the Feb. 18 editorial “Surprisingly sharp decline“: I agree that innovation is the key to fighting the recession, and I would like to cite two examples. First, do the Japanese people realize that, despite this recession, companies that have done well are none other than the mobile service providers and game console manufacturers. When there are millions of people worried about their very economic existence, many will spend available time talking on the phone or playing games. Perhaps Pachinko and lottery sales revenue will tell you the same thing.
No matter how the recession affects the general public, basic needs for food, travel, phones, entertainment, gambling and other leisure activities will surely continue. If the rest of corporate Japan thinks of the basics, it can quickly recover.
The second example is the ¥100 shops, which are booming after having proved over the years that “cheap” does not necessarily mean “low quality.” How can this apply further? If people can’t afford a Lexus, they can surely spend on a mini-car. The same goes for other items such as pocket PCs.
To the extent that the basic needs of all humans remain the same, or even increase, recessionary times can be used for innovations on existing products and services. Don’t count on government gifts of ¥12,000 to work any stimulus magic.
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