Arya News - Although it may be hard to notice for people in Japan, the soft power of other Asian countries is dramatically enhancing their appeal.
TOKYO – The soft power woven from a country’s music and culture is directly linked to its national brand and economic impact. In the previous installment of this two-part series, published on Aug. 9, I examined South Korea’s policy of fostering creators and business professionals through public-private partnerships. Other Asian countries are also competing fiercely to strengthen their content capabilities.
I described in that article the background behind the rapid spread of South Korean content — such as K-pop and Korean TV dramas — across Asia since the 2000s.
I covered the Asian economy as a correspondent based in Singapore during the 2000s and in Bangkok during the 2010s, and my personal impression was that Japan’s “sparkle” faded rapidly during that time. The primary cause was likely the quagmire of the “Lost Decade” that followed the collapse of the economic bubble in the 1990s.
In 1997, Japan’s economy suffered a severe blow from a financial crisis, including the collapse of Yamaichi Securities Co., while South Korea’s economy was hit hard by the Asian financial crisis. The speed of their subsequent responses was diametrically opposed.
South Korea immediately received an emergency loan from the International Monetary Fund and resolutely implemented economic reforms in accordance with the loan’s conditions, rapidly restructuring its chaebols and industrial sector.
In Japan, the public and private sectors dithered over the disposal of non-performing loans and corporate restructuring, plunging the economy into a deflationary spiral.
Although Japanese home appliances, which enjoyed strong brand recognition in Asian markets, were 10% to 20% more expensive than those of South Korean manufacturers, Japanese companies cut prices to boost sales volume as they were struggling with deflation. As a result, they ended up destroying the brands they had spent many years building.
In contrast, South Korean companies that survived the crisis — such as Samsung Electronics and LG Electronics — launched an offensive, including massive advertising campaigns, and seized market share from Japanese rivals.
South Korean content such as K-pop and TV dramas, along with consumer goods like home appliances and cell phones, began to surge all at once, even in small towns across Asia. I could sense the momentum of South Korea’s expanding brand power.
Meanwhile, Japanese subculture content, such as anime, manga and cosplay, had already gained global popularity. J-pop music also enjoyed a certain level of popularity in Asia around the year 2000, but this was not the result of the music industry actively developing the market. Rather, it was largely supported by the fan activities of local people.
“In the 1980s and 1990s, Japanese music and dramas were popular in Asia,” said Hideichi Kurita, president of the music agency Rainbow Entertainment Co., which represents Japanese artists such as Chanmina. “However, the local market was small, and with so many pirated CDs and other counterfeit goods, it was difficult to make it a viable business.”
“The biggest reason the Japanese music industry didn’t expand overseas for so long was that the Japanese market was large enough to generate profits without having to take on the challenge of overseas markets,” Kurita said.
Of course, some Japanese artists have expanded their careers overseas and gained recognition there. However, the presence of K-pop was far greater and it quickly captured a young fan base, along with fashion and makeup.
The Japan Press Research Institute has conducted surveys on the “most recognized Japanese people” in places including Europe, the United States, China, South Korea and Thailand. The top rankings in each country are dominated by the Emperor, the prime minister, athletes, writers, manga artists, historical figures and actors.
Manga characters such as Doraemon and Nobita, as well as those from “Naruto” and “One Piece,” also appear on the list, suggesting they are recognized as “Japanese.”
As for music artists, the X JAPAN rock band ranked within the top 10 in Thailand from the first survey in fiscal 2014 through the fourth in 2018. In the most recent fifth survey, conducted in fiscal 2024, the group was replaced by guitarist Hide, who was a member of X JAPAN.
However, until Kaze Fujii reached fifth place in the fiscal 2024 survey, X JAPAN represented the only “recognized Japanese music artists” on the list.
Fifteen years ago, K-pop dance classes in Bangkok were attended by people ranging from children to those in their 20s. A female instructor at the time said, “J-pop is hardly ever played on music channels, so it’s difficult to even come into contact with it.”
In today’s Southeast Asian music market, young local artists and idols are thriving in each country, with hip-hop dominating the scene due to the influence of K-pop. Last year’s streaming rankings from the major music streaming service Spotify found that popular domestic artists accounted for the overwhelming majority of streams in every country.
The South Korean music industry, which gave rise to K-pop, has forged close ties with the music industries of various countries such as the Philippines and Thailand, home to P-pop and T-pop.
Digitalization has also made it easier for hits to cross national borders. According to an executive at a major record label, the Philippines and Indonesia have large youth populations and strong social media engagement, and they are the “trigger countries” that can set off a global hit.
When artists or songs gain traction in those markets, “the algorithms are reinforced, amplifying a trend in which content spreads to other countries via platforms like TikTok,” the executive said. K-pop is also capitalizing on this mechanism.
In the online streaming sector for TV dramas and movies, content from China and Thailand is also well-received alongside that from South Korea. Video streaming platforms operated by major Chinese internet companies in Asia and elsewhere feature popular Chinese dramas and short-form dramas lasting just a few minutes per episode, while Thailand’s content industry plans to expand exports of its specialty, BL (Boys’ Love) dramas.
Companies from Asian countries including China and Thailand are increasing their presence in the cosmetics and apparel sectors, which tend to generate synergies with content such as TV dramas, while China’s restaurant businesses are aggressively opening new locations across various countries.
China also excels in mobile gaming and is one of the world’s leading exporters in the game sector.
Although it may be hard to notice for people in Japan, the soft power of Asian countries is dramatically enhancing their appeal.
Alliance for exporting J-Pop
Following in the footsteps of Japanese games, anime and manga, which have passionate fans worldwide, the music industry has also begun to seriously pursue overseas expansion.
In 2023, five music-related organizations, including the Recording Industry Association of Japan, established the Japan Culture and Entertainment Industry Promotion Association as their core body.
Rainbow Entertainment’s Kurita, who also serves as senior board member of CEIPA, cited “a sense of crisis over the domestic market reaching a plateau, as well as the declining birthrate and aging population” as the impetus for this alliance.
“Music also has to go global,” Kurita said.
The CEIPA launched the Music Awards Japan, which are aimed at reaching a global audience, and hopes to eventually make this an award that covers the Asian region.
The Japanese music industry has a history of change. The urban-style popular music of the 1970s and 1980s, known as “city pop,” suddenly gained recognition overseas, and the main way of enjoying music has shifted from CDs to streaming. Changes such as digitization and the expansion of the middle class are likely to provide a strong tailwind for the growth of music festivals and the expansion of the fan base in Asia.
The administration of Prime Minister Sanae Takashi has included the content sectors of games, anime, manga, live-action productions — such as movies and TV dramas — and music in its 17 strategic sectors, and set a goal of expanding the overseas market to ¥20 trillion by 2033.
However, I feel uneasy about the government setting vague numerical targets and taking the lead in achieving them. For manga and music, the most crucial factor is whether the industry can continue to produce works that move people. This differs from industrial policies for manufactured goods.
For example, in the anime industry, the goal is to increase the size of the overseas market from ¥2.1 trillion to ¥6 trillion. However, Daisuke Iijima of Teikoku Databank, Ltd. said: “Japanese small and micro production companies are competing fiercely with animation and game companies in China and South Korea to secure animators. It’s difficult to secure young talent.”
Given these circumstances, the current pace of growth appears unlikely to continue.
“The gap between large companies, whose intellectual property revenues are growing, and smaller enterprises is widening, Iijima added. The official at the corporate research firm believed that some companies might not be able to survive on their own.
In my opinion, the government’s role should not be to provide financial support to major companies in an effort to jointly pursue global hits in films, games and other media. Rather, it should follow South Korea’s example by prioritizing support for small- and medium-sized enterprises.
To lay the groundwork for growth that can be passed on to the next generation, the government should provide behind-the-scenes support. This could include cultivating highly skilled and immediately deployable talent in both the production and business areas; introducing systems that make it easier for young directors, creators and production companies to secure funding; supporting overseas expansion; thoroughly combating piracy; and improving income conditions for workers.
The Japanese government has allocated a cumulative total of ¥33 billion to a fund designed to support creators through supplementary budgets starting in fiscal 2023, raising questions about the effectiveness of this public funding.
The Cool Japan Fund was established by the public and private sectors to promote the global expansion of anime, food culture and other industries, but has incurred massive losses. The relevant government ministries must not allow this failure to be repeated. What is needed is not an overbearing coordinator for the creative sector, but rather a responsible vision to restore Japan’s luster through soft power.
Read More:
ILLUSTRATION: THE YOMIURI SHIMBUN