On September 30th, Waseda Business School (WBS) held a symposium entitled "Taking on the Challenge of Japanese Luxury Brands" at the Okuma Small Auditorium on the Waseda Campus. In addition to a keynote speech entitled "The Potential of Japanese Luxury Brands" by WBS Professor and Waseda University Luxury Branding Institute Director Nagasawa Shinya, Atsushi Takada, General Manager of the Brand Management Department at Lexus, and Keiichi Fujii, Brand Manager of Shiseido's Clé de Peau Beauté, took to the stage for a talk session on current initiatives and future strategies. Professor Nagasawa gave an overview of the current state of the luxury brand business and spoke about the potential for success for Japanese luxury brands. "Luxury brands have products that sell well despite their high prices, and they have passionate fans. Global luxury companies and brands such as LVMH Moët Hennessy Louis Vuitton, Kering, and the Richemont Group can be expected to have stable earnings and sales growth, and in fact they generate high profit margins. On the other hand, Japanese companies' strength was QCD (Quality, Cost, Delivery), but in order to adapt to the current short life cycles, they continue to release new products one after another, and in some cases they are falling into a busy period without making a profit. There is a lot we can learn from the strategies of unique, high-added-value, emotional-value-oriented luxury brands." During the talk session, Takada spoke about Lexus's efforts, saying, "In 2012, we established an in-house company, LEXUS INTERNATIONAL. Its decision-making process is completely separate from Toyota's, and we value meticulous craftsmanship with our own production line. We must strengthen 'Emotional Lexus.' Luxury requires emotion. We will communicate the brand's worldview through story-driven commercials and the opening of the flagship store, INTERSECT BY LEXUS, which proposes the Lexus lifestyle beyond the purpose of selling cars." Fujii of Shiseido spoke about Clé de Peau Beauté's overseas expansion, saying, "We began our overseas expansion in 1998. We began independent branding that did not rely on the Shiseido name. In 2010, we formed the Clé de Peau Beauté Global Unit, a standalone business division that handles both domestic and international operations. We started with just 12 people and now have about 30. We currently operate in 13 countries in the Americas, including Japan." The brand's flagship Synergic line, which launched in 2008 and attracted attention for its ¥120,000 cream, has been renamed "SYNACTIF" this year, and the brand aims to lead the global high-prestige cosmetics market with a global perspective. "In fact, due to our withdrawal from Europe in 2007, we feel we are at a disadvantage compared to overseas brands in how we promote emotional benefits. Our challenge is to emotionally convey the brand's distinctive features of 'highly effective and ultimate texture.' Cosmetics are about selling dreams, and our next venture into Europe will be about becoming a brand that can sell fragrances. Our goal is to succeed in business with fragrances that appeal solely to emotions, not functionality." Professor Nagasawa also cited the example of Louis Vuitton, which had two stores in Paris and Nice, entering the Japanese market in 1978 and opening six stores in one go, achieving successful globalization, and spoke of Japan's role in nurturing luxury companies. "Luxury brands have a story, and the greater the difference between name recognition and penetration, the more aspirational the brand becomes. If Japanese companies can overcome the emotional creations and emotional strategies that appeal to the emotions, which are their weakness, then Japan's high quality and carefully crafted products packed with technological expertise can be sold at high prices. I would like them to push forward with their luxury strategy."