
Sony's founder late Akio Morita titled his autobiography "Made in Japan." He was proud that electronics products made in Japan had lifted Japan's global image. He called for making the slogan "Made in Japan" the ultimate strength and identity of Japan in the industrial world. The slogan meant precisely what the words meant-the product was made in Japan from concept to completion through design, manufacturing, packaging, quality control, testing, and all.
"Made in Japan" first came on the global scene after World War II. Nationalistic jingoism made the slogan "Made in Japan" revered at home and a battle cry in the global trade war. The world, however, did not accept the slogan enthusiastically. Anything "Made in Japan" was considered cheap and of poor quality.
Morita dreamed of changing this perception. He realized his dream within his lifetime, as "Made in Japan" rose from a symbol of poor quality to the status of supreme quality. Morita's Sony played a leading role in the transformation of "Made in Japan."
Intricately linked with such slogans was national pride-pride in the superiority of the industrial ability of one's own nation in the comity of nations. "Made in USA," "Made in England," "Made in Germany," etc. all expressed the same national pride.
For almost 30 years "Made in Japan" symbolized Morita's dream expressed in his autobiography-a product of unsurpassable Japanese excellence, designed and built by Japanese in Japan for the global market. With its battle cry of "Made in Japan," Japan conquered many industrial segments besides electronics. During the 1980s, such was the growing trade deficit in Japan's favor between the US and Japan that some economists feared a war between the two countries if the trade deficit went on widening.
"Made in Japan" lost some of its glory through mid-1990s as Japan went into a recession and did not seem to know the way out. Quite a few believed that the glory of "Made in Japan" was passe. However, Japan determinedly turned the tide. Now, as Japan looks up again, "Made in Japan" is re-asserting itself, but with a new meaning.
Hitachi, Japan's biggest electronics maker by revenues, uses the slogan "Next: Made in Japan." Hitachi manufactures 40 percent of its white goods outside Japan, which will increase to 60 percent in 2005, and more subsequently. Hitachi believes that if "Made in Japan" has to retain its glory, more and more of its products will be designed and built by non-Japanese in countries other than Japan.
Most Japanese companies are redefining "Made in Japan" to mean whatever suits them. Sony, perhaps the greatest promulgator and exponent of "Made in Japan," was late in redefining "Made in Japan." Says Minoru Morio, Sony's chief production officer and a 40-year Sony veteran, "Among Japanese companies, Sony was late to move into China." Sony paid a heavy penalty for the delay.
In the last decade 50 percent of its electronics manufacturing costs came from Japan, but only 30 percent of its revenues. After the $1 billion loss Sony suffered for the fourth quarter ended April 2003, and restructuring announced in October last for a 13 percent cut in workforce in three years, the Company decided it must resolve its problems "once and for all." At the core of its new philosophy is still "Made in Japan," but at the core of its new thinking is that unless more and more of its products are not made in Japan, Sony may not be able to live up to the "Made in Japan" ideal of Akio Morita! In other words, "Made in Japan" mean precisely what the words never meant emotionally, and will never mean semantically.
You can reach Kirtimaya Varma at
kirti.varma@rbi-asia.com