People around the world are concerned with the consequences of the terrible tragedy on the Pacific coast of Japan. Until now, no one really is ready to offer a figure sizing up how much the recovery from tsunami will cost. However, a large number of Japanese participants came to BASELWORLD 2011 in Switzerland firmly intent to continue all the planned projects and move forward.
Tatsuya Hirate, Marketing and Planning Assistant Manager of CASIO Computer Co Ltd, came to the exhibition to showcase the latest and unique electronic timepieces produced by his company – a new collections of Casio watches. He told Rough&Polished how Casio is operating in the new environment.
Where were you and what did you feel during the earthquake?
This earthquake was the strongest I have ever experienced in my life. I was working on the 18th floor of the 20-storey building in Tokyo, and when the earthquake started, it was swinging from side to side like a clock pendulum. What should feel and experience a person on the 18th floor of a wobbling building? I cannot even find a word for this feeling - it is stronger than fear. One day later came the most terrible - a giant tsunami. Nobody expected such a huge wave.
Realizing that this is not the best time to ask about the economic situation, I would still like to ask you about the impact produced by this catastrophe on the world’s luxury brands?
I am not familiar personally with top managers of such companies, but I can say that not only companies but all the people in Japan are having a sad moment. We are trying to help those who live in the northern part of Japan. Our people are struggling to do it.
What was the reaction of the Japanese government to the huge losses of business after the earthquake?
The government of Japan immediately began to create funds to help victims. Recently, there was an official announcement about a huge financial fund established to support the country’s areas destroyed by the tsunami.
What countries were the first to respond and come to rescue by offering financial support to Japan?
Many countries offer their support, but first and foremost, the Japanese themselves from other provinces offer their help to victims. Of course, such countries like the United States, China, Germany and, of course, Russia send aid and are in permanent negotiations to provide further assistance. Recently, Mr. Putin announced that Russia is ready to increase gas supplies to Europe via a pipeline to release volumes of liquefied natural gas to be supplied to meet the needs of Japan. This is what we all heard from the news.
How much affected were your stores in Tokyo? How many stores does CASIO have in Japan?
Basically, all the destruction was not in Tokyo, but on the north coast. We have a very small number of own brand stores, but in Japan there are a lot of vendors which sell our goods, and I can hardly give the exact number. As for our stores, I can say they suffered no physical damage at all.
How does the economic side of your brand look like now and how much shaken was its performance?
At the moment, we continue to examine our work and our factories and are also negotiating with our suppliers. In short, we are in the process of careful investigation, and it will take some more time. We also need to explore the entire affected neighborhood.
What is happening to demand and sales in the Middle East? What is the current situation in the countries affected by military and political unrest and economic turmoil?
The situation in that part of the East began to develop not so long ago, and so far we have not felt its influence on a large scale. Our partners and distributors are operating in those countries, but in general we have a small volume of business there. It means that our brand in the Middle East has not suffered big losses.
The economic crisis in 2009 affected all industries and companies. If we compare 2009 with the subsequent year of recovery, how much has your performance changed?
Undoubtedly, 2010 was very productive and CASIO posted a profit growth of almost 110%, our performance has doubled. We called this period the time for business. In the course of the past New Year and Christmas holidays demand climbed up a few points. We are actively developing our business by pursuing our business philosophy of “Moving time forward.”
Your brand takes part in BASELWORLD every year. Have you noticed any increase in interest towards the Casio brand this year? What makes the last year's show different from the current one?
The exhibition is not over yet, but we felt a noticeable increase in interest. There are new buyers and new interest towards our products, especially to our new collection G-Shock. It features watches of a new generation which are able to communicate with smart phones via Bluetooth. More and more buyers order chronographs, also from a new series of Edifice, which we brought to show in Basel. It may be noted this year there are twice as much buyers.
From which countries are buyers displaying the greatest interest?
We expect a considerable increase in demand from China, India and Russia. At the same time, leading positions in demand are held by the United States, some European countries and the domestic market of Japan. The company’s expectations are very, very high. Its strategy will certainly be aimed at major customer countries.
How much higher is Russia’s demand for your goods?
The number of Russian consumers is also likely to double.
Do you plan to release watches graced with diamonds?
In general, our watches are designed for regular wear, for all people, but most of all for young people. So far, we do not plan to produce expensive watches, but there are some series of Casio timepieces with precious stones. Our brand’s image is tied to everyday watches for the younger generation.
Thank you, Mr. Tatsuya, we'll follow the news and hope for the soonest recovery of the northern coast of Japan.
I would like to add, not from a business perspective: the Japanese are very helpful by nature, our people are always willing to help each other. We believe in our future and in the recovery from this tragic natural disaster – this is the only way to be for the Japanese people. We came to this exhibition in Switzerland to say: “We are fine.”
Veronica Novoselova, Rough&Polished, from Basel
