Logos Corporation: Bringing Japanese Hospitality to the World

It's a very exciting time for the Japanese apparel market as the demand for Japanese lifestyle goods grows. We're expecting 33 million tourists to come to Japan this year alone. This, combined with a weak yen, could create a unique opportunity for Japan. Do you agree with this sentiment, and if so, what are the advantages for Japanese lifestyle goods companies in this current macro environment?

Perhaps the opinion from media sources regarding the unique opportunities for Japanese manufacturing in the current macroeconomic environment is compelling, but this is just a perception of the situation of the Japanese economy right now. I wouldn’t believe in this sentiment too much. There is so much fluctuation in the Japanese currency rate almost daily. For example, at the beginning of this month, USD 1 was traded at JPY 160, and now, in mid-August, it is 145, which is a significant change. Companies that are exporting or planning to export obviously cannot depend on a currency with that kind of fluctuation, but if they have the confidence to sell their products abroad, they will still be confident no matter how much the economic indicators go up and down.

For us, it’s always been like that. We are fully committed to importing and exporting our products. For example, our exports to the US started back in 1997 and continued through the early 2000s. For reference, in 2001, one dollar was 78 yen, so you can see how different it is right now. Although it wasn’t cheap to buy things from Japan, we successfully exported and continue to do so, so that just illustrates my point that if you are committed to selling your products overseas, you should not worry so much about the economic situation.

What’s important for most suppliers in Japan is a stable political and economic environment because too much fluctuation in the economic situation is not good. For example, in the 1990s, we had a huge economic crisis that made products from Japan difficult to sell in overseas markets, so most of the companies who were struggling adapted by localizing production to Korea. Back then, there were a lot of companies related to the outdoors, but I saw them fading away or going out of business because of these fluctuations. They were opening plants, but they could not survive in the fluctuating business environment.

I would also mention the direct relationship with the end user. It’s important for us as suppliers and middlemen to always work closely with our partners, so although the supply chain seems very lucrative and beneficial, there are many insight-related obstacles that you have to overcome.

Another problem is the decoupling of the US and China. That problem is very serious for us because the production costs in Japan are not low, and most companies like ours have localized production overseas, mostly in Southeast Asia and China, and now there is a country risk. China is only sometimes stable, especially recently with the tension between the US and China, so it has become almost impossible to produce anything in China because of the tariffs applied to production there. Most companies, like us, are trying to run away from that situation and move to nearby countries such as Vietnam, Bangladesh, or Malaysia, for example, but while that seemed very good in the beginning because it’s cheaper to make things there, the Free on board (FOB) price wasn’t that cheap at all.

The conclusion to draw is that you always have to find the best way, considering where it’s easier, where it’s cheaper, where it’s legitimate, and where it’s a good environment to produce these products. In the end, you have to forecast how much your products will cost when they are shipped to the end users. It’s difficult to see all the international relationships happening around the globe and find your place under the sun, so it’s always a challenge for us to do business internationally.

The outdoor goods industry is forecast to grow at a CAGR of 7% from 2024 to 2032. The outdoor apparel segment, specifically, is expected to grow at a CAGR of 6.6% during the same time. What do you think are the drivers of this growth, and what plans do you have to take advantage of it?

I wouldn’t base my answer on the overall global rate of growth because we are mostly in Japan, but for the Japanese market, I would say that the picture is very optimistic, and we see a trend with people using outdoor apparel or goods on sports occasions, for example. We are currently having the Paris Olympics, and I saw some of the athletes were actually using our products. For example, one of our top-selling products is a Hyper Sub-zero Cooler Bag, and I saw one of the athletes carrying it during the competition. We are not sponsoring the Olympic Games, but we are there in a way.

What I’m trying to say is that there’s an increasing tendency to combine these products that are conventionally used for just hiking, barbecuing, or going outdoors in multiple ways. I also see people getting more sophisticated and increasing health consciousness and combining multiple activities together, so I would say that, yes, we see an increasing interest in our products across different categories.

A big issue was obviously the pandemic. When people were not able to easily enjoy their usual daily life routine, many people tried to find an escape in nature, in parks or forests. That was a good situation for us.

The phrase athleisure is also worth considering. It’s a combination of athletics and leisure. This is not a new concept; it was introduced back in the 1970s, but it’s still relevant, especially with people combining nature outings and sports activities, so we are trying to customize and personalize the product line for the customers’ needs because we see more sophisticated needs developing.

Hyper Sub-zero Cooler Bag

You just mentioned the COVID-19 pandemic. It irrevocably changed the world in many ways. One of these was e-commerce, which saw a surge in online sales, making Japan the fourth-largest e-commerce market globally. Many B2B and B2C companies enhanced their online presence to meet this demand using digital platforms and products. You have a global e-commerce store, which is available in over 100 countries. Could you elaborate on the lessons you’ve learned from your overseas and e-commerce operations, and what strategies will you use to help increase e-commerce growth?

We saw an increase in online sales across the board during the pandemic, and people are still buying online. Still, I wouldn’t put all the bets on an online selling strategy because our products are experience-based products. People prefer to go into a brick-and-mortar store to see and experience the products because, without trying, they cannot see if it meets their expectations. No matter how good the photos are, an online store cannot deliver that kind of experience, so we will put more effort into selling our products in stores than online.

Again, I would like to emphasize the customization and tailor-made solutions for the customers because this is the only way to survive the harsh competition. There are several companies that produce similar products, and they always compete with price and functionality. You always need to stay on top of the competition think about what else the customer may need in the future, and try to find the balance between price and functionality. Also, when you try to find that balance, you have to lean a bit more on the functional side because if you make the price too inexpensive, the customers may perceive that the products are of low quality.

Brand recognition is also very important because it lets you generate trust and loyalty between customers. Without that, we cannot stay in business, so we are always thinking about our efforts into building and maintaining that and increasing the awareness of our products.

Japan plans to be carbon neutral by 2050, with Japanese companies expected to lead the way. LOGOS offers sustainable products such as Eco Take eco-friendly tableware and the energy efficient LOGOS The Kamado EMiwa grill. The company promotes ecotourism through Logos Land and Logos Park, and you also emphasize durable, safe workwear through your Lipner brand, reducing waste and promoting long-lasting use. What specific measures is your company implementing to enhance the sustainability of your products, and what role does innovation play in your approach to sustainability?

There are many things that we are doing to commit to sustainability and to contribute to a more environmentally friendly society. We have three major pillars or actions that support these efforts. First is creating products to help prepare for a natural disaster or deal with one after the fact.

Second is engagement with the community, including using more traditional ways of making things with Japanese craftsmanship. For example, in Mie prefecture, there is a traditional iron casting technique known as Banko-Yaki to craft nabe that you can use to cook inside the ground. There are special techniques and craftsmen that can only be found in local areas, and we try to adapt these to a larger scale of production and actively adopt them into our products. Local communities have also expanded our new business with our theme parks, as you already mentioned. This is just one example of how we engage local communities, and by engaging in this way, we attract more people to our products and expand our sales.

Third is products that help with global warming. For example, Solar Block Q-TOP Full Shade-BA from LOGOS is one of our high-performance and innovative products which overcomes U.V. rays and we actively try to use less fossil fuel.Manufacturing LOGOS brand products, we try to use more environmentally friendly energy sources such as biomass or LED batteries. For example, we recycle coconut shells into a fuel to use as a biomass source.

Switching to alternative energy sources is not an easy task, especially dealing with the cost, but it’s not a new issue. In 1997, we followed the COP 3 Kyoto Protocol for environmental policies, and we saw that eventually, Japan would turn towards more environmentally friendly energy choices. At that time, and even still, giving preference to biomass energy sources was very costly, so people were avoiding it because of the cost. Society has changed and is now pushing for eco-friendly energy and environmentally sustainable products. This is the overall trend in the market, so although it costs more, people are more willing to bear that cost than in the past.

I want to continue talking about LOGOS Land and LOGOS Park. You opened LOGOS Land in Kyoto in 2018, and LOGOS Park in Kochi in 2022. You’ve also introduced a LOGOS SHOP&CAFÉ, and LOGOS CAFÉ&BBQ STADIUM, blending the retail and dining experience. What are the long-term goals for LOGOS Corporation in the outdoor recreation industry?

We will be expanding those types of activities. We would like to open more outdoor experience theme parks, but that will be closely related to local governments. It’s true for Joyo city and Suzaki city. We need local governments across the country to cooperate with us because it’s quite a big investment, so that will require good local connections.

Obviously, it’s not just one-sided. We cannot just go to a local government and ask to open a new theme park. It has to be part of a complex set of actions taken up in different prefectures all across Japan, and it’s also related to sustainability and eco-friendliness. Most prefectures in Japan are looking for mutual solutions for these activities. For example, natural disaster facilities and better access to more remote areas of prefectures so people can enjoy the prefecture more than they used to. There is also an employment boost from these parks, so all of these things have to be considered.

Logos Land 

I think this venture into theme parks is quite interesting because it shows Logos evolving from an outdoor lifestyle brand into a community builder. It’s already been six years since you opened your first theme park and two years since the second one. What advantages would you say these community-building efforts have brought to the Logos brand?

Of course, community engagement is a crucial issue for us at this point in time, and as I said, we’re planning to open more theme parks in the future. Of course, these parks aren’t on the scale of a Disney park. They are more like local gathering places.

In terms of mutual understanding, when I talk about the relationship with the local governments and the disaster preparedness agencies that can certify our products to be placed in emergency kits, for example, it’s very important. Without these activities, we cannot get into the market. The theme parks are free. People go there, enjoy time with friends and family, maybe have a barbecue, and go back home. Of course, as a company, we have to benefit somehow from that. That’s why we are building lodging, cafes, or barbecues on the premises.

The reason I mention disaster preparation kits and emergency kits is because I have experienced three great earthquakes in 1995, 2011, and 2016. We were engaged in trying to save lives, providing first aid, and providing access to some of our products, like our portable stoves or tents, to help people get back to a normal life. That’s why I emphasize these efforts from our company, but there is always a natural disaster agency that stands ahead of us, so we need to work with them to certify our products. That’s why mutual efforts from our company and local agencies and governments are so important.

Your company was founded in 1928, and you cover three main areas of the outdoor goods industry: camping gear, clothing, and backpacks, among other things. You cater to outdoor enthusiasts and eco-conscious consumers, but you face competition from the likes of Coleman and Patagonia. This requires constant innovation and sustainability. Could you tell us what differentiates Logos and what you see as your competitive edge?

Brand positioning is very important because outdoor and camping brands occupy niches in each region. For example, if we consider elevation, our products don’t serve environments of 3,000 or 5,000 meters above sea level. That’s not our niche, so tents that are made to withstand those harsh environments are totally different from the ones we make, which focus on ground level to 800 meters. That’s our niche. We make products suited to five meters above sea level to 800 meters above ground, but that’s enough to suit the needs of all kinds of people, so it’s important for us to understand our niche and offer products that suit those customers.

I’m trying to draw you the picture of where we are in the market, just to give you an illustration of what is good about us, so it’s very important to find that niche and understand fully for whom you’re making the products and who is the target audience. For us, it’s families with a child or maybe two or three children, typically children in kindergarten and elementary school. Not older children so much because they tend not to have an interest in camping, so we focus on providing an engaging experience to our target family audience. The products are also obviously important. They must serve this target, so they are generalist products that are easy to assemble, use, and disassemble. This is especially important when families have younger children, so that also makes us unique.

Having said that, the worst comment that we sometimes get is from somebody who doesn’t know our brand saying that we are just for novices, not people with experience hiking. That’s where the misunderstanding happens. Our niche is not novices. There is a reason we are making products that are accessible to everyone. It’s about increasing connections, engagement, and experiences for families. There is a reason for the family to get together to have a great experience and enjoy themselves, and doing so is improved by our products.

We try to deliver that message through our shops. If you go to our shops, you’ll see that they are arranged in a way that you almost feel like you are at a campsite. It’s a fun shopping experience, and many of the staff are women. We are the only outdoor products company that has a staff ratio of 50% men and 50% women in our stores. Although it’s conventionally considered a man’s job to handle the camping equipment duties, we try to cross the boundaries and have women introduce our products in the shops. It’s also about engagement. When a mother and father are walking through the aisle of the shops and see Logos, they might not want to go into the store, but their children do because we create this playful environment.

Why I’m emphasizing this store experience is because women and children tend to have a more emotional side and connection, especially children, because if they don’t like something, they’ll just tell you straight away. We would like to make an emotional connection and have fun, and maybe even to ultimately reach the level of recognition of a brand like Disneyland, for example.

People enjoying a barbecue with Logos Goods

While we have been in Japan, we’ve learned the importance of two things for Japanese companies. One is the importance of business alliances, and the other is the importance of internationalization. You have a market presence in several countries, including China and South Korea. What type of new partnerships are you currently interested in, and are you planning to continue your international expansion? If so, which markets are you focusing on for the next one to five years?

Our strategy towards overseas expansion is to use local distributors, and this is something we commonly do. We don’t open up our own operations in foreign countries. Some distributors are always acting on our behalf, so we’d like to continue this strategy and apply it to some other regions. Therefore, we are always looking for new distribution channels.

The first criterion for new distributors is that they would like to work with us. They should then look at what we do here in Japan first. Inbound tourists are increasing to 30+ million people, and we try to showcase our hospitality, and foreign customers are always welcome. I mentioned how great our shops are, so if a distributor would like to partner with us, he or she will need to offer a similar experience to what we offer here in Japan.

Something that I’m always thinking about is the cultural differences between us and the Western world. There are so many differences, obviously, and I have observed them for many years. I’ve been to America many times, and back in the 1970s and 1980s, I was going to my friend’s house in L.A., and his wife said we would have some spare ribs for lunch. I was very surprised because that is the culture. They really like to barbecue often. Still, now, you cannot imagine the same situation happening in Japan since most people don’t have open space or a barbecue set because the shortage of land is something that defines the Japanese market.

I’m actually putting less focus on what could happen with the expansion overseas, rather on some of the foreign companies that might want to jump into the Japanese market, so rather than us going outside, we can introduce Japanese hospitality and experience to welcome foreign companies here.

Please imagine that we will come back in 2028, which will be a big anniversary for the company. Are there any goals that you would like to have achieved by then?

I’d like to see more and more young people join our company during that time to join us on this long path and to take leading positions.

Obviously, the foreign market expansion is something that I'm always thinking about, especially the Asian market because we already have a presence there, and we'd like to increase that presence. I'd also like to focus on particular SKU items rather than just overall categories because it doesn't make much sense to go all-in to the American or European market with a whole category of outdoor goods. You simply cannot win the market that way, but winning the trust of customers with just one or a few particular items is something that we can think about.

It will depend on how much Asian culture can expand to and blend into the lifestyle of Europeans or Americans. If that happens, then it will become easier for us to introduce our products to foreign markets outside Asia. We can easily introduce products in Asia because there are a lot of cultural similarities, but outside Asia, customers have different preferences, food tastes, and lifestyle habits, so to find this blend and to find what could be common for both markets is something that we are always thinking about.