Innovation reshapes Japanese companies
Kao Corp, Fijifilm Holdings Corp and other icons of Japan Inc are making the transition from traditional to contemporary by innovation and rapid response to changing market conditions.
Kao, a chemical and cosmetics company established in 1887, began as a producer of toiletry soap. In the 1960s, the company expanded into household, laundry and industrial products. It later added skincare and cosmetics, finally expanding into food this century.
鈥淐reating new value through a consumer-driven approach has been the key principle of our company,鈥 Ryota Ogawa, manager of Kao鈥檚 corporate communications, told Shanghai Daily.
鈥淔irst, we have to be a bit ahead of the market to lead and even create a new market,鈥 he said. 鈥淏ut we can鈥檛 be too much ahead or it would be difficult for the public to accept new concepts and products. Second, we keep applying key technology into new products. For example, Kao has been studying foam for over 100 years, and there is still space for further innovation, like to control the shape of foam.鈥 He said when the company developed hand-washing liquid products for the Disneyland Resort in Japan, it created foam in the shape of Mickey Mouse鈥檚 head.
鈥淭hat proved to be extremely popular among children,鈥 Ogawa said. 鈥淲e further developed foam in the shape of a rose.鈥
Kao is continually searching for markets in need of new technology.
Ogawa cited Kao鈥檚 Merries diapers, developed in Japan but made for China in 2013. The strategy was based on the company鈥檚 research of thousands of Chinese families.
鈥淥ur research showed that Chinese mothers change diapers less frequently than mothers in Japan,鈥 Ogawa said. 鈥淭herefore, the diapers require better absorption. Also, Chinese mothers tend to be more concerned about the risk of eczema in babies, so we enhanced the diaper鈥檚 air permeability by changing the shape of the product.鈥
Innovative technology in chemicals also contributed to the development of Kao鈥檚 new silica dispersion enhancer, which contributes to carbon dioxide reduction by balancing fuel efficiency with the wet-trip performance of tires. The company was also the world鈥檚 first manufacturer to succeed in developing a toner binder with polyester resin and a de-inking agent that reduces dependence on natural resources.
Kao is not the only company moving ahead with new products in new areas. 鈥淰alue from innovation鈥 is the motto imprinted on the name cards of Fujifilm staff.
Seeing the switch from traditional film to digital photography, Fijifilm expanded into businesses like the manufacture of artificial skin and organs, as well as the cosmetics industry.
According to the company鈥檚 global financial report, market demand for color film dropped by as much as 90 percent from 2000 to 2012. After restructuring, Fujifilm鈥檚 traditional business accounted for no more than 1 percent of revenue last year, compared with almost a fifth in 2000.
Fujifilm鈥檚 core technologies now include technology to change the molecular structure of organic compounds, the manufacture of low-molecular weight compounds, high-precision forming and coating technology, and processes used in diagnosis and medical treatment utilizing intrinsic functions of living organisms.
Its developments in producing collagen proteins, originally used for film-making, have been applied to the manufacture of artificial skin and organs. In the medical equipment area, Fujifilm has applied its laser control and image processing technologies to a system that enhances the visibility of lesions caused by diseases such as cancer.
鈥淭o make use of existing technologies, to inspire people and to empower the transformation of society is our move toward innovation,鈥 Takahiro Taguchi, manager of corporate communications and corporate planning, told Shanghai Daily.
The trip to Japan was sponsored by the Japan Institute for Social and Economic Affairs and Shanghai People鈥檚 Association for Friendship with Foreign Countries.
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