This is an executive interview conducted by Mio Shimamura, CEO of Premium Japan, featuring executives from companies with unique brand stories. Through the products and services they create, as well as their corporate philosophy, we will unravel the essence of the ``Japanese sensibilities'' and ``Japanese aesthetic sense'' that their brands express.

This time, we spoke to Mr. Masashichi Nakagawa, Chairman and Representative Director of Masashichi Nakagawa Shoten Co., Ltd., which manufactures and sells household goods based on Japanese craft techniques, from tableware and clothing to interior decoration and food. .

A sense of crisis for Japanese crafts brought to light

The roots of Nakagawa Masashichi Shoten date back to 1716, when the first generation Kihei Nakaya started the Nara Sarashi business in Nara. The Nara Sarashi industry, which was booming when the company was first established, declined as demand declined as the times changed. Meanwhile, in order to preserve the handmade manufacturing method, we moved our production base overseas shortly after the war, entered the tea ceremony utensil industry, and started manufacturing and selling hemp accessories. has created a history of

Although Mr. Nakagawa was born into such a family, he initially had no intention of taking over the family business, and after graduating from university, he found a job at a general company.

``I was blessed with a good boss, and I enjoyed my job as an employee.However, because it is a large company, it takes 10 years to advance to the next step, and the lack of speed is boring, so I wanted to work at a small company.'' So I started thinking about my parents' home, Nakagawa Masashichi Shoten, as an option."

After joining the company, he was surprised to find out that despite being a company with such a long history, there was no company creed or company policy.

"When I asked my father about it, he said, ``That's not going to increase sales. There's no need for it.'' (laughs) But I've come to believe that in order to move forward, we need a vision that will serve as a banner for everyone working. is"

This feeling was particularly strengthened when I was faced with a chain reaction of companies involved in manufacturing going out of business.

``When I heard that the business was going out of business, I thought it was a shame, but it kept happening one after the other.I felt a sense of crisis that if things continued like this, Japanese crafts and Japanese manufacturing would disappear.''

At the time, Nakagawa Masashichi Shoten was in the red in its miscellaneous goods department, but it managed to turn around.

``Honestly, it is true that crafts and miscellaneous goods are not very profitable.In order to survive, we need to take a management perspective and thoroughly refine our systems.Similar things have happened to other companies as well. If so, I started thinking that maybe I could use my experience to help."

Revitalizing companies to create products that can sustain business management

In 2007, the company set out a vision of ``revitalizing Japanese crafts!''

“With this vision, a lot of things started to change all at once.I think it clarified what we as Nakagawa Masashichi Shoten should do.Also, we managed to manage a company that was manufacturing good products but was not doing well financially. That's why I started consulting."

The first company is Maruhiro Ltd., which produces Hasami ware in Nagasaki Prefecture. With Mr. Nakagawa's support, he launched a brand called ``HASAMI,'' which features mugs with unique colors and simple designs, and has grown into a popular brand at Nakagawa Masashichi Shoten. "With this success, we gained attention as a company that revitalizes loss-making companies with annual sales of less than 1 million yen, and we started receiving revitalization projects one after another."

Furthermore, even if manufacturing stabilized, this alone would not lead to true revitalization, so they started Dainippon City, a joint exhibition that brings together manufacturers from all over Japan.

``When we were trying to develop a sales channel, we couldn't find any exhibitions that we wanted to exhibit at.If you don't do it right, a typical exhibition ends with just an exchange of business cards.However, the original purpose was to collect orders. It should be an important place to take advantage of the product and connect it to business. It's important to think about the business that comes after that, rather than just making something good."

It's not just the planning ability to create things, but how to convey that knowledge and connect it to sales. During the exhibition, each company will announce the previous day's orders at the morning assembly every day, and a popularity voting board will also be set up for visitors. Although it may be tough, it definitely functions as a place where companies and brands can take the next step.

Town development for the survival of craft production areas

Mr. Nakagawa has led numerous reforms since joining the company in 2002, but in 2018 he handed over the baton to Aya Sengoku, who was not from the founding family for the first time, and assumed the position of chairman. What we are currently focusing on is urban development.

``The most important objective is not just to revitalize the city, but to ensure the survival of the craft production area.In order to prevent the decline of the production area, we need to break away from the division of labor that tends to lead to the collapse of all of us, and consolidate the manufacturing process in one place. That's when we came up with "industrial tourism," which turns manufacturing sites into tourist attractions.On the other hand, producers' bases are not located in locations that are easily accessible, such as in the mountains. We need good restaurants and good lodging there. Along with manufacturing, we create elements that people want to come to.As a result, this has become a business of town development and regional revitalization."

In 2017, an industry organization called the Japan Craft Production Areas Association was established to support the activities of companies in craft production areas across Japan so that they can envision the future of their production areas.

A place to learn about small business starting in Nara

In 2021, the commercial complex ``Shikasarkitsune Building'' opened in Nara, the birthplace of the company. Not only can it be enjoyed as a tourist facility, with Nakagawa Masashichi Shoten Nara Main Store and Sarutahiko Coffee housed there, but the co-working space on the third floor is also the base of the town development ``N.PARK PROJECT''. Based on the keyword "Revitalize Nara with small business!", we are using this place as a base to learn about business and work to create businesses of our own.

``Nara has many world heritage sites and many tourists, but the amount spent by tourists is actually far lower than other prefectures, ranking 47th in the country.I was shocked to learn that. Even if you come to Nara, you won't spend money because there are no good stores.This is the responsibility of our time, and it is something that all Nara managers should reflect on because they have not created stores that people want to visit. I thought so.”

He said he felt that he needed to learn because he had worked as a consultant for many companies and realized that their weak point was that they were not doing "management".

``It's not as difficult as getting an MBA. As long as you know the basics of management, such as creating business plans and budget sheets, and understand the ``learning pattern'' for running a successful business, you can do well. I'm so busy that I can't make any money even though I'm working hard, so there's no successor. This is a place where you can learn how to solve such problems.”

N.PARK PROJECT has the concept of ``courage to take a step forward'' in addition to ``learning patterns''. This is because we want new human resources to take on the challenge, not just existing companies. In fact, many young people are participating, and we have supported a ramen shop and a special spice curry restaurant started by students to show young Japanese people the options for work styles, and have managed to operate in the black even during the coronavirus pandemic. We have achieved results such as

A new project that connects students and regional revitalization through management

Activities aimed at regional revitalization have also begun in Tokyo. Another Japan, a select shop selling local products, is opening in the new TOKYO TORCH block in front of Tokyo Station, where students from each prefecture promote their hometowns. Although we teach them the ``learning style'' in advance and provide support, students are responsible for all aspects of store management, from purchasing to sales.

“The ultimate goal of Another Japan is not to make the store profitable.For the students, the experience at this store will help them reconnect with the local community.After 10 or 15 years, they will want to start their own business or join a local company. Returning to their hometown may be an option for them, such as getting involved.I hope we can plant that seed now."

Selection criteria has shifted from lifestyle to “life stance” era

What's important, Nakagawa says, is to have the power to make your own choices.

``Aesthetics and values ​​are something that is left to the individual.For example, I don't want all household goods to be available at Nakagawa Masashichi Shoten.Everyone has their own values ​​and aesthetic sense, thinks for themselves, I think that stance of choosing for yourself is the most important thing, and I think this is a point that we at Nakagawa Masashichi Shoten would like to cherish.”

Mr. Nakagawa says that the selection criteria is no longer based on lifestyle.

``I started choosing things not just based on nice style, but also from a higher level of perspective, ``life stance,'' such as whether this company manufactures products with consideration for the environment. We also believe that it is important to convey Nakagawa Masashichi Shoten's philosophy and values ​​through products made with craft techniques from all over Japan."

``I'm not interested in further improving what's working,'' says Nakagawa.

"Rather than that, I will help people who are currently in trouble and help them develop the ability to solve their own problems. By doing so, the manufacturing site will become even stronger. That is my job."

What should we do as a company that supports Japanese manufacturing? His consulting work for small and medium-sized businesses, community development, and support for young people are all done in order to continue to protect the world of crafts and connect it to the future. We will continue to keep an eye on the challenges of Nakagawa Masashichi Shoten, which believes in and continues to convey the charm of manufacturing.

Masashichi Nakagawa

Born in Nara Prefecture in 1974. He joined Fujitsu in 2000 after graduating from Kyoto University's Faculty of Law. He joined his family business, Nakagawa Masashichi Shoten, in 2002 and became the 2008th president and representative director in 13. He built the industry's first SPA model from manufacturing to retail. Current position since 2018. His books include ``The Happy Relationship between Management and Design'' (Nikkei BP) and ``Revitalising Japanese Crafts! ” (Toyo Keizai Shinposha), etc.

Mio Shimamura