Great article in today’s FT (29th) about Japan

There is a great article in today’s FT about Japan and the importance of the baby boomers. Unfortunately, the FT is a subscription publication so no point in providing a link.

Some of interesting points from the article:

Nissan's Fairlady Z (a sports car) was first launched in 1969 and revived in 2002 as a sports car targeted specifically at an older generation of drivers. Since then it has attracted a cult following and continues to sell well without any advertising.

Forty per cent of the population is 50 years or older and one in every four people is 65 or older. By 2010, one in four Japanese will be 65 years or older.

What is more, those older than 60 own 53 per cent of the financial assets belonging to by individuals in Japan, according to government estimates.

Unlike in the past, when Japan's loyal workers viewed retirement as the end of their fruitful years, today they look for ways of starting a new life and fulfilling their youthful dreams.

Yamaha had noticed that a growing number of older people were attending its music classes and decided to try to develop instruments that would make it easier for adults to learn how to play. In 2002, Yamaha launched its easy series, which have guide lamps that tell users which key to play, according to the song. In a market in which the sale of 3,000 regular guitars is considered a hit, the easy guitar sold 26,000 in three years.

In addition to re-living the dreams of their younger days, Japan's older consumers are becoming important customers of the travel industry. Club Tourism, which specialises in theme-based tours, has seen revenues grow from Y1.7bn in 1980, when it started operations, to Y128.8bn last year. About 72 per cent of Club Tourism's customers are 50 years and older and attracted to the theme-based travel. "They do not just want to travel but do things, such as learning how to dance, sketch, study Buddhism," says a representative.

Shiseido, which in 1997 launched a brand of anti-ageing cosmetics targeted specifically at those 50 years and older, has enjoyed buoyant sales amid growing competition from domestic rivals. The market for anti-ageing skin care products grew 13 per cent between 2002 and 2004 to Y250bn and comprises 12 per cent of the entire market, according to Shiseido.

Dick Stroud