Chairman Tain-Tsair Hsu of CDRI leads a visit to more than 20 small companies in Kyoto for five days started from 28th May. The participant of the visit includes Cathay Securities Investment Trust, Realtek Semiconductor Corp., Taiwan-Asahi Environmental Technology, Footwear and Recreation Technology Research Institute, TATUNG company of Japan, INC., Rihsin food industry company, Footdisc Taiwan, Array Networks, YUMARK Group, Biboting, New South Ocean, Life & Living International Limited etc., together they explore the innovation and transformation process of the old companies in Kyoto. Chairman Hsu pointed out that Taiwan’s business service industry is facing double challenges of succession and transformation. The situation is grave and should not be underestimated. The delegation hopes to visit Japan’s old shops and to meet with their owners. With the information exchanging, they might find the way to embody their companies’ spiritual values and learn the way of transformation, promote their traditional techniques, and create international brands in Taiwan.
Chirman Hsu further explained that in the era of complex and hyper-competitivity, companies nowadays are having difficulties to be on top of the industry. Even old companies are experiencing the test, “transformation” and “innovation” are the ways to achieve sustainability. In recent years, the world's new retail, mobile payment, IoT, AI, robotics and other digital technologies are embarking on the wave of the service industry revolution. All industries need to accelerate the "digital transformation" in response to the VUCA (volatility, uncertainty complexity, ambiguity) of the new mediocre.
Kyoto is the city with the most condensed old shops in Japan, the first day of the visit the team went to the oldest restaurant “Ichimonjiyawasuke” which was found in 1000 D.C., gone by a thousand and eighteen years, the owners now are the 25th generation of the founders. Roasted mochi is the only product sold in the store from the first day till now. The Murasakino Imamiya shrine is near by the shop, the owners believe the store is blessed by the gods which keep their business running for so long, and the price of the mochi are relatively affordable as $500 yen for each. With the competitive price, there are always customers lining up in front of the store.
The team visited Hiyoshiya, the old umbrella shop which founded in Edo period. After several times of moving and the, the family are still making traditional Japanese umbrella for 160 years as the only Japanese umbrella shop survived in Kyoto. The peak of their business was in 1950 which sold 17million umbrellas, but in 2010 no product was sold. The shop now runs by Mr. Kotaro Nishibori, the 5th generation of the founder. He was a civil server before married the daughter of the then president, the 4th generation of the founder. It was a huge burden because of the shrinking market, the revenue twenty years ago was only $100 Japanese yen. They almost shut down their business, but ten years ago, Mr. Kotaro Nishibori discovered the tender beauty when sunshine glows through the Japanese umbrella. He came out with an idea which was to design indoor lamps with the techniques of making umbrellas. At the beginning, customers love their designs, but the profit was not improving. He decided to make a bold move, with the idea of “Tradition is continuing Innovation”, the profession of the designers, and the advices from retail experts, they customized their lighting products and participated in many exhibitions around the world, successfully promoted their artistic products into the international market.
They not only received the Good Design Award but also interviewed by well-known medias such as TIME. Now they have 15 agencies around the world. President Kotaro Nishibori is now working on the project “Kyoto Brands Development Project”, and established a TCI research institute in collaboration with craftmen and designers, and has been commissioned by Kyoto Contemporary. He is now committed to integrate various production processes of local crafts in Japan and to flourish the industrial chain.
The next activity was to visit one of the three most famous old hotels in Kyoto- “HIIRAGIYA”. HIIRAGIYA was established in 1818 in Edo Period, now runs by the 6th generation of the founder Ms. Akemi Nishimura. President Nishimura has been running the hotel for more than30 years, keeping their features and styles under the constant challenges of the times, especially the core value of their service -” Home of the visitors” which has never changed. President Nishimura wants to keep the creativeness of their tradition, that is why they built a new modern wing in the building with traditional elements. Ms. Nishimura says that the process of receiving foreign tourists is just like traveling, learn the cultures from worldwide is how she realized that “the spirit of hospitality is to "predict the needs of the customers” and to combine “hardware” and “the service”, which has become the key of their business.
The unique “hipster” atmosphere of HIIRAGIYA is the reason why it attracted Charlie Chaplin, Yasunari Kawabata, and Elizabeth Taylor. Yasunari Kawabata is a big fan of HIIRRAGIYA, he mentioned in his book that “I love travelling, and like writing in the hotels I used to stay. But it is only in HIIRAGIYA, that so much good memories were made.” The room number 14 which he always stays has also became popular.
Chairman Hsu says the spirit of these family business are admirable, especially the five doctrines of HIIRAGIYA: 1. Customer 2. Partner 3. Worker 4. Family 5. Credibility, which are good examples for Taiwanese small and medium enterprises which are facing the challenge of succession and transformation.
Ichimonjiyawasuke
Ichimonjiyawasuke
Hiyoshiya
Hiyoshiya
HIIRAGIYA
HIIRAGIYA
HIIRAGIYA
HIIRAGIYA
HIIRAGIYA
