The challenges faced by Japanese companies in Southeast Asia
Context
A major Japanese company that started a shopping mall business in Indonesia in 2015. Due to the popularity of Japanese culture such as Japanese food and manga in Indonesia, the mall had gained a certain position as a mall that handled Japanese products.
However, as of 2020, there were 649 shopping malls in Indonesia, and differentiation and attracting customers were difficult, so the launch of a new business in parallel with the mall business reform was urgently needed.
In addition, the essential aspects of what Indonesia should be like and the value it should provide had become unclear due to the continued uncertain situation caused by COVID-19. Therefore, we felt that a redefinition was necessary before adding new elements of the new business to the existing mall business, and we provided support.
However, as of 2020, there were 649 shopping malls in Indonesia, and differentiation and attracting customers were difficult, so the launch of a new business in parallel with the mall business reform was urgently needed.
In addition, the essential aspects of what Indonesia should be like and the value it should provide had become unclear due to the continued uncertain situation caused by COVID-19. Therefore, we felt that a redefinition was necessary before adding new elements of the new business to the existing mall business, and we provided support.
Our Approach
Interviews were conducted with the general managers in charge of each mall, and surveys were conducted of existing users and potential users living in the business area to clarify what the company should provide and what customers want.
After that, a workshop was held with local members to discuss the good things about Japan, what makes us unique, and our purpose in life for customers and the local community, to ideate new businesses.
The understanding we have in common was verbalized and visualized as an MVV to serve as a basis for daily work and decision-making. From the 345 ideas that came up in the workshop, the list was narrowed down to those that received the support of more than half of the participants, and from those, those that matched the MVV were selected. After the acceptability survey, the ideas with the highest acceptance were incorporated into the roadmap.
After that, a workshop was held with local members to discuss the good things about Japan, what makes us unique, and our purpose in life for customers and the local community, to ideate new businesses.
The understanding we have in common was verbalized and visualized as an MVV to serve as a basis for daily work and decision-making. From the 345 ideas that came up in the workshop, the list was narrowed down to those that received the support of more than half of the participants, and from those, those that matched the MVV were selected. After the acceptability survey, the ideas with the highest acceptance were incorporated into the roadmap.
0
Responsdants to quantitative survey
289
Total number of ideas
Based on the issues and ideas discovered during this research, We would like to combine the best parts of Japan and Indonesia to create a new business.
New Business Manager | Company Name withheld
Process
01
Interviews and Research
02
Workshop Ideation
03
MVV/Acceptance Survey
04
Roadmap
Interviews and Research
We conducted executive interviews with 23 people, including the President Director, senior general managers from various departments from new businesses, existing businesses, construction, real estate development, management, accounting and finance departments. Because the interview sample has a certain size, so we expected that there would be gaps in the perception of what is important, the value provided, strengths and weaknesses, etc. depending on the year of joining and their jurisdictions but we also found that there are gaps between Japanese and Indonesian people. In business operations, it is important for members to work with the same values, so we decided to include measures to follow up to fill the gaps in the next process.
In parallel with the interviews, we conducted a quantitative survey of people living in the business area. We investigated their actual living conditions, their awareness of Japanese food and culture, and what they think about each of them. While Japanese food and culture are widely and deeply recognized in some areas, there were many complaints about the difficulty of obtaining or experiencing the "real Japanese thing" in Indonesia. Against this background, we found that our mall is accepted in Indonesia as the only mall that handles Japanese ingredients and products, and that there are high expectations for it.
In parallel with the interviews, we conducted a quantitative survey of people living in the business area. We investigated their actual living conditions, their awareness of Japanese food and culture, and what they think about each of them. While Japanese food and culture are widely and deeply recognized in some areas, there were many complaints about the difficulty of obtaining or experiencing the "real Japanese thing" in Indonesia. Against this background, we found that our mall is accepted in Indonesia as the only mall that handles Japanese ingredients and products, and that there are high expectations for it.
What we are trying to do in the mall business is not being communicated well to locals. This can lead to misunderstandings.
General Manager
I want to experience Japanese culture.
Female, 20s, BSD City in Jakarta suburbs
I buy Japanese vegetables and seasonings that are not sold at other supermarkets.
Male, 30s, Jakarta
Workshop Ideation
A workshop was held with a total of 41 Japanese and Indonesian participants. First, we shared the results of the executive interviews, and the fact that there were gaps between members due to backgrounds, years of joining the company, and jurisdiction. We once again considered together the good points of Japan, Japanese brands, the value we provide to customers and the local community, and what the company should do. There was not much of a gap in perception about Japan, but there were gaps in the lack of opinions about what the company should be, the width of the scope of services, and the depth of understanding, so we deepened our understanding through discussion.
After that, we created a CJM for the personas derived from the quantitative survey results and we tried to understand the personas. We then carried out ideation, and due to the bright and positive national character of Indonesians, it was the most exciting of all the Workshops we have held so far."
After that, we created a CJM for the personas derived from the quantitative survey results and we tried to understand the personas. We then carried out ideation, and due to the bright and positive national character of Indonesians, it was the most exciting of all the Workshops we have held so far."
MVV/Acceptance Survey
"Through the workshop, we were able to see what our ideal self should be. We read and sublimated all opinions and reconstructed them as Mission, Vision, and Value. There are several ways to summarize the direction and values a company should aim for, such as purpose and brand statement, but it is important to be clear about what we should value in our daily actions, so we adopted MVV and created poster visuals to display in the office.
The 345 ideas presented at the workshop were narrowed down to 62. An acceptance survey was conducted for five personas who are interested in Japan. Many people had favorable opinions about new Japanese services that are not available in any country, including Indonesia, and the number of ideas with 100% acceptance reached 50.
The 345 ideas presented at the workshop were narrowed down to 62. An acceptance survey was conducted for five personas who are interested in Japan. Many people had favorable opinions about new Japanese services that are not available in any country, including Indonesia, and the number of ideas with 100% acceptance reached 50.
0
/62
Ideas has an acceptance rate of 80% or higher
I will definitely use this service when it is released.
Male, 20s', Jakarta
I can't eat real Japanese food in Indonesia, so I really hope this service becomes a reality.
Male, 40s', Jakarta
Roadmap
Ideas were analyzed from three perspectives: technical feasibility, business scalability/advantages, and user acceptance, and then those that required alliances or collaboration with third parties were removed and put into a three-year service roadmap. Ideas that needed development were broken down into functions, and the services, functions, and value provided were plotted on the service roadmap to complete the overall roadmap.
Credit
- Service Design Consultant
- Takehiro SUENARI
- ART Direction
- Tomoki TOI
- UX Design
- Michiyo YAMANE, Tomohiro SUGA
- Assistant
- Miki IGEHARA, Hitomi NAKANO
Partner
- PROJECT MANAGEMENT
- NTT DATA Indonesia
