News On Japan

Is 260,000 Yen Too Expensive? Outsiders Create Luxury Sake Market

TOKYO - In the world of Japanese sake, luxury brands with prices ranging from tens of thousands to hundreds of thousands of yen are gaining prominence. The driving force behind this trend is startups led by individuals with experience in IT. These outsiders are challenging the high-end sake market using a fabless manufacturing approach, where they don't own the production facilities.

Is 260,000 Yen Too Expensive? Outsiders Create Luxury Sake Market

At Shibuya Mark City in Tokyo, a store that offers around 2,000 types of sake is currently highlighting a brand called Sake Hundred. Among its lineup, the "Hikari" variety is priced at approximately 40,000 yen, while the sparkling sake "Byakko" costs 30,000 yen. These high-priced products are rarely available online, making their physical presence in stores highly appreciated by customers, including tourists who buy them as souvenirs.

The startup behind Sake Hundred, which does not own production facilities. CEO Ikoma explains that they delegate sake production to partner breweries across Japan. Clear's role is to design the concept and flavor of the sake, which is then manufactured by the breweries.

In Kumamoto, Clear's manufacturing manager Kawase regularly visits partner breweries to fine-tune the taste. By collaborating closely with brewers, they aim to produce even better sake. Kawase emphasizes that their process involves frequent consultations to ensure the feasibility and quality of their products.

Clear's founder, Komasa, entered the sake industry after working in IT and starting a sake-focused media outlet in 2014. In 2018, he launched the Sake Hundred brand. Komasa's passion for sake and frustration with the industry's economic challenges led him to create a brand that bridges this gap, ensuring that both the product's appeal and the breweries' profitability are enhanced.

Clear collaborates with various breweries instead of owning one to stimulate the entire sake industry. By creating a brand that collectively benefits multiple breweries, they aim to generate substantial revenue and ensure sustainable growth.

Although Clear does not disclose detailed sales figures, their goal is to achieve 10 billion yen in revenue within five years. Despite the declining domestic consumption of sake since its peak in 1973, Clear is optimistic about the growing export market driven by the global popularity of Japanese cuisine.

Komasa believes that creating high-value sake is essential in today's market. He argues that it's unrealistic to expect consumers to drink four times more sake than before. Instead, the focus should be on producing sake that consumers are willing to buy at higher prices, thereby adding value to the product.

Clear's strategy includes creating a sense of aspiration for their brand among younger generations. They aim to position their sake as a luxury item that people aspire to own, similar to high-end fashion brands.

Despite the high prices, Clear's products attract both sake enthusiasts and novices. By continually improving their offerings and expanding their lineup, they strive to cater to a diverse range of consumers' preferences and lifestyles.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS
         

MORE Business NEWS

A series of cyberattacks has exposed millions of personal records belonging to customers of major Japanese companies, including Muji, Matsuya and All Nippon Airways, as well as individuals connected to the Foreign Ministry, while cybersecurity experts investigating a separate attack involving GMO say a serious mistake by the hackers may provide crucial clues to their identities.

Japan's furniture and home goods retailer Nitori opened what it describes as its largest store in the world on October 30th in Osaka's Chayamachi district, bringing a major new retail destination to an area east of Hankyu Osaka-Umeda Station known for its youth culture, fashion boutiques, and specialty shops.

Japan's Nikkei 225 Stock Average plunged 1,369.36 points, or 2.12%, to close at 63,290.11 at 3:30 p.m. on Friday, October 30, ending a three-day winning streak as a sharp selloff in semiconductor and artificial intelligence-related shares swept through the Tokyo market, while the Bank of Japan's decision to leave interest rates unchanged failed to restore investor confidence.

The Bank of Japan announced on October 30th that underlying inflation has effectively reached its 2% target for the first time since the goal was introduced in 2013, marking a major milestone in the country's efforts to achieve sustained price growth, while keeping its benchmark interest rate unchanged at 1.25% as policymakers assess the impact of last month's rate increase.

Halloween celebrations across Japan are becoming increasingly expensive as October 31 approaches, with costume prices nearly doubling over the past five years and the average spending budget rising to 8,148 yen, prompting more people to find creative ways to enjoy the annual event without stretching their finances.

Hands Shibuya, one of Tokyo's best-known variety stores, will close on November 15 after 48 years in business, bringing an end to a shopping destination famous for its enormous selection of innovative household goods, stationery and unusual gadgets, with around 100,000 products still filling its shelves in the final weeks before closure.

Tokyo stocks extended their recovery on Thursday, October 29, with the Nikkei 225 closing at 64,659.47 points at 3:30 p.m., up 705.28 points, or 1.10%, from the previous session, as renewed buying of semiconductor and artificial intelligence-related shares helped the benchmark record its third consecutive daily gain ahead of the Bank of Japan's monetary policy decision.

GMO has announced a reward totaling approximately 150 million yen for information leading to the identification of hackers responsible for a cyberattack on its systems, while also pledging compensation to customers whose personal information has been exposed, as Japan faces a growing wave of cyberattacks targeting major companies.