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Japan Internet Report No. 43 - November 1999

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In this month's issue:

- Online focus groups are powerful magic
- My latest kick: Online finance
- Interview with Ken Lunde of Adobe
- Book of the month
- Fixed-rate access roundup
- Game players no joke
- Japan Internet Report schmoozers rock Aoyama Diamond Hall

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Online focus groups are powerful magic

Last month we conducted a kind of "online focus group" session with nearly 40 consumers in Japan. The results were remarkable. The participants provided clear, detailed (and eye-opening) feedback that had major impact on a startup's plans for its service name for the Japanese market. What's more, it was possible to design and implement the survey, gather the data, compile and analyze results, and fulfill the participant incentives in a total of only five days. Not only that, the cost of the participation incentive, including direct delivery, was less than U.S. $11 per respondent.

This latest experience reinforced my long-held conviction that the Internet is the perfect medium for initiating and maintaining dialogs with consumers. With consumers in Japan, especially, it offers the peculiar yet powerful combination of privacy, anonymity, and intimacy - perfectly suited to the Japanese style of communicating. And unlike expensive, on-the-ground focus groups, you can eliminate dominant personality and other biases. As my colleague, Steve Kemper, would say, "That's powerful magic!"

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My latest kick: Online finance

Time to give cell phones and convenience stores a much-needed break. My latest kick is online finance.

My interest comes not so much from being a user; I have online accounts, but rarely trade. What intrigues me is the tremendous impact the Internet, and specifically the dramatic rise of online trading in the U.S., has had on Japan's finance sector and regulatory environment.

Basically, Japan's "Big Bang" in financial reform has now made it possible for consumers to enjoy a surprisingly broad range of finance-related services online. There are already 40 companies offering online retail securities trading services, and that number will grow to at least 45 by April of next year. More than 60 banks have started offering online banking services. Even the Ministry of Posts and Telecommunications (MPT), the government body that handles the nation's massive postal savings system, says it will start offering online banking services in March of 2000.

Meanwhile, insurance companies, credit card firms, and financial aggregators are getting into the act. Consumers can now apply online for auto, overseas travel, term life, and other types of insurance. Credit card users can peruse their statements or apply for loans using the Internet. And aggregators are providing "one-stop shopping" centers that enable consumers to request multiple insurance estimates or brokerage materials by filing a single application.

Soon it may even be possible to procure funds online. A director at Wit Capital Japan, which plans to invest in startups, then make money by selling public offering shares online at the retail level, says that "we'll invest five hundred million, even a billion yen, in a company with a truly leading-edge Internet idea."

Looks like I might be on this kick for a while. Stay tuned...

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Interview with Ken Lunde of Adobe

This month we were honored to hear from Ken Lunde, Manager of CJKV Type Development at Adobe Systems, and author of Understanding Japanese Information Processing and CJKV Information Processing, two books that are acknowledged worldwide as THE authoritative works on double-byte computing.

- This is a great opportunity to directly query the ultimate authority on this issue: How do you pronounce your last name? Do you pronounce the "de" as in "deal," or does "Lunde" rhyme with "fund"?

Yes, the final "e" is pronounced. The first part rhymes with "fund," and the last part is like pronouncing the letter "d."

- Many people consider you the world's leading authority on double-byte computing issues. How do you see yourself in this regard? Who else do you consider to be world-class experts in this area?

I simply think of myself as someone who wants to make others aware of the issues surrounding multiple-byte characters. There is not enough information out there, and what is out there is not very accurate. I have known people who try to keep multiple-byte information like a "black box" so that others continue to depend on them. I, on the other hand, like to educate others about these issues, so that they can take matters into their own hands, and drive their own destiny. Nothing is a "black box" as long as complete and accurate information is available. I don't consider myself to be an expert, but simply that I like what I do. But, sometimes I wonder how many companies today exist because they were able to use information in my first book, "Understanding Japanese Information Processing" (O'Reilly, 1993). I may never know the answer to this question.

As far as others out there in this field, it is difficult to name names, but there are plenty of companies that I highly respect because of their positive attitude toward multiple-byte issues and providing users with excellent software solutions to solve their multilingual problems. My employer, Adobe Systems, is one, of course. Other companies include Basis Technology, who has a very sharp President (Carl Hoffman); Netscape Communications; Apple Computer; Microsoft; The Unicode Consortium; and many others.

- What are some of your favorite Japanese language Web sites? Are there sites you use frequently as professional references?

I actually like using http://www.yahoo.co.jp/ as a starting point for Japanese web surfing. One recent favorite, though, is:

http://www.godzilla.co.jp/

When I was on vacation in Japan this August, I went to Toho Studios, and was able to actually watch a few seconds of the filming of the upcoming "Godzilla 2000" movie, which is being released this December in Japan. It was a water scene, in Toho Studios' pool. I was able to watch the actor get inside the Godzilla suit, which took about 20 minutes in itself. All the preparation was for about 10 seconds of the movie. It was an exhilarating experience. (Thank you, Hitomi, for such a wonderful birthday present!)

- Aside from the issues associated with robust localization, how can U.S. software companies be more successful in Asia Pacific markets, especially Japan? Do you get involved in international marketing issues at Adobe?

Provide multiple-byte functionality in English-language versions of their products. Although full localization requires manual and UI translation, and also locale-specific enhancements, overseas users often "preview" software by obtaining the pre-localized versions. Also, the sooner that localized versions are released, as compared to the English-language product, the better. Users everywhere prefer to use the latest version. It also tells users that you indeed care about their market, and provide them with a version that they can use without worrying about an English manual or an English UI.

I don't really get involved in marketing issues at Adobe. I'm more of a technical person. But, I do interact with our marketing people from time to time.

- You undoubtedly get tons of e-mail from fans, developers, and all sorts of other folks. What single question do you most wish someone would ask you, and what would your response be?

Yeah, I get quite a bit of email regarding my books. People usually have a question, and I try my best to find the answer for them. I also get people who point out errors or out-of-date material -- I am always grateful for such information.

I sort of wish that people would ask about some of the humor I put into the book. Some of it is subtle, and some not-so-subtle. For example, just skimming through the Index might be fun, just to see what sort of things I included. Some footnotes also have humorous overtones. As a clue, look at the first letter of the first four paragraphs in the book's Preface. What does it spell? (Buy it to find out! - Ed.)

- What will the next book be about?

I haven't thought that far ahead. My latest book, "CJKV Information Processing," is currently being translated into Japanese and Chinese.

- Windows 2000 is based on Unicode and is designed to accommodate all character sets, eliminating the need for language kits, plug-ins, and so forth (we're using a beta version in-house at TKAI and so far it's working well for Japanese, Chinese, and Korean). What is your assessment of this product and its impact on the world of multilingual computing?

I have not personally used Windows 2000, but from what I have heard from people who are using it, it is very good. Including CJKV support as they are is a really good thing for users. I feel that it will indeed change the world of multilingual computing. Best of all, Windows 2000 will include OpenType support at the OS level. Being a developer of fonts, this is near and dear to my heart.

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Ken Lunde, Manager
CJKV Type Development
Adobe Systems Incorporated
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Book of the month

How could it be anything but CJKV Information Processing?

Buy it now at Amazon.


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Fixed-rate access roundup

After four years of griping about the situation in Japan Internet Report, it's gratifying to finally see that fixed-rate Internet connectivity is finally starting to happen in Japan. In addition to the high-profile TEPCO/Softbank/Microsoft, Sony, and Fujitsu deals, there are a host of new fixed-rate connectivity offers coming down the line.

For example, KDD says that this month it will start offering some Tokyo residents unlimited dial-up connectivity for a fixed monthly fee of 2,500 yen (about $24). A similar service from NTT service will cost about 8,000 yen (about $76) per month. And if negotiations with NTT are successful, MITSUI & CO., DDI, and 13 other companies will soon establish a joint venture to offer DSL services that would be provided on existing NTT-owned lines at a fixed monthly cost of less than 5,000 yen (about $48) sometime next year.

Meanwhile, Tokyo Metallic Communications says that this month it will offer high-speed DSL connectivity service on a trial basis under a partnership with KDD and KDD subsidiary KCOM. Fixed monthly charges for the new service will initially be set at 5,500 yen (about $52) and 30,000 yen (about $286) for individual and corporate accounts, respectively.

All this activity is making current players snap to attention. For example, DDI announced that effective November 1 it will reduce rates for its dedicated, fixed-rate "DION" Internet connectivity service, undercutting NTT Communications' 32,000 yen-per-month ($305) "OCN Economy" service. NTT Communications has already countered with special discounts...

So it looks like 2000 is shaping up to be the year that unlimited Internet access becomes available in Japan, if only in the major metropolitan areas. That will be a significant step toward enabling the unlimited browsing environment that is so important to making the Internet a useful tool and outstanding source of entertainment, enlightenment, and of course, wasted time...

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Game players no joke

Because my kids are still too young to use video games, and because I personally have little interest in such games myself, I've largely been ignoring the booming Internet-enabled game console sector in Japan. But you shouldn't: Sony Computer Entertainment (SCE) has shipped some 70 million PlayStation game machines worldwide, and SCE President Ken Kutaragi predicts that the company will sell more than one million units of its new model, the PS2, in the first two days following its scheduled March 4, 2000 release.

What's significant about the PS2, aside from its advanced network compatibility, is that it will play DVD-Video. So far, only about 300,000 dedicated DVD players have been shipped in Japan, so if Kutaragi's prediction comes true, SCE will eclipse this entire installed base on the first day of sales...

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Japan Internet Report schmoozers rock Aoyama Diamond Hall

Nearly 170 Japan Internet Report readers and friends flocked and rocked Tokyo's Aoyama Diamond Hall for the second annual JIR Schmooze & Booze Spectacular October 20. Thanks to all who came - after we've finished sorting out the meishis, we'll get back to all attendees with a special announcement.

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Tim Clark
Editor

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Copyright 2002 by Ion Global and Digitized Information, Inc.
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T.K. Associates International, Inc. (USA)
Japanese e-business specialists
http://www.tkai.com/
Tel. (503) 235-4433 Fax (503) 235-4422
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