Japan firms turn ink shortage into opportunityーNHK WORLD-JAPAN NEWS

NHK WORLD-JAPAN

12,059 views • Save 0 min (3 min read) • 10 days ago

Video Summary

Japanese retailers are adapting to supply chain disruptions caused by Middle East instability, which have led to shortages of chemicals for ink. Companies are switching to black and white packaging to cut costs and reduce prices. One discount retailer reported a 7% reduction in production costs, leading to a 20% price decrease for some products. However, the simplified design has made it difficult for customers to distinguish between product flavors. Another company, a tea shop, has introduced a reuse scheme for its packaging, offering customers extra tea bags for returning empty pouches. This initiative was prompted by shortages of raw materials like naphtha. Both approaches aim to mitigate supply pressures and turn challenges into opportunities.

Short Highlights

Companies are switching to black and white packaging due to chemical shortages.
Simplified packaging has led to customer confusion about product flavors.
A tea shop introduced a reuse program for packaging, offering incentives.
These changes aim to address supply pressures and reduce costs.

Key Details

Shift to Black and White Packaging [00:00]

Instability in the Middle East has caused supply disruptions for chemicals used in ink.
Japanese companies are switching to black and white packaging.
This change aims to reduce costs and adapt to the current environment.

Cost Savings and Price Reductions [00:41]

A discount retailer cut production costs by 7% with standardized black and white packaging.
This led to a price reduction of over 20% for a 500 ml bottle of water.

"The black and white design feels a bit plain, but I'm glad the price is lower."

Customer Identification Challenges [01:07]

The simplified design has made it difficult for customers to distinguish between product flavors, such as soy sauce and miso ramen.
Customers found it harder to differentiate between flavors with more white space.

Improving Product Clarity [01:31]

The company is exploring ways to make product features clearer, like larger flavor labels.
They aim to keep prices unchanged while improving the product.

"We'd like to continue the initiative while improving the products."

Rethinking Disposable Packaging [01:52]

A Japanese tea shop is rethinking disposable packaging by introducing a reuse service.
Customers can return empty tea pouches to the shop to be refilled.

Reuse Incentive [02:12]

Customers who return an empty pouch receive six tea bags instead of the usual five for the same price.

Raw Material Shortages [02:23]

The initiative followed shortages of raw materials like naphtha at the company's packaging plant.
The company had to limit orders to business partners.

"We've had to tell our business partners that we are unable to accept orders beyond last year's levels."

Expanding Reuse Services [02:48]

The company turned its attention to reusing durable pouches that preserve tea quality.
The initiative has gained customer support, and the company hopes to expand the service.

"The naphtha supply issue linked to the Middle East situation was one trigger, but regardless we'd like people to see reuse as one viable option."

Adapting to Supply Pressures [03:10]

Japanese companies are adapting to supply pressures with ideas ranging from simplified packaging to reuse schemes.
The question remains whether these efforts will spread more widely.