Saturday, February 26, 2011

The New Japanese Consumers – The “Herbivore” Boys

Consumers’ lifestyles and demands change with the environment and economy. Since Japan's economic bubble burst in the early 1990s, its economic stagnation (the Lost Two Decades) has altered its men's behavior where they have no wish to follow the corporate footsteps of their fathers – the pro-active, ambitious, workaholic, corporate salary-men.

The “Herbivore” Boys are the new men in Japan. Also known as soushoku danshi - literally translated as "grass-eating boys", they are Japanese men in their 20s and 30s who show a lack of interest in romance and sexual relationships, and they believe in having a quieter and less competitive lifestyle.

Surveys from various resources have showed that there are an estimated 60 percent of men in their early 20s and at least 42 percent of men aged 23 to 34 who considered themselves as “grass-eating men”. This has sparked a nationwide concern as they are seen as deepening the two biggest challenges faced by the Japanese society – (1) the declining birth rate and (2) the lowered level of consumer spending.

So what implication does these “new consumers” brings to B2C firms?

Forget about targeting corporate men. This shift in the Japanese men’s buying behaviour could be of a permanent level (based on the raising numbers of self-acknowledged soushoku danshi), and businesses are challenged to evolve in order to meet the needs and expectations of this group of consumers.

With the absence of material extravagance in this new generation, businesses who once solely depend on their brand names to drive consumers’ aspirations for their products have to find new means to push their products - eliminating the once importance factor of material possessions. Perhaps the re-positioning of products as lifestyle commodities for personal interests and bonding would attract this generation of self-fulfilling and family-and-friends-focused consumers. Understanding their buying behaviours and spending habits - their preference towards services than goods, businesses can perhaps look into providing their consumers engaging experiences with the brand in extending the consumers’ value of their purchases.

Though the “Herbivore” Boys poses a negative impact on Japan’s economy for established status products like cars and alcohol, this change in consumers’ demands could potentially spin-off new business opportunities - with this new generation of consumers willing to spend more on services than products, there is a market potential for growth of services businesses in Japan.

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