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October 18, 2023

Discovering Digital Transformation In Japan With Kavan Choksi

Japan is undergoing two major transformations, creating a wealth of investment opportunities for those in it for the long haul. According to Kavan Choksi, decarbonization and digitalization are the two themes driving change in the country. Decarbonization reduces carbon dioxide emissions and dependence on fossil fuels. With Japan's goal of becoming carbon neutral by 2050, many companies are producing technology to achieve this target. These include products that improve efficiency and reduce emissions, parts used in electric vehicles, and solar energy panels.

Meanwhile, digitalization has permeated every industry in Japan. Every sector has been transformed from finance to manufacturing by the digital revolution. Although the two themes seem distinct, they're deeply interrelated and are transforming Japan in profound ways that savvy investors should pay attention to.

The Power Of E-Commerce

The coronavirus pandemic has certainly changed how we live, and one of the biggest impacts has been the rapid growth of e-commerce. Japan is no exception to this trend, with more and more people turning to online shopping. One savvy investor taking advantage of this is JP Morgan (News - Alert)'s Eiji Saito, who runs the JPMorgan Japan Small Cap Growth & Income trust. He owns two stocks that cater to this rising demand. The first stock, BASE, allows anyone to set up an online store quickly and easily, with no hidden fees. This service is a game-changer for small store operators and individuals wanting to enter the e-commerce market. The second stock, Yappli, simplifies mobile app development, making it easy for retailers to create mobile e-commerce businesses without expensive software engineers. With features like coupons, push notifications, point cards, and GPS store navigation, Yappli offers an effective interface for online shopping. These innovative stocks show how nimble investors can pivot to take advantage of the changing market landscape.

Starting an e-commerce business is an exciting venture nowadays, but figuring out how to make money from it can be challenging. However, Kavan believes that attracting and retaining customers is one crucial factor for success. Saito recommends using PLAID, a cutting-edge software platform that helps retailers deliver a personalized shopping experience to achieve this. With PLAID, online retailers can analyze their customers' browsing behavior, understand their preferences, and offer tailored products that match their needs. By using such innovative technology, businesses can stand out from the competition and drive sales, paving the way for long-term success.

The Power Of Cloud Infrastructure In Streamlining Business Operations

Cloud infrastructure development has revolutionized businesses, making many operations more efficient and streamlined. One example is the traditional hanko, a personal stamp used in Japan for signatures. While this tradition has been in use for over 1,000 years, it has also been a cause of significant productivity bottlenecks. The need for someone to physically go to the office and sign physical documents can be incredibly time-consuming. Fortunately, Kavan  mentions that Japanese companies are beginning to adapt to the digital age, embracing cloud software services such as Cloudsign from Cloud infrastructure companies like Money Forward and HENNGE also change the game by offering cloud-based accounting and identity and access management services. These companies are leading the charge in digitalizing traditional business operations and allowing for greater efficiency in the workplace.

Revolutionizing Healthcare: The Rise Of Digitalization

The Covid-19 pandemic has brought about significant changes in various sectors worldwide, including the medical industry. The onset of the pandemic has pushed medical clinics to adopt telemedicine to provide healthcare services safely and efficiently. With this, Kavan notes that Japan's largest telemedicine platform, Medley, has garnered great success, which is commendable given the conservatism of the country's public sector. This success has been attributed to the accelerated digitalization and penetration of e-commerce amid the pandemic, which has been a game-changer for the medical industry. Another company, AS ONE, specializing in scientific instruments and hospital products, has also emerged in response to the increased global demand for healthcare equipment. Amid all this, it is fair to say that digitalization has brought about a significant transformation in the medical sector.

Embracing Change: The Digital Transformation Of Industries In Japan

The digitalization of industries is becoming increasingly important in today's fast-paced world. While some industries are reluctant to embrace change and modernize their practices, it presents great opportunities for competition. One company leading the way in driving the modernization of the restaurant industry is Infomart. Inefficient transactions within the food industry have persisted, with many establishments still depending on paper documents and faxes to order ingredients. However, Infomart offers a cutting-edge e-commerce platform that has quickly become the de-facto standard for food wholesalers and restaurant operators. Embracing change and digitization can greatly improve efficiency and streamline processes in any industry, as Infomart has proven in the restaurant industry.

The logistics industry has been facing productivity issues for quite some time now, which makes it difficult for businesses to deliver packages to their customers on time. Thankfully, companies like Raksul are offering innovative solutions to this problem. It provides a convenient online platform that allows customers to easily book truck-sharing services. Its services can be accessed through a PC or smartphone, making it a convenient option for people who are always on the go. The manager believes Raksul is crucial in transforming the logistics industry and improving productivity. It is especially important for smaller Japanese companies looking to embrace digital transformation to operate more efficiently in these traditional industries.

In conclusion, Japan has been renowned for its unique history as a technological powerhouse for generations. From the reign of automatons to artificial intelligence, it is no surprise why this nation stands at the forefront of digitalization across industries. But now, more than ever, Japan is leveraging digitalization to transform its economy and society. Kavan explores how the manufacturing industry can gain strategic advantages from embracing new technologies and how these changes will shape Japanese citizens' lives in expected and unexpected ways.

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