Thriving Together
The Resilience of Japan’s Artisanal Businesses
Japan is famous for its small craft-based businesses handed down from generation to generation.
However, shifting markets, overseas competition and population decline increasingly force their aging owners to close down shop when they cannot find a suitable successor. On shuttering, unique craft skills are lost forever.
Explaining the trend, Hironori Tomoyasu, Executive Director of FactorISM, says, “Fewer children wish to inherit the family business as they often view factory work as challenging and unappreciated.”
FactorISM is an Osaka-based consortium of 83 small local factories which help each other to counter the decline. The “ISM” suffix denotes factory work as a way of life.
One of Tomoyasu’s reported success stories is Nakani Co., Ltd., a third generation-owned factory based in Sakai, Osaka. Nakani makes tenugui hand towels, often used as headbands, using the traditional chusen dyeing method. This technique involves applying multiple layers of dye to a cotton sheet, creating a unique, rich texture that cannot be reproduced with modern digital printing technology.
Nakani's "open factory" gives the public a chance to experience Japanese ancient craftmanship firsthand through tours, workshops and a handful of company-owned retail shops. Such showcasing highlights the unique appeal of tenugui over mass-marketed alternatives.
FactorISM books tours and workshops on behalf of Nakani and other member firms through its online reservation system. “By sharing stories of ancient practices and highlighting their benefits, we can inspire a new generation to appreciate and support these crafts,” he says.
As Japan's manufacturing landscape evolves, with countries like China and South Korea now prominent low-cost producers, Japanese manufacturers maintain their unique “monozukuri” focus for detail, precision and quality work. This dedication remains a fundamental characteristic of Japanese society. It is also a source of competitive advantage and national pride.
“Showcasing helps consumers understand that a higher price tag often reflects the time and care invested in craft-made products,” says Tomoyasu. “The shift from 'cheap' to 'value' promotes a culture of mindful consumption, quality and sustainability.”
The alliance also encourages members to collaborate by sharing sales, marketing and other business ideas which help them succeed in today’s rapidly changing landscape. For example, participating factories teach one another new social media and Internet tools to engage customers directly.
The combination of monozukuri and collectivist cultures produces a passion among artisanal business owners experienced firsthand by this author. It may well help them to remain relevant in the modern age.
Japan may never regain its “Number 1” title bestowed by author Ezra Vogel. Still, FactorISM may help change negative opinions of factory work and inspire the next generation to uphold age-old manufacturing traditions. "We want to convey the message that working in the factory can be cool and offers a wide range of opportunities," Tomoyasu concludes.
Similar consortiums have popped up across Japan. Among them, RENEW conducts lacquerware, washi paper, cutlery and textile factory tours and workshops in various Fukui prefectural cities. The Tsubame-Sanjo Factory Festival held in regional cities of Niigata also showcase local factory metalwork and other crafts. Wakayama Manufacturing Culture Festival in Wakayama Prefecture too has a similar program.
Hooked on the family business
Tomoyasu was pursuing his MBA in Seattle, Washington, USA when he received news of his father's illness. Without hesitation, he returned to Japan to assist the family manufacturing business, at a time when his dad was thinking about closing shop.
The firm mainly made wire curtain hooks, using a machine that had been handcrafted by Tomoyasu’s grandfather. Previously, the wire-forming business thrived between 1990 and 1995 when Japanese interior design switched from traditional shoji-styled tatami rooms to windowed European and American-styled ones. However, sales plummeted when China flooded the market with inexpensive plastic hooks.
Upon Tomoyasu's return to Japan in 2000, the family business had dwindled from 30 employees down to just 5.
To compete, he started importing plastic hooks and other goods from China, cutting out wholesale intermediaries and opting to sell products direct to consumers online. Profit margins expanded, and the company grew to 100 staff in about a decade.
Later, he altered strategy. Instead of importing and marketing low-cost goods from China, he capitalized on design skills of staff to sell custom-made furniture, doors and home accessories at higher profit margins. He used his grandfather’s wire-forming machines and his father’s welding techniques to expand business. Also, Tomoyasu opened up the factory to the public, showcasing crafted works produced by the artisans.
He played a role in launching FactorISM four years ago, after noting that other factories in Osaka excelled in producing high-quality goods but struggled with sales. They often relied on wholesale intermediaries to sell their goods, resulting in reduced profits.
"I convinced many factory owners that it was time to sell directly to consumers," Tomoyasu states. This idea, coupled with showcasing craftsmanship skills, resonated with the 35 FactorISM founding companies.
Richard Solomon is an author, publisher and spokesman on contemporary Japan. He posts Beacon Reports at www.beaconreports.net.
Great to hear about this determination to keep that artisanal culture going. In this respect Japan inspires the world.
i've been saying for years that japan is nation of craftsmen. once they put their minds to it they can make the best in the world class good in all categories, electronics, whiskey, beef, cars. the problem i've always thought is how do you market that ability as a product.