Japan

Intelligence for Better Decision Making

Corporate Fallout from Fuji TV Scandal: Major Advertisers Suspend Campaigns
Jan. 22, 2025 | Indirect Indicator

Major Japanese corporations such as Toyota, Nissan, Kao, and Seven & i have suspended their advertisements on the Fuji Television Network following a scandal involving Masahiro Nakai, a former member of the idol group SMAP.

Allegations have surfaced that Nakai engaged in nonconsensual sexual activity with a Fuji TV employee in June 2023. This incident, which was settled out of court for 90 million yen, has caused a significant shift in corporate relationships with the broadcaster.

In response, companies like Nissan are planning to replace their ads across various programs. Kao has specifically cited its commitment to human rights as the reason for its suspension of ads, while Seven & i has pulled commercials for 7-Eleven stores from popular shows such as "One Piece," pending the outcome of Fuji TV’s investigation. Under pressure from corporate withdrawals, Fuji TV has issued an apology, acknowledging the inconvenience caused, although it is under fire for an inadequate response to the scandal.

Related actions have been taken by the Tokyo Broadcasting System (TBS), which canceled a show featuring Nakai and appointed a new host in his place. TBS has launched its own internal investigation, though it has reported no evidence of wrongdoing by its staff. It has been suggested that the scandal involved a dinner with Fuji TV personnel, which led to the misconduct; however, Fuji TV maintains that its employee was unaware of specific details, denying direct involvement.

The repercussions of the scandal extend far beyond Fuji TV, impacting business operations across Japan. More than 50 companies, including Honda, Nippon Life Insurance, and Dai-ichi Life Insurance, have revised or indicated plans to adjust their advertising strategies. The broad corporate response emphasizes the crucial need for maintaining a good reputation amidst increasing social media backlash and heightened public scrutiny.

Fuji Television has been under increasing criticism for its handling of the situation. At a press conference, Fuji TV President Koichi Minato briefly outlined plans for an investigation but failed to provide sufficient detail, leaving advertisers dissatisfied and calling for greater transparency. Initially, Fuji Media Holdings had appeared non-compliant with the Japan Federation of Bar Associations' guidelines, although they later alluded to possible compliance without further specifics.

In an effort to address the controversy, Fuji TV announced that it would form a panel of independent lawyers to investigate the incident. This development comes as several companies have chosen to air public service announcements in place of their usual commercials, further increasing pressure on the broadcaster. There is a broader initiative among networks to distance themselves from Nakai and respond to growing public and corporate demands to thoroughly address the scandal.
Nissan's Strategic Restructuring and Workforce Reductions
Jan. 22, 2025 | Indirect Indicator

Nissan Motor is undergoing significant operational restructuring in Japan, with plans to halt the production of its commercial van "AD" at the Shonan Plant in Hiratsuka by November.

This move is part of a broader global strategy to address declining sales and increased competition, notably from Toyota. The Shonan Plant, which has a capacity of 150,000 units, currently produces both the AD and the "NV200." However, there is a possibility that production of the NV200 may also see a downturn.

As part of this restructuring, Nissan intends to cut 9,000 positions worldwide, which includes 3,000 direct and 6,000 indirect job losses. This decision is expected to significantly impact the Shonan workforce. Reducing these positions is seen as essential for Nissan as it engages in negotiations for a potential business integration with Honda. Honda's President, Toshihiro Mibe, has indicated the importance of these measures in moving forward with partnership discussions.

Nissan's decision to decrease production capacity at the Shonan Plant strategically aligns with Honda's suggestions for rationalization and workforce reductions in response to sluggish sales, particularly in the US and China. By fiscal year 2026, Nissan aims to reduce its global production capacity by 20%. Current considerations include detailed plans for personnel cuts in Japan, which are still under review, focusing on departmental impacts and specific numbers of layoffs.

Monitored Intelligence for Japan - Jan. 22, 2025


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Japan’s Annual Average Temperature Soars to Record High in 2024

Nippon | English | News | Jan. 22, 2025 | Climate Change

In 2024, Japan experienced its highest average temperature since 1898, rising 1.48 degrees Celsius above the 30-year average ending in 2020. This marks the second consecutive year of record high temperatures, following a 1.29 degree increase in 2023. The last six years have seen the six highest annual averages, highlighting the ongoing impact of climate change.

The Japan Meteorological Agency compiles data from 15 carefully selected locations to reduce urbanization bias. In 2024, a shift in prevailing westerly winds toward the north led to an influx of warmer air. Record-high temperatures were noted in both summer and autumn, with significant year-over-year increases across regions such as Kant-Kshin, Tkai, and Kansai.

Regional temperature increases varied, with Kant-Kshin recording the highest rise at 1.7 degrees and Okinawa the lowest at 1.0 degrees. These changes represent the largest temperature shifts in these areas since 1946, signaling urgent concerns about climate change effects in Japan.

出産奨励でも止まらない?中国の深刻な人口減少

China's serious population decline: encouraging people to have more children doesn't stop it?

Mainichi Shimbun | Local Language | News | Jan. 22, 2025 | UndeterminedDemographics

China's population continues to decline despite government measures to boost birth rates after ending the one-child policy in 2015. The natural increase rate has fallen for two consecutive years, with declines of 0.06% in 2022 and 0.145% in 2023. Although a slight population increase may occur in 2024 due to delayed marriages and childbirths during the COVID-19 pandemic, long-term projections indicate ongoing population decline.

Current United Nations estimates place China's population at approximately 1.41 billion in 2023, with expectations of a decrease to 1.4 billion by 2031 and 1.3 billion by 2047. There are forecasts that it could drop below 1.2 billion by 2056. The accelerated decline rate, compared to historical data and Japan's slower decreases, is largely a legacy of the one-child policy, contributing to China losing its status as the most populous country to India.

To counteract the falling birthrate, the Chinese government has relaxed strict birth control measures, allowing couples to have up to three children. However, analysts warn that China's demographic allure, which previously drew substantial investment, may fade as the population gap with India widens. Projections suggest this gap could exceed 100 million by 2029 and reach 300 million by 2042, presenting a significant demographic challenge for China.

令和6年度革新的な省CO2実現のための部材や素材の社会実装・普及展開加速化事業の公募採択について

Selection of companies for the FY2024 public offering project to accelerate the social implementation and popularization of innovative components and materials for reducing CO2 emissions

MOE | Local Language | Government | Jan. 22, 2025 | Climate Change

A project aimed at enhancing the use of innovative materials for CO2 reduction has selected a proposal from a public call. This initiative, part of the FY2024 Project by the Ministry of the Environment, focuses on developing materials like gallium nitride (GaN) and cellulose nanofibers (CNF) that offer significant CO2 reductions over conventional options. The project addresses challenges in performance evaluation, cost, and development to promote widespread adoption in mass production.

The selected proposal is a collaboration between Panasonic Holdings, Nagoya University, University of Tsukuba, and eVooster Inc. It targets high-efficiency inverters and system control technology for storage batteries to boost renewable energy integration. The selection process ran from November 7, 2024, to November 25, 2024, with details potentially subject to change based on review committee feedback.

Proposals were evaluated by an external expert committee based on criteria such as the relevancy of technical issues, the significance of presented innovations, alignment with national circular economy policies, and feasibility of achieving CO2 reduction and cost efficiency targets. The evaluation process also considered the implementation structure, technological capabilities, commercialization prospects by 2030, and the anticipated societal impact on CO2 emissions.

For inquiries about the project, the Global Warming Prevention Division of the Ministry of the Environment can be contacted, with specific communication details provided for project representatives.

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