How a "Typical" Japanese Company Influences the Chinese Market
Understanding the essence of Japanese enterprises has sparked extensive debate among scholars, business analysts, and enthusiasts alike. What distinct features must a company possess to be regarded as a quintessential representative of this unique corporate culture? This question underpins much of the discourse regarding Japan’s industrial identity.
A widely accepted perspective highlights that Japanese manufacturing is characterized by attributes such as being "light, thin, short, and small." This observation, however, is more pertinent to the products developed from the 1980s onward. As we venture into the 21st century, two additional qualities emerge prominently: "high" and "precision." The term "high" indicates an ever-increasing level of technology content, while "precision" speaks to Japan’s competitive edge in creating products or operating within niche industries that are refined, intricate, and meticulously engineered.
Certainly, since the dawn of the internet revolution, we have witnessed the decline of many sectors and once-renowned companies in Japan. However, in those fields where "precision" reigns supreme, such as fine chemicals and precision instruments, Japanese firms continue to dominate globally. Take, for instance, the recent celebratory event in Shanghai commemorating the 60th anniversary of Hitachi High-Tech Group, which serves as a prime illustration of this phenomenon. Presently, the company's diverse business operations in China encompass sectors including semiconductors, medical technology, scientific instruments, and industrial solutions. Their guiding philosophy revolves around leveraging the core techniques of "observation, measurement, and analysis" to their fullest potential, reinforcing that "precision" is indeed their hallmark of competitive strength.
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The Chinese market has palpably felt the impact of Hitachi High-Tech's precision-driven technology. In the realm of scientific research, their electronic microscopes have become the preferred choice for numerous research institutes and universities across China. Furthermore, in the medical domain, the company has successfully supplied over 12,000 automated blood biochemical analyzers to various hospitals, particularly to those ranked among the top tier. This figure stands out as a significant achievement within the healthcare industry. Moreover, Hitachi High-Tech's high-resolution Focused Ion Beam Measuring Equipment (CD-SEM) leads the market in semiconductor testing, further solidifying its reputation.
A striking example of the company's commitment to precision is evident in its contributions to water environmental management in Jiaxing, Zhejiang. For many years, the upstream water sources in Jiaxing grappled with subpar water quality, posing a considerable challenge for the local environment. Since 2016, through persistent efforts, noteworthy strides have been made in water quality management that even garnered coverage by national media. In this successful initiative, Hitachi High-Tech's fluorescent spectrophotometer played a pivotal role. Its high sensitivity and wide wavelength range enabled the detection of faint fluorescent signals in samples, allowing for accurate measurements even at extremely low concentrations. The device’s scanning speed—a staggering 60,000 nanometers per minute—facilitated the rapid acquisition of crucial sample information. This economical and efficient measurement provided researchers with accurate water quality data, offering timely and effective decision support for environmental governance.
Another hallmark characteristic of Japanese firms is their rigorous emphasis on market research, and Hitachi High-Tech exemplifies this trait remarkably well. The distinction between Japanese and American companies in this context is particularly noteworthy. Take, for instance, the famous Apple co-founder Steve Jobs, who is often quoted as having said, “Consumers don’t know what they want until we show it to them.” Many interpret this declaration as a dismissive attitude towards market research. However, the reactions it elicits are varied and contentious. In contrast, it is rare to find a Japanese corporate leader who openly endorses Job's perspective.
Hitachi High-Tech's President, Takashi Iizumi, articulated a contrasting view: "It is meaningless to toil away in a company's laboratory, brainstorming in isolation, because we simply cannot comprehend what troubles our customers." This statement illustrates a prevailing belief among Japanese enterprises that emphasizes the crucial importance of understanding market needs through direct engagement with clients.
Founded in 1947 as a trading company focused on advanced industrial sectors, Hitachi High-Tech has developed formidable market research and marketing capabilities over the years, yielding a robust global marketing network. Iizumi's vision for the company extends beyond mere sales; he underlines the essence of frontline marketing personnel actively collaborating with clients at their work sites to identify issues and troubleshoot problems together.
This comprehensive approach to market research and a keen sensitivity to customer demands have underscored Hitachi High-Tech’s journey in the Chinese market since the 1960s. Initially, their Hong Kong office primarily sold semiconductor transistors produced by Hitachi, corresponding with the surge of radio popularization in Chinese households. Fast forward to the early 2000s, when concerns surrounding agricultural product safety escalated; Hitachi High-Tech became a leading supplier of analytical tools for pesticide and hormone residue detection to relevant Chinese authorities. Now, as the electric vehicle industry accelerates in China, Hitachi High-Tech aims to supply diagnostic instruments for companies and research institutes engaged in battery production and evaluation. Their innovative approach spans the entire lifecycle of batteries, from production to usage, monitoring the remaining lifespan, and ultimately deconstructing them to recycle valuable components, demonstrating a commitment to sustainable practices.
The company has reaped significant rewards for its dedication and attention to market dynamics. In the 2023 fiscal year, Hitachi High-Tech Group reported global sales totaling 670.4 billion yen (approximately 320 billion yuan), with nearly 20% of this revenue stemming from the Chinese market.
An additional key characteristic of Japanese companies echoes the principle of "long-termism," a value that Hitachi High-Tech embodies wholly. In the financial sector, Japan’s venture capital scene rarely matches the dynamism observed in the U.S. This discrepancy can be ascribed to structural and institutional factors; however, cultural influences are also hard to overlook. In Japan, the rush to make quick profits is often frowned upon, while diligent, long-term investments are revered.
This ethos of long-term commitment is similarly evident within the industry. A classic Japanese firm’s dedication to "long-termism" encompasses not only persistent exploration within a particular sector but also the steadfast cultivation of a focus market. Reflecting on Hitachi High-Tech’s 60-year tenure in China, Iizumi noted, "My age is quite comparable to our 60-year history. Over these six decades, we have navigated myriad circumstances together. One could say that this journey has been about our employees and Chinese clients collaborating to address various societal issues. Throughout this process, we have forged profoundly trustworthy relationships. Today, Hitachi High-Tech’s operations in China are fundamentally built on these established bonds of trust, and I look forward to further nurturing these relationships."
It is evident that Iizumi's message is infused with sentiment. In a time when a foreign corporate leader expresses such heartfelt reflections, it is a sentiment that resonates deeply with many in China and merits appreciation.