The *NEW* Cool Japan Strategy

The Intellectual Property Strategy Headquarters under the Prime Minister’s Office published “Japan’s New Cool Japan Strategy” last week, outlining a comprehensive plan to revitalize and expand Japan’s “Cool Japan” initiative. It recognizes the significant shifts in the global landscape, particularly after the COVID-19 pandemic, and seeks to capitalize on burgeoning international interest in Japanese culture, content, and cuisine.

This also includes setting targets for economic impact (over 50 trillion yen by 2033) and brand value enhancement (10% increase in “love for Japan” sentiment globally by 2033).

Key environmental changes driving this strategy

Expansion and Diversification of “Japan Fans”

• Content Boom: Japanese animation, manga, and video games have achieved mainstream global popularity, with a surge in global demand for Japanese content fueled by the rise of streaming services. This presents a significant opportunity for the Japanese content industry to expand its market reach and achieve growth commensurate with the global market.
• Increased Travel Demand: The return of international tourism, with a particular focus on repeat visitors and longer stays, necessitates a shift towards offering more enriching and immersive experiences for visitors.
• Elevated Food Craze: Foreign interest in Japanese food has skyrocketed, moving beyond traditional favorites like sushi and tempura to embrace a broader array of cuisine. This presents a substantial opportunity for Japan’s agricultural and food sectors to expand their global footprint.

Technological Advancements and Digital Transformation

• Digitalization Lag: While digitalization and DX (Digital Transformation) are rapidly reshaping industries globally, Japan’s Cool Japan sectors have lagged behind. This necessitates urgent action to adapt to digital distribution, implement DX in production processes, and utilize emerging technologies like AI, VR/Metaverse, and Web3 to enhance the value and distribution of Japanese products and services.

Heightened Geopolitical and Economic Risks

• Soft Power as Diplomacy: Increasing geopolitical instability underscores the importance of “soft power” to enhance Japan’s international standing and build trust.
• Diversification of Markets: The document highlights the need to diversify export markets and reduce dependence on any single nation or region.

Evolving Values and Sustainability Awareness

• Beyond Sustainability: While “sustainability” has become a global keyword, values like “well-being”, “transformative experiences”, and “authenticity” are gaining momentum. This calls for Japan to highlight its unique cultural heritage and traditional practices, offering genuine experiences that resonate with these evolving values.

The 2025 Osaka-Kansai Expo

• Global Platform: This event provides a unique opportunity to showcase Japan’s technological advancements and cultural offerings to a global audience. This strategy aims to maximize the expo’s impact beyond its physical location and extend its reach to other regions of Japan.

Challenges in the Existing “Cool Japan” Strategy

The document acknowledges several shortcomings in the previous Cool Japan strategy, primarily:

• Lack of a Comprehensive PDCA Cycle: While progress has been made in specific areas like content export, inbound tourism, and agricultural product export, there is a lack of clear overall goals and metrics to assess the effectiveness of the strategy.
• Insufficient Interdepartmental Collaboration: Collaboration across sectors, like integrating the “food” sector with “anime” or “manga” for enhanced inbound tourism and agricultural product promotion, has been inadequate.
• Limited Intelligence Function: The strategy lacks robust data collection and analysis capabilities to accurately assess global market needs, pinpoint target audience preferences, and implement effective marketing strategies.
• Dependence on Foreign Platforms: A significant reliance on overseas platforms for content distribution limits control over strategic market outreach and inhibits the development of unique Japanese platforms.
• Dominance of Domestic Business Models: The content industry largely operates within a domestic market framework, hindering the development of international business models and adaptation to global trends.
• Insufficient Investment Ecosystem: A lack of a well-defined reinvestment cycle prevents the successful realization of profits from high-value experiences, hindering sustainable growth and innovation.
• Inadequate Support for Creators: While the creative environment has shown some improvement, challenges remain in providing comprehensive support for creators, especially in areas like legal and financial assistance, promoting fair revenue distribution, and enabling creators to leverage diverse distribution channels.
• Talent Shortages: The document identifies a severe shortage of skilled professionals, particularly producers with global business experience, capable of bridging the gap between creative talents and the market.
• Limited Global Brand Penetration: Despite Japan’s cultural assets, the document acknowledges a lack of effective global outreach to convey Japan’s unique appeal to a broader international audience.

Vision for the New Cool Japan Strategy

The new strategy aims to address these shortcomings and establish a vibrant and sustainable ecosystem for the Cool Japan initiative, encompassing:

• A Globalized, Reinvestment-Driven Ecosystem: Transforming from a solely quantitative approach to a qualitative approach by prioritizing the creation of high-value experiences that generate substantial profits, reinvesting these profits back into the ecosystem, and focusing on achieving economic growth and securing foreign currency reserves through content and agricultural product exports, as well as inbound tourism.
• A Positive Cycle of Brand Value Enhancement: Building a virtuous cycle in which the popularity of Japanese content, especially animation and manga, enhances Japan’s overall brand image, driving inbound tourism and further expanding the appeal of Japanese culture. This seeks to elevate Japan’s “soft power” on the global stage, influencing political and economic decisions in favor of Japan.
• A Collaborative Growth Framework: Fostering a collaborative environment where creators, producers, and businesses contribute to the Cool Japan initiative, ensuring their participation and facilitating their growth. This includes promoting globalization and diversity by actively engaging foreign talent, recognizing the contributions of foreign-owned Japanese restaurants and businesses, and welcoming foreign professionals who contribute to Japan’s global appeal after their time in the country.

Core Directions for the New Cool Japan Strategy

Fostering International Competitiveness

Positioning Cool Japan-related sectors as key industries and driving international competitiveness through structural reforms, market-responsive service adaptation, and promoting innovation. This includes creating a supportive ecosystem for young creators and startups, as well as implementing international standards for production processes and workplace conditions.

Highlighting Value over Product

Shifting from a focus on selling products to offering high-value experiences that generate substantial profits, while appealing to a broader range of consumers, including decision-makers and affluent individuals. This requires incorporating values like “sustainability”, “authenticity”, and “transformative experiences” into product and service offerings.

Enhancing Intelligence Gathering and Strategic Communication

Implementing robust data collection and analysis capabilities to understand global market trends, target audience preferences, and effectively tailor marketing strategies. This includes building a network of local partners to foster market access and expand market reach.

Expanding Interdisciplinary Collaboration

Leveraging synergies between sectors like anime/manga, food, and inbound tourism to create powerful cross-sectorial campaigns and initiatives.

Implementing a Data-Driven PDCA Cycle

Establishing clear goals and key performance indicators (KPIs) to measure success and track progress. This includes setting targets for economic impact (over 50 trillion yen by 2033) and brand value enhancement (10% increase in “love for Japan” sentiment globally by 2033).

Specific Actions and Initiatives

Content

• Accelerating the PDCA Cycle: Establishing clear targets for overseas market growth and establishing robust data collection mechanisms to monitor progress.
• Strengthening Global Business Capabilities: Establishing a dedicated team at JETRO to support content industry expansion, facilitating market access, and building strategic relationships.
• Boosting Production Capabilities: Providing financial support for high-quality productions, including pre-production phases.
• Nurturing Talent: Establishing support mechanisms for young producers, promoting training programs, and fostering collaborations with international production houses.
• Addressing Piracy: Implementing comprehensive anti-piracy measures, including information sharing, incentives for reporting pirate sites, and collaboration with international law enforcement agencies.
• Promoting Digital Transformation: Encouraging the adoption of DX within production processes, exploring new business models based on blockchain/Web3 and NFTs, and facilitating fair revenue distribution and contract negotiations.
• Developing Japanese Platforms: Exploring the development of unique Japanese platforms to enhance control over content distribution and facilitate strategic market expansion.
• Enhancing Creator Support: Providing legal, financial, and promotional support to creators, especially in the areas of manga, music, and indie gaming.
• Investing in Studios: Exploring the development of state-of-the-art studios, including virtual production and VFX capabilities, to attract international productions.

Inbound Tourism

• Building Sustainable Ecosystems: Implementing high-value experiences that generate substantial profits and reinvesting these profits back into the ecosystem.
• Developing Authentic Experiences: Highlighting the unique “authenticity” of different regions in Japan and promoting the “transformative” experiences offered through adventure tourism, eco-tourism, and spiritual retreats.
• Strengthening Digital Capabilities: Improving digital infrastructure, such as online booking platforms and cashless payment options, to enhance visitor convenience.
• Investing in Talent: Cultivating high-quality tour guides capable of conveying Japan’s unique charm and stories, providing training and support to ensure their financial stability.
• Leveraging Content: Utilizing anime and manga as promotional tools to drive inbound tourism and expand the appeal of different regions.

Agricultural and Food Exports

• Expanding Market Reach: Diversifying export markets and actively seeking new opportunities, particularly in regions where Japanese food is less established.
• Promoting Regional Collaboration: Encouraging collaborative efforts across regions to create export-oriented agricultural and food production clusters.
• Facilitating Foreign Investment: Providing support for Japanese food industry businesses seeking to invest in processing and distribution facilities overseas.
• Building Brand Value: Utilizing the “Geographical Indication” (GI) system to enhance brand recognition and promote products with unique qualities.
• Addressing Negative Perceptions: Actively addressing misinformation and advocating for the withdrawal of unjustified import restrictions stemming from concerns over ALPS treated water.
• Global Food Promotion: Enhancing the recognition and appeal of Japanese cuisine through initiatives like promoting Japanese food festivals, supporting Japanese restaurants abroad, and fostering collaboration with foreign chefs and businesses.

Design, Art, Beauty, and Fashion

• Leveraging Design and Art: Utilizing design and art to enhance customer experiences, revitalize local economies, and promote creative industries.
• Promoting Cultural Diplomacy: Building a network of artists, curators, and creators to showcase Japan’s unique artistic contributions on a global stage.
• Enhancing Art Infrastructure: Encouraging public and private sector investments in art, fostering artist-friendly environments, and promoting the utilization of art collections.
• Building a Global Hub: Attracting international art fairs and auctions to bolster Japan’s position as a global art hub.
• Digitalization and Innovation: Supporting innovative products and services, particularly those utilizing emerging technologies like blockchain/Web3 and NFTs.

International Political and Economic Risk Mitigation

• Market Diversification: Reducing dependence on specific export markets and actively seeking new opportunities for agricultural products and inbound tourism.
• Regulatory Awareness: Monitoring international regulations and proactively addressing potential hurdles to Japanese exports and cultural exchange.

Strengthening Communication and Outreach

• Global Storytelling: Developing targeted communication strategies to reach key decision-makers and affluent audiences in various countries.
• Leveraging Japanese IP: Utilizing Japan’s powerful intellectual property, such as anime and manga characters, in promotional campaigns and diplomatic initiatives.
• Collaborative Communication: Enhancing collaboration across government agencies and between public and private sectors to amplify outreach efforts.
• Maximizing Expo Exposure: Utilizing the 2025 Osaka-Kansai Expo as a platform to showcase Japan’s cultural and economic offerings to a global audience.
• Engaging with Foreign Communities: Creating an environment that attracts foreign talent, fosters collaboration with foreign communities in Japan, and supports the contributions of foreign nationals promoting Japanese culture abroad.
• Promoting Student Exchange: Encouraging university partnerships and facilitating international student exchange programs to foster cultural understanding and enhance Japan’s global appeal.

Overall, the New Cool Japan Strategy sets out a comprehensive and ambitious framework for revitalizing and expanding Japan’s cultural influence on the global stage. It recognizes the changing dynamics of the world and aims to capitalize on emerging opportunities, addressing past shortcomings and creating a sustainable ecosystem for the development and promotion of Japanese culture and creativity.

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