Tapping Asian markets key for Japan firms' survival: white paper draft+

TOKYO, May 14 Kyodo -
Exploring emerging markets in Asia is a key for struggling Japanese firms to
survive the current economic hardship that has resulted in sharp falls in their
exports, a draft of an annual government report showed Thursday.
The draft of the 2009 white paper on international economy and trade underlined
the increase in the number of moderate income earners in the region, proposing
Japanese firms increasingly transfer their bases of material procurement and
product development to other Asian economies.
Emerging economies in Asia could constitute a ''big chance'' for Japanese
companies, and establishing footholds in those economies would benefit Japanese
firms in competition with Chinese and South Korean rivals to tap overseas
markets.
The draft, obtained by Kyodo News, says Japan's economic recession is ''more
serious'' than the one in the United States, acknowledging that the Japanese
economy is much too dependent on its exports to the world's biggest economy,
especially in such industries as car manufacturing.
It also refers to the need for Japanese manufacturers to reconsider their
conventional policy of exporting sophisticated high-end models of cars and home
appliances for limited wealthy users in emerging economies, saying they should
instead focus on inexpensive products aimed at the expansive layer of moderate
income earners often seen in what is called ''volume-zone markets.''
The draft says the number of such moderate income earners in Asia grew to some
880 million in 2008, over six times higher than the level in 1990.
The white paper, compiled by the Ministry of Economy, Trade and Industry, will
be released in July.
==Kyodo
2009-05-14 21:03:41