The Charm of the Chugoku Region
Weaving historical episodes and forging the future

Chugoku Bureau of Economy, Trade and Industry

Local resources (history, culture, nature, industry, people, etc.) are thecharm and strengths of the region, and they support and will continue tosupport the region.
On this occasion, based on re-discovering the charm of the region, we
have translated "the charm of the Chugoku region" into English so that a
broad range of people outside the region can appreciate it. We hope thisprovides you with a new interest and an opportunity to get to know the
Chugoku region.

Chugoku region
Tottori prefecture
Shimane Prefecture

Okayama Prefecture

Hiroshima Prefecture
Yamaguchi PrefectureChapter 1：Outline of the Chugoku Region○Economic trends
Gross production in the Chugoku region was 249.1 billion dollars,accounting for 5.5% of Japan's total, and by way of international
comparison, delivered slightly more added value than Chile (44th in theworld), which is famous for copper exports.
By industry (Figure 1-I-2), the manufacturing industry is driving theregional economy at 27.8%. In terms of shipment value of manufactured
products (Fig. 1-I-3), transportation machinery, chemicals, steel, etc.
account for large percentages in this region.

Figure 1-1-1: International comparison of gross regional

Figure 1-I-2: Gross domestic product in Chugoku

product

Regeon by industry

Source: 1) The figures for each country are for 2015 in the

Source: Prefectural citizen economic calculation“IMF World Economic Outlook Database, April 2019”.

(FY 2015) (2008 SNA, 2011 reference counting>2) Thefigure for the Chugoku region is for the "Fiscal Year 2007
Economic Calculation". 3) The conversion rate of grossdomestic product in the prefecture is a 12-month simple

Looking at the trends in the
manufacturing industry, theprices in the Tokyo foreign exchange market ($1 = 120.13
yen)change in the number of
employees (from 2008 to
2017) strongly reflects the changes in society, such as the shift from simple
mobile phones to smartphones and the increase in ready-to-eat meals suchas bentos and deli dishes, we can see how employment is changing.
average of the monthly average of interbank spot market

2

Figure 1-I-3: Composition ratio of manufactured product shipment value, etc.
Source: Ministry of Economy, Trade and Industry "2018 Industrial Statistics Survey (confirmed report)"(establishments with 4 or more employees)
Increased sub-categories

Numberofchanges
2,241

Rank

1

Mobile phone / PHS phone
manufacturing industry

Sushi, bento, bakery andsandwiches manufacturing industry
Plastic film, sheet, flooring, synthetic
leather processing industry
Manufacturing of cyclic intermediates,
synthetic dyes and organic pigments
manufacturing industry

2,103

2

Marine engine manufacturing industry▲2,345

1,952

3

Offset printing business (for paper)▲2,341

1,658

4

Woven fabric for office work, work,
hygiene, sports clothes, school clothes
manufacturing industry (including nonwoven fabric and lace)▲2,234

Food manufacturing not elsewhereclassified

1,614

5

Electronic circuit board manufacturingindustry▲2,229Other organic chemical products
manufacturing industry

1,550

6

Semiconductor element manufacturingindustry (excluding photoelectric
conversion elements)▲2,097

Pharmaceutical manufacturingindustry

1,351

7

General-purpose▲2,097

Manufacturing of resistors, capacitors,
transformers, and composite parts
manufacturing industry

Decreased sub-categories

machinery

Numberofchanges▲3,679andequipment manufacturing industry notclassified elsewhere
1,265

8

Other electronic parts, devices,
electronic circuit manufacturing industry▲1,804

Switchboard and power control
device manufacturing industry

1,227

9

Ship manufacturing and repair
business▲1,660Construction machinery and mining
machinery manufacturing industry

1,112

10

Other fisheries food products
manufacturing industry▲1,573

Variousmachines

and

parts

manufacturing and repair business(custom manufacturing and repair)Figure 1-I-4: Changes in the number of employees in the manufacturing industry in the Chugoku region (20082017) Source: Industrial statistics3

In terms of tourism, in addition to
World Heritage sites such as
Itsukushima Shrine and Iwami
Ginzan Ruins, the Chugoku region isblessed with tourist resources suchas the Kurashiki Bikan district,
Adachi Museum of Art, Yuda Onsen
and Kaike Onsen which are popular
Figure 1-I-5: Number of foreign tourists
with both domestic and overseas
Source: Progress of the Wide Area Chugoku Regional Planning
tourists .
In addition to these tourism resources, we have recently been particularly
popular with foreign tourists by proposing activities such as cycling andtrekking that make use of the beautiful nature of Tottori Sand Dunes,
Daisen, and the Seto Inland Sea.

Chapter 2: Genealogy of Chugoku regional industry
Introduction. Leveragintg the innovation of the pioneers to tackle the future-Emergence of ships that kept moving "while selling and buying goods" andthe formation of production areas
From the middle of the Edo period to the Meiji 30s, Kita-mae boats wereintroduced as ships that sailed "while selling and buying goods", distributing
products to Edo and Osaka, which were the world's largest cities, withmillions of residents. (Note) References 2, 3, 4, 6
Under such circumstances, commodity crops such as cotton, rush,
rapeseed, soybean, and other commodities such as salt from Setouchi
expanded their sales channels, and through large-scale development of new
fields, the production and spread of these crops and expanded, and a large
production center was formed throughout the Chugoku region.
-Switching manufacturing methods and expanding the marketsWith the development of looms, igusa developed a woven flowerpatterned mat called “Kinkanen”, known as a “phantom flower basket”, which
has succeeded as an overseas export product to the United States and othercountries. Such mechanization, product conversion and market expansion
will progress. (Note) Reference 5
4

-Spreading the baseWith the processing of cotton into complicated shapes such as tabi andthick materials, we havedeveloped the machinery necessary for weavingand dyeing, and cultivating acomplex accumulation of garment-relatedindustries. On the other hand, salt
production birthed the coal mining
industry in Ube with the development of the coalFigure 2-Introduction-1: Kitamaebune
Source: Kitamaebune Japanese Heritage
fired salt production method, which then led toPromotion Counci
the further expansion it into cement and various
chemical industries. (Note) Reference６

In Chapter 2, we will introduce the genealogy ofindustries characteristic to the Chugoku region and theopportunities in the future

I. A beautiful coincidence that connects technologies
and fosters individuality～ Breaking into diverse international denim Markets ~Figure 2-Introduction-2: Kinkanen-Everything started with cottonSource: Kurashiki City Website
In Kurashiki, Ibara, Fukuyama, and other places in thisarea which is known as “Sanbi”, cotton has been grown since the early Edo
period because of the salt content of the reclaimed land, and because theplains are small and unsuitable for rice cultivation.
After that, indigo cultivation was introduced.
Indigo dyed fabrics such as Bingo Kasuri (one of thethree major Kasuri patterns in Japan), which is afabric with a beautiful woven pattern, are made bytying a yarn bundle with bamboo skin and hemp
thread to create areas that do not dye and thosethat do. In the 1700s, Tamashima Port became aprominent area for cotton fabric, becoming one of
the best commercial ports in the Seto Inland Sea.
(Note) References7

井原●

Figure 2-I-1 Sanbi area (Bizen, Bicchu, Bigo)5

-Mass production to become a leading industry in the regionIn the Meiji era, the government started thecultivation of a modern spinning industry with theaim of becoming a leading industry.
Soon after, Shimomura Spinning Mill , Japan's
first private spinning mill (founded in Kojima in1880), Tamashima Spinning Mill (in Tamashima
in 1882), and Kurashiki Spinning Mill (in Kurashiki
in 1888 - equipped with the latest British spinningequipment) were all established, and the textile
Source: Kurashiki Regional Resourcesindustry was heavily involved in the development Museumof the region.
In 1906, the first power sewing machine was introduced in the tabi
(traditional shoes) manufacturing industry in the Kojima area, and so it
developed in this area. In 1919, Okayama Prefecture became "the largest
production area for tabi in Japan" (20.25 million pairs). (Note) References８,９-Products that change with the timesDemand for tabi socks eventually decreased due to westernization, and the
production of western clothes grew rapidly in its place.
The Kojima area's manufacturers used the cutting and sewing technologies
from tabi production to switch to the production of school uniforms andworkwear, and the clothing manufacturing industry has continued as a majorindustry in this area. Furthermore, dyeing factories, button makers, sewing
machine makers, etc. were born in this area, and Kojima has become a“textiles town” with the strength of being able to complete all clothing
manufacturing processes in one area, from dyeing, weaving, cutting, sewing,
and processing.

6

-Beautiful domestic denim
In 1965, Maruo Clothing Co., Ltd. (currently Big
John Co., Ltd.) produced the first domestic jeans,
CANTON brand jeans. Since domestic jeans were
so hard that they were unpopular, the “pre-wash”
process started around the Kojima area in
Kurashiki City, Okayama Prefecture, in which thejeans were washed before they were sold. (Note)
References10

With this background of the birth of domesticjeans, it can be said that there is an accumulation
Figure: 2-I-2 CANTON brand jeansof technical know-how in this area, from spinning, Source: BIGJOHN HP
dyeing, weaving thread and fabric, sewing, and"washing", where the washed products are washed and distressed to further
customize the fabric.
Kaiharashokufu Co., Ltd. (currently Kaihara Co., Ltd. (in Fukuyama City))changed the Kasuri manufacturing industry to its current denim business in1970 (Showa 45). Over the next 20 years, it established a consistentorganization system of spinning, dyeing, weaving, and arrangement
processing...Currently, it has delivered to 300 jeans brands in Japan andoverseas, and produces denim fabric equivalent to approximately 21 million
pairs of jeans annually.
-Expansion of denim exportThe export of denim started early, including the adoption of Kaihara denim
by Levi Strauss & Co. in the United States in 1973, but it was not until 2000
that full-scale export began.
Domestic denim has gained international acclaim. Showa Co., Ltd. (inKurashiki City) won the first Premiere Vision "Handle Award" at "Premiere
Vision" (hereinafter referred to as PV), international fabric trade fair in Paris,
France in 2009.
Showa Co., Ltd. (in Kurashiki City), Kuroki Co., Ltd. (in Ihara City), and Nihon
Menpu Textile Co., Ltd. (in Ihara City), have continued to exhibit at PV andexpanded transactions with many overseas luxury brands. The sales by
Kuroki Co., Ltd. and Nihon Menpu Textile Co., Ltd. account for over 50% of theoverseas sales.
7

-Jeans and denim town planning[Kurashiki City]
Kurashiki City has been holding the“Kurashiki Fashion Frontier” since 1996 tonurture design personnel who will usher in
the next era. (Note) References11
This is a region with globally unique highquality production accomplishments in denim
and jeans, including fabric that is hand-cut by
experienced craftsmen, sown with a process Source: Japanese Heritage Kurashiki Leafletthat utilizes 10 specific types of sewing
machines, designed in consideration of future shrinkage and with textures
customized through specialized washing processes.
In 2003, Betty Smith Co., Ltd. (in Kurashiki City) opened the Jeans Museum.
It is now a tourist spot visited by about 50,000 people annually.
In 2009, a part of the once prosperous Ajino shopping street was named"Kojima Jeans Street", and jeans manufacturers, shops and cafes dealing in
denim and miscellaneous related goods were collected to promote the Meccaof domestic jeans.
These activities were fruitful, and the story “Kurashiki story that begins witha single cotton flower -a town of fibers woven by Japanese style ” was certified
as a Japanese heritage on April 28, 2017. (Note) References12,13

8

[Ibara City]In Ibara City, Ibara Denim has createdthe D# (“D sharp”, referencing music andthe hidden meaning of “sharp denim”).
The # also resembles the Japanesecharacter which is the “I” in “Ibara”.
"Ibara Denim" is a brand that espouses
higher quality. (Note) References14
At the Ibara train Line " Ibara Station"yard, which is the gateway to the city, theIbara Clothing Cooperative operates astore called " Ibara Denim Store" that sells
Source: Ibara Denim WEB
factory brand jeans and miscellaneous denim
goods.
Starting with the 2017 declaration of hometown specialty support, theproject entitled the “1st Ibara Indigo Project” gained international recognition
for “Ibara Denim”. In 2019, "Ibara Denim" was registered as a regional
collective trademark. Furthermore, this area is united in its support for thedenim industry, and starting in April of the same year, the city employees
started “Everyday Denim Day”, where they wear denim every day.
― An approach that leverages strengths in a diversifying market ―In order to promote cooperation between the fashion industry and the denim
manufacturing sites in the Chugoku region, centered on the Sanbi area, theChugoku Bureau of METI carried out matching between denim producing
companies and excellent designers. In addition, in order to raise awarenessof production areas in general, we are making efforts such as communicating
the appeal of production areas in collaboration with fashion magazines.
In December 2019, at Okayama Castle, which is a famous historical site andtourist destination in the Okayama area, a fashion show “THE “O.SHIRO”
COLLECTION” focusing on denim and other textile producing areas was heldin cooperation with Condé Nast Japan (“GQ JAPAN”) and two othercompanies.
For this event we brought together top level models and up-and-coming
young brands that are on the verge of breaking out overseas, in addition tobrands that are already active overseas, making it the first full-scale fashion
show to take place within a castle in Japan.
9© The “O.SHIRO” Collection10

Ⅱ. Continuing 1,400 years of Tatara ironmaking history-Establishment of iron production areasThe use of ironware in Japan dates back to
the 3rd century BC (Yayoi period). Then,around the 4th century, iron became
widespread in the Japanese archipelago, andironware processing technology also

写真advanced. However, there was no iro ore
production technology for producing the ironitself, and the industry relied on ironware
and iron materials brought in from thecontinent and the Korean Peninsula.
Steelmaking began in the Kinki and
Chugoku regions in the latter half of the 6th
century, and around the 9th century, itspread throughout the archipelago fromTohoku in the east to Kyushu in the west.
However, from around the 11th century, ironproduction gradually stopped in many
regions, and the production centers wereconcentrated in the Chugoku and Tohoku
regions.
In the Chugoku region, the invention ofthe "iron hole sink" technology that stablycollects a large amount of sand iron, and the

Figure 2-II-1 Changes in the distribution ofsteelmaking ruins
Source: Tatara Iron Country, actual situationof Izumo
introduction of the "foot-operated balance"
which sends sufficient air into the iron-making
furnace, wree examples of technological innovation that allowed ironproduction to progress, and Chugoku established itself as an iron production
area in the 17th century.(Note)References15,16,17,18

11

-The rise and fall of Tatara ironmakingIn the Izumo-Iwami area of Shimane prefecture, which is a rich sand ironproducing area in the Chugoku area, the amount of iron production
increased starting around the 12th century due to the enlargement of theironmaking furnaces and other technological innovation.
The large-scale ironmaking furnaces
changed from the previously-usedmode of repeating operations andmovements over a short period, tolong-term operation in one place,leading to the appearance of
Takadonodatara which included alarge-scale underground structure.
The immobilization of suchworkshops promoted theprofessionalization of the workers
involved in the Tatara ironmaking and

Figure 2-II-2 Cross-sectional view of Nittoho Tatara
Source: Tatara tradition, inherited by Yasuginosato

the development of an ironmaking
collective.
Eventually, the middle of the 17th century saw the rise of the “ironmasters,” who collected “Tetsuzan” from the forests to produce charcoal andcollectively operated the Tatara ironworks. Among the iron masters, there
was a local celebrity called “Daitetsushi ” who contributed to the local
economy by obtaining the exclusive business license of Tatara Blacksmith
under the feudal lord's industrial policy.
However, in the Meiji era, Tatara ironmaking began to decline due to thetermination of privileges and protection that occurred with the abolition of
the clan, the revision of the system relating to the distribution of mineralproducts, and the import of cheap, high-quality Western iron. (Note)
References19

12

― Inheritance of the Tatara Spirit and the way
generation ―In 1899, the Unhaku Steel Joint
Stock Company was established in
Yasugi City with the aim of
streamlining and modernizing Tatara
ironmaking. Five people, including
an iron sales businessman, a Tatarairon manufacturer, and a bank officer,

foraward for the next

became the core, and they started asa wholesale business that collectediron produced in Tatara in various
parts of the prefecture, crushed andFigure 2-II-3 Suburbs near Yasugi City, the road that iron was
packed it, and then shipped it totransported
wholesalers and the military.
Source: Tatara tradition, inherited by Yasuginosatot
In approximately 1900, the militarydemand for higher-quality ironincreased, and the company also took on the challenge of technologicaldevelopment to produce a larger quantity of higher-quality iron.
However, when the manufacturing technology was completed, the RussoJapanese War ended. Orders from the military were cut, forcing theclosure of the business. In 1909, a new company, Yasugi Steel Joint Stock
Company, was launched with the aim of revitalizing the business .
The company did not produce normal steel, whose market was expanding
due to the continuous entry of private steel companies. Instead, it focusedon special steel, which is a material used in tools that relied on imports fromoverseas, because there was no domestic production at that time. Japan's
first factory equipped with an electric furnace was constructed, and they
started manufacturing special steel. This was the birth of the Yasugi Plant of
Hitachi Metals, Ltd., which is still in operaion today. (Note) References20,21

13

-State of the technology
The special steel manufactured by the Yasugi Plant of Hitachi Metals, Ltd.
has grown into a globally recognized brand under the trademark "YSS
Yasukihagane".
In line with this, in Yasugi City, where the company is located, and its
suburbs, the concentration of SMEs that process the company's materials
has advanced. This area has accumulated high-tech knowledge andachievements in the processing of special steel, and has produced
companies with a high market share in the industry. We will introduce twosuch companies. (Note) References22[Moriya Cutlery Laboratory, Ltd (in Yasugi City, Shimane Prefecture)]
The Moriya Cutlery Laboratory, which was
founded in 1953 by Zentaro Moriya, is acompany that handles processing, heat
treatment and precision finishing in-house, andprovides its finished parts to the world.
A "Vane" is a hydraulic pump component
used for power steering in automobiles. Moriya
has the top market share in the world and theirparts are installed in more than 10 million new
vehicles every year.
In addition, they also manufacture a "rocket
cutter" that is used in separating a satellite afterrocket launch. This is also a product that othercompanies cannot imitate., meaning that Moriya
plays a significant part in the space industry.

Figure 2-II-4: Upper vane, lower rocket cutter
Source: Moriya Cutlery Laoratory, Ltd

achinery Co., Ltd.

[Izumo ZokiInc. (In Yasugi City, Shimane Prefecture)]
Izumo Zoki Inc. was founded in 1946 by aformer Kure navy arsenal manager, who became
the first president of the company in Yasugi City,
which was an evacuation site during the war.
They manufacture screws and extrusion tools
with various diameters, using the strengths ofhigh-grade special steel “YSS Yasukihagane” andsuper heat-resistant steel made by Hitachi Metals.
14

They are proud to have the top share in
Japan in screws for injection molding
machines and extrusion molding machines.
They sell these items "from pencil size totelephone pole size". In extrusion tools, they
are the top-rated enterprise in Japan for theirextremely high durability and processing
accuracy, and they have established a firm
position as a leader in the industry.

Figure 2-II-5: Plastic molding screw
Source: Izumo Zoki inc., Ltd.

-Focusing on the futureIn Shimane Prefecture, 10 private companies including Hitachi Metals
Group, Shimane University, Matsue National College of Technology, thegovernment and other entities have been working together to strengthen thecluster of the special steel industry since 2012, and are working on entering
the growth industry with a focus on aircraft and energy and developing andsecuring industrial human resources with the same goal.
The Chugoku Bureau of METI is supporting the efforts of the small andmedium-sized enterprise group “SUSANOO” (7 private companies) aiming toenter the aviation industry.
In addition, in the “Creation of a global base for advanced metal materialsNext Generation TATARA Project-”, which is taking advantage of the Cabinet
Office's “Regional University/Regional Industry Creation Grant Project”, the"Next Generation Tatara Collaborative Creation
Center" was based on the development of the knowledge of evaluation andanalysis methodologies related to metal materials. In cooperation with
Oxford University and others, industry, academia and the government are
working together to promote research and development, and foster highly
specialized human resources, aiming to create “”Shimane”, the Mecca ofadvanced metal materials” and related industries, such as casting and metal
processing throughout the prefecture.

15

Figure 2-II-6 Relationship between Shimane Special Steel
Industrial Cluster and SUSANOO
Source: partially added to materials prepared by
ShimaneIndustry

Promotion

Foundation(Public

foundation)

Figure 2-II-7 Conceptual diagram of "Global Base for Advanced Metal Materials"
Source: partial addition to materials prepared by Shimane Prefecture

16Chapter 3 Initiatives by the Chugoku Bureau of Economy, Trade and Industry
So far, we have introduced various industries in the Chugoku region thatare rooted in history and tradition.
As a regional bureau of the Ministry of Economy, Trade and Industry,(METI) we are working on a project to strengthen microfabrication
technology and unique materials technology used by small and mediumsized enterprises (SMEs) that support the automobile and aircraft industries,
aiming to utilize the long-cultivated strengths of industry in the Chugoku
region to improve added value despite a drastically changing businessenvironment. In addition, we are updating the image of the region focusing
on its charming history and culture, promoting rebranding by rebuilding
source of value, and supporting new services appealing to both domestic
and overseas tourists.
Also, with the aim of creating an environment that facilitates a large
variety of economic activities, we are working on various regulations toensure safety and security, such as measures for a stable energy supply andproduct safety measures.

1. Looking at mobility in 2030
With the aim of further developing the automobile industry in this region,
the Chugoku Bureau of METI is promoting technical and human resource
development efforts in collaboration with industry, academia and thegovernments in this region so that they can respond to changes in thebusiness environment such as CASE. (Note) 23

17

The automobile industry in this region is a core industry that accounts forabout 20% of the value added, and it has a major impact on the regional
economy. For this reason, we have been promoting the automobile industry
for more than 10 years in cooperation with 5 prefectures, industry support
organizations, universities, automobile manufacturers and other entities in
the Chugoku region.
In particular, in the Hiroshima area, in 2017, we launched the Hiroshima
Automotive Industry-Academia-Government Collaboration Promotion Council
in collaboration with Hiroshima Prefecture, the Hiroshima Industry Promotion
Organization (a public foundation), Hiroshima City, Hiroshima University, andMazda Motor Co., Ltd. We are also promoting R&D and human resource
development through industry-academia collaboration in order to realize the“2030 vision of Industry-Academia-Government Collaboration.” In 2019, by
utilizing the Local Core Enterprise-Local Innovation Support Project, we
strengthened strategic initiatives in five prefectures in Chugoku region(1),conducted lectures/seminars, individual theme study groups etc.(2),participated in international robot exhibitions (3), and carried out technicalproposals, exhibitions and business meetings at Nissan Motor Co., Ltd. (Note)
24

Furthermore, by utilizing the Supplier Support Team Project, we arepromoting initiatives such as regional technology development, humanresource development, and market development to strengthen thecompetitiveness of small and medium-sized suppliers. Specifically,
Hiroshima Industrial Promotion Organization (a public foundation) andOkayama Prefectural Promotion Foundation (a public foundation) play acentral role in implementing initiatives that take advantage of local
strengths, such invention and creation of new material technologies.

2. Continuing the 1,400-year tradition of Tatara ironmaking
The global commercial aircraft market is a growing industry against the
backdrop of growing passenger demand (5% annually). In addition, it is anindustry characterized by the breadth of the base, with high value-added
products that require advanced technologies of parts and materials are
combined, and one large jet aircraft is composed of about 3 million parts,
whereas an automobile is about 30,000 parts. On the other hand, in any
potential accident, many lives are at risk, so high levels of safety andtechnical skills are essential requirements.
18

Postwar Japan's civil aviation industry has grown mainly by participating ininternational joint development of airframe structures and jet engines. The
supply chain was established with Tier 1 domestic manufacturers
participating in joint development projects with overseas manufacturers ofcompleted aircraft, and many SMEs are involved in the aviation industry asparts suppliers and processing subcontractors.

Figure3-Ⅱ-3-1 Affiliated companies in the Chugoku region and aviation industry cluster,
created by the Chugoku Bureau of Economy, Trade and Industry

Also in the Chugoku region, various organizations are developing support
for new entry into the aviation industry and further expansion of orders fromexisting companies such as Shimane Special Steel Industry Promotion
Council in Shimane Prefecture; Wingwin Okayama in Okayama Prefecture;
the Study Group for the Realization of an Aerospace Industry Cluster in the
Mizushima Area of Kurashiki City, Okayama Prefecture; the Hiroshima
Aviation Industry Promotion Council in Hiroshima Prefecture; and Yamaguchi
Prefecture Aerospace Cluster . In 2019, among the efforts in each of theseregions, we support the corporate group ”SUSANOO'' aiming to draw on the
1,000-year history of the Tatara ironmaking industry in Shimane Prefecture
to enter the aircraft engine field, utilizing the Local Core Enterprise-Local
Innovation Support Project. Specifically, we support the development ofsales channels by exhibiting at overseas specialized exhibitions, dispatchingspecialists and implementing specialized technical training to improve thetechnical level of each company.
Also, we are implementing a project that proposes an organizational
structure and the maintenance of an internal environment necessary for new
entrants to smoothly transition to the mass production phase, based on casestudies of existing entrants in Japan.
19

Ⅱ. Refining the charm and branding
Town planning that captures inbound demand and strengthens the earning
power of the area
Now that the number of visitors to Japan exceeds 30 million a year, town
planning that is conscious of the needs of inbound tourists, such as facilities
even in rural cities that are attractive to people from outside the area, isessential for strengthening the earning power of the area, which will
eventually lead to vitalization of the area.
At present, the number of foreign guests and the amount of consumption
in the Chugoku region are low, so we are focusing on the following three
items for support through subsidies.
➀ Development of facilities and equipment that can be used for content andevents that support experience-based tourism and experiential consumption➁ Development of guest houses, etc. for increasing foreign independent
tours (FIT)③ Development of cashless payment terminals and Wi-Fi that also meet theneeds of foreign tourists

Figure 3-IV-1-1: Composition of the total number of foreign guests by prefecture in 2018
Source: Japan Tourism Agency “Statistical survey on lodging trips”

20◇Case 1 -Kurayoshi City, Tottori PrefectureThey are working to revitalize pop culture, which is popular with inboundtourists, by attracting figurine manufacturers.
Also, they renovated the oldest circular school building in Japan andopened the "Amphitheater, Kurashishi Figurine Museum". In addition todisplaying a large variety of figurines here, there are also workshops where
you can experience making figurines, and they are working to attract a wide
range of tourists by cooperating with neighboring areas where the whitewalled historical storehouses and shopping districts remain.

Figure 3-IV-1-2: Appearance of Amphitheater, Kurashiyoshi Figurine Museum
Source: Kurayoshi City

◇Case 2 -Kurashiki Bikan historical quarter, Okayama PrefectureAlthough there are many tourists visiting the Kurashiki Bikan historicalquarter, many of them are day trips, and the area lacks appropriate
accomodations and other facilities for overnight tourists.
Therefore, they have developed a guest house called "Kurashikiden" that is arenovated traditional townhouse, and combined this with cultural tourism
experiences such as folk art that is popular in Kurashiki, to encouage longterm residents to join the activities as well.

Figure 3-Ⅳ-1-3 Appearance of Kurashikiden
Source: Kurashiki City

21

Case Study 3 -Tojo Town Area, Shobara City, Hiroshima PrefectureCentered on the Chamber of Commerce and Industry, they are working topromote the use of cashless payments by introducing an IC card called“Horoka” that holds electronic money that can be used in this area
The Chamber of Commerce and Industry manages the payment fees paidby retailers, and the system has been built to allow the money to flow in thisarea, and 80% of the local residents now own the card. Currently, thenumber of participating stores is expanding and the use by tourists is
progressing

Figure 3-IV-1-4 State of shops in Tojocho area
Source: Shobara City

○References（※All reference URLs are in Japanese only）
Chapter 2: Genealogy of Chugoku regional industry
Introduction. Leveraging the innovation of the pioneers to tackle the future
1.
2.
3.
4.
5.

What is Kitamaebune (Last browsed date : August 19, 2019)https://www.kitamae-bune.com/about/main/
Committed Academy (Last browsed date : August 16, 2019)https://www.athome-academy.jp/archive/history/0000001129_all.html
Database "Memory of Ehime" (Last browsed date : August 19, 2019)http://www.i-manabi.jp/system/regionals/regionals/ecode:1/1/view/33
History of the Seto Inland Sea (Last browsed date : August 19, 2019)https://www.uminet.jp/know/detail.php?id=22
Kinkanen (Last browsed date : August 19, 2019)http://www.city.kurashiki.okayama.jp/5506.htm

22

6.

Development of chemical industry related to coal mining industry inYamaguchi
Prefecture (Last browsed date : August 19, 2019)http://www.jshit.org/kaishi_bn1/07_2tomisaka.pdf

I. A beautiful coincidence that connects technologies and fosters individuality～ Breaking into diverse international denim Markets ~7.

Shun Nagata, “Current Status of Textile Industry Accumulation in the Sanbi Area ”,
Bulletin of Faculty of Human Sociology, Fukuoka Prefectural University (Last browsed
date : October 21, 2019)http://www.fukuoka-pu.ac.jp/kiyou/kiyo21_1/2101_nagata1.pdf

8. Kurashiki Tourism WEB "Journey around the textile industry" (Last browsed date : October
21, 2019) https://www.kurashiki-tabi.jp/feature/1708/
9. Kurashiki area resource museum "Tabi" (Last browsed date : October 21, 2019)https://www.kurashiki-shigen.jp/web/index.cgi?c=product-2&pk=77
10. BIG JOHNⓇ (Last browsed date : October 21, 2019)http://www.bigjohn.co.jp/bigjohn/
11. “Textile in Okayama” edited by Kurashiki Fashion Center Co., Ltd. (published by theIndustrial Promotion Division, Department of Industrial Labor, Okayama Prefecture)
12. Structural changes in local industrial production areas and production area maintenance(Last browsed date : August 20, 2019)http://repository.kyusan-u.ac.jp/dspace/bitstream/11178/302/1/Tsukamoto57-2.pdf
13. Japanese Heritage Kurashiki (Last browsed date : October 21, 2019)http://www2.city.kurashiki.okayama.jp/japan_heritage/asset/img/leaflet.pdf
14. The IDJ (Last browsed date : October 21, 2019)http://www.ibara-denim.com/abouts/
Ⅱ. Continuing 1,400 years of Tatara ironmaking history
15. "Statue of Tatara, Iron Nation Izumo" edited and published by Shimane Prefectural History
Museum of Ancient Izumo, (2019)16. "Spiritual center of the land of iron, Visiting native placeof Tatara, San-in" edited and published by San-in Chuo ShimpoNewspaper Co.,Ltd. (2016)
17. Ryotaro Shiba “Going Highway 7” (published by Asahi Shimbun Publishing, 2008)
18. Japanese Heritage “Ikumo-koku Tatara Fudoki (Last browsed date : October 25, 2019)http://tetsunomichi.gr.jp/
19. Kenichi Nohara “Crisis of Tatara, the Japanese iron industry in the early Meiji era: Focusing
on the Izumo area” (1970)
20. Chugoku Electric Power Co., Inc., Energia Economic and Techinical Research Institute,
Energia Regional Economic Report No. 465, “History of Industrial Development Centering

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on Shimane Prefecture (Meiji/Taisho Edition II)” (2013)
21. Noriyuki Kawasaki, Industry Promotion Advisor, Yasugi Chamber of Commerce,“ Tradition of Tatara ironmaking, inherited by Yasuginosato” (2012)
22. The story of Tatara ironmaking, Hitachi Metals, Ltd. (Last browsed date : October 25,
2019)https://www.hitachi-metals.co.jp/tatara/index.htm

Chapter 3 Initiatives by the Chugoku Bureau of Economy, Trade and Industry
23. CASE
A coined word that stands for Connected, Autonomous, Shared & Services, and Electric,
and is a keyword that symbolizes the trend of the automoive industry in the era of change.
At the 2016 Paris Motor Show, Daimler AG CEO and Chairman of Mercedes-Benz, Dieter
Cecche announced that it was used in the medium- to long-term strategy.
24. the local core enterprise-local innovation support projectThisu project is aimed at building a network of support organizations that cooperate withsupport organizations that support regional innovation and strengthening the local support
system in order to encourage promising companies in the region (regional core companies)
who are expected to play a key role in strategic fields to take on the challenge of new business.
In addition, we provide comprehensive innovation support according to the business stage,
fromknow-howacquisition

for

new

businesses,

business

structurecommercialization strategy formulation, R&D, and market development.

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maintenance,