I spent the past week in Seoul and Tokyo, visiting with our impressive local teams and calling on our global clients. In the course of the trip, I delivered a lecture at a leading university in Korea, walked through a grocery store in Japan to compare prices to the U.S., visited an upscale department store in Korea, met with officials from the Tokyo 2020 Olympics group and listened to a renowned Buddhist monk who achieved a goal last accomplished one thousand years ago.
Here are some observations from the journey:
1. The Print Media Is In Deep Trouble — At Ewha Women’s University in Seoul, I asked for a show of hands from the 200 communications and media majors that had read the newspaper, either print or online, that morning. The answer shocked me. Not a single hand raised, nor had they watched television. Their entire world view is shaped by social media, either Facebook or Kakao. In fact, the media titans of Korea make their money from broadcast, not print.
2. The Retail Experience in Korea and Japan— The Lotte* department store in Seoul was filled with visitors from China, who were buying expensive clothing, watches, shoes and jewelry. The first floor of the Lotte store was reminiscent of Bloomingdales in New York City, with perfume and cosmetics, then space leased to upscale merchants such as Gucci. The grocery store in Japan was a study in contrasts. The meat, especially lamb from New Zealand, was very affordable, while the fruit was stunningly expensive, each apple or pear individually wrapped.
3. The Buddhist Monk — The Daiajari Ryojun Shiomura went to the monastery at 19 years old. He felt called to take the challenge of walking up a mountain near Kyoto every day for 1,000 days. He would awake at 11:30 at night to begin his twelve mile climb, then the descent on aching legs to return by 3:30 pm. He did this in 100 degree heat and freezing cold. He did it when he had a high fever from flu, hallucinating as he ascended. He practices walking meditation, always moving ahead. Following that, he fasted for nine days, consuming neither food nor water, staying awake and standing the entire time. He recently visited Chicago where he was convinced that he ate quiche for the first time; I was quick to point out that it was more likely deep dish pizza.
4. The Tokyo 2020 Olympic Games — The country is already excited about the Games, to be held four years hence. If the 1964 Games were proof of Japan’s return to the global community post World War II, these Olympics will be an opportunity for the nation to reclaim its position as a dynamic and imaginative force on the world stage. After twenty years of deep sleep, the economy seems to have rallied from a combination of economic stimulus and booming exports. Prime Minister Abe’s appearance as Super Mario at the conclusion of the Rio Games captures the whimsy of a Japan determined to break free of the stereotype of hierarchical and programmed lifestyle.
5. The Specter of China — While I was in Korea, Filipino president Rodrigo Duterte stunned the world during a visit to Beijing by stating that his country would no longer align its foreign policy with the U.S., preferring to make common cause with China and Russia. Chinese companies are coming, moving from value brands to quality entries.
The historic quarrels between Japan and Korea pale in importance to the bigger question of extent of U.S. commitment to the defense of the region.
6. The Rise of Women — In two countries where women have played a supporting rather than principal role, I saw evidence that the tide is turning. In Japan, the aging of the population would normally be a matter of vital concern to industry, but the greater participation of women in the work force and the willingness of older workers to continue to toil is an effective offset.
7. Robots — Japan is the world leader in robotics. In fact, there are now even robots for folding shirts in the dry cleaners and for chopping vegetables in restaurants. The automation is allowing the nation to continue to compete in auto manufacturing and electronics. But I noticed a sharp increase in men waving orange plastic batons at construction sites to ward off oncoming cars or hostesses at every entrance to an office building to make sure that you get into the taxi without hitting your head. Every one of these workers is doing his or her best to perform with the utmost enthusiasm and concern for customer satisfaction, most notably the lady at the check-out counter at the grocery store who thanked me profusely for my $10 purchase of cheese and crackers.
8. Impact of Trump — The business executives and government officials wanted to be reassured that Hillary Clinton would be the next President. Trump’s threat about cutting off military support in both Japan and Korea unless U.S. troops are fully funded by host governments has had an effect. So has his bluster about the birth place of President Obama. One very upset student at Ewha Women’s University asked me whether PR has turned into propaganda and whether there is any difference given the present U.S. campaign.
There is no substitute for going to the markets, having a night out bowling with the crew in the Tokyo office (replete with sliders and beer), seeing the stunning work for the Almond Board of California* in Seoul and understanding the opportunity for the PR business to morph into a true contender for marketing dollars that will come out of advertising in the next decade. Our firm is evolving quickly. The best creative no longer has to originate in Chicago or London; it will be coming from Stockholm, Tokyo and Seoul as well.
Richard Edelman is president and CEO.
*Edelman client