Japanese art and culture is recognised the world over, but recently, it feels like the pressure is being put on by countries like South Korea and China. But what you perhaps didn’t know is that the businesses that work to promote Japan’s culture to the worldーthrough that creativity and those servicesーare actually thriving. We had the opportunity to speak with a certain two individuals: Hidetomo Nagata, Managing Officer at Airbnb Japanーa company that increases the value of real estateーand Mori Iwata, the President of Sanken Kogyo, which creates value from zero.

*This is a shortened version of the interview

——-I’d first like to ask you both to explain what it is that both of your companies do.

Nagata: I work for the Japanese subsidiary of Airbnb. Airbnb was first established in 2008 as a platform for helping people to match various conditions for their trips. Services began with accommodation; today, we have over 7 million locations listed in 191 countries. Past statistics show that over 500 million people have stayed as guests, and our revenue from Hosts, who rent out their houses, exceeds 8.8 trillion yen. We are also expanding our services on the side to offer more things, like our Experience and Adventure services. It’s a comprehensive platform for travelling.

Iwata: So you have not only accommodation, but experience-based services too?

Nagata: We began the Experience service in 2016. To give an example of what it is, [we are partnered with] people who are skilled in things like traditional Japanese crafts, and they will give [travelling] foreign guests the chance to learn about those skills. 2020 is the year of the Olympics, so we are offering experiences in conjunction with Olympians too. You can learn about various rules from an Olympian, ask them about competing, experience their sport hands-on, and so on, in the hopes that people will come to enjoy those particular sports more. We’d also be overjoyed if the Olympians made use of these experiences as a second career.

Iwata: My company makes prototypes. While I say prototypes, it actually constitutes a variety of things, for example, office automation equipment, cars, medical equipment, stationery, toys, and so on. We make a wide range of different prototypes. Stationery, for example, is something we all use daily, isn’t it? But what we make is the prototype. So it doesn’t get released into the world, but is instead used as the basis for it to then be mass-produced. Our prototype products don’t stay around, but it’s very rewarding.

——-Tell me about your strengths that make you competitive to other companies.

Nagata: Airbnb’s vision is ‘Belong Anywhere,’ meaning that no matter where you travel, you too will feel like you are living in that place. We learn about a region, have locals tell us about places to eat, and so on. We value the things we learn through our hosts. This has created a new lifestyle for people, as well as a community. We have a lot of hosts who have said to us that their lives have changed after starting with Airbnb. By opening their doors, and communicating with the people of the world, their worlds expand, they acquire knowledge, and they gain more income. For me, that’s a valuable thing.

Iwata: We’re a really small company in our warehouse. In the past, there were lots of small companies, but they have since been weeded out and disappeared. The businesses I bump into on my way to work are all huge, but our strength lies in the fact that the warehouse, office and business are all in the same place. There aren’t many companies out there on this scope with all of these things firmly in place. The speed at which we do things can’t be done at a major company either. I can work right there and then during a meeting or appointment. We don’t have strengths and weaknesses; we can make anything. That, and our shop staff who interact with customers are first-class. Our perspective is that we can absolutely make what they’re after, and at a reasonable price, so I think they’ll choose us. We can do anythingーmetal, resin, plastic. I’ll go ahead and say that we’re probably the only ones who have come as far as we have.

——-Sanken Kogyo opened a subsidiary overseas too, didn’t you?

Iwata: I mentioned earlier how I went to America. Well, I set up a subsidiary in Chicago last year. We are the third prototype company in Japan to have done so. We don’t have employees there yet, but I’m excited!

——-On the other hand, Airbnb is a service that began outside of Japan. Do you ever pour all of your energy into Japan?

Nagata: Homeshares and homestays aren’t common but more and more people are wanting to give it a go. For us to be able to think about things like homeshares and for it to become a normal choice for people, we’re creating new services and designs related to accommodation, not just internally, but with our seventeen Airbnb Partners too.

The hotel MOSHI MOSHI ROOMS in Harajuku was renovated from a 50-year-old or so building. By carrying out renovations, they are able to create rooms with a strong design aspectーrooms that are expensive to rent out. They combine accommodation with Japanese culture, so I believe they’ll be able to embrace homeshares.

——-The two of you give rise to value with your businesses, but what does value mean exactly for you personally?

Nagata: I think value is relative. It determines a person’s subjectivity, and it can end up changing how you look at something or your way of thinking. I believe Airbnb is bringing about a new sense of value when it comes to real estate. If we’re talking leasing property, then how new building is and how close it is to the station are conditions with value. On the other hand, if it’s hotel accommodation, a building that’s 100-years-old is itself a valuable condition, and reviews that highlight it as a good aspect increase trust, even if the location isn’t ideal. Even if the price range increases, users will still stay there. I believe that the way in which you draw value from the same piece of real estate can change depending on how you think about it.

Nagata: How about you, Mr. Iwata? Listening to your story, I see the speed of your interactions and communication bring value for you.

Iwata: You hit the nail on the head. The speed of our staff is tied to customers’ trust. When we’re making a deal, our estimations gradually end up going in a different direction <laughs>. We have times when things don’t go well in the end, like when we’re taking in various opinions while cobbling together a prototype. But I know those times, so I’ll do things like go and work on something else at the same time instead. If our estimations go well in the end it’s good, so our staff’s qualities, like their quick-wittedness, ties customers to us. It’s the same thing as the machines we use being for building prototypes. I think in the end, communication between people is the newest way to create value. Especially since the industry in Japan has no life in itat the minute.. I want them to get in the spirit more.

——-Sanken Kogyo opened a subsidiary overseas too, didn’t you?

Iwata: I mentioned earlier how I went to America. Well, I set up a subsidiary in Chicago last year. We are the third prototype company in Japan to have done so. We don’t have employees there yet, but I’m excited!

——-On the other hand, Airbnb is a service that began outside of Japan. Do you ever pour all of your energy into Japan?

Nagata: Homeshares and homestays aren’t common but more and more people are wanting to give it a go. For us to be able to think about things like homeshares and for it to become a normal choice for people, we’re creating new services and designs related to accommodation, not just internally, but with our 128 Airbnb Partners too.

The hotel MOSHI MOSHI ROOMS in Harajuku was renovated from a 50-year-old or so building. By carrying out renovations, they are able to create rooms with a strong design aspectーrooms that are expensive to rent out. They combine accommodation with Japanese culture, so I believe they’ll be able to embrace homeshares.

——-The two of you give rise to value with your businesses, but what does value mean exactly for you personally?

Nagata: I think value is relative. It determines a person’s subjectivity, and it can end up changing how you look at something or your way of thinking. I believe Airbnb is bringing about a new sense of value when it comes to real estate. If we’re talking leasing property, then how new building is and how close it is to the station are conditions with value. On the other hand, if it’s hotel accommodation, a building that’s 100-years-old is itself a valuable condition, and reviews that highlight it as a good aspect increase trust. Even if the price range increases, users will still stay there. I believe that the way in which you draw value from the same piece of real estate can change depending on how you think about it.

Nagata: How about you, Mr. Iwata? Listening to your story, I see the speed of your interactions and communication bring value for you.

Iwata: You hit the nail on the head. The speed of our staff is tied to customers’ trust. When we’re making a deal, our estimations gradually end up going in a different direction <laughs>. We have times when things don’t go well in the end, like when we’re taking in various opinions while cobbling together a prototype. But I know those times, so I’ll do things like go and work on something else at the same time instead. If our estimations go well in the end it’s good, so our staff’s qualities, like their quick-wittedness, ties customers to us. It’s the same thing as the machines we use being for building prototypes. I think in the end, communication between people is the newest way to create value. Especially since the industry in Japan has no life in itat the minute.. I want them to get in the spirit more.

——-For my last question, please tell me about your visions for the future.

Nagata: Personally, I want to expand the possibilities for new lifestyles, ways of living, and design, which we have done through shares. I was originally a politician before this, so I’m aware of the problems of how to move our society and regions forward. I think sharing is one of the ways to solve it. By sharing vacant houses around the country, we can give rise to nonresident populations, and if elderly people use these kinds of services, they’ll have a great time. I think we’re still lacking on the design side of things, so we will create by working with other businesses, and I hope we can pave the way for new lifestyles and ways of working.

Iwata: Whether it’s in Japan, factories in China, or the US, I want to work hard to get our prototype workshop out there. I think the Japanese industry has plenty left to give, so I want to challenge myself to that. I want the world to see more of Japan’s industry!

Nagata: Mr. Iwata, I can see you’re active in the work place and having a good time in your position. I think it’s a wonderful thing that you’re paving the way for new things in response to the crisis of your industry.

Iwata: Thank you. I’m kind of embarrassed hearing that <laughs>. I’ve learned a lot listening to your story too.

Sanken Kogyo, an exciting production business bringing about value and promoting Japanese craftsmanship to the world. Airbnb, a company raising the value of real estate, and expanding its travel services across the globe. From zero to one; from one to a hundred. I feel the infinite expansion of these two companies. In lieu of repeating the services that already exist, their work allows for constant challenge, and thus enables them to grow. I look forward to the future growth of these new creative industries and services, which will astonish the world.

Interview & Text: Yuki Yokoo

Photographer: Haruka Yamamoto

Translator: Joshua Kitosi-Isanga