As you know, Japan is a country of frequency earthquakes. There is no end to the number of earthquakes occurred in Japan. For instance, the great east Japan earthquake is still fresh in our memory. It stroked five years ago, but a lot of people in Hukushima prefecture are suffering even now. Some of them are still living in temporary houses, and searching for missing person. This huge quake affected to several nuclear power plants and high levels of radiation have been detected. It also caused a fire in an electrical transformer at the Kashiwazaki Kariwa nuclear power station. It is the first time that an earthquake has caused such serious troubles at a nuclear plant in Japan. In addition to this, just a few days ago, there was a large earthquake in Kumamoto prefecture where is the south side of Japan. Now, many local people in Kumamoto are struggling because of losing their houses, hundreds of aftershocks, and insufficient daily necessaries. By the way, my grandparents and a lot of relatives are living in Kumamoto, so I was really upset when I knew about it, and called them again and again. (They are all safe, fortunately.)

 　

 Thus, we have to get along with earthquakes as long as we live in Japan. And regardless to say, every time earthquakes effect to our economy and markets heavily. This time I want to show some trends in business and a success example.  

  First, the products and services which relate to save energy, protect people from damage of earthquakes and support victims of the disaster are usually sold a lot by reflecting needs of consumers. This trend is relatively easy for us to imagine. Then, how about this? A research in America showed an interesting outcome. According to the investigation about luxury brands conducted by McKinsey & Company, many of consumers avoid to spend money too much to extravagance after the great east earthquake in Japan.

The targets of the survey are twenty companies which produce luxury products and develop in Japan. About two thirds of them decreased March sales more than 10% compared with the sales of last year. “It is shameful to show off the luxury items to everyone.” The half of customers answered like this in the survey after such a big disaster, and this doubled from last year more than 24%.

Needless to say, every high brand companies were suffered to increase profits. For example, Louis Vuitton closed their shops for about a week at March as they received the damage of the great east Japan earthquake. Also, COACH declared that they had a financial loss for about twenty million dollars at their financial report.

However, one company could success to increase its sales in spite of unfavorable circumstances. It is Loewe, which was established at 1846 in Spain. They fixed their profits at a high level of 11% increase from the year earlier month. Why their products sold well in a mood of self-restraint although it is expensive more than the competitive?

 One of the notable reason is “sustainability”, which is the key word of consuming after the great east Japan earthquake. If we buy cheap products which attach greater importance to trend of design than to quality, we can enjoy it but easy to be bored. Some people buy it a lot in every seasons. On the other hand, high brands such as Loewe value the premium, and the image applied to the needs of consumers who demand the sense of security. Also these brands are usually good at after purchase services and fixing. People who damaged by the disaster may have a desire which can satisfy with a sense of security by buying those products. In another words, the terrible earthquake and various damages to Japanese people arouse the feeling of guilty to consume too much, and it connected to buy high-quality products which can use for a long time even though it is expensive. Many consumers start to be attracted lifetime value of brand products more than just appearance and cheapness.

Now, it passed only three days after the earthquake in Kumamoto had happened. I want to watch what trend will occur in this time. But before that, I will do what I can do to the people who are still suffering in Kumamoto as possible as I can.

 　

Fujita, Y. (2011, July 4). 震災後のマーケティング-アフター311の社会をどう読むか-. Retrieved April 17, 2016, from http://www.nikkeibp.co.jp/article/column/20110630/276047/