Néojaponisme now has so many videocasts that we decided to rename our programming about alcoholic beverages in Japan — both with alcohol and without — to “Néojaponisme Oh! Sake!” Watch the latest in HD!

In this third episode, Marxy and writer/translator Matt Alt do a taste test of three Japanese “mocktails in a can” from Asahi under the brand name W Zero Cocktail — non-alcoholic, non-sugar recreations of classic cocktails Gin & Tonic, Cassis Orange, and Chardonnay Sparkling. (Spoiler question: Why do these even exist?)

Also watch Videocast #1 on Japanese third-category beer and Videocast #2 on whiskey highballs in a can. More episodes coming soon. Subscribe to our YouTube channel to get the latest updates.

Néojaponisme‘s second-ever Néojaponisme Videocast is now on YouTube. Watch in HD!

In this second episode, Marxy, writer/translator Matt Alt, and writer Patrick Macias do a taste test of five Japanese “highballs in a can” (whiskey sodas pre-packaged for quick consumption and sold at convenience stores) in Matt Alt’s Tokyo basement. Beverages include Black Nikka Highball, Seiyu Highball, Tory’s Highball, I.W. Harper Highball, and Jack Daniel’s Highball — one of which may be the worst beverage sold in stores today.

Watch Videocast #1 on Japanese third-category beer. More episodes coming soon. Subscribe to our YouTube channel to get the latest updates.

The end of 1981 saw the debut of a new women’s fashion magazine in Japan called CanCam. The name was curiously derived from the phrase “I can campus” and nominally targeted at female college students. Publisher Shogakukan created CanCam as a response to the popular magazine JJ from rival Kobunsha, which had arrived in 1975 and ushered in the “new traditional” (nyutora) boom in women’s fashion.

2011 thus marks the 30 year anniversary of that fateful January 1982 issue of CanCam, and while the magazine has seen a major decline in sales after the departure of iconic model Ebihara “Ebichan” Yuri, it is remarkable that this particular magazine of conservative Japanese fashion has stayed alive and relevant for so long, especially in lieu of recent days’ intense media churn.

Since CanCam put together a 30th anniversary issue and I got my hands on the debut issue for ¥105 in Nakano Broadway, I thought it would be useful to compare the two and see what has changed in the last three decades for the nation’s ojosama.

January 1982
The front cover, just as today, screams “Come On, Join Us!” — yet at the time, this call to arms was meant for an extremely limited set of women. In 1982 CanCam was not a media guide for a specific “consumer lifestyle” or fashion sub-group, but arguably, to an elite social class.

The issue’s main article “New City Formal ‘82 Manifesto” jubilantly suggests that readers dress in formal suits not just at “ceremonies” but as daily wear. Girls were expected to master the Louis Vuitton bag and a ¥480,000 Chanel suit — or its cheaper clone — as a complement to Western-style hotel lunches, airport visits, club house invites, theater, and something called “trad parties.” These idealized CanCam women do not just eat at hotels with other rich women once in a while but have a deep connection described as a “hotel life.” There is also an entire section on “what to wear to your après-ski disco party.” And these female college students apparently should know how to cook a Christmas chicken and other ultra-American dishes.

Yet despite CanCam‘s culture of the young madame, there was a certain level of cultural sophistication expected that you would never see in today’s likeminded magazines. There is an interview with former Happy End singer and “city pop” icon Ohtaki Eiichi as well as Chinese landscapes from famed photographer Shinoyama Kishin.

The overall effect is a magazine full of 21 year-old girls who look like they’re about 40. At the time, Japan had spent a few years in the aforementioned nyutora boom. This was the country’s answer to American “preppie,” directly reflecting the culture and style of the nation’s most wealthy residents. The idea was to dress like women from good families in Kobe or Yokohama, shopping at their small shinise stores that had clothed the elite for decades. The initial issues of CanCam offered a guide to this unadulterated upper class dress, with absolutely nothing that could be considered “subcultural” influence. The magazine’s men meanwhile look like they were shipped in from a Spring semi-formal at Cornell: navy blazers, gray flannels, and red rep ties. If all fashion is indeed costume, the idea here was to look wealthier and older than your years — although not in a vulgar nouveau riche way. (A reminder: This is a few years before the Bubble economy.) The title of the issue’s hair guide could not make this message any clearer: “I want to look like an adult.”

This all boils down to the age-old “traditional” clothing ethic of TPO (time, place, and occasion) — coined by Ivy League-style instigator Ishizu Kensuke. But in this, CanCam connects its consumer focus to broader society. The editors were saying, you need to buy these things in order for you to properly participate in these activities at these locations with these worthwhile people. Not all the readers could necessarily replicate the lives of Japan’s affluent, but it says a lot that Old Money was the aspiration of the time.

By the middle of the first issue, however, CanCam suddenly admits that the fashion pages were a parochial fantasy, and that real women of the early 1980s dressed in a more casual and gaudy style. Suggestions for winter coats involve a “surfer” (?) variant that is just a varsity jacket. There is an article about vintage shopping in Osaka, where people are, gasp, wearing sweatsuits and bold primary colors. These glimpses of the real Japan show the degree to which the CanCam world was mostly imaginary, or at least, idealized and extrapolated from a tiny set of existing college students at the top private schools.

Ironically, this magazine, openly obsessed with Western culture, sees its biggest style antithesis in the actual American college students the editors encounter during a visit to “American campus life.” Every single student is in jeans and sweatshirts, co-habitating with their long-haired boyfriends in ragged apartments. (Surprise appearance from one time punk rocker, one time Harvard freshman, and now radio host Morley Robertson!)

Some bonus anachronisms:

• A brand called “Gay togs” — Jeans for Gals
• A call-out for Boz Scaggs’ Hits!
• The inside cover ad is Shiseido using a model who looks like a Flash Gordon extra — thus predicting the techno-pop future that Japan would subsume Japan in the mid-1980s

January 2012
The January 2012 issue of CanCam (out in November 2011, natch) celebrates thirty years of publishing from the time of the fateful first issue. Although it spends most of its time celebrating the cult of CanCam rather than the lives of CanCam girls, there is enough material to see stark comparisons of how dramatically things have changed in the last 30 years.

First and foremost, the CanCam look has taken on heavy elements from gyaru culture. The style of CanCam has been known recently as o-nee-kei — “big sister style” — after the original 1990s kogyaru who grew up and became older, classier role models for the younger gyaru. These were the kogyaru who came primarily from upper to upper middle-classes — before the great “yankii-fication” of gyaru that happened in the late 1990s with ganguro. Yankii references, however, have slipped into any style related to gyaru aesthetics, so the pure upper-crusty-ness of the original CanCam has taken on lots of new signifiers that would have made the young madames of 1982 blush red like the beets in their New Otani salad.

This is most obvious in the preferred hairstyle — a pleasant golden brown — which would have gotten you expelled from private school back in the day. The Chanel-inspired tweedy suit still makes appearances, but alongside gaudy leopard print and phones bejeweled within every centimeter of their lives. Bags have teddy bears attached. The good news is that no one would confuse these women for being 40. They look their age, and more importantly, they look like they are having fun.

The original CanCam oddly spoke of a “campus life” while showing all the things women should be doing off-campus at hotels, airports, and private establishments. The new CanCam, however, has completely dropped the pretense that the readers are college students. The audience does include college students, but is mostly young Tokyo clerical workers of various class backgrounds. Most importantly they are not women living in the pockets of their parents, and so prices are more down-to-earth than the Chanel obsessions of 1982. In fact some of the clothing choices are actually cheaper than those presented in the original issue, despite 30 years of nominal inflation. The main section has entire outfits for around ¥20,000, which would have only bought you the left shoe of an Italian pair thirty years earlier. Tiffany & Co. makes an appearance but it’s jewelry for daily wear — not a single suit you’re likely to only put on once every few weeks.

CanCam also ceased its over-reliance on Western associations to create value and meaning. Although the typical CanCam-like magazine tends to use Tokyo’s more Western looking backgrounds for photoshoots, this particular 30th anniversary issue puts the models in intentionally Japanese places — a sento bath house, the downtown Asakusa neighborhood. They do visit Northern Europe as part of a Tintin advertorial, but the girls have been relieved of the impossible mission that everyone in Japan needs to suddenly become American.

Ultimately CanCam has given up being a newsletter for a specific social class in Japan, but instead, a highly welcoming consumer lifestyle that anyone can join. The issue’s front pages do the neat trick of dressing up idols from different genres, such as Momoiro Clover Z and Kyary Pamyu Pamyu, into the CanCam style. The girls, despite their usual personas, look utterly plausible as mini-Ebichans, thus emphasizing the degree to which anyone can arbitrarily choose to buy into the style. There are no barriers to entry.

As a trade off, however, the magazine had to completely drop all reference to wider society. The clothing is suddenly an end to itself, rather than specific tools to fit with certain times, places, and occasions in a social calendar. Perhaps there is greater economic incentive to turning a magazine into a shopping catalog rather than a manners manual, but this also reflects the degree to which all girls in Japan now can find their styles on a magazine rack and their clothing in a major shopping complex. When everyone is invited to the consumer market and aspirations towards old wealth are over, explicit elite codewords and narratives get in the way and must be removed.

This is fine, of course. But one worrying thing is that the de-emphasis of “occasion” seems to also have removed the men from the magazine. CanCam in 1982 is full of guys in Ivy style, loitering around at some parent-funded disco party. In the modern CanCam, however, men almost never appear. The January 2012 issue does have a “Xmas date” section but you barely see the men. Christmas feels like complete obligation: Oh that day every year where I have to go out with my boyfriend. (Interesting the men look like members of EXILE rather than A students.) Meanwhile there are triumphant images of a flamboyant “kirakira” party scene and a year-end bonenkai that feature no men at all. The CanCam world has become almost exclusively homosocial — perhaps another influence from the yankii-fication of gyaru culture.

During the 2005 Ebi-chan — the peak of Japan’s second wave nouveau riche culture — CanCam did promise its readers that they could meet a doctor if they only wore the right shade of peach. But when no one ended up meeting doctors or tie-less entrepreneurs who would carry them over the threshold of Roppongi Hills Residence, that particular dream imploded. Hence came the rise of magazines ViVi and Sweet — style for girls who want to impress other girls. CanCam now reflects this slightly depressing sexless present, and maybe it has to. Japan’s lack of children stems from a lack of marriage which stems from falling salaries and job prospects for young men. The idea of over-promising an easy path to marriage with affluent men has become a cruel hoax. So the editors dropped the whole “men” thing and now celebrate those years when young women can be young women. “Come on, join us!” — just don’t expect to meet any guys.

Previously on Néomarxisme / Néojaponisme:
• 2008: Ebi-chan Graduates (12/2/08) – essay about the departure of Ebihara Yuri from CanCam
• Super Attractive Japan (9/19/07) – translation of essay on the meaning of Ebihara’s popularity
• CanCam: Moteko vs. Busuko (11/13/07) – CanCam‘s guide to perfect behavior
• Néomarxisme Archive: I Know What Boys Like (08/29/06) – explanation to the Ebi-chan phenomenon
• Néomarxisme Archive: I Can CanCam (05/29/05) – an introduction to the magazine

It has been a year since Akiyama Shin quietly took down his shop in Shinjuku, closing the revered schtücco design studio, entrusting his former staff with the care of a number of important clients, and returning northward to the humble fold of country life in his home prefecture of Niigata with his wife/collaborator Ayako and newborn son. Tokyo lost an important and vital member of our design community at that moment — prolific and craft-centric in his output, thoughtful in his philosophy and approach. This quiet, humble man’s exit stage-left is something worth noting.1

His departure was followed by a flurry of activity: most notably, a post-mortem, live-in retrospective at Pantaloon an Osaka-based gallery and design studio, which saw schtücco’s oeuvre filling the walls of the entire space alongside misprints, proof sheets, book dummies and a rearrangement of the materials within the space. A tent and catalogued inventory of everything the young family would be using during their month-long stay within the gallery — vegetables, clothing, cloth diapers and technology were all ordered, stacked and itemized — reflecting the Akiyama family’s subsumption into a now totalizing collapse of work, life and art.

A series of lectures and events accompanied the exhibition, individuals from Tokyo and Osaka invited to Pantaloon to engage with Akiyama in dialogue for the public, exploring the roles of design in relation to art, literature, music, and the everyday. Curators, artists, editors, and designers were all invited to speak candidly about work and what design holds for us all at this particular moment. All were invited into a sort of temporary community with Akiyama and his family as its pillar in a rare moment of personal reflection that is usually rare in the hustle-bustle of Japanese business.2

The exhibition and associated events gave nuanced form to so much of Akiyama’s way of working — one that is engaged politically, aesthetically and socially. Everyday graphic design in Tokyo is prominently service-oriented3 and to have this act of servicing brought into a gallery, and then, most importantly, destabilized by emphasizing the more personal, authored, community-centric aspects of a critical and speculative graphic design practice in a setting that had simultaneously been deconstructed and reconstructed according to the designer’s personal vision, exposed the public to alternate ways of working that had potentially not been experienced in Japan before.4

Akiyama’s formal education in architecture is belied by his personal works. Created under the nom de guerre Buku Akiyama, they are a quiet structural assessment of the everyday combined with the bookmaker’s lexical desire for order and cataloging. This on-again/off-again art practice is best documented in his 2009 book, Composition No.2 “an exceptional state”: with equipments owned by hiromiyoshii. Within, Akiyama’s reorganization of FARM, an exhibition space in the Kiyosumi area of Tokyo, was photographed by Masahito Yamamoto, documenting Akiyama’s event in which he took the contents of the studio and rearranged all into structures, three-dimensional compositions, and system-like collections. The book, designed by schtücco and published by Akiyama’s own publishing house edition nord, appears to be damaged, the spine of each in the edition of 600 intentionally torn off, exposing Akiyama’s fascination with raw material and process.

edition nord is both a conceptual celebration and exploration of the most instinctive and primary elements of art-making, combining the immediacy of the found, rapid mark-making and narrative — spinning and folding these attributes into physical forms that are a taught tension of crafted precision and the raw materiality of chance processes. The typography within is highly considered and abundant in its exploration of different methods of reproduction. Papers, printing, and the visual edit that holds each together is rugged and assured — a poised conflation that reveals the authored instinct. As a collection, Akiyama’s work feels like the output of an individual involved to the deepest levels with his craft, rendered in often stark palettes alongside considered typographic scales akin to musical compositions. In all, there is a palpable sense of the book as an expanse that engages the reader physically, mentally, and emotionally — it is not treated as mere printed physical ephemera.

Past edition nord titles have included compendiums of work for artists such as Masanao Hirayama/HIMAA, Tadashi Kawamata, Eiki Mori, and Komichi Kobayashi. The imprint’s inaugural release, an edition of eight hundred bound boxes of photographs exactly reproduced from source material provided by artist Christian Holstad for a 2007 exhibition titled “Blood Bath & Beyond.” The printed cards within question the authorship of the photograph and the concept of assumed identity depicted in the reproductions — a collation of imagery of masked and costumed individuals. The box was the result of two years of labor, mimicking the physical qualities of the original photographs, working with printers to adjust the sheen and surface of each printed replica of the found photographs to perfection, including original inscriptions and backing material on all thirty-eight pieces within the collection. Beyond authorship, these near-exact duplicates bring into question the nature of the copy versus the original in a profoundly Habermasian way; the originals are merely found whereas the reproductions are collated (and thus categorized), given additional focus through the lens of ‘art’5 and monetized. Perhaps it is no accident that the vehicle for delivering these media is a box, as the edition opens contemporary art practices and art publishing strategies up to a bevy of compelling questions.

Shin’s new stüccke line of books for edition nord explore drawing as a medium and focus, most notably Kawai Misaki’s Pencil Exercise — a mammoth compendium of quick, mirth-filled line drawings. This 500-page expanse of quirky mark-making that evince Kawai’s place as the heir to the throne of art-making dominated by so many skateboarders (most notably Mark Gonzales) creating loose, off-the-cuff works that celebrate life, absurdity, and the world around us with more than a pinch of atavistic tendencies. These books are held together using the most spare, yet strongest material. The covers are minimal or essentially dematerialized, taking the form of postcards or smaller sheets of paper. Added to this Is a sense of customization. Kawaii’s book features eight different “cover” designs, a minimal foreground to the mono-color drawings that comprise the edition.

It is natural that Akiyama has turned to self-publishing. the establishment of the edition nord imprint followed fifteen years of designing books and printed promotional materials for some of Tokyo’s most successful galleries, notably hiromiyoshi. Akiyama has designed books for artists such as photographer Araki Nobuyoshi, sculptor/painter Keegan McHargue6, architect Ando Tadao, as well as innumerable others. It is also curious as to what Akiyama’s trajectory from here will be, as a publisher and as a graphic designer. I, for one, am curious- his arc in graphic design and self-initiated curatorial projects is a potential blueprint for how graphic design might be practiced in a distinct way in Japan that veers from the mere labor-based model so prevalent today. It is ‘merely’ a matter of public awareness, acknowledgement and encouragement — phenomena that often occur slowly in a nation slow to change. If picked up and ran with, it’d infinitely enrich design culture in Japan.

1 Despite Akiyama’s pastoral retreat from Tokyo, he is still very much an active force in the city, representing edition nord at the Tokyo Art Book Fair, appearing alongside Kawai at the opening for the Pencil Exercise exhibition and book release.

2 I note this from personal experience, I engaged in the series, giving a lecture and a short question-and-answer session with Akiyama. I am grateful to him for his politeness at me hogging the mic like an American jerk.

3 As noted in my recent lecture series in the United States, the life of the graphic designer residing in Tokyo is often stark — graphic designers tend to work far-longer hours than their American and European counterparts and earn approximately 60% of what their Western counterparts do. There are exceptions, but they are few and far-between.

A personal, anonymized case study:
Naoko is a friend and graphic designer working for a small architecture publishing house. She begins work at 10am and finishes work at 4am. She has not had a day off this month — crafting books, printed promotional material, creating booth designs for book fairs and generally helping out around the office. She is paid approximately ¥2.8 million a year — a near-unlivable wage.

4 This being said, Yokoo Tadanori has continually created situations of a similar nature in the 1960s and 1970s that upheld his stature as a designer, artist, hedonist, and creative individual. But these events tended to be in the service of a cult of personality surrounding Yokoo, as opposed to extending the sphere of public/private and engaging communities as done by Akiyama. Akiyama utilized his relative fame to set public dialogue and critique in motion, whereas Yokoo utilized his actual fame (also relative, but stratospheric compared to Akiyama’s renown merely amongst designers) to propel himself into engaging in self-serving creative projects spanning television (titles for the television show むー), getting his photo taken with John Lennon and Yoko Ono (synergy by association), and acting (in a mediocre fashion in the film 僕は天使じゃないよ/Boku Wa Tenshi Ja Nai Yo).

5 And the gallery system which commodifies art.

6 It was McHargue who introduced me to Akiyama in 2007, during the run of his successful solo show “Mauve Deep”C at hiromiyoshi. McHargue, artist Tauba Auerbach, the Akiyamas and I wended our way through a succession of obscure record stores in Shinjuku, watching as McHargue dutifully dug out new additions to his expansive record collection. No mere name drop, McHargue recognized the intensity in which both Akiyama and myself have articulated our positions within the realm of design. I am merely grateful for the introduction.

A The name and subject matter of the designer’s publishing house has been changed — to open up standard business practices in Japan through the concrete example of an individual is to ruin a person’s career.

B That Yokoo’s varied methodologies and career turns have never been exposed to serious criticism in the design or popular press is case for worry, hence these barbed stings that occasionally appear in my essays.

C I would also like to note that this exhibition title is pretty much the most awesome title for an exhibition ever.

Néojaponisme has moved into the world of video. See the first ever Néojaponisme Videocast on YouTube. Watch in HD!

In this first episode, Marxy, writer/translator Matt Alt, and writer Patrick Macias do a taste test of three Japanese third-category beers (第三のビール): Nodogoshi Nama, Asahi Strong Off, and Awamugi.

More episodes coming soon. Subscribe to our YouTube channel to get the latest updates.

In the final installment of the series (Parts One, Two, Three, Four), we look at the export possibilities for Japanese culture when the “most popular” goods and works are increasingly being made by and for marginal subcultures without obvious analogs overseas.

Part Five: The Difficulty of Exporting Marginal Subcultures

Marketing guru Kawaguchi Morinosuke’s recent book Geeky Girly Innovation: A Japanese Subculturist’s Guide to Technology and Design posits that corporate Japan needs to take more guidance from otaku and gyaru. There is an important point to this — these are now the most influential and powerful groups in Japanese pop culture and should not be ignored out of snobbery. And maybe their obsessive spirit has applicable lessons for industry management. Yet we should not be naive about this either in a wider context: the products actually made within these subcultures are increasingly losing their resonance overseas.

Until now, you could divide Japan’s successful consumer exports into three groups:

(1) technological/industrial goods like cars and electronics
(2) kids’ products like video games, toys, comic books, and pens/stationary
(3) sophisticated cultural goods like fashion brands, indie music, and literature.

Other than automobiles, Japan has lost its edge on high-tech goods. Korean rival Samsung has almost singlehandedly taken over the space once monopolized by Sony, Toshiba, Panasonic, and Sharp. And with the decreasing number of children, greater competition from the U.S. on video games, and a general move away from gadget culture, Japan is also struggling to export kids’ products. Meanwhile most of Japan’s successful cutting-edge culture exports — Pizzicato Five, Cornelius, Yellow Magic Orchestra, Shonen Knife, The Boredoms A Bathing Ape, Comme des Garçons, Hiromix, Murakami Takashi — came from a scene that has ceased to be high-profile in Japan.

This last category, while minor in terms of actual sales, did a lot of the legwork for boosting the Japan “brand” in the 1990s, especially among the cultural elite in the U.S. and Europe. The reason is simple: the artistic works spoke the language of upper middle-class aesthetes overseas. Furthermore these artists made an easy match with the West because they played with iterations of ideas originally created in The West: avant-garde art and fashion, street culture as defined by US/UK, punk rock, lounge music, etc. In general, the successful products and artistic works had something “universal” (i.e., “Western”) at their core, which made them more easily exportable. Overall Japanese culture found warm reception where the consuming groups in the West were similar to the Japanese creators in class position and values. We take for granted that Miyamoto Shigeru’s art-school tastes appealed subconsciously to the richer American youth who bought up the NES in droves during the mid-1980s.

What we have not seen, however, are good consumer comparisons overseas to the psychologically tortured Japanese subcultures like contemporary otaku or the yankii/gyaru. Mass market anime like Naruto and Gundam are relatively easy to export as they were built for “normal” youth. That cannot be said about moe titles that are meant to satisfy older men obsessed with two-dimensional elementary school girls. Similarly, no gyaru clothing brand has more retail stores overseas than the avant-garde Comme des Garçons, despite gyaru clothing’s huge business in Japan and CDG’s highly-limited audience. At least from what we have seen from the big subcultural moments in the last decade, the culture of Japan’s marginal pluralities is almost unexportable.

Let’s look again at AKB48 on YouTube — a global site where anyone can watch videos from anywhere else around the world. Based on the public viewership data for “Heavy Rotation” and other AKB48 videos, the vast majority of views for AKB48 come from the group’s domestic fan base. In other words, no other country than Japan contributes to AKB48’s multi-million view count despite the fact that the videos are available worldwide and AKB48 is the overwhelmingly dominant group in Japanese pop at the moment. AKB48’s seemingly-massive popularity in Japan make them the number one favorite for J-Pop exportation. Yet no one non-Japanese is watching their videos — even in light of a “Japan Cool” wave and the popularity of YouTube all around the world. Compare AKB48’s videos to the insight map for “The Boys” by Girls Generation (SNSD) in Korea, who have had massive success in Japan and whose YouTube stats show a very wide global audience.

In most countries with growing economies, educated upper-middle class consumers still spearhead the consumer market. They have the most disposable income and the most interest in cultural exchange. And those consumers, whether it’s Taiwan or the U.K., are the ones most likely to be willing to follow and purchase foreign cultural items.

Currently, however, the most conspicuous Japanese culture of otaku and yankii represents value sets with little connection to affluent consumers elsewhere. Most men around the world are not wracked by such deep status insecurity that they want to live in a world where chesty two-dimensional 12 year-old girls grovel at their feet and call them big brother. The average university student in Paris is likely to read Murakami Haruki and may listen to a Japanese DJ but not wear silky long cocktail dresses or fake eyelashes from a brand created by a 23 year-old former divorcee hostess with two kids. Overseas consumers remain affluent, educated, and open to Japanese culture, but Japan’s pop culture complex — by increasingly catering to marginal groups (or ignoring global tastes, which is another problem altogether) — is less likely to create products relevant for them.

This is not to say that the emergence of otaku and yankii culture is insignificant for Japan. This wave has finally given material and cultural expression to pockets of society that had a hard time voicing their experience in the past. The rich Tokyo elite enjoyed a disproportionately high influence over national culture for decades, and now the two marginal groups have taken the elite’s place in dominating the direction of pop. When it comes to “fairness” and democracy, this is the least elitist that Japanese culture has ever been. But we have replaced one kind of distortion with another, and we still should not confuse these subcultures’ tastes with being truly “mainstream.”

One of Harvard Business School professor Michael Porter’s teachings is that companies that are competitive overseas come from domestic markets where they have local competition and must learn to please demanding local consumers. The more advanced the consumers, the more advantage a company has in eventually exporting its products when other consumers catch up. Apple’s success with the iPod came from the product’s direct targeting of tech-savvy American college students and former college students who had massive libraries of mp3s stuck on computers and wanted to take them out on the streets. Girls Generation worked to best other idol groups in Korea through highly skilled dancing, singing, and a song library purchased from European producers.

Japan’s consumer market meanwhile is becoming increasingly dominated by technological and cultural laggards. The peak “Japan Cool” came at a time in the 1990s when the average Japanese was intentionally or inadvertently consuming highly sophisticated culture, and the pressures to please them gave Japanese companies the training to be globally competitive. Cultural producers tried to one-up each other in coolness.

Japanese companies now face a true crisis: Appealing to the most powerful consumers in Japan will lead them away from tastes and values that can be easily exported overseas. AKB48 may be opening vanity branches in Taiwan and Jakarta, but will the world inherently be interested in an idol group meant to please a small group of men’s reactionary attitudes towards women and desire for songs that ignore the last twenty years of musical change? And as we’ve seen with the success of K-Pop in Japan, companies cannot automatically protect the domestic market against invasion. When the mainstream consumers do see something they like, that reflects their values in a way that otaku and gyaru content does not, they pounce. But until they reawaken as a consistent consumer force or rebuild cultural online to be less centered around product purchase, we are likely to stay within the current situation — where marginal subcultures rule the school.

Last time we saw that the tastes of upper and middle-class “mainstream” consumers dominated Japanese pop culture from the post-war to the end of the 1990s. This time we will explore the most important cultural change of the last decade: the greater proportional power for marginal subcultures. Mainstream consumers, for the economic and demographic reasons given in Part One and Part Two, have ceased to consume with the same force as before and thus have lost their “voting power” within pop culture.

Part Four: The Rise of Marginal Subcultures

The drop in cultural markets has been almost perfectly pegged to the decline in incomes. Middle class consumers are buying less, and when they buy, now go for cheaper or risk-free products. Within this environment, we could expect marginal subcultures to also have curbed consumption. Yet they did not! And their steady buying into their own cultural niches has made huge changes in the tenor of Japanese pop culture.

Yankii and otaku: Consumption as pathology

The yankii and otaku have never traditionally been blessed with high incomes nor high future earning potential, and in pure homo economicus terms, should be cutting back even more than middle-class consumers. We must understand, however, that for the otaku, yankii, and gyaru, shopping is not merely a form of leisure nor has it even been an attempt to buy into a larger society-wide consumerist message. These groups use consumerism as a therapeutic solution to their psychological and social problems.

The otaku spend their time as avaricious collectors of goods and trading information with other otaku. In shunning away from mainstream standards of sociability, sexuality, and career success, the act of maniacal consumption becomes their raison d’être. They cannot relate with other people if not commenting upon these cultural goods. Culture — most of which must be purchased and enjoyed as object (even when it is just physical media holding content) — is the great satisfier of their deepest desires.

The gyaru, in comparison, put a high premium on social networks and romance. Yet there is a certain pain at the heart of gyaru culture. In his book Keitai Shosetsu-teki (“Cell Phone Novel-esque”), author Hayamizu Kenrou calls the basic aesthetic mode of gyaru literature — cell phone novels, Hamasaki Ayumi lyrics — “trauma-kei” due to its emphasis on overcoming personal tragedy. When I interviewed Nakajo Hisako, the editor-in-chief of Koakuma Ageha, in 2009 I asked, “Why do gyaru spend so much time on their clothing, hair, and makeup?” She answered, “Because we are not cute. If we were cute, we would just wear a white T-shirt. We have to work hard to look good.” There is an obvious logic to this: The gyaru’s transformation into golden curly hair and heavily painted faces is an escape from their normal selves.

Like Nakajo suggests, gyaru culture looks as it does precisely because they are not “blessed” girls (Nakajo’s words). And this means gyaru must spend on clothing, hair treatments, and makeup in order to achieve the desired self-image. Beyond this desire to look like someone else (and basically like everyone else in their peer group), there is also the social demand to show allegiance to a wider gyaru subculture by donning its uniform. To be a gyaru means dressing like a gyaru — no exceptions.

Marginal groups’ up their voting power in the consumer vacuum

The end result is that the otaku and yankii have an almost inelastic demand for their favorite goods. They must consume, no matter the economic or personal financial situation. They may move to cheaper goods, but they will always be buying something. Otherwise they lose their identity. While normal consumers curb consumption in the light of falling wages, the marginal otaku and yankii keep buying. And that means the markets built around these subcultures are relatively stable in size.

So as the total market shrinks, the marginal groups — in their stability — are no longer minor segments but now form a respectable plurality in the market. In other words, if otaku or yankii all throw their support through a specific cultural item, that item will end up being the most supported within the wider market.

The clearest example of this is AKB48. With the letters AKB in their name, this group of girls was unequivocally marketed towards older males based in the Akihabara otaku culture. Compared to past mass market groups such as Speed, the girls are intentionally chosen and styled to look like elementary schoolgirls and lyrically address older men with direct sexual references. (See the “cat-eared brothel” video for “Heavy Rotation” and the unambiguous “love knows no age” lyrics for “Seifuku ga jama wo suru.”)

The mass idol group regularly has an “election” (sousenkyo) where fans try to vote their favorite girl to Number One. Buying certain AKB48 CD singles gives the fan a vote in the AKB48 election, which thus incentivizes otaku to buy multiple copies of the CD to increase their “political” power. The CD is thus no longer a means of listening to music but a way to influence the future of AKB48. This has created a legion of fans who buy dozens and hundreds of the same AKB48 CD or even 5500 copies. There are now doubts about that story’s authenticity but it basically was an exaggeration of an existing principle. Regardless, the marketing strategy of AKB48 does encourage the purchase of multiple goods, thus amplifying the buying power of nerds beyond their small numbers. This means as a consumer bloc, the AKB48 otaku fans can rival the non-otaku consumer base.

This otaku bloc strength, as well as other niche’s dedicated buying, can be seen through the music charts. In 2010 only three artists made the Oricon best-selling singles market — AKB48 and a Johnny’s Jimusho group Arashi. (At this stage, you can almost argue that music fans of Johnny’s groups are themselves a conspicuous cult rather than a mass market phenomenon.) Only two artists taking the entire singles market is unprecedented in Japanese musical history. In the previous decade, the average number of artists in the top ten was 8.2. The best explanation is that mainstream consumers stopped buying music, even single song downloads, so the favorite acts of marginal subcultures now appear to be the most popular.

Otaku and gyaru: winners by default

This principle demonstrates how AKB48 became an unlikely “mainstream” phenomenon. Despite AKB48 being so clearly marketed towards a niche audience, their success in a declining market has made them perceived to be the most popular in the entire market. Therefore 2010 and 2011 saw AKB48, with backing from advertising monolith Dentsu, doing advertisements for mainstream brands and chains such as 7/11. (Lawson’s has now countered with a nerd-drooling K-On! campaign.) With no major competition from more mainstream-oriented idols and groups, they became the obvious spokespeople and magazine cover girls — thus amplifying their fame more.

In the case of gyaru, there are larger numbers of gyaru than otaku, meaning that the gyaru can just consume their standard number of items and still dominate the market. Before I mentioned that the extremely “normal girl” fashion magazine non•no once sold close to a million copies per issue in 1996 at the peak of the publishing market, which was once far above the 310,000 copies for hardcore yankii/gyaru magazine Popteen at the same time. Around 2009, however, non•no dropped to a mere 180,000 copies a month while Popteen was still hovering around 310,000. Gyaru are still consuming fashion, and therefore need fashion guides to tell them how to do so. “Normal” girls have generally lost interest in clothing and do not need fashion guides as much. So in this collapse of the mass market, a magazine representing a marginal taste has become one of the best-selling.

With the yankii and otaku culture being so proportionally conspicuous in the market and mainstream and avant-garde styles being so minor and invisible, the once marginal looks have a greater legitimacy for less engaged consumers who mostly just desire socially-acceptable styles. As a result, gyaru and yankii fashion have had a strong moment over the last five years, leading to large-scale booms in things once unfathomable such as “hostess fashion.” University students at elite schools like Keio are likely to have hairstyles reminiscent of yankii hosts. Films and books with obvious yankii narratives, such as Rookies and cell phone novel Koizora, became huge national hits in 2009. Gyaru singer Nishino Kana is one of the few well-selling artists on Sony (formerly known for alternative musicians Supercar, Puffy, and Denki Groove). And even former “arty” magazines like CUTiE have moved towards the gyaru style, and the fiercely indie girl mag Zipper put gyaru icon Tsubasa Masuwaka on the cover. There is no popular female style that does not see a little influence from the yankii side of gyaru culture.

Not truly “the most popular”

While otaku and yankii cultures are enjoying a new cultural influence in their deep commitment to consumption, we should not forget that these groups do not make up any kind of actual societal consensus. The masses may be consuming parts of their culture, but these groups are at best pluralities rather than majorities — dominant in the market but nowhere near 50% of tastes.

For example, if you look at the sales numbers for the #1 single of 2010 — “Beginner” by AKB48 at 954,283 copies — this would not have been enough copies to make the top ten from the years 1991 to 2000, when the wider public bought CDs in droves. In 2001, it would have ranked in at #10 — a successful hit for a niche, but not the symbol of J-Pop for the era. The population of Japan in the last ten years has not dropped enough to make this smaller number of sales proportionally relevant — just less people are purchasing music.

AKB48’s narrow popularity becomes very clear when the group appears on television — a medium that continues to have a mass audience (although disproportionally elderly viewers.) Maeda Atsuko had been repeatedly voted the #1 member of AKB48, and yet her recent drama Hanazakari no Kimitachi e (Ikemen Paradise)saw extremely low ratings (episodes around 6%). AKB48 variety show “Naruhodo High School” has drawna dismal 4.5%.

AKB48 have also been extremely popular on YouTube, which skews towards a tech-savvy male audience in Japan. And yet a song like “Heavy Rotation”— at over 50 million views — has nearly one-third “thumbs down” votes. This is an extremely high amount level of dislikes compared to other music videos on the site.

So AKB48 are the most conspicuous music group in Japan at the moment with the highest record sales and highest number of appearances, but they should necessarily be considered a “mass” phenomenon with widespread fans across multiple segments. The group has captured the strongest plurality in the market, and companies have mobilized around them in desperation. If Dentsu could sponsor a different hit idol group with an even broader fan base, they would. But ironically, no one other than AKB48 or Johnny’s Jimusho groups have the sales or market legitimacy to work in the context of mass market advertising. Marginal groups are now feeding and over-influencing the remnants of the mass market just as counter-consumer once did.

Next time, we look at whether marginal subcultures can produce goods that are easily exportable.

In Part One and Part Two, we looked at how decreasing incomes, a declining birth rate, increased spending on phone bills, and the lack of cultural relevancy for the Internet have all led to shrinking markets for cultural goods like fashion, music, books, magazines, manga, and TV. In this installment, we examine how these changes affect the makeup of consumers within the cultural markets — a shift from mainstream consumers to mostly marginal subcultures.

Part Three: Mainstream Consumers vs. Marginal Subcultures

The collapse of spending on popular culture in Japan makes the country an important laboratory for understanding how a “cultural ecosystem” of consumers, producers, distributors, media, trend-spotters, and advertisers operates when market activity decreases. In this context, we must first look at the degree to which middle class consumers made up and then retreated from markets for cultural goods.

The rise of middle class consumers

After World War II, Japan’s entire economy was in shambles and spending focused exclusively on the basics for survival. By the late 1950s and through the late 1960s, however, a buoyant consumer culture emerged for upper middle class salaryman and business owning families. In the mid-1970s, the Japanese economy had undergone its “miracle” and now a broader Japanese middle class finally had enough income for discretionary spending on culture. As Japan entered the 1980s, most everyone in the country was consuming products related to music, fashion, and manga to an active degree — especially normal middle-class teenagers with “standard” Japanese tastes and conventional life paths.

Cultural producers and advertisers needed to target social segments with the largest possible size and the highest amount of discretionary income. At first this meant Tokyo’s upper and upper middle-class, and for obvious reasons, these groups had pioneered consumer culture in the immediate post-war. Even in the 1970s and 1980s, the affluent still had disproportionate buying power, so the first fully consumer magazines for young people like JJ and Popeye built those lifestyle expectations into their message. Middle middle class consumers likely read those magazines at first as aspirational, but theygrew rich enough in the bubble era to become the most dominant and lucrative segment of the market. As a result, manufacturers went for both the giant middle class mass, and the resulting mainstream culture ended up reflecting the values — or what were perceived to be the values — of standard middle-class consumers.

The market responds to the tastes of those actively buying goods, so consumer culture can feel akin to a political election. Consumers “vote” for their favorite products/creation through the act of purchase. Producers in turn continue the creation of popular items, stop making unpopular ones, and make new products based on the templates of previous hits. Unpopular manufacturers and producers disappear or adapt to winning formulas.

Thus at the height of the cultural market in Japan, normal, middle-class consumers had the most “voting power.” Whatever they liked, the market took most seriously. In the peak of the publishing industry in 1996, for example, issues of a mainstream “good girl” fashion magazine like non•no sold nearly a million copies — vastly more than any niche title like Popteen. Big apparel companies then made brands that fit within the non•no style. At the same time, styles and items with mass consumption like those seen in non•no or JJ enjoyed social legitimacy. In other words, whatever everyone was buying was the “right” thing to buy. Hence non•no had greater influence over the social norms of fashion than smaller titles thanks to huge sales and an industry structure built around it. This principle carried across most major cultural fields: mainstream consumers outnumbered niche consumers, and the markets overwhelmingly created products for mainstream tastes.

The rise and fall of “counter-consumers”

While mainstream culture mostly spoke to mass consumers, the 1990s saw disproportionate dominance on Japanese culture from a group of sophisticated, educated Tokyo-based consumers, who are best described as “counter-consumers.”

Japan had a strong political and artistic counter-culture in the 1960s, but as it shed its political aspects after 1972, this “underground” community gradually shifted their attention on creating physical goods sold to small niche audiences built upon tastes in opposition to the mainstream. For example, Kawakubo Rei aimed to push fashion into avant-garde directions through her line Comme des Garçons, which before its Paris debut had only a fractional audience in Japan. The members of this millieu then mostly participated and supported their community through the act of consumption — rather than politics or true Bohemian drop out culture. They were “counter-consumerists” — demonstrating personal allegiance to a deep niche through buying goods counter to mass culture.

They had likely expected their world to stay small, but as Japanese economy started its exceptional rise in the 1980s, the number of media and shopping buildings increased, and the well-informed types who curated content for these institutions moved to introduce more and more leading-edge culture to their increasingly sophisticated consumers. The PARCO Theatre in Shibuya, for example, opened with a performance from avant-garde dramatist Terayama Shuji. The end result was a twenty year “culture bubble” where Japan’s college and art-school students made up a powerful consumer bloc, supporting cutting-edge creators within Japan and buying products from all over the world with similar values. In this era, art magazines like Studio Voice sold over 100,000 copies, and unreadable post-modern works like Asada Akira’s Structure and Power became best-sellers.

This small group of Tokyo elite continued to stake out a huge claim on Japanese culture in the mid-1990s through magazines like Olive and relax. The street fashion style Ura-Harajuku — led by Fujiwara Hiroshi, who had started out in the underground London Nite scene — became the most popular look for men around 1997, and like Shibuya-kei musical artists like Pizzicato Five and Cornelius had certified chart hits. Members of this taste culture saw their values reflected in Tsutsumi Seiji’s Saison Group retail chains Parco, Muji, Wave, and Loft. Furthermore the small counter-consumerist minority ended up working themselves in the increasingly lucrative cultural industries, thus propagating this set of tastes and values to a new generation.

At the turn of the century, however, the counter-consumerist wave started crashing. As fewer and fewer middle-class consumers bought goods, they stopped experimenting on “weirder” products. Cultural producers could thus no longer justify making goods that worked as branding projects but had no financial return. Furthermore the new millennial youth generation could not understand the values of either the superficial Bubble kids or the cultural elite obsessed with Western art, music, and fashion. Magazines like Studio Voice and relax folded, while famed Shibuya record stores Maximum Joy and Zest closed their doors. Even HMV — the birthplace of Shibuya-kei as a mass-market genre — disappeared and was replaced with a Forever 21. Avant-garde brands returned to having tiny audiences. Comme des Garçons started up myriad new low-priced, logo-based lines that would appeal to younger and less daring customers.

The culture bubble had popped, and counter-consumerists went back underground.

Marginal subcultures on the fringes

From the 1960s to the end of the 1990s, the upper-middle class and middle-class controlled Japanese pop culture, yet there had always been a few important marginal youth consumer groups outside of the Japanese mainstream. The most solid subcultural voting blocs since the late 1970s have been the otaku — anti-social “nerds” interested in science fiction, comic books, video games, and sexualized little girls (lolicon) — and the yankii — “delinquent” non-urban working class youth with low levels of education and a blue-collar destiny. (The gyaru subculture — originally upper middle-class — should now be seen as the female manifestation of yankii values.)

These marginal groups are true minorities when compared to the mainstream market, but their size is not what makes them marginal. The use of “marginal” here measures the distance from the subcultural consumer segment to both middle-class social norms as well as from the tastemakers, gatekeepers, and workers within the large companies that produce pop culture. The counter-consumers, for example, were never large in number, but they had their hands on the reigns of the culture industry. Otaku may likely work at independent game publishers who make erotic titles, and ex-yankii run yankii magazines, but Japan’s largest and most hallowed culture companies such as Magazine House, Nintendo, Sony, and Uniqlo mostly hire graduates from Waseda, Keio, and other top universities. Otaku and yankii had strong outcast communities, but they essentially had to live on the fringes of pop culture. Yankii and otaku spent their formative years as true social outcasts — blamed as juvenile delinquents and sociopaths.

In times of a substantial and profitable mainstream consumer market, large companies were justified in ignoring the yankii and otaku segments as potential customers. Moreover the culture industry had a great risk in indulging too conspicuously in these subcultures, lest they offend their core of middle-class consumers. Fashion magazine non•no could not have shown a yankii or ganguro girl as a style icon — the editors’ curated style is not just different from the yankii style but fully premised on being a style that is not yankii. Accordingly the major consumer magazine publishers — Magazine House, Takarajima, Shueisha, and Kodansha — never made titles directly appealing to yankii youth. This was left to smaller fringe publishers like Kasakura and Million. Large advertisers — magazines’ true consumers — also demanded that media material be in “good taste” for the very same reasons. They wanted to connect with aspirational upper middle-class culture rather than despised outcast culture.

So until very recently, Japan’s culture industry — dominated by educated upper-middle class counter-consumers — worked hard to appeal to Japan’s large middle class. Tokyo’s powerful consumer base and Tokyo as industry center of cultural production made the wider culture gravitate towards the specific tastes of Tokyo upper middle-class youth. This, however, has drastically changed in the last decade with the fall of middle class consumerism. Next time we will look how the otaku and yankii have taken over the vacuum left by the middle-classes as they exit markets.

Last time we looked at the decline in Japanese wages, increased demand for inferior goods, and decreased demand for luxury brands. This time we look at the effects of lower incomes on markets for explicitly cultural goods.

Part Two: The Implosion of Cultural Markets

Within Japan almost every single market for cultural goods has seen prolonged decreases in sales since the late 1990s or has headed into troubled waters.

• Music: The music market exploded in the 1990s thanks to karaoke, mini-CDs, TV tie-ups, and female-oriented J-Pop but that growth has been completely wiped out and now sales returning to late 1980s levels, even with increased digital downloads.
• Publishing: Revenues in the book and publishing industry decline yearly, and the manga and anime industries are in crisis. Manga magazine sales are collapsing, and even relatively stable single-title comic collections have started to drop. Consumer magazines are going under faster than new titles can be created; just in recent years, we’ve said goodbye to Esquire, Pinky, Studio Voice, and PS. Discount chain Book Off is increasingly unable to sell its cheap used books, CDs, and games. And of course, the Internet has also ravaged porn magazine sales, which kept many publishers in Japan able to support its other non-porn magazines.
• TV: TV viewership is down — with the main broadcast channels routinely getting less than 10% shares weekday prime time — despite no serious competition from cable or satellite TV. 13.5% of young men say they watch no TV. TV sales were down 73% in October 2011, and 75% of 3D TV owners were “disatified” with the technology.
• Clothing: Clothing sales have declined 30% since their peak in 1991, with the men’s suit market essentially halving in size since 1997. Sales are also shifting away from premium goods and onto fast fashion and low priced brands like Forever 21, Uniqlo, and Shimamura. Meanwhile “select shops” — once the main site of sales for small boutique import brands — have shifted their inventory to their own cheaper Chinese-made lines.
• Gaming: Games sales did very well over the last decade, but the once-dominant Japanese game industry has been faltering on the global stage, and even stalwart Nintendo — who hugely expanded the audience for gaming through the Wii and DS — is beginning to see major declines. Sony now makes most of its income from its insurance business rather than its consumer electronics or gaming. Meanwhile working class hobby pachinko is also bleeding money.
• Cars: Although automobiles are not strictly cultural goods, there has been a great decline in Japanese auto sales and part of that stems from young consumers no longer buying cars as part of a “driving” hobby.

One exception is films: 2010 was a banner year for motion pictures at ¥220 billion in ticket sales. The film market, however, is increasingly aggregating around mega-hits rather than supporting a wide diversity of titles. Some key art-house theaters, like Ebisu Garden Cinema, closed after 17 years.

Why the decline?

There are a variety of factors to blame for the declines in these markets. As suggested in Part One, lower salaries have decreased consumers’ discretionary income with which they buy cultural goods. Young workers in particular are having trouble finding work, and when they do, have very low salaries and no clear track for salary increases. Uncertainty about future earnings also means a higher saving rate, which further decreases discretionary spending in the present. Among the marketing community, Japanese millennials are known as the “generation who doesn’t consume.”

Demographics have also played a big part in hurting the cultural industries: An anemic birthrate has evaporated the youth consumer base. In 1964 — at the height of the “baby boom” — 18.6% of the top population was between 15 and 23 (18.03 million). During the Bubble Era, the Dankai Jr. generation made up a relatively high 14.1% of the population (17.47 million). Although statistics are not immediately available for the last nine years, we can assume that the number of youth is already lower than the meager 11.1% of 2000 (14.13 million) — which was already the lowest recorded since 1920. (Statistics from here.) This means that 3-4 million consumers have disappeared from the zone that in the past has been responsible for most cultural expenditure. Smart companies are thus shifting their product lines to appeal to the larger demographic swaths of older, richer consumers.

Moreover young people are increasingly entertaining themselves with free to low-priced content on mobile phones and the web, and to a certain extent (although less than the West), much material is available online in pirated form. Spending has also shifted towards paying off phone bills rather than being spent on CDs and clothing directly like in the past. Phone companies are capturing much more of consumers’ money and then distributing it to content providers themselves.

Isn’t the Internet making up for all of this cultural decline?

Of course, most countries have also seen an implosion of “analog” content in the face of a digitizing world, and Japan is no exception to this trend. Despite high Internet penetration, however, web culture has yet to establish itself as a legitimate pillar of content in Japan. Most offline cultural producers, like newspapers and weekly magazines, do not put a significant amount of material online. There are no start-up sites with the influence of Boing Boing, or the political importance of Huffington Post, Talking Points Memo, and the Drudge Report. There have been few D.I.Y. bloggers who rival offline cultural influencers; no 14 year-old bloggers invited to haute couture fashion shows in the vein of Tavi Gevinson. In fact, the Internet in Japan still retains a “techy” or “nerd” image, and an impenetrable otaku site like 2ch is still the central heart of Internet meme creation.

Magazines in Japan usually directed consumers towards the “proper” goods to buy and how to use them, and there have been almost no websites — at least for traditional mainstream genres like fashion — that have taken over this role from print. Magazines get the latest information and bestow a legitimacy upon their advice. An anonymous kid with a blog just doesn’t have the same effect over the market.

There have been cultural and structural barriers towards moving offline content online and creating new web content businesses (see “The Fear… of the Internet”), and the overall result is that the Internet in Japan is not picking up the slack of the traditional culture markets as they shrink. Most importantly web use in Japan is relatively passive and anonymous, and this only further questions the culture created upon it.

This means that cultural institutions still have to look at analog markets — like the number of CDs or magazines sold — as a way to gauge success and popularity. Our best understanding of a “hit song” in Japan remains a “number one” on the Oricon charts. A “hit” TV show pulls numbers that were once understood to be a “failure.”

The total effect is that as Japan’s economy declines, Japanese popular culture is not just dropping in terms of sales but also in terms of total participation as well as “visible” participation. Consumers were once engaged with pop culture most actively through the act of consumption — buying a CD, book, or video game — but not only have they ceased buying goods, they are increasingly not even participating passively when media is virtually free, like in the case of TV. And they are not building significant new cultural spaces online with the same power, influence, and legitimacy as their precedents. There are almost no barriers to creating and distributing content, and yet the amount of legitimate content with engaged consumers is decreasing.

The U.S., in particular, has seen an explosion of content from cable TV proliferation and new Internet businesses in the last decade, which has made everyone assume the universality of the Long Tail theory. Japan shows the opposite: a decrease in the amount of culture in the market, as well as the number of participants in pop culture. There may not be any parallel to this phenomenon in any other major country.

Next time we look at how the market once made its products for the middle-classes and leading-edge consumers and why it’s no longer profitable to do so.

In five parts, how marginal subcultures took over a Japanese pop culture with no central core nor leading-edge.

Whether or not the country truly suffered something as dire as “lost decades” for the last twenty years, Japan has certainly seen a dramatic change in its social fabric since the bursting of the bubble economy in the early 1990s. Japanese incomes have plummeted since their peak in 1997. Meanwhile companies are shifting more and more job openings to “non-regular” and temporary positions, meaning fewer young workers can even get their foot in the door to future middle-class earnings. Few are confident about their future economic security.

Back when the Japanese economy was strong in the 1980s and even the mid-1990s, Japan arguably had the world’s most vibrant consumer culture. Now in the face of unemployment uncertainty and declining wages, consumers are cutting back, and in response, the marketplace has rapidly shifted from premium goods and services to supplying cheaper substitutes.

So what has this meant for Japanese pop culture? Consumer spending on culture has declined almost parallel to wage decreases, and most markets — music, publishing, fashion — started to slowly implode even before the Internet decelerated demand for analog goods.

The shrinking of cultural markets does not just mean less culture in Japan, however. The hollowing out process has had a distorting effect on the content of the actual culture being produced and distributed. As regular consumers exit the market and leading-edge consumers are forced back underground, “marginal segments” with highly concentrated buying power — particularly, the otaku, yankii, and gyaru — have taken a leadership position in setting tastes and trends. Over the course of this five-part series, we explain this process and also demonstrate the degree to which Japanese pop culture now caters to specific niche audiences rather than reflecting a “mainstream” set of values. Japan may have become the world’s first consumer market without a mass core — and this has significant implications for the future of its cultural exports.

• Part One: Incomes and Consumer Expenditures in Decline
• Part Two: The Implosion of Cultural Markets
• Part Three: Mainstream Consumers vs. Marginal Subcultures
• Part Four: The Rise of Marginal Subcultures
• Part Five: The Difficulty of Exporting Marginal Subcultures

Part One: Incomes and Consumer Expenditures in Decline

Lower incomes, lower allowances

Average Japanese incomes have taken a huge hit over the last 13 years. This chart shows the degree to which salaried employees’ incomes dropped since their peak in 1997. The most significant declines came after 2008’s so-called “Lehman shock,” and even with the slight uptick in 2010 and expected for 2011, wages are still not back to 2008 levels. As Shukan Bunshun calculated, the end result is a loss of ¥220 trillion in lost or declining salaries in the last 12 years (Japan Times). Not all Japanese employees are salaried, of course, but these measures best demonstrate the state of Japan’s middle and upper-middle classes.

Meanwhile the size of the middle class is likely shrinking due to a shift of corporate positions from “regular workers” to “non-regular workers.” Non-regular workers are not guaranteed steady income increases, and therefore, often make 40% of a regular worker salary doing essentially the same job. In 1990, the share of non-regular workers was 20%; in 2007, it was 34% (ref). This has especially affected younger Japanese moving into the workforce for the first time.

Furthermore things have been difficult in the last decade for lower and working class families in Japan, especially the elderly. The number of families receiving government welfare benefits has skyrocketed in the last decade, returning to levels last seen in the early 1960s, before Japan’s “economic miracle.”

Lower incomes mean less discretionary spending. Japanese wives traditionally control the family budget, and in these tenuous times, they are giving less to their husbands as “allowances.” A survey recently found that these allowances are at their lowest point in three decades — ¥76,000 in 1989, now at ¥36,500. Accordingly, men are going out after work less and spending less when they go out. We could assume that parents and grandparents are subsequently giving less to their children in allowances and gift money, although the data suggests that these allowances have not fallen particularly hard. This may be balanced out by the fact that grandparents and parents are able to concentrate smaller payments on fewer children in light of steeply declining birthrate.

Lower expenditures and more inferior goods

With lower incomes and low confidence about future earnings, Japanese consumers have been demanding less expensive products. Many enterprising companies such as clothing brand Uniqlo, beef bowl purveyor Sukiya, and fast food chain McDonalds have reorganized their businesses to provide consumers with the cheapest possible goods. These companies have either taken dominant positions in the market — Uniqlo’s so-called hitorigachi “winner takes all” — or seen record profits like McDonalds.

The proliferation of discount retail and restaurants does not necessarily mean that Japanese people are living worse lives. Deflation has finally brought once sky-high Japanese prices for everyday items in line with Europe and the United States. For example, Uniqlo — which is “extremely cheap” in the eyes of most Japanese — sells relatively high-quality garments at the price American customers expect to pay at a mid-range brand like The Gap. In many ways, deflation has empowered Japanese consumers to get more for their dwindling yen.

What is troubling, however, is the market’s move towards meeting consumer demand with inferior goods. Inferior goods, economically-speaking, are goods that see demand increase as incomes fall. In these instances, consumers choose poor-quality, substitutes for a preferred item. Instead of buying a normal good like fresh deli ham, consumers go for a cheaper, less satisfying product like Potted Meat Food Product. If given limitless choice, the consumer would obviously choose the normal good over the inferior one.

In the case of Japan over the last decade, we have seen a significant rise in popularity of inferior goods and a decrease in demand for premium goods. Japan’s most notable inferior good of the moment is “third-category beer” — a beer-like beverage with nearly zero malt content that sells for slightly less than real beer. Japanese consumers facing no economic constraint would choose Japan’s most iconic (and not particularly expensive) mass market beers such as Asahi Super Dry or Kirin Ichiban Shibori over third-category beer. So what does it say about the consumer market when Japan will soon have a majority “fake beer” market for malt-flavored beverages? Even with falling demand for beer-like drinks, third category beer is seeing growth. This is a sign that the consumer living standard considered normal just a decade ago has fallen dramatically into a new “basket of goods” that would once have be seen as only appropriate for the relatively destitute.

This income-driven demand for cheaper goods is thus changing how companies prioritize production and marketing. Suntory — with a product line that ranges from cheap hooch Tory’s to global award-winning Yamazaki single-malts — has ceased to promote its mid-range whiskeys such as Suntory Old and focuses its mass media campaigns almost exclusively on the cheapest products that can be mixed in low-price highballs. Until recently, Tory’s was a post-war relic that had generally disappeared as the country grew rich, but now Suntory buys extensive train advertisements for this whiskey, which costs only ¥1080 for a 700ml bottle. The company has also invested heavily into entire TV campaigns around the slightly higher-grade but still cheap Suntory Kakubin with stars Koyuki and Kanno Miho.

On the other end of the spectrum, luxury sales in Japan have essentially collapsed. Middle-class Japanese shoppers — buying in Japan and abroad — once made up the single largest global market for European luxury goods. Now China is set to overtake Japan in terms of luxury demand. Although the market for import apparel and accessories peaked in the mid-1990s and department stores — one of the main sites for luxury consumption — have suffered a structural and steady decline since that time as well, the top global brands such as Louis Vuitton, Gucci, and Prada managed to achieve strong prolonged growth within a nominally shrinking market.

Since 2008, however, most of the luxury brands have seen serious drops in sales. And even with luxury’s bounce-back around the rest of the world, Japan experienced a continued decline in sales until a slight uptick very recently. Louis Vuitton and Gucci bags were once the mainstream standard for middle-class (and even lower middle-class) women, but judging from the streets of Tokyo, young women now prefer furoku canvas bags that come for free inside of a magazine. There have been signs of slight luxury business recovery in recent months, but this can mostly be explained as Japan’s upper class going out to shop again and Chinese consumers visiting Tokyo. Luxury goods will likely never again be a part of the middle-class “standard.”

Japan, of course, was always an exception here: Young clerical workers with low incomes generally do not put themselves in debt to buy handbags intended for the very rich. Still, this is another example of how Japanese consumers have completely changed their lifestyle expectations regarding consumption over the last decade. In the next part of the series, we will see how lower incomes and reduced expenditures have directly impacted markets for cultural goods.

Next time: How markets for cultural goods have imploded in the last decade.