Japanese Ventures & the Future of the Economy 1Interview with Taito Suzuki, President of Taica Corporation

A Unique Company Developing
Technologies Inspired by Daily Life
By Japan SPOTLIGHT
Small and medium-sized enterprises (SMEs) play a key role in the Japanese economy in terms of theirpercentage of the national GDP and total employment. However, their true significance lies not in thesefigures, but in their unique contributions to large corporations and consumers. Without SMEs’ uniqueproducts and irreplaceable technologies, large corporations would not be able to do business, andconsumers’ standard of living could not be maintained. Taica Corporation is one such innovative
Japanese SME. Based in Tokyo, Taica has contributed extensively to global industry and consumer
welfare with its unique technologies. These technologies are used in a wide range of products, fromsports shoes and stationery, to smartphone cameras, automobiles, and even caregiving products. Why are
Taica’s technologies so widely adopted? How were these unique technologies invented? We interviewed
Taito Suzuki, president of Taica Corporation, to find out.
(Interviewed on Oct. 3, 2018)

Introduction
JS: Could you please tell me about

your company’s history andproducts, as well as your personal
background?

Mitsubishi is a large trading company which
deals in a variety of goods, ranging from plantfacilities and industrial products to consumer
goods. This is similar to Taica Corporation.
After working for Mitsubishi and then Rakuten
Corporation, I joined Taica in 2006. As
president of Taica, I would like to participate ina variety of projects — not just limiting myself
to manufacturing — which contribute to theglobal economy, just like my grandfather.

Suzuki: Taica was founded by my grandfather
in 1948. The main product then was amachine that peeled mandarin oranges forcanning. He was a military man, having
JS: Taica licenses its technologies
graduated from a military academy, and I
guess he wanted to help rebuild Japan after
internationally as well. What
World War II. He may have thought that
motivated this choice?
starting a manufacturing business was thebest way to contribute to economic
Suzuki: CUBIC PRINTING is used extensively
redevelopment. His initial goal when founding
in automotive interior decoration. Back in the
Taito Suzuki
the company was to identify consumers’
early days, one of our Japanese automotive
needs, create a product to meet those needs, and then put that
customers was building a factory overseas. At the time, we
product on the market. That machine was a good example of thisconsidered building a factory of our own next to their facility, but
process. This simple goal has been passed down in our company
considering the size of our company at the time, we decided tothrough the generations. Today we manufacture and sell mainly threelicense our technology to local companies instead. Rather than goingproducts derived from our original technologies: Alpha GEL, an
it alone, we chose licensing as a way to spread CUBIC PRINTING
incredibly shock-absorbent material, which can catch an egg dropped
around the world. Recently, however, we are increasingly interested infrom a height of six stories without breaking it (Photo 1); CUBIC
international production. We are currently considering building up our
PRINTING, a technology which uses water pressure to transfer
overseas production bases and/or strengthening ties with ourcolorful patterns onto substrates using special, water-soluble film;
international licensing partners.
and finally Alpha PLA, a series of caregiving products.
We are a research and development company first and foremost,Technologies Discovered by Accident
not a manufacturing company producing a single product. We aim atdeveloping new products to make our lives more convenient. This is
JS: Could you explain how your two core
why our customers are so diverse.
technologies were born at crucial moments in yourI joined Mitsubishi Corporation after graduating from university.
company’s history?
https://www.jef.or.jp/journal/

Japan SPOTLIGHT • January / February 201955

Japanese Ventures & the Future of the Economy 1
Photo 1: Taica Corporation

lineup. We are now looking for new consumers as part of ourbusiness development strategy.

Applications & Markets
JS: I hear that Alpha GEL is used in sports shoes andstationery. Could you tell us what other consumer
goods it is found in?

A 2-cm-thick sheet of Alpha GEL
can catch an egg dropped from aheight of six stories (18 meters)
without breaking it.
Note: The image of falling eggs is
a trademark of Taica Corporation,
registered in Japan and othercountries.

Suzuki: Our two core technologies, Alpha GEL and CUBIC PRINTING,
were both developed by our chief engineer, Motoyasu Nakanishi, who
unfortunately passed away four years ago. He always told us to
examine everything in daily life as carefully as possible, stressing theimportance of thinking about what inconveniences us and how to
overcome it. These two technologies were born out of his carefulobservations of daily life.
In the early 1980s, Mr. Nakanishi was researching shock absorbent
materials, including polyurethane, gases, and oils. One day he caught
a cold and accidentally discovered that melted gel ice packs are
extremely soft. After this, using trial and error, he eventually
succeeded in developing a completely new gel material, whichbecame Alpha GEL.
As Mr. Nakanishi told it, the idea for CUBIC PRINTING came to him
when he mistakenly dropped an oburā to (a water soluble, starchbased film used to swallow powdered medicine) into a cup of water.
When he tried to fish it out, the film stuck to his fingers, giving him
the idea to use water pressure to transfer patterns onto objects. Thisidea led to the invention of CUBIC PRINTING.
JS: I think you need a very inquisitive mind to findclues to innovation in everyday life.

Suzuki: I imagine Mr. Nakanishi maintained his curiosity every day,constantly imagining situations where new technologies might beuseful. When he encountered those situations in real life, he would
work to make his imagined technologies a reality. He loved readingbooks and always told us to read as much as possible. He believed
reading books improves the imagination.
JS: When were these technologies invented?
Suzuki: CUBIC PRINTING was developed in 1974, and Alpha GEL wasinvented in 1984. But since the invention of these technologies, wehave not had great success developing the next big thing. While webelieve that it is crucial to develop new technologies, we have also
strengthened efforts to discover new applications for our original
56 Japan SPOTLIGHT • January / February 2019

Suzuki: Certainly. A good example is smartphone cameras. Alpha GEL
is not only an excellent shock absorber, but it also has remarkable
thermal conduction functionality, playing a key role in heat
management in electronics. It is also effective in vibration damping,which prevents the camera from shaking. In this way, Alpha GEL istruly a multifunctional material, compared to most other materials,
which only have a single function. Alpha GEL can be enabled withshock absorbing, thermal conduction, vibration damping, andelectromagnetic radiation absorption functionalities, among others.
JS: There are truly many uses for Taica products.

Which countries are key markets for your company?

Suzuki: The US semiconductor industry is a crucial market for us, aswell as the US and Chinese automotive industries. As these two
industries are the most important for us, we are currently placing themost effort in promoting our products in these US markets.
JS: Considering how essential the US and Chinese

markets are for Taica, would a trade war between
these countries present problems for your company?

Suzuki: Yes, certainly. Trade disputes always cost the parties involved.
But the question now is: how can we survive this situation? Allcompanies face the same reality. As is often pointed out, if
protectionist trade policies become mainstream and the world
economy is divided into economic blocks, the most critical strategy
for a business’s survival will be to produce and consume goods ineach country. I believe that we should anticipate this possible futureby planning local production bases for the domestic market in eachcountry, rather than just assuming there will always be a global
market. In any event, we must minimize the damage caused by thecurrent trade dispute between these countries.
JS: How are you pursuing this strategy of local

production for local consumption? In whichcountries are you currently building production
facilities?

Suzuki: We have different strategies for Alpha GEL and CUBICPRINTING. We have Alpha GEL production bases in Japan, China, andCambodia, while we have CUBIC PRINTING facilities in Japan, the US,
China, and Mexico, in addition to sales offices in Shanghai, Detroit,and California.
JS: What is your company’s ratio of domestic tointernational sales?

Japanese Ventures & the Future of the Economy 1

Suzuki: I believe it is six to four. In our regional sales strategies, we
do not promote production and sales in a country where we have nocontacts. In countries where we have set up either production
facilities or sales offices to support a customer’s international
operations, we are now planning to expand our business so that all ofour products can be completely consumed in the host country.
Previously, we only produced the amount of products demanded by
specific customers in those countries.
JS: What are the main applications for CUBICPRINTING?

Suzuki: CUBIC PRINTING is mostly used in the decoration of plastic
interior parts in automobiles. Recorders with a wood grain finish,
which you may have used in elementary school, are another example,
but the overwhelming majority of our CUBIC products are used in
automotive interiors. We do business with most Japanese automotive
manufacturers as well as some major international original equipment
manufacturers (OEMs). We have not had much success with
European OEMs, as they prefer real materials. However, the main
European auto manufacturers are beginning to realize that realmaterials can be bad for the environment, so we are finding more andmore business opportunities with luxury OEMs there. We havereceived positive feedback that our CUBIC PRINTING products are
now very similar in quality to real materials (Photo 2).
JS: Could you speak about your Wellness Division?
Suzuki: Yes. The Wellness Division began with our original antibedsore mattress featuring Alpha GEL and now produces and sells
Alpha PLA, our line of original caregiving products. The Alpha PLA
series is aimed at individual consumers who are introduced byhealthcare workers such as care workers and nurses (Photo 3). Thisis similar to a B2C operation rather than B2B, which is our standard
business model. Recently we have developed Wellness products
which do not use Alpha GEL, and we have been successful indiversifying our lineup.
JS: Do caregiving products have strong growthpotential, especially considering the rapid aging of
Photo 2: Taica Corporation

Japanese society?
Suzuki: Yes, they do. However, most of these products are paid for by
long-term care insurance. Any institutional change in the long-termcare insurance system could affect our sales. We expect that manycustomers will use and be satisfied with our products, but this is only
possible with the help of insurance, as these carefully manufactured
products can be expensive. In the future, if the scope of long-termcare insurance is narrowed, the number of users could decline
despite increasing demand. Would we be content with a situation
where only the wealthy can benefit from our products? I think this is adifficult business in which to achieve long-term stability.
JS: I think there must be demand for your products

from other consumers, not just elderly people.

Suzuki: Yes. We recently developed and began selling a mattressfeaturing Alpha GEL aimed at general consumers in China. It is more
expensive than an ordinary mattress and thus is targeted at wealthyusers. We thought it would be better to launch this product in China,
as it has a much larger population and more wealthy people percapita than Japan.
Our company has the top share in the static anti-bedsore mattressmarket in Japan. We believe our achievements in Japanese medical
facilities and high reputation will appeal to Chinese consumers. If thisnew mattress proves a success in China, we will sell it in Japan as
well.

Developing Innovative Human Resources
JS: Your company began as a startup company. I havethe impression that startups have not developed very
well in Japan. Why do you think this is the case?

Suzuki: I think one of the reasons for this could be that everyone here
seems to be reluctant to follow their dreams. They easily give up on
their goals in the fear that working toward them might end in failure. I
think this mentality may be influenced by the Japanese media, which
tend to criticize everything people do. Young Japanese people may
believe that doing something new will lead to being attacked by the
Photo 3: Taica Corporation

CUBIC PRINTING is
used to decorate avariety of materials inmany industries, fromautomotive andconsumer electronics tohome interior andbeyond.

Taica’s Wellness Division develops,
manufactures, and sells total
bedsore prevention solutions,
including anti-bedsore mattresses,
wheelchair cushions, and bed
positioning aids.

Japan SPOTLIGHT • January / February 201957

Japanese Ventures & the Future of the Economy 1

critical masses. Trying something new, such as founding a startup
company, could result in failure or business behavior consideredinappropriate by society. In Japan today, we cannot expect large
business opportunities, and we all feel frustrated by the stagnant
economy and the bleak future of an aging society. Anyone who tries
to earn more money than the average person gets bashed, especiallyby the media. I think this hampers young people’s desire to pursue
their dreams.
Another reason for this situation could be a disinterest incontributing to the common good. While working in developing
countries during my time at Mitsubishi, I saw many impoverishedchildren struggling for survival. This instilled in me a special gratitude
for having been born in a wealthy nation like Japan. I am now
convinced that the Japanese must maximize our efforts to contributeto the common good as a way of paying the world back for our good
fortune. Unfortunately, most young people in Japan today tend toforget how lucky they are to live in such a developed country. They do
not think it is necessary to repay society for their happiness byengaging in social entrepreneurship. This lack of altruism could be
another reason for the low level of entrepreneurship in Japan.
JS: I imagine that research and development must bevery important to your company. What kind of talent
do you think is needed to support your R&D
activities?

Suzuki: We need people who can think for themselves. It is hard toinvent something by starting out with the goal of invention. You haveto think by yourself every day about daily inconveniences and how tosolve them. You cannot depend on other people’s opinions. You need
to observe what is happening and think about why it is so. Otherwise,even if you studied science at a top university, you will not be able tofully utilize your knowledge. You need to keep stock of yourobservations and discuss them with your team of colleagues. Good
ideas for resolving daily inconveniences can be worked out inbrainstorming discussions among team members. We cannot expect
high-quality discussions unless each member is aware of theimportance of observing and thinking about real life. In conclusion,
you have to be observant, collect information in daily life, and voice
your opinion after thinking about your observations.

show, so by walking around and talking together they can think
through new business opportunities on their own. I thinkmanagement must create an environment in which each employee
can think through issues.

Future Business Plans
JS: Could you tell us about your future businessplans?

Suzuki: I think there are new applications for Alpha GEL which wehave not thought of yet. Our plan is to devote half of our resources todeveloping new markets and the other half to expanding existing
ones. We will find ourselves left behind unless we respond to newmarket needs as astutely as possible. We were not aware of esports
or bouldering 10 years ago. However, now we are developing asmartphone case exclusively for esports and mats for bouldering
gyms. We want to enhance our revenue by entering new markets aswell as maintaining current ones.
Regarding CUBIC PRINTING, we are currently planning to increase
the number of our non-Japanese employees. Their knowledge andviews will be invaluable as we work to expand our business withinternational automotive manufacturers.
As for our Wellness Division, we are now working on developing
products for natural disaster relief in addition to caregiving. Based onstories of elderly people who suffered from neck pain caused byheavy helmets after the Great East Japan Earthquake in 2011, wedeveloped DERUCAP, a light cap made from PE foam, which has
exceptional storability and is five times as strong as disasterprevention hoods (Photo 4). In the near future, we will propose
placing DERUCAPs under the seats at the new Olympic Stadium as adisaster preparedness measure. We are also developing products toprotect the elderly and children during natural disasters. This includes
sets of life jackets and helmets to be attached to school chairs and afolding mattress that doubles as a stretcher.

Photo 4: Taica Corporation

JS: I believe that the capacity for creative thinking

varies from person to person, but have you tried toraise such awareness through employee education?

Suzuki: My own process of educating our young researchers is totake them on a trip. We can go anywhere, even if it has little to dowith their research topics. During international trips, we spend all of
our time together, and I talk with them about many issues during
meals and other occasions. We often go to developing countries,
where we talk about the people and way of life there, how they feel
about their economic and social situations, and what we could do toimprove them.
Another approach is to send sales and R&D personnel to tradeshows, organizing them in groups that combine people from both
departments. Sales and R&D each have their own perspectives on the
58 Japan SPOTLIGHT • January / February 2019

DERUCAP is a light hat madeof PE foam, which is easy to put
on and can protect people of allages in the event of a natural
disaster.

Written with the cooperation of freelance writer Naoko Sakai.