🚀 An Era Where Technological Capability Alone Isn’t Enough: Making “Selling Power” a Pillar of Management
Japanese companies possess world-class technological capabilities and quality. There are many internationally evaluated fields such as automobiles, precision machinery, electronic components, and food processing 😊. However, on the other hand, isn’t the neglect of marketing and branding leading to a decline in competitiveness in the global market?
Western companies excel at skillfully utilizing brand strategies to maximize market value at high price points. Even if Apple’s manufacturing cost for a device is in the tens of thousands of yen, their brand power allows them to sell it for over a hundred thousand yen, securing a profit margin of over 40%. Louis Vuitton and Rolex drive the market based on their brand history and worldview. In contrast, Japanese companies are prone to getting caught up in price wars, and a deeply rooted tendency to drift toward “selling cheap” can be seen.
📊 Reference Data:
Average operating profit margin of Japanese companies (2022): Approx. 5-6%
Average operating profit margin of US S&P 500 companies: Approx. 12-14%
Best Global Brands (Interbrand 2023): The only Japanese companies in the top 50 are Toyota (6th) and Sony (42nd).
Reference Article: INTERBRAND “Best Global Brands 2025″
What I want to emphasize here is that marketing is not merely a promotional activity. It is the company’s growth strategy itself, and appropriate market analysis, precise targeting, and systematic brand building are essential. Executing these things will change consumer perception and enable entry into high-value-added markets.
Now is the time for Japanese companies to reforge their “selling power.” Having a strategy that leverages the quality of products and services while raising brand value and securing appropriate profits is the key to sustainable growth. If they switch to a mindset of competing on value rather than price, Japanese companies should be able to increase their presence in the global market once again.
Next time, we will analyze specific marketing measures to strengthen this “selling power” and the common traits of successful companies. (To be continued) 📈✨
From the Marketing Seed Series:
You might also be interested in our past articles→Seeds of Marketing 36: Price and Product Variety (2)