Exploring the Top Japan Business Trends to Watch in 2021
The year 2020 has been a challenging one for businesses around the world. However, as we look ahead to 2021, Japan’s economy is expected to rebound, with several trends emerging that could shape the business landscape over the next 12 months.
Trend #1: Increased Digitalization
COVID-19 has accelerated the adoption of digital technologies in Japan. This trend is expected to continue in 2021 as more businesses pivot to online platforms to reach customers. E-commerce, remote working, and telemedicine are some of the sectors that are likely to see significant growth. The shift to digital technologies is also expected to spur innovation, particularly in the areas of robotics, artificial intelligence, and cybersecurity.
Trend #2: Sustainability and ESG Investing
Environmental, social, and governance (ESG) investing is gaining traction in Japan, with many institutional investors now incorporating ESG criteria into their decision-making processes. This trend is expected to continue in 2021, with a growing number of Japanese companies committing to sustainability goals. The government has also introduced a range of measures to promote a low-carbon economy, including incentives for green investments and regulations to reduce plastic waste.
Trend #3: Aging Population
Japan has one of the world’s fastest aging populations, which poses significant challenges for the economy. However, it also presents opportunities for businesses that cater to the elderly. The demand for healthcare services, assistive technologies, and products designed for seniors is likely to increase in 2021 and beyond. Companies that can provide innovative solutions for elderly care are expected to thrive.
Trend #4: Localization
While Japan has traditionally been a country where foreign companies have thrived, there is a growing trend towards localization. This means that companies are tailoring their products and services to meet the needs of the local market. Localizing can mean anything from offering Japanese-language support to developing products specifically for the Japanese market. With the rise of nationalism globally, localization is becoming more important, and Japanese businesses are starting to see the benefits of putting down roots in their home market.
Trend #5: Diversity and Inclusion
Diversity and inclusion are gaining momentum in Japan, with many companies recognizing the benefits of a diverse workforce. This trend is expected to continue in 2021 as more companies adopt policies that promote inclusion, such as flexible working arrangements and career development programs for underrepresented groups. Companies that prioritize diversity and inclusion are likely to attract top talent and outperform their competitors.
Conclusion
These are just a few of the trends to watch in Japan’s business landscape in 2021. Increased digitalization, sustainability and ESG investing, aging population, localization, and diversity and inclusion are all expected to shape the way businesses operate in Japan over the next 12 months. By staying abreast of these trends, businesses can position themselves for success in the Japanese market.
