Army store in Wada, Suginami-ku). There is a branch in Sakura Shimmachi (Denentoshi Line) which is typical of the company's offerings. Two floors in a modest building down a side street from the station, and probably EVERY mother in the neighborhood knows about it -- judging by the number of mama chari bicycles lined up outside the store at any given time of the day. Clothing is sorted according to gender and season, and is discounted even further if its out of season. ModeOff checks and repairs everything before it goes on sale, so the quality of goods there is about as good as you could want. Typically clothing is about 50% to 10% of the price of new, and there are plenty of childrens' sizes to choose from.

A number of other recycled clothing stores are starting to make an impact on the market. One of the most interesting is DonDonDown, which has a unique pricing system for cutting the cost of clothing the longer it sits on shop shelves. The effect of their pricing model is something like a reverse auction, where shoppers are encouraged to come to the store every week to see if their wish list items have become cheaper, yet at the same time encouraging them to snap up a reduced item before someone else does. It's very clever -- and an effective lesson in how deflation works. This chain is also growing strongly, with more than 60 stores currently. Like HardOff, they are using a franchise system to turbocharge their business.

Another new player expected to make a splash in used clothing is the online shopping giant Zozotown (operated by Start Today). Their new venture, Zozo Used, was built on top of an online auction site acquired by Start Today in 2011, and is now leveraging the 5m fashion followers on Zozotown. Given that the average female (mostly) shopper has a wardrobe full of dated or otherwise unwanted clothes, Zozo Used has a huge base of potential clothing inventory "suppliers" to draw from. The company is investing in a new logistics center so that it can boost sales from the current JPY4bn to JPY10bn in the next couple of years.

To wrap up this look at recycled clothing, have you ever wondered how much used clothing is disposed of in Japan every year? According to an FY2009 survey by an SME agency under the auspices of METI, the number is about 940,000 tons -- that's about 7.4kg per man, woman, and child annually... Given that fact, we think this sector has a huge capacity to grow over the next 5-10 years, not only here in Japan but abroad as well. Logistics systems, franchising, and product quality control will be the defining factors for success, given that the cost of goods is such a negligible input.

...The information janitors/

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------ English Community Manager for Travel Portal --------

www.japantourist.jp is expanding and is looking for a English native editor/writer who has previous experience managing online communities and curating content. JapanTourist.jp was set up to help Japan promote its many attractions to foreign tourists and in particular to demystify and remove anxiety by travellers about how to get around and deal with Japan. The site has been running for 18 months and is now Japan's largest online inbound travel portal.

The job involves:
- Servicing the needs and concerns of our partners around the country
- Working with Technology to prioritize software development of the site
- Working with Sales to harmonize and integrate the efforts of that team with the Partners
- Curating the best stories (and occasional editing) for display on the top page of the site
- Working with contributors to help them improve their writing and photographic efforts
- Creating content ideas and campaigns to get community engagement by contributors
- Creating incentives and campaigns to re-engage dormant contributors

This position is open to full-time (preferred) and part-time (possible) applicants, including, potentially, applicants not residing in Japan. You must be able to deal with the many personalities involved in the community and have a clear sense of mission and have a self-starter attitude. Japanese capability is helpful but not essential.

Contact: info@japantourist.jp for details.
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+++ NEWS

- Restaurant worker wages increase
- AIJ investors get just 6% of money back
- Yes, foreigners can use Juki Net
- Fukushima radiation is not done yet
- Taiwanese still love Japan

=> Restaurant worker wages increase

A survey conducted by Recruit Jobs has found that wages for part-time employees in the restaurant sector have increased to the highest level in almost four years. The average salary in May was JPY920/hour, about two yen (yes, just two yen) more than the same period in 2012. Perhaps more newsworthy than the two yen raise is the fact that the same survey found that there was a 30% increase in the number of part-time jobs being offered compared to May last year. But before you start thinking this is thanks to Abenomics, competitor Intelligence Ltd., has just come out with another survey finding that average part-time wages across all sectors actually dropped 1.3% over last year, to JPY969/hour. The reason is that professional positions are seeing wage deflation. (Source: TT commentary from e.nikkei.com, Jul 04, 2013)

http://e.nikkei.com/e/ac/tnks/Nni20130703D0307A04.htm

=> AIJ investors get just 6% of money back

Companies and individuals who invested in AIJ Investment Advisors, the fund that went bust in March 2012 with JPY145.8bn of assets under management, have only been able to recover 6%, around JPY8.5bn, of their investments. There is still another JPY4bn in unlisted stocks and other illiquid securities that probably will not be recoverable, so overall losses will be more than JPY130bn. An SESC investigation has found that most of the assets invested on the behalf of clients cannot be accounted for. ***Ed: Does anyone else get the feeling that there is a cover up going on over the AIJ fraud?** (Source: TT commentary from e.nikkei.com, Jul 03, 2013)

http://e.nikkei.com/e/ac/tnks/Nni20130702D0207F03.htm

=> Yes, foreigners can use Juki Net

Foreigners didn't get a chance to vote for the Zairyu card, and for most people having to have one is the inevitable consequence of living in someone else's country. But the Japanese Juki Net ID card system was much more hotly debated, being viewed as an unwarranted intrusion on personal privacy, and there are still some locations objecting to it. Nonetheless, the government is rolling out Juki Net, and the conveniences it offers in simplifying administration procedures (such as registering residence changes through the Internet) at your local ward or city office are sure to win over public support in the long run. The government has now announced that foreigners will also be able to use Juki Net from tomorrow. ***Ed: You need to apply for a Juki Net card ahead of using it.** (Source: TT commentary from japantimes.co.jp, Jul 06, 2013)

http://bit.ly/14VaD84

=> Fukushima radiation is not done yet

While life since 3/11 has returned to normal for most of the country, the threat of radiation leaking from the crippled Fukushima power plant is not yet over. Several announcements this week remind us of this. Firstly there was the admission from TEPCO that they have detected in test wells radioactive substances such as strontium and tritium, at 3,000 becquerels/ltr, being carried by ground water seepage towards the ocean. If you eat fish, we definitely do not recommend eating any caught within a few hundred kilometers of the plant. Then, later the same week, it was announced that moss growing on the rooftop of an apartment building in Fukushima city had cesium levels exceeding 1.7m becquerels, the highest radioactivity levels detected since last year. ***Ed: What's scary is that Fukushima city is a good 50km distant from the nuclear plant.** (Source: TT commentary from asahi.com, Jul 04, 2013)

http://ajw.asahi.com/article/0311disaster/fukushima/AJ201307040081

=> Taiwanese still love Japan

According to a Visa travel survey, Japan is still the most preferred destination for Taiwanese considering travel abroad. 36% of those polled said they were planning to visit Japan in the next 12 months, followed by 12% to China, 9% to Hong Kong, 8% to South Korea, and 6% to the USA. Those polled said that the factors most influencing them to visit Japan were travel friends, tourist attractions, and the quality of food. ***Ed: We dare say that the cheaper yen, safety, and onsen probably also play a big role in those decisions?** (Source: TT commentary from chinapost.com, Jul 6, 2013)

http://bit.ly/1a2OojT

NOTE: Broken links
Some online news sources remove their articles after just a few days of posting them, thus breaking our links -- we apologize for the inconvenience.

***------------------------****-------------------------***

------ The Robert Grondine Memorial Scholarship Fund ------

In 2011, we lost a great friend and colleague, Bob Grondine. Bob made considerable contributions in Japan to the legal and business community as well as important civic and charitable efforts. Not only was Bob a wonderful friend, family man and mentor, he was also a role model as a leader in US-Japan relations.

Among a number of US-Japan causes, Bob was an important supporter and chair of the Japan Advisory Committee of the United States-Japan Bridging Foundation, an organization established to grow global leaders through a program providing scholarships to American college students to study in Japan. Students designated as Grondine Scholars will be selected for their ability to emulate Bob's intellect and spirit as well as his dedication to the
US-Japan relationship. The fund will keep his mentoring spirit alive and memorialize his great legacy.

Donations of all amounts are welcome. To learn more, visit www.bridgingfoundation.org or click on the link below. Thank you.

https://donatenow.networkforgood.org/us-japanbridgingfoundation
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+++ CANDIDATE ROUND UP/VACANCIES

=> BiOS, a leading bilingual IT services and resourcing company, is actively marketing the following positions for customers setting up or expanding in Japan, as well as other employers of bilinguals.

** HIGHLIGHTED POSITION

BiOS is urgently looking for an Account Manager with experience in recruiting and account management for IT infrastructure service delivery, at our BiOS office in the Minato-ku area. The candidate will be responsible for supporting the continued development and management of our existing clients, and serving as the BiOS front line and primary point of contact for new clients and onsite staffs, as well as networking and developing opportunities with potential clients. You will also be responsible for providing a permanent recruitment support.

Due to the technical nature and demanding work environment, this position is suitable for someone with solid experience in recruiting, sales, account management, or similar client-facing tasks, preferably in IT. In addition, since this role requires direct communication with both internal staffs and clients who are bilingual in English and Japanese, fluent English and Japanese will be required.

Remuneration is JPY3.6m - JPY4.5m plus commission, depending on your experience and skill level.

** POSITIONS VACANT

- Project Manager, global payment services provider, JPY7M - JPY9M
- Junior Network Engineer, Japanese IT services provider, JPY3M - JPY4M
- Technical Support Engineer, medical equipment services provider, JPY4M - JPY5M
- Bilingual Data Center Engineer, global financial firm, JPY3.5M - JPY4M
- HR/Office Manager, global licenses renewal services provider, JPY5M - JPY7M

Interested individuals may e-mail resumes to: tomohiro.kimura@biosjp.com. Check out the BiOS web page for other jobs: www.biosjp.com/careers.php.

** BiOS Job Mail

Every 2 weeks BiOS sends out a regular communication to its job seeking candidates, called BiOS Job Mail. Every edition carries a list of BiOS’s current and most up-to-date vacancies, with featured entries containing a short job description and every job being linked to the main entry on the BiOS home page. Regardless of whether you are unemployed and searching, thinking about a career change, or just curious to know if there is something out there that might suit you better, the BiOS Job Mail newsletter is an easy and convenient way for you to stay informed. If you would like to register for the BiOS Job Mail, or to find out more, please email tomohiro.kimura@biosjp.com.
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***------------------------****-------------------------***

+++ UPCOMING EVENTS/ANNOUNCEMENTS

------------------ ICA Event - July 24th-------------------
Speaker: Dr Greg Story, President, Dale Carnegie Training Japan

Title: "Igniting Workplace Enthusiasm - How to Create Engaged Employees"

Details: Complete event details at http://www.icajapan.jp/

Date: Wednesday, July 24th, 2013
Time: 6:30 Doors open, Buffet Dinner included and cash bar
Cost: 4,000 yen (members), 6,000 yen (non-members). Open to all No sign ups at the door!!!!!!!
RSVP: RSVP by 5pm on Sunday, July 21st. Venue is The Foreign Correspondents' Club of Japan

http://www.fccj.or.jp/aboutus/map
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***------------------------****-------------------------***

+++ CORRECTIONS/FEEDBACK

In this section we run comments and corrections submitted by readers. We encourage you to spot our mistakes and amplify our points, by email, to editors@terrie.com.

=> No corrections or comments this week.

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+++ TRAVEL DESTINATIONS PICKS

=> Isetatsu Paper Store in Yanaka, Tokyo
Edo period art in the 21st Century

Walking around the old-fashioned suburbs of Yanaka, I was a bit in a daze. There isn’t anything flashy or particularly eye-catching about this area, like you might find in the neon signs of Akihabara for instance. But there’s something about the small town main street vibe that this part of town gives off that I absolutely love.

At first glance, the exterior of Isetatsu doesn’t seem to be any different from the residences that surround it, except for the intricately designed portrait of a woman in a traditional robe above the door. I stopped to take a photo of the portrait, but that was before my sister, a going-on-four-year resident of Japan, pointed out that it was indeed the traditional color woodblock print store.

Isetatsu was originally founded in 1864 in Iwamotocho. The owners, currently in their fifth generation of print makers, use Edo period patterns typically found on traditional fabric and print them on chiyogami paper. The store is popular with women and children, as the paper is used for paper dolls and toys.

http://en.japantourist.jp/view/isetatsu-paper-store-in-yanaka

=> Patisserie Merci, Utsunomiya, Tochigi
Fresh ingredients, no additives or preservatives

My spirit lifts when I behold the sea of rice fields next to Merci Patisserie. While not far west of downtown Utsunomiya, in Tochigi Prefecture, this cake shop embraces and showcases country living. At Merci, you can find not only gift goods, cafe fare, cakes, sweets (cream puffs, custard, gelato!) but also shelves of health food goods and farm fresh, local, gourmet quality eggs. Indeed, eggs are central to this patisserie. They have won awards in Tokyo. The chicken farm is nearby. Apparently, the chickens are raised in a clean environment and are not administered antibiotics, antibacterial agents or synthetic coloring.

With the same sentiment, baked goods at Merci are made with next to no additives, and as much as possible local ingredients are used, such as rice flour, eggs, fruit and vegetables. Yes, vegetables! Japanese often combine vegetable flavors into sweets. Merci is no exception, offering typical French sweets along with tantalizing and unusual combinations such as tomato ice-cream, tomato jelly and pudding made with white wine and spinach mousse.

http://en.japantourist.jp/view/patisserie-merci-utsunomiya

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+++ ABOUT US

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Written by: Terrie Lloyd (terrie.lloyd@japaninc.com)

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