LIKE Inc. is addressing Japan’s labor crisis with foreign talent, digital tools and high-quality care across childcare and nursing services.
Japan is facing a significant demographic challenge, with a rapidly aging population and low birth rates contributing to an anticipated worker shortage of over 10 million by 2040. This trend is putting immense pressure on businesses across the country. How can companies like yours contribute to addressing this crisis? Additionally, to what extent do you believe Japanese companies should look overseas to recruit new talent?
We are fully aware that labor shortages will impact all industries across Japan. Recently, I was discussing this issue with a university friend, and we noted that while Japan currently has around 100 million people over the age of 18, this number will remain stable for the next decade before declining significantly. By 2040, we anticipate this figure to drop to around 70 million, given that only 700,000 newborns were recorded in 2023.
Our industry—nursing care—is particularly vulnerable to these demographic shifts, as many essential tasks simply cannot be automated or replaced by robots. Currently, in the field of caregiving, we have proactively begun hiring talent from overseas, particularly from countries such as Indonesia, Vietnam, and Myanmar. In the field of caregiving, we have accepted approximately 170 individuals. However, our decision is not driven by lower labor costs; rather, we are committed to training these individuals to become a core part of our workforce. In fact, we are unique in that we combine both Comprehensive Human Resources Service and Nursing Care-Related Service, which sets us apart from other companies in the industry.
Our training process begins in the workers' home countries before they relocate to Japan for further skill development. Looking ahead, in April 2025, we plan to hire an additional 75 overseas employees, which will account for 25% of our annual full-time hires in the field of caregiving. These individuals are not just filling entry-level roles—we have a clear pathway for their career advancement within our organization. This is all part of our long-term strategy to address the labor shortages you mentioned.
Of course, integrating foreign staff into the Japanese workforce requires more than just hiring them. They need comprehensive support to ease their transition, from medical assistance and translation services to cultural orientation. Even something as seemingly simple as understanding Japan’s garbage collection schedule and sorting rules can be a challenge for newcomers. By providing these resources, we aim to ensure their successful integration into both our company and Japanese society.
Foreign nursing care staff
Hiring foreign staff is one way to address labor shortages, but another key solution lies in the adoption of digital transformation (DX) and AI—an area where your company has been a pioneer. What sets your company apart as a leader in DX, and what unique solutions or capabilities have contributed to your success in this space?
Our company has developed the Nanapocke smartphone app, which streamlines communication between nursery teachers and parents. Traditionally, when a parent needs to work late, they must call the nursery to inform them, which often requires stepping away from their workplace for a personal call. On the nursery’s side, handling a high volume of afternoon phone calls can also be a burden. By replacing these interactions with an app, we significantly reduce the workload for both parents and nursery staff, making communication more efficient.
Beyond just messaging, Nanapocke includes a diary function that allows nurseries and parents to exchange notes and updates daily. One of the key features that has contributed to the app’s success is its photo service, which enables parents to purchase physical prints of nursery photos—something particularly popular among grandparents. This feature has proven to be a strong revenue driver; In the first year alone, photo sales generated JPY 50 million in revenue.
Additionally, since our servers cannot store all the photos indefinitely, parents are encouraged to purchase prints, further driving engagement and monetization. By integrating both convenience and an emotional connection, Nanapocke has become a valuable tool for families while also demonstrating our company’s leadership in digital transformation (DX).
Assisted-living nursing home
Japan is not alone in facing demographic challenges—many other countries are beginning to experience similar trends. As a company providing solutions to these shifts, Japan’s early experience in addressing these issues could position it as a global leader in demographic-driven innovation. Do you see any of your services having the potential to scale internationally and help other countries navigate similar challenges? If so, how do you envision your solutions being applied on a global scale?
In addition to bringing in foreign labor, we are also working to expand our nursing services internationally, particularly to countries like Vietnam. Through my travels around the world, I’ve come to realize that while Japan may no longer be the global leader in manufacturing, we have now excelled in software development. More importantly, when it comes to service quality, I firmly believe Japan is unmatched.
Just consider how punctual and detail-oriented Japanese services are—it reflects a deep-rooted commitment to providing the best possible experience to every customer. This same precision and care are crucial in industries like childcare and nursing, where attention to detail can make a significant difference. Our goal is to bring this unique service-driven expertise to the global market.
When a Vietnamese company visits our nursing care facilities and nurseries, they are always impressed by the high quality of service and meticulous attention to detail. Many of them are eager to see these high standards introduced in their own country, and we see a clear opportunity to expand our expertise abroad. By sharing Japan’s approach to childcare and nursing care services, we believe we can contribute to improving global standards in these critical industries.
Your company operates across three key sectors— childcare nursing, staffing, and nursing,—while also integrating digital transformation (DX) within these divisions. As you look toward future growth, which of these sectors do you see as having the greatest potential for expansion? Additionally, are there any new industries or markets you are interested in entering as part of your long-term vision?
Our business primarily focuses on Tokyo, Saitama, and Kanagawa, and the reason for this is simple: proximity to headquarters is key for effective communication and collaboration. By keeping our operations centralized, we can expedite problem-solving and provide collective support across our divisions.
Expanding to a distant location, such as Hokkaido, would require significant staffing and resources, which—as we’ve discussed—is a major challenge given Japan’s labor shortages. In contrast, by maintaining a regional cluster approach, we can quickly mobilize staff from nearby offices when needed, ensuring operational flexibility while maximizing efficiency and profitability. This strategic concentration allows us to grow all three of our core businesses— childcare, staffing, and nursing —together, reinforcing our overall strength.
At present, DX is not considered a major pillar of our business because it does not rely on the same collaborative support approach. However, if we can further refine AI-driven tools and enhance our technological solutions, DX could evolve into the company’s fourth pillar in the future.
Earlier, you mentioned the importance of supporting foreign staff as they adjust to life in Japan. Another major challenge in the nursing profession, however, is the difference in certification standards across countries. How does your company help the foreign staff you bring in obtain the necessary certifications to work in Japan? What kind of training or support do you provide to ensure a smooth transition into the Japanese healthcare system?
Ideally, we aim to recruit individuals at the university level. In Japan, local governments provide subsidies to support education in the nursing care sector, some of which can cover up to two years of tuition. If graduates choose to work for five years, they are exempt from repaying the subsidy, allowing them to receive training at no cost.
Currently, we are in the process of developing our own educational programs and plan to establish a system to accept Vietnamese students who have completed these programs. This initiative not only benefits individuals by providing them with valuable training opportunities but also enables us to cultivate highly skilled professionals.
Furthermore, as we expand our operations overseas, we can utilize these trained professionals in their home countries, creating a sustainable talent pipeline.
In the nursing care sector, qualifications are required to work, but foreign individuals can now obtain these qualifications.
However, childcare remains a challenge—foreigners are currently unable to obtain the necessary certification to work in this field in Japan. That said, given the inevitable labor shortages in the industry, we strongly believe that these regulations will eventually change to allow greater participation from foreign professionals.
Every company has its own strengths, but what would you say is the key factor that sets your firm apart from competitors? What makes your approach or business model unique in the industries you operate in?
In terms of scale, our childcare business is one of the largest in Japan. We currently operate 420 nurseries, employing over 5,000 staff members in our childcare facilities. Including children attending our after-school clubs, we care for approximately 15,000 children daily.
One of our key differentiators is the Nanapocke smartphone app, which I previously mentioned. Beyond that, we have also developed a comprehensive internal system that supports all of our operations. For example, when nursery teachers input their working hours, we can track and analyze this data in real time. This system is critical to optimizing operations and workforce management, and given the depth of data we now have, we are exploring the creation of a childcare consulting consortium to support the broader Japanese childcare industry.
The ratio of for-profit companies among nursery operators is low, and with many small operators scattered in the market, we see a significant opportunity to provide our app and digital solutions to support these smaller institutions. Additionally, many of these nurseries can outsource key administrative processes to us, particularly when it comes to applying for subsidies—an area where we have significant expertise.
This strong foundation would allow us to rapidly expand and bring high-quality Japanese childcare services to a new market.
As you expand your operations internationally, are you actively seeking new partners or collaborations? If so, which countries are you focusing on, and what qualities or expertise are you looking for in potential partners?
We are primarily focusing on Asian countries, particularly emerging markets with a young population. These regions present significant growth opportunities, as demand for high-quality services continues to rise.
However, we are also aware of the long-term demographic risks—some of these countries may eventually follow Japan’s trajectory and face population declines. That said, our goal is to support these markets by enhancing their service quality, ensuring they are well-equipped for future challenges. Among these regions, Southeast Asia holds the most potential for us, given its rapid development and increasing demand for reliable childcare and nursing services.
Despite being a relatively young company at just over 30 years old, LIKE Inc. has achieved significant success in a competitive market dominated by more established firms. What do you believe has been the key driver of your company’s growth and success? Additionally, what is your long-term vision for the future of LIKE Inc.?
My ultimate goal is to make LIKE Inc. the number one healthcare company in Japan—not just in terms of profit, but across all key metrics.
However, being number one is not just about statistics; we want to excel in ways that are not easily quantified—in the quality of care, the well-being of our employees, and the trust we build with the communities we serve.
Our mission is to support people throughout their entire life journey—"from newborn to happy ending"—ensuring that every stage of life is met with compassion, excellence, and innovation.
Can you define your company in one simple sentence?
By tapping into the full potential of human resources, our company is trailblazing a path to a brighter future.
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