JAPAN 2021: BOUNCING BACK

After a year of unprecedented worldwide turmoil, Japan is positioned for strong economic growth on track with a global recovery.

Last year should have been a banner year for Japan, with the Tokyo Olympic Games set to follow the country's successful hosting of Asia's first Rugby World Cup and the enthronement of its new emperor in 2019. While the pandemic did force the postponement of the prestigious sporting competition amid a slumping global economy, Japan is poised to make up for lost time in 2021.

Japan’s GDP returned to growth in the third quarter last year as foreign demand for Japanese goods fueled a trade surplus. This rebound, which represents the fastest pace of growth in more than 50 years, is expected to continue; in October, the IMF predicted Japan’s economy will expand by 2.3% this year.

Japan’s exports received an additional boost in November with the signing of the Regional Comprehensive Economic Partnership, a free trade deal between ASEAN countries and Japan, South Korea, China, Australia and New Zealand. And the eyes of the world will be upon Tokyo once again in July for the rescheduled Olympic Games.

Overcoming adversity to achieve success is nothing new for Japanese industry, and leading companies such as Canon and Kikkoman have once again displayed their ability to adapt and innovate during periods of volatility.

Canon Chairman and CEO Fujio Mitarai, who has led the company since 1995, is helping the company weather short-term uncertainty by focusing on strategies for positive transformation and long-term growth. While the pandemic posed challenges for Canon’s businesses—technicians have had to quarantine for weeks when travelling overseas, for example—Mitarai has kept the firm’s historic evolution into a strategically diversified imaging solutions provider on course.

While growing its traditional camera and printer businesses, Mitarai has also significantly expanded Canon’s medical and industrial equipment arms. The company is also innovating in sectors such as diagnostic imaging equipment and nanoimprint lithography, and plans to invest heavily in OLED display manufacturing equipment for smartphones and TVs.

Yuzaburo Mogi, Honorary CEO and Chairman of the Board of Kikkoman Corporation, is another corporate leader adept at adapting to changing conditions. Since he made the then-revolutionary decision to build a factory for the soy sauce maker in the U.S. in the 1970s, he has embraced innovative thinking to ensure Kikkoman’s continuing success.

Resolute in his belief that the most resilient firms are those that learn from experience to become stronger and smarter, Mogi sees the current environment as a time for strong leadership to leverage the company’s collective wisdom to achieve the best results.

As the world attempts to adapt to the new normal, companies—and leaders—such as these are well placed to face challenges head on and drive Japan’s future success.