B-6 Ceramic, Porcelain and Glass Tableware

B-6. Ceramic, Porcelain and Glass Tableware
6
Ceramic, Porcelain and Glass Tableware
1. Market Conditions in Japan
(1) Definition of Category
This category encompasses ceramic, porcelain and glass tableware and kitchenware. Classifications and HS
numbers in official trade statistics are shown below. HS 6912.00 includes other household articles and toilet
articles (not including of porcelain or china) other than ceramic or stoneware tableware and kitchenware.
Glass ware also includes a kind used for toilet, office, indoor decoration or similar purposes.
Adding lead oxide to glassware enhances their transparency and shine. In North America and EU nations,
glassware with 24% or greater lead oxide content is defined as crystal; however, there is no such clear-cut
definition in Japan. Nevertheless, customs statistics classify glassware with 24% or greater lead oxide content
as leaded glasses. In popular parlance, glassware with 24% or greater lead oxide content is usually referred to
as crystal, while glassware with 6% or greater but less than 24% lead oxide content is referred to as
semi-crystal.
HS Numbers
6911.10
6912.00
7013.10
7013.21, 31, 91
7013.29, 32, 39, 99
Commodity
Tableware and kitchenware of porcelain or china
Ceramic tableware, kitchenware, other household articles and toilet articles,
other than of porcelain or china
Glassware of glass-ceramics
Glassware of lead crystal
Other glassware
(2) Market Conditions
[Ceramic and porcelain tableware]
The market of ceramic and porcelain tableware in Japan has been stabilized at low levels. Tableware to be
used as necessities of life is already saturated, and in the replacement demand due to damage, the imports
from China dominate the market with its low price and usefulness, and accordingly it causes whole market’s
price decline. Bridal market lost its past liveliness because of a decrease in number of marriages and an increase in free-choice gifts (the recipient can choose any item they want from a catalogue). Demand of corporate premiums for sales promotion continues to be in a slump. In every home, tableware received as a
present at a banquet or as corporate premium is being left untouched in the closet. Due to the sluggish overall economic situation, demand in the corporate gift market is very weak, and commercial users such as hotels, restaurants, beverage establishments etc. put off purchasing for replacement of tableware. In particular,
expensive products have been severely hit by the shrinkage in demand.
Even so, consumers’ interest in ceramic and porcelain tableware is not evenly deteriorating. Consumers increasingly buy necessities at the lowest possible price, and as much as possible they put off purchasing
products that do not fit with their lifestyles or for which they ha no immediate need. At the same time, consumers show no reluctance to spend large sums of money on things they truly want or things that have some
highly distinctive trait that appeals to them. This speaks of an increasing tendency toward consumer polarization of late. People who want to be particular about tableware in order to enjoy the scenes of “eating” at
home are steadily increasing. Thus, mainstream demands of ceramic and porcelain tableware are shifting
from a volume gifts to be represented by bridals and corporate premiums to single item demands such as one
for personal home use or for presents and are being more diversified and individualized. Recent times in the
gift market have seen in the form of combination gift sets that include several different kinds of products
(such as ceramic ware with pasta) or single item to be stick to personal preference, in place of traditional gift
sets, which merely offered the same item in larger quantities.
Under such circumstances, a popularity and reliance on the European luxury brands’ tableware is
deep-rooted as ever. For example, Wedgwood’s Wild Strawberry is a long-time seller since its release in
1965. But even in these luxury brands, Japanese consumers generally favor cup-and saucer sets and
seven-inch cake plates, which are already well accepted as part of Japanese life styles, over full-line settings
(usually sold as settings for six). New consumption trend is notable that people choose luxury brands not by
its brand name based on short-lived cachet, but by the design of own preference or by the coincident with
own value and that it turned out such products were European luxury brands’ products.
Every kiln produces ceramic and porcelain ware with certain unique characteristics. The following broad
generalizations can be made about ceramic and porcelain tableware from different parts of the world.
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B-6. Ceramic, Porcelain and Glass Tableware
High-quality porcelain (bone china) brands of the United Kingdom, as represented by Wedgwood, are favorites among Japanese consumers, and grab a large share in the imports from
the West. The United Kingdom also exports semi-porcelain ware, stoneware, and ornamental
relief jasper ware (featuring white relief patterns laid over blue or green stoneware).
Italy has a number of well-known makers of fine china. Richard Ginori is one of popular
brands in Japan. Uniquely Italian designs of the Majolica ceramic ware in Faenza and Deruta
are also popular.
Most European makers of fine dinnerware have close ties to royalty, and Denmark is no exception. Danish handmade china, represented by Royal Copenhagen, is popular for the high
quality of its workmanship.
As with Japan, Germany is noted for high technical skill in the production of white porcelain
dinnerware. Its exports include a number of excellent new products known for their modern
styling. In recent times, Mesissen tableware is getting popular among young women. Bavarian ceramic tableware is another popular German export to Japan.
Blue porcelain from the Limoges region of France is very well known. French exports are
noted for their European aristocratic styling. In recent time, tea cups of Hermes gain popularity among young women.
Other European exports include fine china from Hungary and Austria and ceramic tableware
from Spain.
Tradition blue, white, and blue-white Chinese bone china command very high prices. But,
most imports from China and other Asian countries tend to be inexpensive, mass-produced
goods. The market for hand-made tableware from these areas is expanding as producers’
benefit from technology sharing and training from Japanese companies, and there is some
consumer interest in ethnic craft-style from these countries/areas.
U.K.
Italy
Denmark
Germany
France
Other
Europe
Asia
[Glass tableware]
If anything, glass tableware market tends to be on a decrease in recent years and the sales of expensive
products is in particular very slow. As with the case in ceramic and porcelain tableware, a center of recent
demands in glass tableware has been shifting to single item demands for personal use. The sales of glass tableware that propose stylish and convenient life, such as wine glass, glass tumbler for shochu (clear distilled
liquor) and heat-resistant glass products, which can be used in microwave or dish washer are in a good shape.
For example, tumblers for shochu exclusive use with a design expressing a taste of Japanese pottery have
been gaining popularity to correspond to a recent shochu boom. The heat-resistant glass-made tumbler,
which is not broken even by pouring boiling water, is also gathering popularity among shochu fans that drink
it with hot water. In addition, since the heat-resistant glass-made product has a high degree of transparency,
people can check the dish inside of microwave ovens and bring it directly to a dinning table and wash it by
dish washer thereafter. Each manufacturer enriches the exclusive recipes that specify the cooking time and
performs sales promotion such as a proposal of hand-made jam and sauces. Key words for good-selling
product include specialized functions for particular scenes and a high design sense which also can be valued
as interior such as the water using tea pot made by heat-resistant glass and the tall tea pot for Asian tea exclusive use.
An increasing tendency toward consumer polarization has seen in glass tableware market as well. While
mass-produced products imported from China and ASEAN are spread in the daily use tableware market such
as tumbler and small glass plate, a popularity and reliance of European brands’ products is deep-rooted for
wine glass, champagne glass, old-fashioned glass etc. Characteristics of main glass tableware production
countries are summarized as below.
France
Italy
Germany
Baccarat is highly valued throughout the world as the finest crystal and it is synonymous with
crystal in Japan. It also has the world’s largest mass production infrastructure for both fine
crystal and soda glass products, which have helped them grab a large share in the imports from
the West.
Italy’s best-known glassware is Venetian crystal. Italian mass-market soda glass products are
known for their distinctive styling, and these products are more and more widely available in
Japan. Some Italian pre-finished glassware is also imported into Japan for additional cutting.
A number of German glassware makers already sell their products in the Japanese market.
Machine-produced glassware mostly employs simple styling, while partially colored handmade
glassware is especially admired. Functional heat-resistant glass products made in Germany are
also very popular in the Japanese market of late.
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B-6. Ceramic, Porcelain and Glass Tableware
Austria
Czech
U.S.A.
China and
ASEAN
Riedel’s wine glass is greatly appreciated by sommelier and wine fans as an excellent item
which pulls the characteristics of wines from all over the world. Also, Swarovski’s crystal
glass contains high percentage of lead dioxide and it is famous in the field of ornament and
beads accessory.
The glass making industry in the Czech has a lengthy history, and its Bohemian crystal is very
famous in Japan. It leads the world in production and export of traditional potassium glassware
(known for its beautiful high transparency) and lead crystal glassware.
High-quality American hand-made crystal is known for its distinctive motifs and production
techniques. American glass ornaments are widely admired in Japan. Some mechanized manufacturers have licensed Japanese glassware makers to produce their wares in Japan. American
mass-produced glassware generally is simple in styling and is mostly used in the food service
industry and for other commercial use.
Most exports from China and ASEAN are soda glass tableware and household accessories.
Many of their exports come from offshore facilities of Japanese manufacturers or OEM production sites. Exports from China to Japan are increasing rapidly in recent years.
(3) Distribution System and Business Practices in Japan
[Ceramic and porcelain tableware]
In Japan, there are about 30 producing districts by combining porcelain tableware (Arita, Imari, Kutani
etc.), ceramic tableware (Masiko, Hagi, Kasama etc.), and stoneware tableware (Bizen, Tokoname, Shigaraki
etc.), and the peculiar products are being made at each district. Domestic tableware is usually distributed
through wholesalers to retail outlets or to volume commercial users. There are two types of wholesalers; one
is wholesalers in producing district who collects each maker’s products within the districts and deliver them
to all over the nation, and the other is wholesalers in consumption district who opens the store at big cities
like Tokyo and Osaka. Many consumption district wholesalers broadly deal with not only ceramic and porcelain tableware, but also glass tableware and lacquer ware. Also, the wholesalers for commercial users purchase products from the producing district wholesaler and deliver them to hotels and restaurants. On the
other hand, major western tableware makers such as Noritake, Nikko, Narumi build up the direct sales network by arranging the sales offices and dealer agents all over the country. Recently, in the ceramic and porcelain tableware market as well, major retail stores are increasingly doing business direct with makers or
producing associations. Distribution channel is getting short also due to a reduction of profit margin caused
by a drop of sales price and the spread of Internet.
Upscale imported brands are generally sold through authorized dealerships, although this is merely one of
several possible channels for import distribution, as illustrated in Fig. 1 below. Recently many overseas
makers have their own Japanese subsidiaries to sell their products directly in Japan. In addition, since the
parallel imports are growing, ordinary consumers have been able to purchase almost all famous brands’
products at lower price via Internet than that of the regularly imported one.
1) Imports through a sole import agent or Japanese subsidiary
A Japanese trading company or importer contract sole import agent agreements with the overseas
maker to handle goods for distribution to retailers. Many department stores and large retailers also function as authorized import agents. A decade or so ago many overseas makers had no Japanese import
agents, but nowadays most of the well-known brands are under contract to authorized import agents in
Japan. Some makers have established Japanese subsidiaries or sales offices in order to sell their products directly to department stores and other large retailers.
2) Direct imports
The overseas manufacturer or wholesaler in producing area sells directly to department stores and other
retail outlets in Japan.
3) Imports through specialty trading company
A specialized import trading company imports goods from makers not under import agent contract and
distributes those goods mainly to wholesalers and retailers outside the major metropolitan areas.
4) Parallel imports
As stated previously, products are purchased from wholesalers or retail outlets in Hong Kong, Singapore, or some other countries/areas and imported to Japan separately from authorized import agents.
On the other hand, low-priced products imported from China and ASEAN pass through the same distribution channels as domestic products, and sold not only at tableware specialty stores but also at supermarkets
(general merchandise stores), home centers, fancy goods shops, discount stores, and ¥100 shops.
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B-6. Ceramic, Porcelain and Glass Tableware
Fig. 1 Distribution channels for imported ceramic and porcelain tableware
Overseas manufacturers
Overseas retailers
Importers
Parallel imports
Sole import agents
Direct imports
Wholesalers
in consumption district
Retailers
Large retailers
Consumers
[Glass tableware]
In the past, when most imports consist of name-brands from the West, they were imported through glassware specialty trading companies or medium-sized general trading companies, and generally did not pass
through the same distribution channels as Japanese-made glassware. But, some overseas makers set up
Japanese subsidiaries, and as products manufactured in offshore facilities of Japanese makers, machine-made
mass-produced glassware, and semi-finished glassware imports have been increasing, distribution patterns
for imported glass tableware have diversified considerably in recent years. In addition, there is increasingly
incidence of parallel imported high quality products, as is the case with ceramic and porcelain tableware.
Many imports from China, ASEAN and other Asian countries consist of development imports under Japanese companies’ direction, and these products pass through the same distribution channels as glassware produced in Japan. Consumers increasingly purchase tumblers and other daily use glass tableware at discount
stores or ¥100 shops, and the low-price trends continues unabated.
Fig. 2
Distribution channels for imported glass tableware
Overseas manufacturers or exporters
Trading companies
Glassware manufacturers
Japanese subsidiary of
overseas manufacturers
Manufacturer's sales companies
Primary wholesalers
Secondary wholesalers
Department stores, specialty stores, mass merchandisers
Consumers
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B-6. Ceramic, Porcelain and Glass Tableware
2. Trade Trends
(1) Import Trends in Japan
[Ceramic and porcelain tableware]
Imports of both ceramic and porcelain tableware continue a pattern of steady growth. In 2004 total imports
reached 89,586 tons (up 18.0% from the year before) worth ¥29.17 billion (up 4.0%), both setting a
new-time record. While imports of ceramic tableware show slowdown trend after topping the 50,000 ton
mark last year, the growth in imports of porcelain tableware is notable in recent years.
Earlier, the growth in imports was supported mainly by 1) increasingly westernized personal lifestyles in
Japan, 2) increased personal incomes, which stimulated demand for upscale products and 3) Japanese consumer preference for name brand products. But, recent growth in imports of ceramics and porcelain tableware was actually supported by increased “development imports” from Asia (especially China). Compared
with 2000 levels, 2004 import volume of porcelain tableware has grown 2.3 times, while that of ceramic tableware has grown 1.4 times. Nevertheless, on a value basis, porcelain tableware imports have increased by
just 11.9%, while ceramic tableware imports have increased by 44.1%. This reflects the sizable volume increase in imports of low-priced products. 2004 saw another large increase in import volume of porcelain tableware, from 24,840 tons the year before to 35,949 tons. But most of the growth was in low-priced products
from China. As a result, the average unit price per kilogram fell from ¥738 to ¥511, and total import value
remained the almost same level of the previous year at ¥18.39 billion (up 0.3%).(see Figs. 3 and 5)
Fig. 3
(¥ million)
Trends in Japan’s ceramic and porcelain tableware imports
[Total import value]
(¥ million)
30,000
[Import value by category]
20,000
15,000
20,000
Ceramic tableware
10,000
Porcelain tableware
10,000
5,000
0
0
2000
2001
2002
2003
2004
(Year)
2000
2001
Value
2002
2003
2004 (Year)
Volume
2000
2001
2002
2003
2004
2000
2001
2002
2003
2004
Porcelain tableware
16,430
16,581
16,626
18,321
18,385
15,607
16,484
19,171
24,840
35,949
Ceramic tableware
7,484
9,530
9,851
9,730
10,783
37,829
45,800
46,031
51,103
53,637
TOTAL
23,914
26,111
Units: value=¥ million, volume=tons
26,477
28,051
29,168
53,436
62,284
65,202
75,944
89,586
Source: Trade Statistics (Ministry of Finance)
[Glass tableware]
Though the growth in imports of glass tableware is slow compared with that of ceramic and porcelain tableware, it secured 2.9% growth from the year before to ¥24.13 billion in 2004. Most glass tableware imports consist of soda glass mass-market products with 55,038 tons. Its import value also increased to ¥18.2
billion, with a share of 75.4% of total imports. At the same time, it is worth noting that crystal glassware,
which tumbled to ¥4.56 billion (1,573 tons) in 2001, rebounded to ¥5.85 billion (2,125 tons) at a fast enough
pace to be above the most recent peak year of 1999 (¥5.65 billion).
A look at the trends in imports in the medium shows that glassware tableware imports have shown a continued rise from 1994 onward. Some of the reasons for the growth were 1) the stronger Japanese yen, which
brought prices of imports down and made them seem more reasonably priced to consumers; 2) active market
entry efforts by foreign glassware makers; and 3) deliberate efforts by Japanese glassware makers to round
out their product lines with imported glassware and to reduce costs. In recent years, however, most of the
growth was in low-priced products from China, as was the case with porcelain and ceramic tableware. Observers watch to see if the recent recovery in crystal glassware persists into the future. (see Figs. 4 and 5)
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B-6. Ceramic, Porcelain and Glass Tableware
Fig. 4
Trends in Japan’s glass tableware imports
[Total import value]
[Import value by category]
(¥ million)
20,000
(¥ million)
30,000
15,000
Other glassware
20,000
10,000
Lead crystal glassware
10,000
5,000
0
0
2000
2001
2002
2003
2004
(Year)
2000
2001
2002
Value
2000
Glass-ceramics ware
2001
2002
2003
(Year)
2004
Volume
2003
2004
2000
2001
2002
2003
2004
110
89
65
118
71
176
120
98
168
119
4,707
4,559
5,016
5,491
5,854
1,900
1,573
1,673
2,177
2,125
Other glassware
15,725
16,721
16,188
17,825
18,200
44,427
42,385
44,330
51,728
55,038
TOTAL
Units: ¥ million, tons
20,541
21,369
21,269
23,435
24,126
46,503 44,078 46,101 54,073 57,281
Source: Trade Statistics (Ministry of Finance)
Lead crystal glassware
Fig. 5
Trends in tableware imports by category in 2004
Value
Volume
Porcelain tableware
18,385
34.5%
Yearly
change
100.3
Ceramic tableware
10,783
20.2%
110.8
Value
Glass-ceramics ware
Lead crystal glassware
Other glassware
Share
Average unit price
35,949
24.5%
Yearly
change
144.7
53,637
36.5%
105.0
Volume
Share
2003
2004
738
511
190
201
71
0.1%
60.2
119
0.1%
70.6
705
601
5,854
11.0%
106.6
2,125
1.4%
97.6
2,522
2,755
18,200
34.2%
102.1
55,038
37.5%
106.4
345
331
TOTAL
53,294
100.0%
103.5
146,867
100.0%
113.0
396
363
Units: ¥ million, tons, yearly change=%, average unit price=¥ per kilogram Source: Trade Statistics (Ministry of Finance)
(2) Principal Exporters to Japan and ASEAN’s Position
[Porcelain tableware]
The porcelain tableware market is polarized between high-end products from EU nations (¥10.53 billion,
import share 57.3%) and inexpensive products from China (¥6.27 billion, 34.1%). Considering the composition that EU had 83.1% share (¥13.66 billion) and China had 11.6% share (¥1.91 billion) in 2000, we can see
how rapidly imports from China have increased in the last five years. Until last year China increased its export to Japan at a rate of ¥600 million every year. It made a big leap in 2004 from the previous year’s ¥3.89
billion (share 21.2%) to ¥6.27 billion (share 34.1%), and China moved past the United Kingdom (¥5.17 billion, share 28.1%) into first place for the first time. On the other hand, among EU nations, not only the
United Kingdom, but also Germany (¥1.75 billion, 9.5%) and Denmark (¥973 million, 5.3%) have decreased
their exports to Japan for four consecutive years. Italy, who exceeded the ¥2 billion mark last year, retreated
again to ¥1.15 billion (share 6.3%) in 2004, and so the EU as a whole lost its momentum. In spite of euro
appreciation and high oil price, the average unit price of every EU products showed a tendency of decline,
suggesting the change of consumers’ needs for European brands’ products. On a volume basis, China has a
commanding share of 85.7%, by rising considerably from 19,626 tons the year before to 30,809 tons. (see
Fig. 6)
In contrast to EU nations’ slowdown, it is noteworthy that imports of porcelain tableware from Thailand
have grown steadily in recent years. In 2004, Thailand moved ahead of Hungary into seventh place (¥592
million, share 3.2%) in the rankings, and on a volume basis it managed to climb past the United Kingdom
into second place (1,372 tons, share 3.8%). When Indonesia, Malaysia and other countries are factored in,
ASEAN exports of porcelain tableware to Japan as a whole topped the ¥1.0 billion mark for the first time,
and reached ¥1.20 billion (share 6.5%). This is equivalent to 2.3 times of 2000 (¥527 million).
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B-6. Ceramic, Porcelain and Glass Tableware
Fig. 6
Principal exporters of porcelain tableware to Japan
[Trends in import value by leading exporters]
[Shares of porcelain tableware imports in 2004]
(¥ million)
8,000
China
U.K.
Others
2.1%
China
34.1%
6,000
ASEAN
6.5%
4,000
Germany
2,000
EU
57.3%
Italy
0
2000
2001
2002
2003
2004
2000
2001
2002
Value
Value
Value
(Year)
2003
Value
2004
Volume
Value
Volume
Average
unit price
85.7%
203
China
1,910
2,525
3,210
3,888
19,626
6,267
34.1%
30,809
U.K.
6,683
6,045
5,916
5,837
1,331
5,172
28.1%
1,257
3.5%
4,116
Germany
2,101
2,097
1,971
1,831
344
1,747
9.5%
366
1.0%
4,776
Italy
1,443
1,822
1,216
2,098
567
1,152
6.3%
353
1.0%
3,264
Denmark
1,785
1,326
1,245
1,117
144
973
5.3%
160
0.4%
6,065
France
659
928
941
880
185
670
3.6%
138
0.4%
4,853
Thailand
325
329
387
480
1,081
592
3.2%
1,372
3.8%
431
1,523
1,509
1,740
2,191
1,561
1,813
9.9%
1,493
4.2%
1,214
Others
TOTAL
16,430
16,581
16,626
18,321
24,840
18,385
100.0%
35,949
100.0%
511
(E U)
13,661
13,135
12,390
13,068
2,865
10,529
57.3%
2,521
7.0%
4,177
(ASEAN)
527
578
633
954
Units: ¥ million, tons, average unit price=¥ per kilogram
1,825
1,204
6.5%
2,124
5.9%
567
Source: Trade Statistics (Ministry of Finance)
[Ceramic tableware]
This same pattern is even more apparent in ceramic tableware, and an increase in China’s exports to Japan
started earlier than porcelain tableware. China tripled its exports to Japan from 15,180 tons to 47,071 tons
between 1998 and 2003, giving China an import share of 92.1% on a volume basis, and 75.2% on a value
basis (¥7.32 billion). In 2004, even such momentum got weak but rose by 4.3% to 49,110 tons worth ¥7.91
billion (up 8.1%), representing a slight growth compared with the past. In contrast, EU nations’ collective
exports to Japan showed a recovery to ¥1.65 billion, which had shrank in 2003 to ¥1.31 billion from the peak
year of 2001 (¥2.39 billion), when Italian ceramic tableware soared to ¥1.04 billion aided by the publicity on
“Italy in Japan 2001” project. Imports from Thailand, Malaysia and other ASEAN countries recovered as a
whole to ¥970 million. As a result, China’s import share on a value basis, which has been steadily increased
in recent years, was down from last year’s 75.2% to 73.4%, giving EU collectively 15.3% share and ASEAN
collectively a share of 9.0%. Among EU nations, Finland made the biggest leap (from ¥51 million to ¥199
million) and took fifth position by defeating the traditional exporter nations such as France (¥186 million)
and Italy (¥174 million). Finland draws attentions as a new supply base of ceramic tableware. (see Fig. 7)
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B-6. Ceramic, Porcelain and Glass Tableware
Fig. 7
Principal exporters of ceramic tableware to Japan
[Trends in import value by leading exporters]
[Shares of ceramic tableware imports in 2004]
(¥ million)
10,000
China
Others
2.4%
8,000
ASEAN
9.0%
EU
15.3%
6,000
China
73.4%
4,000
2,000
U.K.
0
2000
China
2001
2002
2003
2004
2000
2001
2002
Value
Value
Value
(Year)
2003
Value
2004
Volume
Value
Volume
Average
unit price
91.6%
161
4,488
5,875
6,824
7,321
47,071
7,913
73.4%
49,110
U.K.
691
660
628
467
214
578
5.4%
245
0.5%
2,355
Thailand
403
461
490
501
1,452
523
4.8%
1,544
2.9%
339
Malaysia
209
232
251
148
413
219
2.0%
714
1.3%
307
51
61
68
51
27
199
1.8%
117
0.2%
1,705
1,754
Finland
France
170
171
142
183
89
186
1.7%
106
0.2%
Italy
479
1,040
399
187
324
174
1.6%
230
0.4%
759
Others
994
1,029
1,048
872
1,514
991
9.2%
1,570
2.9%
631
TOTAL
7,484
9,530
9,851
9,730
51,103
10,783
100.0%
53,637
100.0%
201
(E U)
1,882
2,392
1,760
1,310
1,109
1,647
15.3%
1,101
2.1%
1,495
(ASEAN)
744
891
961
822
Units: ¥ million, tons, average unit price=¥ per kilogram
2,480
970
9.0%
3,097
5.8%
313
Source: Trade Statistics (Ministry of Finance)
[Glass tableware]
China’s exports of glass tableware to Japan have strongly increased over the past five years, from 9,319
tons to 23,776 tons. China took the lead not only on a volume basis but on a value basis as well, as its import
volume moved it ahead of France into the top spot in 2003 onward. 2004 saw its import grow by another
12.2% to ¥6.77 billion. However, unlike the case with ceramic and porcelain tableware, there are some 10
nations that export at least 1,000 tons of glassware to Japan annually, so China does not enjoy the same sort
of import market dominance in glass tableware (share 28.1%). At one time France was the leading exporter
of glass tableware to Japan. French glassware is known not only for its luxury-grade handmade crystal, but
also for the world’s most highly developed mass production system for affordably priced glassware as well.
These match the lifestyle of the Japanese consumer and are the underpinnings for the popularity of French
products in the Japanese market. But three straight years of decline have pushed France’s exports down in
2002 to ¥5.15 billion. In 2003 onward, however, France saw its exports of crystal glassware to Japan increase again, and its total 2004 value, inclusive of mass-market products, recovered to ¥5.93 billion (share
24.6%) with 8,062 tons. Among other leading exporters of glass tableware to Japan, third-ranked Germany
(¥1.66 billion, share 6.9%), fifth-ranked Austria (¥1.00 billion, 4.2%) and seventh-ranked Thailand (¥908
million, 3.8%) all grew their imports steadily, while fourth-ranked Italy (¥1.40 billion, 5.8%) and other leading exporters including Indonesia, the Czech Republic and the United States all finished the year down.
Import volume of glass tableware from ASEAN in total reached a record high of 9,188 tons in 2004 and it
penetrated the market with a share of 16.0%. Nonetheless, because of further progress of price decline, its
import value has been reduced from ¥2.20 billion the year before to ¥ 2.17 billion (share 9.0%), in contrast
to its strong performance in ceramic and porcelain tableware. The main reason is Indonesia failed to keep the
last year’s rapid increase value level. In this regard, glass tableware made in ASEAN has become an existence which is completely overtaking the Republic of Korea in mass-produced glass tableware market in Japan. (see Figs. 8 – 10)
Marketing Guide for ASEAN Exporters to Japan
106
B-6. Ceramic, Porcelain and Glass Tableware
Fig. 8
Principal exporters of glass tableware to Japan
[Trends in import value by leading exporters]
[Shares of glass tableware imports in 2004]
(¥ million)
8,000
ASEAN
9.0%
Others
10.6%
China
6,000
France
China
28.1%
4,000
Germany
2,000
EU
52.3%
0
2000
2001
2002
2003
2000
2001
2002
Value
Value
Value
2004
(Year)
2003
Value
2004
Volume
Value
Volume
23,776
Average
unit price
41.5%
285
China
3,008
4,030
4,993
6,036
19,567
6,770
28.1%
France
5,760
5,564
5,148
5,455
7,909
5,932
24.6%
8,062
14.1%
736
Germany
1,351
1,216
1,338
1,480
1,250
1,660
6.9%
1,312
2.3%
1,265
Italy
1,030
1,409
1,440
1,428
2,935
1,403
5.8%
1,999
3.5%
702
Austria
785
694
669
846
183
1,003
4.2%
223
0.4%
4,491
Indonesia
690
726
791
1,012
5,066
945
3.9%
4,840
8.4%
195
243
Thailand
574
567
498
865
2,917
908
3.8%
3,745
6.5%
R. Korea
1,322
1,297
937
1,065
4,811
746
3.1%
4,054
7.1%
184
Czech
695
664
836
902
859
707
2.9%
655
1.1%
1,078
U.S.A.
1,115
1,066
851
828
1,431
647
2.7%
1,187
2.1%
545
Others
4,211
4,138
3,767
3,518
7,151
3,406
14.1%
7,429
13.0%
459
TOTAL
20,541
21,369
21,269
23,435
54,073
24,126
100.0%
57,281
100.0%
421
(E U)
11,317
11,511
11,334
12,025
15,286
12,619
52.3%
14,733
25.7%
857
(ASEAN)
1,681
1,680
1,675
2,201
Units: ¥ million, tons, average unit price=¥ per kilogram
8,608
2,171
Fig. 9
9.0%
9,188
16.0%
236
Source: Trade Statistics (Ministry of Finance)
Principal exporters of glass tableware to Japan by category in 2004
Tableware of lead crystal
Yearly Average
Value
Share
Country
change unit price
3,257 55.6%
118.1
3,838 China
Other glassware
1
France
6,626
Yearly
Average
change unit price
36.4%
111.5
281
2
Austria
855
14.8%
110.4
5,847 France
2,642
14.5%
99.8
369
3
Germany
442
7.6%
110.1
3,444 Germany
1,215
6.7%
112.8
1,028
1,053
5.8%
98.4
616
942
5.2%
93.2
196
2,149
11.8%
98.6
235
Country
4
Italy
349
6.0%
97.4
1,205 Italy
5
Czech
348
5.9%
66.2
1,166 Indonesia
(ASEAN TOTAL)
16
0.3%
194.3
Value
366
Units: ¥ million, average unit price=¥ per kilogram
Share
Source: Trade Statistics (Ministry of Finance)
Fig. 10 Trends in imports from ASEAN by country/category
[Value]
[Volume]
(ton)
(¥ million)
5,000
3,977
4,000
2,952
3,149
4,345
14,410
15,000
3,269
12,913
9,838
9,381
9,943
2000
2001
2002
10,000
3,000
2,000
5,000
1,000
0
0
2000
2001
2002
2003
2004
2003
2004
Marketing Guide for ASEAN Exporters to Japan
107
B-6. Ceramic, Porcelain and Glass Tableware
Value
2002
633
961
1,675
3,269
6.8%
2003
954
822
2,201
3,977
7.7%
2004
1,204
970
2,171
4,345
8.2%
2000
1,092
2,582
6,164
9,838
9.8%
Porcelain tableware
325
329
387
Ceramic tableware
403
461
490
Thailand Glass tableware
574
567
498
TOTAL
1,302
1,357
1,375
Share of total
2.9%
2.9%
2.9%
Porcelain tableware
103
145
168
Ceramic tableware
41
53
97
IndoneGlass tableware
690
726
791
sia
TOTAL
834
923
1,057
Share of total
1.9%
1.9%
2.2%
Vietnam
369
433
376
Malaysia
276
243
280
Philippines
153
192
176
Singapore
18
2
5
Brunei
Myanmar
Laos
Cambodia
Units: ¥ million, tons, average unit price=¥ per kilogram
480
501
865
1,847
3.6%
405
86
1,012
1,504
2.9%
331
173
116
5
1
-
592
523
908
2,023
3.8%
369
92
945
1,405
2.6%
414
372
128
3
-
742
1,556
2,048
4,347
4.3%
150
140
3,128
3,418
3.4%
811
983
256
23
-
Porcelain tableware
Ceramic tableware
ASEAN
Glass tableware
TOTAL
TOTAL
Share of total
2000
527
744
1,681
2,952
6.6%
2001
578
891
1,680
3,149
6.6%
Average
unit price
Volume
2001
1,045
2,734
5,602
9,381
8.8%
2002
1,158
3,127
5,657
9,943
8.9%
2003
1,825
2,480
8,608
12,913
9.9%
2004
2,124
3,097
9,188
14,410
9.8%
2004
567
313
236
302
722
850
1,081
1,372
431
1,542
1,551
1,452
1,544
339
1,696
1,424
2,917
3,745
243
3,959
3,825
5,450
6,661
304
3.7%
3.4%
4.2%
4.5%
160
190
610
390
945
113
382
311
266
344
3,220
3,580
5,066
4,840
195
3,492
4,152
5,987
5,497
256
3.3%
3.7%
4.6%
3.7%
815
813
743
1,069
387
775
830
490
933
398
339
320
241
249
518
1
2
2
1
2,180
0
Source: Trade Statistics (Ministry of Finance)
(3) Imports’ Market Share in Japan
In contrast to growth in imports, domestic production of ceramic and porcelain tableware has been heavily
decreasing year by year. As a result, the imports’ share on a value basis in the market for ceramic and porcelain
tableware has been rising from 21.0% in 2000 to 34.8% in 2004. As Japanese style tableware is estimated to
account for about 70% of total domestic production, imports’ share in the western tableware category is estimated to have risen above 50%. On the other hand, imports already account for 55.0% of the market for glass
tableware in 2004. Decrease in domestic production exceeds increase in imports, and overall tableware market
has been on a downward trend.
Fig. 11
Imports’ share in the Japanese market
2000
Ceramic and
porcelain
tableware
Glass
tableware
2001
2002
2003
2004
Yearly change
Domestic production
102,672
88,628
77,306
69,812
64,267
92.1
Imports
23,914
26,111
26,477
28,051
29,168
104.0
Exports
12,557
13,303
13,003
11,248
9,560
85.0
Market total
114,029
101,436
90,780
86,615
83,875
96.8
Imports’ share
21.0%
25.7%
29.2%
32.4%
34.8%
Domestic production
33,393
30,663
31,686
28,899
28,606
99.0
Imports
20,541
21,369
21,269
23,435
24,126
102.9
Exports
4,193
6,801
7,032
7,532
8,902
118.2
Market total
49,741
45,231
45,923
44,802
43,830
97.8
Imports’ share
Units: ¥ million, yearly change=%
41.3%
47.2%
46.3%
52.3%
55.0%
Sources: Yearbook of Ceramics and Building Materials Statistics, Trade Statistics
3. Key Considerations related to Exporting to Japan
(1) Regulations and Procedural Requirements at the Time of Importation in Japan
Provisions of the Food Sanitation Law apply to the importation of ceramic, porcelain and glass tableware.
The Customs Tariff Law prohibits the importation of fake name brand products and knock-off copies, and such
items are subject to confiscation or destruction at customs based on provisions of the Customs Law. Importers
can even be subject to criminal penalties, including fines and imprisonment. April 2003 revisions of the Customs Tariff Law added patents, design rights and utility model rights to the import suspension system. From
April 2004, information about manufacturers, exporters and importers of fake name brand products shall be
disclosed to rights holders so they can take legal action or otherwise pursue the importers, etc.
Marketing Guide for ASEAN Exporters to Japan
108
B-6. Ceramic, Porcelain and Glass Tableware
It has been decided that, starting from March 2006, the items which are subject to the Unfair Competition
Prevention Law such as misleading products, fake name brand products and knock-off copies will be checked
at the customs even if those products are not registered for trademarks, design rights etc., in order to
strengthen the countermeasures against copy products.
1) Food Sanitation Law
Under provisions of the Food Sanitation Law, the importation of apparatus and container-packages that
pose a potential threat to the human health is prohibited. Importers are required to submit the completed
“Notification Form for Importation of Foods, etc.” to the Quarantine Station at the port of entry. Ceramic and
porcelain tableware is subject to lead and cadmium leaching standards. A determination is made based on the
document examination whether or not an inspection at the bonded area is required. Prior to importing, the
importer may take a sample of forthcoming imports to laboratories registered with the Minister of Health,
Labour and Welfare or the competent government agency of the exporting countries. Those test results may
be substituted for the corresponding inspection at the port of entry, which expedites the quarantine clearance
process.
Fig. 12 Administrative Procedures Required by the Food Sanitation Law
Advance consultation service
Advance information acquisition (regarding production methods, etc.)
Advance inspection (by the competent government agency of the exporting country,
or the official laboratory registered with the Minister of Health, Labour and Welfare)
Submission to the Quarantine Station
(“Notification Form for Importation of Foods, etc.” and other related documents)
Examination of documents
Cargo required inspection
Failure
Pass
Reshipment, destruction
Cargo not required inspection
Certificate of notification processing, or
certificate of passing inspection
Customs declaration
(2) Regulations and Procedural Requirements at the Time of Sale
The sale of ceramic, porcelain and glass tableware is subject to provisions of the Food Sanitation Law and
the Act Against Unjustifiable Premiums and Misleading Representations. The sale of glass tableware is also
subject to provisions of the Household Goods Quality Labeling Law. Products that infringe intellectual property rights are regulated by the various intellectual property laws (Trademark Law, Patent Law, Unfair Competition Prevention Law, etc.). Prospective importers must be aware of these considerations, as rights holders
may initiate legal action. In addition, containers and packaging may also be subject to identifier labeling provisions of the Law for Promotion of Effective Utilization of Resources, and recycling provisions of the Containers and Packaging Recycling Law. Please contact one of the agencies listed below for more complete information about affected packaging, the definition of specific providers (certain small-scale providers are exempt from regulation), and labeling methods.
1) Food Sanitation Law
The Food Sanitation Law prohibits sale and use of apparatus and container-packages that pose a potential
threat to the human health. Ceramic and porcelain tableware are subject to lead and cadmium leaching standards. Distribution stage is also subject to oversight and guidance by food sanitation inspectors from local
government health centers.
(Note) The Glass Manufacturers Association of Japan has adopted voluntary standards (lead and cadmium leaching standards,
etc.) for glassware with imprint patterns.
2) Household Goods Quality Labeling Law
The Law stipulates the format and content of quality labeling for products designed for everyday household use. The purpose is to protect the benefit to consumers by providing information that helps them choose
products and informs them about how to use the products correctly.
Marketing Guide for ASEAN Exporters to Japan
109
B-6. Ceramic, Porcelain and Glass Tableware
Heat-resistant and rein-forced glassware are subject to labeling requirements of the Household Goods
Quality Labeling Law at the point of sale. Products may not be sold without labels. (see (3) Labeling Regulations)
3) Act Against Unjustifiable Premiums and Misleading Representations
The Act prohibits a form of improper labeling exaggerated or false labeling that misleads consumers about
the nature or quality of products. Also, vague or confusing labeling that makes it difficult to discern the actual country of origin is also prohibited as a form of improper labeling. The country of origin is defined as “a
country in which a treatment or process effecting substantial change to the substance of the goods made.”
(3) Labeling Regulations at the Time of Sale in Japan
1) Legally Required Labeling
[1] Household Goods Quality Labeling Law
The Miscellaneous Industrial Products Quality Labeling Standards under the Household Goods Quality
Labeling Law require the following items of information on labeling for heat-resistant and reinforced glass
tableware.
Required labeling items under the Household Good Quality Labeling Law
Products
Reinforced glassware
for table or kitchen use
Heat-resistant glassware
for table or kitchen use
Labeling items
1) Product name, 2) type of reinforcement, 3) precautions on handling,
4) name of labeler and information contacts (address or telephone number)
1) Product name, 2) intended use, 3) maximum temperature, 4) precautions on handling,
5) name of labeler and information contacts (address or telephone number)
.
Example label for heat-resistant glassware
Product name:
Heat-resistant glassware
Intended use:
With direct flame
Maximum temperature:
300 ˚C degrees
Precautions on handling:
a. Remove all moisture form exterior surface during use. Avoid adding
cold water during use. Do not touch the heated portions of the glass
with a wet cloth or put a cloth on the portions of the glass when hot.
b. Do not use without any contents.(for other than ultra heat-resistant)
c. Do not clean with steel wool or abrasive cleanses, with may chip the
glass and cause it to break.
d. Because there is a chance the water can suddenly boil over, the
face should be kept away while heating (only when direct flame is
used)
e. Heating should be applied to the center of the device and that low
heat should be used (only when direct flame is used)
f. Do not use for purposes other than intended.
Example label for reinforced glassware
Product name:
Reinforced glassware
Type of reinforcement:
Physical reinforcement
Precautions on handling:
a. Do not drop from a high place or otherwise expose this
product to sudden impact.
b. Do not clean with steel wool or abrasive cleanses, with
may chip the glass and cause it to break.
c. If the glass does break, it may shatter to tiny flying fragments
ABC Glassware Co., Ltd.
X-X, YY-machi, ZZ Prefecture
ABC Heat-Resistant Glassware Co., Ltd.
X-X, YY-machi, ZZ Prefecture
2) Voluntary Labeling based on Provisions of Law
[1] Industrial Standardization Law (JIS Law)
Based on the Industrial Standardization Law, standards are set for the quality of industrial products (Japanese Industrial Standards: JIS). Under the amendment of the Law, all industrial products for which JIS standards are set will be transferred to a new JIS Mark Labeling System starting from October 2005. Still, the
certification of the existing JIS factories will be effective until the end of September 2008 and the current JIS
Mark can be indicated. For more details, please contact:
•Conformity Assessment Division, Industrial Science and Technology Policy and Environment Bureau,
Ministry of Economy, Trade and Industry
TEL: 03-3501-1511
http://www.meti.go.jp
JIS Mark (New)
Marketing Guide for ASEAN Exporters to Japan
110
JIS Mark (Current)
B-6. Ceramic, Porcelain and Glass Tableware
(4) Key Considerations for entering the Japanese Market
Prospective new market entrants need to understand that mainstream demands of ceramic, porcelain and
glass tableware of late are single item demands, which are sold by the piece, for personal home use, and consumer needs are being more diversified and individualized. Tableware that do not meet consumer needs will
not be accepted no matter how inexpensive they are. Even mass-produced products are required to have a feature to differentiate itself from others when placed at store front. Recent times the small lot orders of a wide
variety of products have been increasing, and product-life cycles have been even shorter than they are. In addition, since ceramic, porcelain and glass tableware are all fragile for its product characteristic, a maximum
protection is necessary to prevent them from being damaged during the transportation. In Japan, the Product
Liability (PL) Law has been enacted in order to stipulate the liability for compensation of manufacturers etc.
and to protect the victim in case that it is verified that the damages to human life, body or properties have been
caused due to defects in manufactured goods. For the imported products, since the importers shall be liable to
compensation for damages, the importers need to be careful about the handling manuals and warning indications, not to mention the quality control.
Normally retail outlets simply replace any defective merchandise for the products sold through import agents.
But manufacturers usually will not replace defective for products distributed through non-authorized dealer
channels.
(5) Regulatory Agency Contact
• Food Sanitation Law
Office of Imported Food Safety, Inspection and Safety Division, Department of Food Safety,
Pharmaceutical and Food Safety Bureau, Ministry of Health, Labour and Welfare
TEL: 03-5253-1111
FAX: 03-3503-7964 (Direct)
http://www.mhlw.go.jp
• Household Goods Quality Labeling Law
Product Safety Division, Consumer Affairs Department, Commerce and Information Policy Bureau,
Ministry of Economy, Trade and Industry
TEL: 03-3501-1511
http://www.meti.go.jp
• Act Against Unjustifiable Premiums and Misleading Representations
Consumer Related Trade Division, Trade Practices Department, Fair Trade Commission of Japan
TEL: 03-3581-5471
FAX: 03-3581-1754 (Direct)
http://www.jftc.go.jp
• Law for Promotion of Effective Utilization of Resources / Containers and Packaging Recycling Law
Recycling Promotion Division, Industrial Science and Technology Policy and Environment Bureau,
Ministry of Economy, Trade and Industry
TEL: 03-3501-1511
http://www.meti.go.jp
Office of Recycling Promotion, Policy Planning Division, Waste Management and Recycling Department,
Ministry of the Environment
TEL: 03-3581-3351
FAX: 03-3593-8262 (Direct)
http://www.env.go.jp
4. Tariff Duties and Consumption Tax in Japan
(1) Tariff Duties
Fig. 13 on the following page presents tariff duties on ceramic and porcelain tableware and glass tableware.
In case of confirming the tariff classification or applicable tariff rate in advance, it is convenient to use the
“advance counseling program.” By making an inquiry to the customs orally, or through document or e-mail,
the customs will reply to such inquiry.
Contact: Customs website
http://www.customs.go.jp
[Preferential Tariff System]
In order to apply for preferential tariff rates on ceramic, porcelain and glass tableware imported from preferential treatment countries, the importer should submit a certificate of preferential country of origin (Form
A) issued by the customs or other issuing agency in the exporting country (not required if the total taxable
value of the shipment is no greater than ¥200,000). For more details, please contact the Customs and Tariff
Bureau, Ministry of Finance. Application of tariff rates on ASEAN countries is as follows.
Applicable Rates
LDC Preferential Rate
Preferential Rate
JSEPA Rate
WTO Rate
ASEAN Countries
Myanmar, Cambodia, Laos
Thailand, Indonesia, Malaysia, Philippines, Vietnam
Singapore
Brunei
Marketing Guide for ASEAN Exporters to Japan
111
B-6. Ceramic, Porcelain and Glass Tableware
Fig. 13 Tariff duties on ceramic, porcelain and glass tableware
HS No.
Description
6911.10
General
Rate of Duty
Prefer- TemWTO
JSEPA
ential porary
2.3%
Free
A
Tableware and kitchenware of porcelain or china
3.4%
Ceramic tableware, kitchenware, other household articles and toi6912.00
3.4%
2.3%
Free
let articles, other than of porcelain or china
7013
Glassware of a kind used for table, kitchen, toilet, office, indoor
A
decoration or similar purposes
10
1. Of glass-ceramics
4.6%
3.1%
Free
2. Drinking glasses other than of glass-ceramics
21
1) Of lead crystal
4.6%
3.1%
Free
29
2) Others
4.6%
3.1%
Free
3. Glassware of a kind used for table (other than drinking glasses)
or kitchen purposes other than of glass-ceramics
31
1) Of lead crystal
5.8%
3.9%
Free
3.9%
Free
32
2) Of glass having a linear coefficient of expansion not exceeding 5.8%
5 x 10-5 per Kelvin with a temperature range of 0˚C to 300˚C
3) Others
5.8%
3.9%
Free
39
4. Other glassware
91
1) Of lead crystal
5.8%
3.9%
Free
99
2) Other
5.8%
3.9%
Free
Note 1: “A” in JSEPA rate means that based on the Japan-Singapore Economic Partnership Agreement (JSEPA), articles originated
in Singapore were approved as duty free from the effective date of Agreement (November 30, 2002).
Note 2: Normally the order of precedence for application of tariff rates is JSEPA, Preferential, WTO, Temporary, and General, in that
order. However, Preferential rates are only eligible when conditions stipulated by law or regulations are met. Also, WTO
rates apply when those rates are lower than Temporary or General rates. Refer to “Customs Tariff Schedules of Japan”
(published by Japan Tariff Association) etc. for more complete interpretation of tariff table.
(2) Consumption Tax
(CIF + Tariff Duty) x 5%
5. Related Industry Organizations
• Japan Pottery Manufacturers’ Federation
TEL: 052-935-7231
FAX: 052-935-7254
• Japan Pottery Inspection Association
TEL: 052-935-7233
FAX: 052-935-6356
• The Glass Manufacturers Association of Japan
TEL: 03-3591-2697
FAX: 03-3595-2719
Marketing Guide for ASEAN Exporters to Japan
112
http://www7.ocn.ne.jp/~jpia/
http://www.glassman.or.jp