### 2. Global expansion and development of products and services in cooperation with users

The creation of assets, services and innovations with uniquely Japanese high added value is vital not only for stimulating domestic demand, but overseas demand as well (in other words, global deployment). In terms of global markets, however, the key issue is to develop and supply products and services that bring high added value to users in other countries. Enhancement of communication with said users through ICT is seen as being an effective means of achieving this goal.

Let us examine the “SMILE System” of Unicharm Corporation (Figure 3-18) as an example of a Japanese corporate initiative that makes effective use of ICT, and makes effective use of UGD (User Generated Devices) $ ^{29} $ in collaboration with users for global deployment. Unicharm Corp. launched the SMILE System in April 2008 to consolidate the management of all phone calls, e-mails and letters, etc. the company receives from consumers including inquiries and complaints, and share this data not only with the customer service division but with all related divisions including plants and the marketing and research and development (R&D) divisions, putting them to use for product development. Many of the company’s products, such as diapers and surgical masks, come into direct contact with the skin, and product defects can cause customers to feel unpleasant and lead to product recalls and downgrading of the brand’s image. As a result, Unicharm adopts the philosophy that customer relations directly impact the company’s competitive power, and appropriate handling of all input from customers, be it complaints or requests, etc., is indispensable. The SMILE System is used to react immediately when a product defect occurs, and to share information with the R&D division that can help to generate product ideas. In some cases, products are updated at three-month intervals based on customer feedback. As 35% of Unicharm’s sales are overseas, the company has already expanded the SMILE System to China and Thailand and has plans to introduce it to Taiwan and Indonesia, aiming to achieve the “best customer service in all of Asia,” and to leverage this effective means of reflecting customer feedback in product development, and pursue further global deployment.

In the past, Japanese corporations pursued global deployment by putting down roots in other countries, putting in hard work and making every effort to localize. Exhibiting at international trade fairs was also an effective method, but in recent years the growing presence from Chinese, South Korean and other corporations has diminished that of Japanese corporations. Henceforth, these strategies will continue to be effective means of gauging the needs of overseas consumers and markets, and implementing timely product development, sales and marketing, but UGD cooperation with users using ICT is also an effective means, and in future will increase in importance not only for corporations' domestic development, but for overseas expansion as well.

Figure 3-18 The Unicharm SMILE System

Unicharm is expanding the SMILE System, which shares input from consumers on products company-wide, in various Asian countries

(Source) Nikkei Computer (August 15, 2008)