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Kogal Effect on Keitai Innovation: The Latest in Mobile Phone Lifestyles in Japan and Beyond April 17, 2004 Yuichi Washida Comparative Media Studies at MIT Hakuhodo Inc. 1

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Page 1: Keitai Innovation: Kogal Effect on · brother sister calls on fixed phone calls on cell phone SMS or email via cell phone email via personal computer 0.0 5.0 10.0 15.0 20.0 25.0 30.0

Kogal Effect on Keitai Innovation:

The Latest in Mobile Phone Lifestyles in Japan and Beyond

April 17, 2004

Yuichi Washida Comparative Media Studies at MIT

Hakuhodo Inc.

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Central Question:

How influential are Japanese young women in cutting edge mobile phone industries?

Why are they so influential even though they are not techies?

What is the meaning of “cutism” in marketing?

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Mobile Phone Subscribers in Japan

Market size

9,989,739

4,075,8181,378,599

20,876,820

91 93 95 97 Time

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Survey:

USA (around NYC) Japan China (central Shanghai) Sweden

Aged 15 – 24 200 samples per each country Oct. – Dec. 2003

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Personal calls on a fixed phone

0.0 20.0 40.0 60.0 80.0 100.0

26.9

44.0

39.0

3.5

27.5

9.5

36.6

5.5

Several times a day Once a day

USA

China

Sweden

Japan

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Personal calls on a cellular phone

57.7

40.0

24.7

9.5

28.6

7.5

28.4

15.0

0.0 20.0 40.0 60.0 80.0 100.0

Several times a day Once a day

USA

China

Sweden

Japan

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Personal SMS/e-mail through

cellular phones

6.9

10.0

40.2

60.5

6.5

4.5

19.5

12.0

0.0 20.0 40.0 60.0 80.0 100.0

Several times a day Once a day

USA

China

Sweden

Japan

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Images of cell phones removed for copyright reasons.

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“otaku” Male aged 20s-40s

Techno-geeks, Nerds

Anime, Star Wars fan

Non-athletic

Plastic model fan

backpack, small gadgets

Keen to ‘function’

Get it quick,

but bored soon.

Images of people removed

for copyright reasons.

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However, their cell phones look rather old. Bar-type and basic models are dominant.

Images of cell phones removed for copyright reasons.

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“kogal”

Female aged 10s-20s

Very sociable, girlish fashion

Love taking self-pictures

Digital camera, Camera-phone

Love character goods

Sensitive to ‘cute,’ or ‘beautiful’

Create new usages, new names

Get it slowly, but enjoy longer.

Images of people removed for copyright reasons.

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They have the latest models, and enjoy “mobile phone life.” Flip-type, Camera-phones, Ring tones, and Cartoon screen savers.

Images of cell phones removed for copyright reasons.

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Total comparison of each communication rate

100.0

80.0

60.0

40.0

20.0

0.0

mother father sister brother spouse cousin

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male

female

0.0 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

mother father brother sister

calls on fixed phone

calls on cell phone

SMS or email via cell phone

email via personal computer

0.0 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

mother father brother sister

calls on fixed phone

calls on cell phone

SMS or email via cell phone

email via personal computer

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male

female

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2002 2003

calls on fixed phone

calls on cell phone

SMS or email via cell phone

email via personal computer

0.0

20.0

40.0

60.0

80.0

100.0

120.0

calls on fixed phone

calls on cell phone

SMS or email via cell phone

email via personal computer

2002 2003

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Sha-mail

Images of people removed for copyright reasons.

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Pet screen-saver

Images of dogs, cats and duck removed for copyright reasons.

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Ring tone services “Chaku-melo” history

1997 The first ring tone delivery service was launched. (single sound, single tone color)

1998 NTT DoCoMo launched i-mode. 1998 Some small young women communities

started providing R&B music data for ring tone functions as free contents.

1999 4-chord sound, multiple tone colors 1999 The first ring tone magazine was launched. 2000 16-chord sound, 128 tone colors 2002 40-chord sound, 128 tone colors 2003 CD-quality ring tone “chaku-uta” was

launched. 2004

Total market size in Japan will reach $1 billion (regular CD annual sales are $4 billion)

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Curious Phenomenon between “otaku” and “kogal”

1. Japanese marketers have witnessed many cases in which major target of one product have changed spontaneously from males to females.

2. When the major target starts changing, the market size grows very rapidly. (more than 10 times)

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Two types of feedbacks in each stage

“otaku” “kogal” masculine consumers

Winners take all

feminine consumers

Trial and error approach

in real market ‖ ‖ i.e., they become de

i.e., hands-on facto standards test marketing

Recovery of initial Investments risking investments plus

losses large profits 10%

Time lapse

Sp

rea

d ra

te

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Diffusion Dynamics Hypothesis

Each community of consumers gives new meanings for each technology or product during conveying knowledge and information.

“otaku” effect “kogal” effect

Spread

rate

Current

Experts

Alternative

Value

Discoverer

Assimilators

Value

Amplifiers

Word-of-mouth communications

Time laps 21

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Current

Experts

Diffusion Dynamics Hypothesis

Each community of consumers gives new meanings for each technology or product during conveying knowledge and information.

“otaku” effect “kogal” effect

Spread

rate

Alternative

Value

Discoverer

Assimilators

Value

Amplifiers

Word-of-mouth communicationsBar-type

Basic function

Time laps 22

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Current

Experts

Diffusion Dynamics Hypothesis

Each community of consumers gives new meanings for each technology or product during conveying knowledge and information.

“otaku” effect “kogal” effect

Spread

rate

Alternative

Value

Discoverer

Assimilators

Value

Amplifiers

Word-of-mouth communicationsFlip-type

Cartoon Characters

Bar-type

Basic function

Time laps 23

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Current

Experts

Assimilators

Diffusion Dynamics Hypothesis

Each community of consumers gives new meanings for each technology or product during conveying knowledge and information.

“otaku” effect “kogal” effect

Spread

rate

Alternative

Value

Discoverer

Value

Amplifiers

Word-of-mouth communicationsFlip-type

Cartoon Characters

Camera-phone

Ring tones

Mobile emailingBar-type

Basic function

Time laps 24

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Current

Experts

Assimilators

Spread

rate

Alternative

Value

Discoverer

Value

Amplifiers

Word-of-mouth communicationsFlip-type

Cartoon Characters

Camera-phone

Ring tones

Mobile emailingBar-type

Basic function

“otaku” effect “kogal” effect Development in functionalities

Time laps 25

Diffusion Dynamics Hypothesis

Each community of consumers gives new meanings for each technology or product during conveying knowledge and information.

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Current

Experts

Assimilators

“kogal” effect

Spread

rate

Alternative

Value

Discoverer

Value

Amplifiers

Word-of-mouth communications

“otaku” effect

Flip-type

Cartoon Characters

Camera-phone

Ring tones

Mobile emailing

Development in functionalities Development of communications

Bar-type

Basic function

Time laps 26

Diffusion Dynamics Hypothesis

Each community of consumers gives new meanings for each technology or product during conveying knowledge and information.

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Difference of Innovation Pattern

“Japan model” “USA model” “Europe model”

The F

irst P

hase

The S

econd P

hase

Collaboration with male consumers such as “otaku” in the market. Development of functionalities

Collaboration with female consumers such as “kogal” in the market. Development of usages

Competition in the development of new products based on lots of venture companies. “Entrepreneurship” is needed.

M & A, distribution, and branding by major companies.

Development and innovation for new concepts and products in academic sector and the fields of research.

Manufacturing to meet market demands by private sector.

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Conclusion 1:

Now Japanese manufacturers focus on the deep collaboration with consumers, especially young women, because young women have created a variety of new communication culture.

The “cutism” is a major driving force to create new communication culture. Japanese women love to share the feeling of “cute” with friends and family.

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Conclusion 2:

After the “Number Portability” and “camera phones,” the penetration rate of cell phones the US began growing Rapidly (now 51% of total population).

It means that in the near future, the similar “media environment” may come to the US.

It is the good foresight for US media study to take a look into what is going on in the Japanese consumer society.

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MIT OpenCourseWarehttp://ocw.mit.edu

21G .067J / WGS.608J Cultural Performances of AsiaFall 2005

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