The consumer citizen as an economic subject ‒ consumer market

Chapter 1 The Role of the Consumer Citizens and Challenges for a Consumer Citizenship
In order to change the social structure through consumer behavior, it is essential to find a
secure balance among the economy, society and peace of mind. With these three
perspectives in mind, we will examine the current situation and relevant issues, with a
particular focus on the role and future prospects of consumer trends.
Section 1:
The consumer citizen as an economic subject ‒ consumer market behavior
●In developed countries, consumption expenditure comprises more than 50% of the
economy. Consumers wield great power through their choice of corporations and
products. A very negative consumer attitude toward a corporation, following a scandal for
example, leads to a severe decrease in revenues.
Fig 1-1-2
In developed countries, consumption expenditure
generally accounts for more than 50% of GDP
70.7
US
Section 1:
UK
The consumer citizen as an economic subject ‒ consumer market behavior
60.7
58.6
Italy
The choices of consumers strongly affect business behavior and their products. Consumers
respond negatively to corporations involved in malpractice. In the development of complex
economic systems and the growth of the service industry, consumers directly face various
risks such as food safety. It is necessary to develop a system which enables consumers to
assess risk, and to construct a market which maintains a reasonable risk level.
Switzerland
55.9
France
55.4
Germany
55.2
Japan
55.1
54.2
Canada
45.1
Sweden
39.8
Norway
Section 2:
The consumer citizen as an agent of social change ‒ social value behavior
The pursuit of individual benefit often runs in opposition to other concerns such as the
global warming and poverty. To solve these problems in interdependent society,
cooperation among citizens is vital. The awareness of social good is growing; however, it is
not directly linked to practical actions that will serve, for example, environmental protection.
To link a consumer s awareness to action, it is necessary to analyze factors that change
consumer behavior and thereafter propose an appropriate policy.
0
10
20
30
40
50
60
70
(%)
80
(Notes)
1. Japanese data drawn from the Cabinet Office "Annual Report on National Accounts" (2008) and other
data is drawn from OECD.Stat
2. The figures are the percentage of final consumption expenditure of households in gross domestic product
Fig 1-1-5
After a scandal, the revenue of a corporation decreases
(The year when a scandal occurred=100)
scandal occurred
120
110
100
Section 3:
The consumer citizen as a social subject ‒ pursuit of happiness
Economic wealth does not necessarily bring about higher life satisfaction (the degree of
happiness). A stressful life negatively affects one's degree of happiness. Although the causes
of stress vary according to the environment in which one lives, stress is known to be one of
the major causes of depression. One who does not feel stressed tends to have more their
own time during workdays, and in a country where average work hours are short, the degree
of happiness tends to be high. It is, in short, important to lead a relaxed and comfortable
lifestyle.
6
90
80
70
60
50
-5
-4
-3
-2
-1
0
1
2
3
4
5
6(year)
(Notes)
1. Ministry of Finance "Financial Statements Statistics of Corporations by Industry", Nikkei "Kaisya
Soran", Toyo Keizai,inc., "Kaisha Sikiho", Teikoku Databank "Kigyo Jyoho"
2. Sales of each company are indexed and compared with average sales of each industry (the sales in
the year when a scandal occurred are assumed 100).
7
●With the expansion of imports, exporting countries diversify and food chains (supply
chains) from producing regions to individual homes become more complex. The degree of
development of the legal systems and their implementation by exporting countries affects
our country.
Fig 1-1-6
With the expansion of imports, exporting countries to Japan diversify ●As the food supply chain becomes more complex and consumer awareness soars, the
number of voluntary recalls of food increases rapidly. With more people feeling uneasy
about food safety, domestic food products are preferred.
Fig 1-1-16
0
(number of countries)
Growth rate from
1970 to 2007
1970
1990
1995
2000
2005
2007
meat and preparation of meat
40
57
64
55
49
44
1.1
dairy product and eggs
27
39
46
48
44
48
1.8
cereals and preparation of cereals
41
53
57
62
62
60
1.5
fish (fresh)
84
126
138
131
131
129
1.5
fish preparation
44
46
58
62
61
55
1.3
fruits
61
68
71
82
87
83
1.4
vegetables
54
65
69
81
77
79
1.5
domestic electrical equipment
20
38
41
55
52
49
2.5
clothing
68
81
108
117
113
112
1.6
toys, indoor games etc.
49
64
61
74
80
71
1.4
(Notes)
1.
Calculated from Ministry of Finance "Trade Statistics of Japan"
2.
"The number of countries" indicates the total number of countries from
conducted within a year
Fig 1-1-9
Japan
Russia
*pork
*shrimp
*tomatoes
*cheese
*cod
*garlic
*cheese
*rice
*mackerel *soybean milk *gelatin noodles
*egg whites *potatoes
*saury
*read beans *spinach
*cod
*grifola
*beef tallow*pumpkins
*green tea
*cabbage
*beef
*bean sprouts
*chicken *corn
*celery
*lard
*soybeans
*pork
*onions
*milk
*carrots
*eggs
Oceania
*wheat
*cod
*pork
*corn
*celery
*soybeans
*onions
*tomatoes
*green peppers
Latin America
*beef tallow
*beef
*cheese
*pumpkin
*green peas
*onions
Factory
in Japan
China
*squid
*pork
*red beans
*asparagus
*green beans
*cloud ear mushrooms
*shiitake mushrooms
*ginger
*wheat
*shrimp
*pork
*red beans
*bamboo shoots
*onions
*tomatoes
*garlic
*leeks
*green peppers
*mushrooms
*lotus root
60
(%)
100
80
"strong sence of concern"
2008(October)
(n=1810)
47.3
28.2
2008(June)
(n=405)
10.9
18.1
40.0
2007
(n=438)
12.1
2006
(n=448)
9.6
33.5
2005
(n=469)
10.4
33.0
2004
(n=456)
8.3
29.1
45.2
4.9 1.5
14.1
25.6
31.0
3.7
12.1
4.7 0.9
17.7
37.9
3.8 0.9
17.1
2.9 0.7
Little concerned
Somewhat
concerned
Concerned
2.2
3.2 1.8
20.3
34.1
33.1
Strongly
concerened
Fig 1-1-18
No answer
Unconcerned
80
20
*tomatoes
0
Factory in Thailand
"Buy less/
reduce purchasing"
"Have confidence"
Middle East
*lizard fish
*perillas
*chicken
*zucchinis
(Thailand) *shrimp
*small sardines*bamboo shoots
*green beans *pineapples
81.8
60
40
Asia
(excluding China)
There is a significant trend toward domestically processed food
(%)
100
*pork
*chicken
*tomatoes
*green peppers
(Note) Made from Company A homepage on 50 items of household frozen processed foods (August, 2008)
8
40
(Notes)
1.
Data before June 2008 is from Food Safety Commission "Food Safety Monitors (Awareness on food
sfaety) and data at October 2008 is from the Cabinet Office "Survey on National Lifestyls
(Consumers' awareness and its behavior)"(2008)
2.
The precentages of the answers to the question "Hou much do you concern about food saftey
comapred with natural disaster, enviromental issues, crimes and traffic accidents".
3.
Respondents of "Food Safety Monitors" are gerenal consumers and people from food business.
Respondents of "National Life Monitors" are citizens over the age of 20.
US
Canada
20
(year)
which any import has been
Japan imports ingredients of foods from various countries
such as China (an example of frozen foods)
EU
More people feel uneasy about food safety
35.8
35.3
14.9
12
34
16.7
1.6
1.1
domestic product
(ingredients are aslo
domestic)
50.1
domestic product
(ingredients includes
imports from
developed countries)
dometics products imported processed
food from
(ingredients include
developed countries
imports from
developping countries)
imported processed
food from
developing countries
(Notes)
1.
The Cabinet Office "Survey on National Lifestyles" (research on consumer awarenss and behavior)
(2008)
2.
The ratio of respondents who were asked the following questions: "How much confidence do you have
in processed food safety? Have you changed the frequency of your purchasing activity?"
3.
"Have confidence" is the sum of answers "have confidence" and "generally have confidence". "Buy
less/reduce pruchasing" is the sum of answers "do not buy at all" and "buy less than before".
4.
Respondents are 1810 people, of both sexes, over the age of 20.
9