marketing research landscape in japan

MARKETING RESEARCHMARKETING RESEARCHLANDSCAPE IN JAPANLANDSCAPE IN JAPAN

MARKETING RESEARCHMARKETING RESEARCHLANDSCAPE IN JAPANLANDSCAPE IN JAPAN

Prepared by

Japan Marketing Research Association

Marketing Research Landscape in Japan -

MARKET RESEARCH INDUSTRY IN JAPANMARKET RESEARCH INDUSTRY IN JAPAN


Market Research Turnover by Region & CountryMarket Research Turnover by Region & Country

2001 / 1998

US$ million % US$ million % %

World Total 13,410 100 15,890 100 118

By region

North America 5,180 39 6,577 41 127Europe 5,838 43 6,316 40 108Asia Pacific 1,582 12 2,027 13 128Central / South America 735 5 775 5 105Middle East & Africa 75 1 195 1 260

By country

1. USA 4,935 37 6,159 39 1252. UK 1,525 11 1,652 10 1083. Germany 1,326 10 1,376 9 1044. France 906 7 1,141 7 1265. Japan 894 7 1,070 7 1206. Italy 415 3 430 3 1047. Canada 245 2 418 3 1718. Spain 274 2 275 2 1009. Brazil 250 2 250 2 100

10. Australia 285 2 249 2 87

20011998

Source: ESOMAR


Market Research Turnover in Asia Pacific RegionMarket Research Turnover in Asia Pacific Region2001 / 1998

US$ million % US$ million % %

1,582 100 2,027 100 1281. Japan 894 57 1,070 53 1202. Australia 285 18 249 13 873. China 62 4 193 10 3114. Korea 43 3 108 5 2515. Taiwan 40 3 81 4 2036. Hong Kong 50 3 58 3 1167. New Zealand 58 4 55 3 958. India 38 2 48 2 1269. Singapore 28 2 35 2 125

10. Thailand 18 1 31 2 17211. Philippines 20 1 24 1 12012. Malaysia 20 1 23 1 11513. Indonesia 12 1 13 1 10814. Vietnam 8 1 7 0 8815. Bangladesh -- -- 6 0 n.a.16. Myanamar -- -- 6 0 n.a.17. Pakistan 6 0 5 0 8318. Sri Lanka -- -- 5 0 n.a.19. Cambodia -- -- 3 0 n.a.20. Laos -- -- 1 0 n.a.21. Other Asia -- -- 6 0 n.a.

By Country in A / PAsia Pacific Total

1998 2001

Source: ESOMAR


Market Research Turnover Against GDPMarket Research Turnover Against GDP

% against GDP

0.12% UK, New Zealand

0.09% France

0.08% Germany

0.07% Australia

0.06% USA, Canada

0.05% Spain, Brazil

0.04% Italy, Singapore, Hong Kong, Sri Lanka

0.03% Japan, Philippines, Korea, Malaysia, Thailand

0.02% China

0.01% India, Indonesia

(Top 10 World Ranking + AA Countries)


Sources of Market Research Revenue in JapanSources of Market Research Revenue in Japan

2000 2001 2002

% % %

Manufacturing 46.1 48.5 41.7

Food / Beverages 16.6 13.2 13.2

Textile 0.4 1.5 0.8

Chemical / Pharmaceutical 11.2 11.5 12.2

Electric / Machinery 3.8 5.8 3.4

Automotives 4.4 9.2 5.5

Other Manufacturing 9.7 7.3 6.6

Ad-agencies 23.9 13.3 21.4

Media 11.0 5.5 11.9

Telecom / Transport 3.0 5.6 3.8

Distribution 1.5 2.8 1.7

Finance / Insurance 1.3 1.1 0.8

Construction/ Real Estate 0.3 0.1 1.7

Public Sector 1.9 3.1 4.5

Research Institutes 8.1 14.5 8.1

Other 3.2 5.6 4.4

(Total: 100%)

Source: JMRA


Data Collection Methods for Ad-hoc Research in JapanData Collection Methods for Ad-hoc Research in Japan ( (Total Ad-hoc Expenditures = 100% Total Ad-hoc Expenditures = 100% ))

2000 2001 2002

% % %

Quantitative Total 85 87 87

In home / Face to Face 26 24 25

Mail 15 19 18

Telephone (non-CATI) 9 8 5

Telephone (CATI) 6 3 2

Hall / Street (non-CAPI) 17 15 16

Hall (CAPI) 3 3 2

Observation 1 4 1

On-line 3 6 13

Other Quantitative 5 5 5

15 13 13

Group discussison 11 9 9

Depth interview 2 2 3

Other Qualitative 2 2 2

Qualitative Total

Source: JMRA


Top 10 MR Companies in Japan in 2001Top 10 MR Companies in Japan in 2001(MR Sales: Million)(MR Sales: Million)

Rank Company in US$ in Yen % change from 2000

1 Video Research 162 19,724 5.0

2 INTAGE 107 12,997 2.4

3 Dentsu Research 58 7,099 -6.7

4 A.C. Nielsen 49 6,000 0.0

5 Nikkei Research 46 5,608 0.1

6 Survey Research Center 39 4,738 -0.3

7 Nippon Research Center 29 3,500 0.0

8 Research International Japan 26 3,210 -8.8

9 Japan Statistics Research 25 3,120 -4.6

10 Reseach and Development 25 3,026 14.2

Top of 10 Companies 568 69,022 0.9

Total MR Sales in Japan 1,104 134,160 3.2

(Share of MR Sales by Top 10) 51%

Source: Top 10 Sales – The Senden KaigiTotal MR Sales in Japan – JMRA


Top Global MR Organizations in JapanTop Global MR Organizations in Japan

GlobalRank

Organization Subsidiaries / Affiliates in Japan Revenue(US$millions)

1 VNU N.V. A.C. Nielsen Corp., Netratings 2,400.02 IMS Health Inc. IMS Health 1,171.03 WPP plc. Research Int'l, Millward Brown, Int'l Creative Marketing 1,006.94 Taylor Nelson Sofres plc. Taylor Nelson Sofres NRC (Nippon Research Centre) 813.26 GfK Group GfK Marketing Service 479.68 Ipsos Group S.A. Ipsos Novaction 429.9

11 Synovate Synovate 266.514 Video research Ltd.* 162.216 J.D. Power and AssociatesJ.D. Power Asia Pacific 128.017 INTAGE Inc.* 108.520 Dentsu Research Inc.* 78.421 Harris Interactive Inc. Harris Interactive 75.425 Nikkei Research* 48.3

Source: Larry Gold, Inside research and Research World September 2002Global rank is based on research revenues in 2001

* = Japanese companies located in Tokyo. Their subsidiaries / affiliates in Japan are not listed.


International Research RevenuesInternational Research Revenues

Projects from Overseas Project to OverseasNo. of Agencies

handledAmount(¥million)

No. of Agencieshandled

Amount(¥million)

1993 17 1,063 16 5941994 17 715 10 1,2631995 18 1,515 13 6931996 21 1,567 17 1,2271997 23 2,230 17 9081998 24 2,811 19 1,4551999 25 2,655 19 1,6212000 28 5,166 21 2,1172001 32 5,855 23 1,7582002 35 6,154* 26 2,484**

Source: JMRA

5.5%* and 2.2%** of JMRA members’ revenue, respectively


JAPAN MARKET RESEARCH ASSOCIATIONJAPAN MARKET RESEARCH ASSOCIATION


Japan Marketing Research Association (JMRA)Japan Marketing Research Association (JMRA)

Established in 1975

Number of member companies : 98 (as of January, 2004)

Having ISO accreditation: 12

Having Privacy Mark: 44

Chairman: Yasuo MikiSecretary general: Tadaaki Takayanagi

No.1 Magami Building, 1-1-5, Koraku, Bunkyo-ku, Tokyo, 112-0004, JapanPhone:+81-3-3813-3577 Fax:+81-3-3813-3596URL: http://www.jmra-net.or.jp/ E-mail: [email protected]


JMRA: Quality and Ethical StandardJMRA: Quality and Ethical Standard JMRQS

– The JMRA Marketing Research Quality Standard sets out quality standards for clients and safeguards respondents’ anonymity and privacy and member companies are required to comply from April 2002

JMRA Guidelines– Protection of privacy, project arrangement, central location testing,

street intercepts, telephone interviewing, mail survey and group discussions.

– Internet survey guideline is in preparation

Privacy Mark– JMRA is one of the examination organization issuing permission to

use the Privacy Mark

– 31 of JMRA 89 member companies were permitted to use this mark by end of 2002


Personal Information Protection BillsPersonal Information Protection Bills

The first comprehensive legislation by the Government to prevent leaks and the unlawful use of personal information (May, 2003)

Covers private firms, government organizations and independent administrative agencies, who handle a large volume of personal information, including client lists

The law obliges:– To prohibit obtaining personal information through unlawful

measures or providing them to third parties without consent of those on the lists

– To take safety measures to prevent such information from being leaked and to quickly process complaints about misuse of information

Up to six months in prison or a fine of not more than \300,000


Some Points to Note (1)Some Points to Note (1)

Japan accounts for 7% of global research turnover and is by far the largest market for market research in Asia Pacific. However, research spends as a proportion of GDP is low (0.03% of GDP).

Japan is still a product and technology rather than consumer oriented country. Business place more confidence in information collected by their own staff than in marketing research.

Ad-hoc projects accounted for 67% of all 2001 sales of which 87% were quantitative and 13% were qualitative. Continuous projects, such as consumer panel and retail store panel, accounted for 33%.

Qualitative has grown in the past two decades and is now the primary information source for product / advertising concept development and consumer understanding.


Some Points to Note (2)Some Points to Note (2)

Face-to-face including both in-home and hall and street, accounted for 42% of ad-hoc quantitative research projects in 2001. In-home interviews continued to fall to 24%. CAPI accounted for 3%.

Phone surveys are not prevalent and few agencies have CATI facilities. In 2001, telephone interviewing was used in 11% of ad-hoc surveys, 3% by CATI and 8% by Non-CATI.

6% of ad-hoc sales are from online research in 2001 compared to 3% in 2000.

Incentives are absolutely necessary for respondent participation. Doctors and professionals command particularly high incentives.

For survey research proposes, respondents are generally categorized by annual household income levels. Social Grade common in European countries i.e. A, B, C1, C2, D is not applicable in Japan.


JAPAN COUNTRY NOTEJAPAN COUNTRY NOTE


Change in GDP, Ad Expenditure, MR sales and Deflator in JapanChange in GDP, Ad Expenditure, MR sales and Deflator in JapanYear-on-Year Change %Year-on-Year Change %

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Nominal GDP 6.3% 2.6% 0.8% 1.1% 1.4% 2.6% 2.2% -1.2% -1.4% 0.8% -1.2%

Ad Expenditure 2.9 -4.6 -6.1 0.8 5.0 6.4 3.9 -3.8 -1.2 7.2 -0.9

MR Sales 4.2 2.1 -2.5 -0.6 4.8 8.2 6.4 4.1 5.7 7.4 2.3

Source: GDP and Deflator – Cabinet office, Japanese GovernmentAD Expenditure - DentsuMR Sales – JMRA (The Japan Marketing Research Association)


1. China 1,284,972 USA (2000) 2.13

2. India 1,017,544 France (2000) 1.88

3. USA 284,797 United Kingdom (2001) 1.63

4. Indonesia 214,840 Germany (2000) 1.36

5. Brazil 172,386 Italy (2000) 1.23

6. Pakistan 144,971 Japan (2002) 1.32

7. Russia 144,400

8. Bangladesh 140,369

9. Japan 127,290

10. Nigeria 116,929

6,134,000World Total

Japan In the World (1)Japan In the World (1)

Countries with Large Population (Unit: 1,000 persons) [2001]

Total Fertility per Woman

Source: United Nations

Source: Ministry of Health, Labor and Welfare


Japan In the World (2)Japan In the World (2)

22,343

18,795

21,505

22,509

24,185

35,045

32,851

Canada

Italy

France

Germany

UK

USA

Japan

2000 2001 2002

Japan 2.8% 0.4% 0.1%

USA 3.8 0.3 2.4

UK 3.1 2.1 1.8

Germany 2.9 2.6 1.2

France 4.2 2.1 1.2

Italy 3.1 1.8 0.4

Canada 5.3 1.9 3.3

Per Capita GDP in 2001 (Nominal)(Unit: US$)

Real Economic Growth Rate

Source: Cabinet Office Source: Cabinet Office


M F

1st Baby BoomerBorn: 1946-1951Age: 51-56

2nd Baby BoomerBorn: 1971-1976Age: 26-31

Population PyramidPopulation Pyramid


Population Ranking of Cities (2003)Population Ranking of Cities (2003)

(Unit: 1,000 persons)

Population1. Tokyo 23 wards* 8,0842. Yokohama* 3,4673. Osaka* 2,4904. Nagoya* 3,1175. Sapporo* 1,8386. Kobe* 1,4847. Kyoto* 1,3868. Fukuoka* 1,3159. Kawasaki 1,259

10. Hiroshima* 1,11911. Saitama* 1,03812. Kita-Kyushu 99713. Sendai* 99114. Chiba* 889

City

The population of Tokyo / Osaka / Nagoya urban areas constitutes about 44% of the total national population

＊ indicates prefectural capital

Source: Ministry of Public Management, Home Affairs, Posts and Telecommunications

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2 ●

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6●●7

●8

9●

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12●

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InternetInternet

884

1,4301,830

3,040

4,383

5,534

1,1551,694

2,706

4,708

5,593

6,942

6.411.0

19.1

34.0

60.5

81.4

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1997 1998 1999 2000 2001 2002

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Internet users (Private statistics)

Internet users (Government statistics)

Household diffusion ratio

Internet users and Household Diffusion Ratio(Unit: 10,000 persons, %)

Internet Users by Medium (At the end of 2002)(Unit: 10,000 persons)

Source: Ministry of Public Management, Home Affairs, Posts and Telecommunications

By mobile phone, PHS and portable information terminals2,794, 402%

By video game terminals and TVs864, 5.2%

By mobile phone, PHS and portable information terminals only1,061, 15.3%

By video game terminals and TVs only135, 1.9%

By PC5,722, 82.4%

By PC only3,884, 58.0%

129,1.9%

761.1%

240.3%

1,63323.5%

Total 6,942

Note: The ratio is of Internet users of the age of 6 and older.


Ownership of Durable Consumer GoodsOwnership of Durable Consumer Goods1970 1980 1990 1995 2000 2003

System kitchen -- -- -- 28.2 39.9 46.2Air conditioners 5.9 39.2 63.7 77.2 86.2 88.8Microwave ovens 2.1 33.6 69.7 87.2 94.0 95.8Refrigerators 89.1 99.1 98.2 97.8 98.0 98.9

-- -- -- 61.5 70.2 75.4Vacuum cleaners 68.3 95.8 98.8 98.3 98.2 98.1Washing machines 91.4 98.8 99.5 99.0 99.3 99.6

-- -- 39.8 58.0 78.6 85.6Clothes dryers -- -- 14.9 19.4 21.7 22.7Color TVs 26.3 98.2 99.4 98.9 99.0 99.4

-- -- -- 37.9 49.0 53.1Satellite broadcast receivers -- -- -- 27.6 38.9 43.0Video decks -- 2.4 66.8 73.7 78.4 81.4DVD players -- -- -- -- -- 25.3CD players -- -- 34.3 55.9 61.8 60.3Stereos 31.2 57.1 59.3 57.7 55.5 55.2Pianos 6.8 15.8 22.7 22.2 21.4 23.3Video cameras -- 8.6 15.6 31.3 37.9 39.1Digital cameras -- -- -- -- -- 32.0

22.1 57.2 77.3 80.0 83.6 86.4-- -- 44.8 / 40.9 47.0 / 42.2 49.7 / 44.5 52.0 / 47.5

Motercycles / scooters 27.2 25.4 32.6 24.5 21.7 20.1Bicycles 67.1 78.4 81.3 79.4 81.3 82.1Personal computers -- -- 10.6 15.6 38.6 63.3Mobile phones -- -- -- -- -- 83.3Facsimile machines -- -- -- 10.0 32.9 42.8

Item

(Larger than 300 liters)

(Larger than 29 inches)

(new / used)

(Fully automatic)

Cars

Note: The 1970 data is as at February. From 1980 on, the data is at March.Source: Cabinet Office

marketing research landscape in japan

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