One of Japan's best-kept secrets

"This beach......only three hours from Tokyo"

When we were planning our 2-week family holiday to Japan, we definately wanted to include some quiet nature retreat days, preferably with beaches, to counterbalance the metropolitan dynamics of Tokyo and the cultural splendour of temple city, Kyoto.

When you look for tropical beaches in Japan, you will most likely be led to the tropical Okinawa islands, two and a half hours by plane from the country's capital, Tokyo. There you will find Japan’s picture-book beaches, so it says.

Izu-Kogen

We decided to look a bit closer to Tokyo and our eye fell on the peninsula of Izu, about 2-3 hours (depending on how far south you want to go on the peninsula) by train southwest of Tokyo. We did not expect to find white-sand beaches, but all we hoped for were quiet coastal towns with some sea views and an occasional seaside promenade. Some fresh air and a sub-tropical mild sea breeze to soften the summer heat would be just fine after having been in steamy crowded cities for over a week. 

When in Kyoto, I had picked up a free magazine from a tourist office, "Time Out Tokyo". In the July-September issue, it featured an article, named ”This beach….is only three hours from Tokyo”, which included a beautiful photo of a long stretch of pristine beach along a crystal-clear, green-blue ocean ! The article stated that the area surrounding Shimoda on the southeastern tip of the Izu Peninsula boasts several stunning beaches. 

The Izu Peninsula offers a comfortable train ride along its East Coast, taking around 45 minutes from the Northern part of the peninsula to the town of Shimoda in the far south. Northern towns, such as Usami and Ito, do have pretty nice (black sand) beaches too, but the most exotic ones you will find further South, so it was promised. 

From the train station in Shimoda, we hopped on a bus to Shiharama Beach, which took us through Shimoda’s picturesque historic harbour and steep hills with spectacular ocean views. After a 10-minute drive we descended upon the magnificent Shiharama Bay, where blue waves gently rolled in on a white-sand beach. The beach as well as the North Pacific Ocean were as pristine as elsewhere in the world’s tropical paradises ! 

Although Shiharama Beach was pretty busy with cheerful Japanese families and young surf dudes, it was not extremely crowded. Nor was it packed with tourists, foreign nor domestic, in other places on the peninsula. The towns of Ito and Izu-Kogen, for example, were quiet, almost deserted, with only elderly residents going about their daily routines. The seaside of Ito town, although peaceful, seemed a bit old and rundown as if its glory days were long gone, which gave it a certain kind of pleasant melancholic feel. 

Maybe, Izu Pensinsula does not have what it takes (anymore) to draw in the big trendy crowds from Tokyo and abroad, but its natural beauty and tranquility are definately making Izu a place worth visiting !

This article appeared earlier in e-magazine Business Trends Asia 

Bangkok - Paris of Indochina

Pratunam, Bangkok

Siam Paragon

Recently, I was in Bangkok to run a cross-cultural training program for a large multinational. Having lived there from 1989 until 1999 and having been back there a number of times since, I am always eager to register any notable socio-economic changes in the city. 

The euforia of the Nineties, whereby Thailand was one of the early emerging Asian Tigers may have been gone, but the country has since then weathered, with mixed success, the Asian Financial Crisis of 1997 and the global economic crisis of 2008. In the meantime, Thailand is economically on par with its Southern neighbour Malaysia and not that far behind Southeast Asian success story, Singapore.

Emerging from a developing nation into a transition economy is not that hard, but the last stretch, towards a truly developed country, is the toughest. Thailand’s neighbouring countries, Myanmar, Laos and Cambodia still have a long way to go and even Vietnam, which was in the economic spotlight in the Nineties too and is back on track again, is not another Thailand yet. In Vietnam, “Made in Thailand” is a status label and is considered poche. And what Paris is to Europeans, is Bangkok to Indochina and even entire Southeast Asia.

The Indonesian Embassy on Petchburi Road in Bangkok’s Pratunam area booked a middle-class hotel for me across the street from the Embassy. My wife used to work at the Embassy and every time I am in town, former-colleagues book a room for me nearby. The hotel appeared to be fully booked, but what was more interesting, that I was one of the few Westerners in the hotel ! Primarily, Indonesian women groups and Vietnamese families were staying there. As the area of Pratunam is known for its wholesale clothing outlets, and is also close to the more upmarket department stores on Ratchdamri Road and Rama I Road, they flock to shopping paradise, Bangkok !

These new middle-class visitors from the region add a new dimension to the city’s tourism landscape. Apart from an increasing number of Chinese tourists, there are more and more Indonesians and Vietnamese who can afford a short trip to the Paris of Indochina !

This article appeared earlier in e-magazine Business Trends Asia

AEC - 2015 & beyond

with DBAV Executive Director, Hyunju Park (middle) and DBAV Chairman, Remco Gaanderse

with fellow-panelists in the dialogue with the audience

ASEAN leaders adopted the ASEAN Economic Blueprint in 2007 to be the masterplan for the establishment of the ASEAN Economic Community (AEC) by 31 December 2015 and eventually a full-fledged ASEAN Community by 2020.

Recently, the Dutch Business Association Vietnam (DBAV) organized a luncheon talk, under the name "ASEAN Economic Community - 2015 & beyond" in Ho Chi Minh City. 

In my 45-minute talk, I outlined both the achievements thusfar and the challenges still ahead. Although the ASEAN-6 states (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) have managed to make significant progress on import tariff eliminations and the easing of foreign investment regulations, the other member states (Cambodia, Laos, Myanmar and Vietnam) are lagging behind and need till at least 2018.

Intra-ASEAN trade stands at around 25% and cross-border M&As at around 9%, with Malaysia, Singapore and Thailand as frontrunners. This relatively low figure (which, off course, excludes major investors (and non-ASEAN states) China and Japan), however, will rise, due to the fact that, in particular, the cross-border investments into Myanmar have risen dramatically in 2014 and will continue to do so in 2015. 

Sceptics have pointed out that economic disparison between member states will prove to be a major hurdle in realising a true AEC. But even within the EU, there is still a large economic divide between the Nordic countries and Eastern Europe member states and the fact that a powerful economy like Germany plays a leading role in the Union (as Singapore, Malaysia and Thailand do in ASEAN), is not necessariy a bad thing. While ASEAN multinationals have been engaged in cross-border investments for quite some time, the AEC will, in particular, open doors for SMEs of, for example, tech-savy young Vietnamese and Indonesians to take on cross-border adventures.

Is 31 December 2015 a deadline ? No, it is rather a milestone in the work in progress, which is called "ASEAN Community". 

Read DBAV's comment

This article appeared earlier in e-magazine Business Trends Asia 

China cross-culturally aware

Sheriff Aligbeh of Clever Culture Communication at Addax in Geneva

Coca Cola, Disney, and more recently, Starbucks……, over the years, Western marketeers have successfully  “sold” lifestyle concepts around the world. Curiosity coupled with creativity have layed the foundation for the penetration of new markets and the establishment of true global brands.

Only recently, Asian brands have begun to conquer the world. After earlier Japanese and Korean successes in the automotive and electronics sectors, now a broader range of consumer goods from Asia are entering Western markets. 

Over the past decades, outward looking Western marketeers have researched consumer behaviour and trends in other parts of the world. In the  Sixities of last Century, Dutch social psychologist, Geert Hofstede, developed a cross-cultural theory covering cultural values and behaviour in various regions and nations. Although, these so-called “dimensions” may be quite stereotyping and outdated nowadays, they did mark the beginning of trying to understand what drives the different peoples around the world and are embraced by the Western business community to this day.

However, the world is changing. Cultures are not static, but are constantly evolving, in the past 50 years even more rapidly than ever before, being influenced by urbanisation, economic development, technology and globalisation. People’s behaviour and even the values driving this behaviour are changing as years and generations go by.

Asian investors are beginning to understand that it takes more than just money to run viable businesses elsewhere and that some investments abroad may turn out to be a failure. In the West, we have learned to deal with financial setbacks and divestments the hard way. 

Chinese oil giant, Sinopec, in 2009 acquired Swiss-based Addax Petroleum. Both Addax’s Chinese and Swiss executives are obliged to enroll in cross-cultural training programs on Africa, one of the company’s core regions. As part of this cultural awareness initiative roll-out, Sheriff Aligbeh, Nigerian-born, Netherlands-based cross-cultural consultant and founder of Clever Culture Communication, is regularly in Geneva to conduct training programs on African cultures for Addax. Clever Culture Communication creates and delivers tailor-made cross-cultural (business) solutions to corporate and public sector organizations operating in the Sub-Saharan African region. 

"There seems to be a clear will to invest in educating employees on African cultures, but also other value systems, in order to encourage dialogue and an open approach to differences", says Aligbeh.

Last year, affiliate of the Royal Tropical Institute in The Netherlands, KIT Intercultural Professionals, opened an office in Shanghai. Within one year of operation, in which it served multinationals active in China, its Chinese daughter company will now run cross-cultural training programs for Chinese clients for the first time. Chinese companies with overseas investments and universities with exchange programs in, for example, the U.S., recognise the need to prepare their managers and students for their business dealings and social life abroad. 

 

Shanghai-based Wendong Deng (far right) is heading KIT Intercultural Professional's China operations. Also pictured (from left to right): Jolande Zeeman, Senior Trainer, KIT Intercultural Professionals and Heleen Agterhuis,  Managing Director, KIT Intercultural Professionals
This article appeared earlier in e-magazine Business Trends Asia 

Faded glory.....

As stated on her birth certificate, my wife Isti carries the title “Raden”, for what it’s worth. Her mother, Raden Johanna Nana belonged to the Boeldansyah family from Bandung and her father Raden Achmad Memed to the Kartaredja family from Garut;  Soendanese (Sundanese) “Raden”, old nobility, so to say.

Those were the days, when royalty and nobility had a place in Dutch-Indonesian society and the early years of the independent Republic. Decades have since passed and nobly titles such as “Raden” have lost their meaning.

Only in Bandung’s Cibogo area, where the Boeldansyah family graveyard is located, traces of the family’s old status are still found and family members, including my wife, are still greeted by its residents with the utmost respect and to this day addressed as “Raden”.

Our children, however, can no longer carry the title “Raden” as I am a “commoner”. That means no Raden Robert Putra van den Broek, nor Raden Anna Nadhira van den Broek !

Isti's mother, Johanna Boeldansyah (bottom left) with siblings

Isti's grandfather, Otong Boeldansyah and grandmother, Maemoenah, with children and staff

Indonesia's new middle-class

Is there a new middle-class emerging in Indonesia? The answer is “yes” and it is not that much different from the kind of middle-class we know in, for example, The Netherlands. Of course, the figures (read: salaries and costs of living) are different, but as far as purchasing power and purchasing behavior are concerned, there are remarkable similarities.

Actually, there are 2 consecutive generations in Indonesia’s new middle-class. First, there are the 55-60-year olds, who have completed their home mortgage payments or those who have inherited a family home. Their children have finished their education by now. And some of these 50-60-year olds have retired and are enjoying a small pension. Although, household expenses for water and electricity are quite high in Indonesia, the total costs of living (burdened by a mortgage and children’s education) have now decreased substantially. As most of this age group are small entrepreneurs as well, they seem to manage to add a decent income to their (low) pension.

What you see is that this group is able to enjoy a true middle-class lifestyle, including frequent travelling, both domestically (with the island of Bali and the beach resort of Pangandaran among the favorite destinations) and abroad, helped by numerous low-cost airlines that continuously offer attractive rates to Bangkok, Hong Kong, Kuala Lumpur, and other cities in the region. Their homes are featuring a minimum of one flat-screen TV, plus one car and several motorcycles in the yard. Again, as far as purchasing power and purchasing behavior goes, not that different from the Dutch middle-class.

The next generation, children of those 55-60 year olds, are now in their Twenties. They have graduated from university and have just started their working career. In this context, think of urban families, think of 20+-year olds in cities like Jakarta, Bandung, Solo and Surabaya. Early-married couples tend to live in at their parent’s the first year, or two, of their marriage, saving for the next step, which is buying a house or apartment. They go out for dinner and see a movie every now and then, all things a middle-class does.

These middle-class youngsters are each earning somewhere between 2,5 – 4 million Rupiah (US$205 - US$328) a month. Being married and not yet having kids enables them to buy a small property on the outskirts of the city. A 2-bedroom, 80 m2-studio, for example, requires a down-payment of around 2.2 million Rupiah (US$180,4) and a monthly mortgage payment of around 2.3 million Rupiah (US$188.6) for a period of 15 years.  This new middle-class, however, cannot afford to buy a place in the city center, where prices are much higher.

This new middle-class resembles the middle-class of the generation of the late-Eighties/early-Nineties in The Netherlands, which often goes through the same stages in life. In The Netherlands too, “dinkies” (double income no kids) are the most prosperous among young adults. And in The Netherlands too, there are not many couples who can afford to buy an apartment in the center of a city like Amsterdam, but will end up living further away from the city center, towards the outskirts.  And yes, they go to the movies and they travel too.

This article appeared earlier in e-magazine Business Trends Asia