Consumer electronics in Japan

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The Japanese consumer electronics industry is a prominent industry and home to companies such as Sony, Casio, Hitachi, Denon, Toshiba, NEC, TDK, JVC, Panasonic, Roland, Fujitsu, Canon, Sharp, Fujifilm, Rohm, Plextor, Korg, Pioneer, Kyocera, Konica Minolta, Maxell, Mitsubishi, Mutoh, Technics, Ricoh, Pentax, Olympus, Nintendo, Sanyo, Epson, Nikon, Yamaha, Seiko, Citizen Watch and Kenwood.

These companies primarily manufacture televisions, music players, refrigerators, video game consoles, still and video cameras, pianos and computers. They also produce professional sectors such as the professional television, photo camera, monitor, equipment and wide-format printers.

History

After World War II, Japan started to develop consumer electronics products rapidly using keiretsu methods. By the 1980s, a relatively small number of industries dominated Japan's trade and investment interaction with the rest of the world.

Sony was founded in 1946 by Masaru Ibuka and Akio Morita and took off advancing in the electronics field rapidly. They each had skills that would bring it to the top of the industry, one with marketing savvy and the other with great innovation. They had soon invented the first pocket transistor radio in the world.

The industries producing consumer electronicseceivers, compact disc players, other audio components, tape recorders, television receivers, video cassette recorders, and video camerasere major exporters that invested overseas in the 1980s. In 1991, 46.7 percent of color televisions and 87.3 percent of video cassette recorders produced in Japan were exported. The export shares of some products were too small to show separately in summary trade data, but audio tape recorders represented 2.9% of total Japanese exports in 1988, video cassette recorders 2.3 percent, radio receivers 0.8 percent, and television receivers 0.7 percent, totaling 6.7 percent.[citation needed]

These industries built Japan's success in developing commercial applications for the transistor in the 1950s and generations of semiconductor devices of the 1970s and 1980s. Output came from large, integrated electronics firms manufacturing semiconductor devices, consumer electronics, and computers. The companies international success came from continually pushing miniaturization and driving down manufacturing costs.[citation needed]

The industry today

Japan is the largest consumer electronics manufacturer in the world because of its high concentration of companies in the country. One of the reasons of the success of Japanese consumer electronics is that its products are often thought of as high quality and inventive (such as the Sony Walkman and VHS).

Japan's success overpowered the United States consumer electronics industry. Charges of dumping and other predatory practices led to orderly marketing arrangements (voluntary export restraints) by Japan in 1977. Restraints limited the export of color televisions to 1.75 million units annually from 1977 to 1980. The agreement gave some protection to the United States' domestic industry. Japanese companies responded by investing in the United States. By the end of the 1980s, only one United States-owned television manufacturer remained; the others had disappeared or were bought by Western European or Japanese firms.[citation needed]

Japan pioneered the color television. Video cassette recorders, video cameras, and compact disc players were developed for the consumer market during the 1980s by Japanese firms.

Japan's overseas investment in the consumer electronics industry was motivated by protectionism and labor costs. After three years of voluntary export restraints, seven Japanese firms located plants in the United States by 1980. Japanese firms continued production of the most technologically-advanced products, while shifting production of less-advanced products to developing countries, such as Taiwan. Moving production caused Japan's export of color televisions to fall during the 1980s, from 2 percent of total exports in 1970 to only 0.7 percent in 1988.[citation needed]

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