COMPREHENSIVE MARKET DEVELOPMENT PLAN

COMPREHENSIVE COMPREHENSIVE MARKET MARKET

DEVELOPMENTDEVELOPMENT PLANPLAN

JAPANJAPAN

JAPAN PRIORITY MARKET FOR SPAIN

DUE TO IT BEING A LEADING WORLD POWER

Second biggest economy worldwide after the USA Represents 11.7% of world GDP and 2% of its population Market of 127 million consumers with a per capita income of $38,000 Third biggest economy in the world by PPP Represents 6% of total world exports and 5.5% of imports Accounts for 5% of total world Foreign Direct Investment made and 10% of that

received World leader in:

Motor cars Steel and new materials Electronic equipment Machine tools Industrial automation Chemicals

DUE TO ITS RECOVERY IN GROWTH

In 2003 and 2004 it grew 1.4% and 2.6% respectively Expected growth for 2005 is close to 1% In 2004 imports grew by 8.9% Financial restructuring Better corporate earnings

SPAIN’S PRESENCE IN JAPAN

JAPAN A MAJOR DESTINATION FOR SPANISH EXPORTS TO ASIA

CHRONIC TRADE DEFICIT WITH JAPAN

IN 2004 = 4,515 MN EUROS

Insignificant Spanish investment

flows into Japan

2004 = 78,851,000 eurosX- predominantly foodstuffs and manufactured goods

M-predominantly capital equipment and motor cars

Market share approx. 0.4%

Bigger market share to catch up

with other

European countries

(Germany, France and Italy)

Sectors:

Banking, fashion and auto parts

Japan into Spain (2004) 96,683 mn eurosEnergy prod./distr., chemical industryMotor car manufacture

OPPORTUNITY SECTORSOPPORTUNITY SECTORS

Creative, quality designer consumer goods

Food products targeting gourmet cuisine

Industrial goods (machinery and parts for the auto industry, alternative energies etc)

Machine tools with competitive price and quality

Other sectors with a future • Spanish as an

economic resource • Leisure and

tourism-related services

Banking and insurance Telecommunications and other services Sectors related to reorganisation, deregulation and liberalisation processes Trading establishments for promoting Spanish product exports Biotechnology Information technology Nanotechnology and the environment

For tradeFor trade For investment and Industrial co-operation

JAPAN CMDP OBJECTIVESJAPAN CMDP OBJECTIVES

1. To improve market share and step up Spain’s exports to Japan

2. To increase reciprocal investment flows

3. To enhance Spain’s image in Japan

4. To strengthen co-ordination between institutions and between companies: setting up programmes or agreements such as Eureka

5. To foment Spanish and Japanese co-ordination in other zones: China, Latin America etc

LINES OF ACTION FOR THE CMDPLINES OF ACTION FOR THE CMDP

1. Backing up trade

Accessing the market

Promotion and image

Financial instruments

2. Backing up investment

3. Institutional, information and training

4. Promoting tourism

REMOVING BARRIERS TO ENTRY INTO THE JAPANESE MARKET

REQUEST FURTHER CONCESSIONS FROM JAPAN IN THE DOHA ROUND (QUOTAS FOR LEATHER GOODS AND FOOTWEAR, LEGAL FINANCIAL AND DISTRIBUTION SERVICES)

BOOST EU-JAPAN REGULATORY DIALOGUE TO SMOOTH OVER PROBLEMS BETWEEN THE TWO ZONES

BROADEN SECTOR PROTOCOLS SIGNED WITH SPAIN, TO STEP UP THE PRESENCE OF SPANISH PRODUCTS IN THE JAPANESE MARKET

SIMPLIFY DISPROPORTIONATE SANITARY AND PHYTOSANITARY REQUIREMENTS (LATENT HINDRANCES TO TRADE)

GO INTO MORE DEPTH IN TALKS ON ACCESS TO THE JAPANESE MARKET FOR INVESTMENTS, AIMED AT GAINING FAVOURABLE CHANGES IN THE ANTI-TRUST ACT AND CODE OF COMMERCE

MOVES TO

FINANCIAL INSTRUMENTS TO BACK UP FINANCIAL INSTRUMENTS TO BACK UP TRADETRADE

• STEPPING UP THE GENUINE CO-OPERATION BY ICO-EXIMBANK (JBIC) OF JAPAN WITH SPANISH COMPANIES IN UNDEVELOPED THIRD-PARTY COUNTRIES FOR PROJECTS FINANCED USING EMISSION RIGHTS

• INCREASING CO-OPERATION WITH JAPAN THROUGH IFIs (ASIAN DEVELOPMENT BANK)

ODA CO-OPERATION WITH JAPAN IN LATIN

AMERICA AND ASIA

JAPAN WORLD’S SECOND BIGGEST

DONOR OF ODA ($ 7.581 Bn)

ASIA, 60,7 % AFRICA, 8,7 % LATIN AMÉRICA, 8,8%

TRADE PROMOTION AND IMAGETRADE PROMOTION AND IMAGEGENERAL STRATEGIESGENERAL STRATEGIES

To enhance the image of Spanish products in

Japan Promoting sectors with high added value (Gourmet

products, fashion, interior decor, boosting branding programmes and improving funding terms)

Carrying out parallel activities for ExpoAichi 2005 (gastronomy, interior decor, fashion, design)

Reinforcing the presence of Spanish companies in Japan

Stepping up promotional activities including official pavilions at trade fairs

Implementing preferential financing for promotion activities in Japan

TRADE PROMOTION AND IMAGETRADE PROMOTION AND IMAGE2005-2008 SECTOR STRATEGIES2005-2008 SECTOR STRATEGIES

Foodstuffs

• Japan priority market, both for wines and food, where quality and gourmet positioning is sought in the higher segment

• General plan for wines

Japan is one of Spain’s principal opportunity markets for wines, with resources concentrated on events for high quality wines.Activities aimed at distribution: mini-shows, reverse mission for journalists, advertising, image and communications activities: wine-waiting competitions for Spanish wines, seminars and tastings

General plan for promoting foods (several sectors and gourmet products)

Consolidation of the gourmet trade fair mini-show organised in collaboration with the Chambers of Commerce.Official pavilion at Foodex Tokyo.Image activity: gastronomy thematic days with the presence of the 15 best Spanish cooks (built into the ExpoAichi 2005 programme). New sectors being positioned: citrus and dried fruits and nuts.

TRADE PROMOTION AND IMAGETRADE PROMOTION AND IMAGE2005-2008 SECTOR STRATEGIES

Foodstuffs Olive oil plan

Retail and catering segments with image of variety and quality.Communications and promotions activities: advertising, marketing features, seminars and promotions in major stores and delicatessen.

Consumer goodsSpanish general fashion and in interior decor plans

Image creation: fashion image plan (support for catwalks and designer image creation), communications programme, www.fashionfromspain.com web-page in Japanese.Internationalising promotion of fashion image plan (support for catwalks and designer image creation), communications programme, www.fashionfromspain.com web-page in Japanese.

• Japan interior design plan– Informative activities and image creation. New promotional

activities for designer products for interior decor: Involvement at Tokyo Designer’s Week (Nov. 2005).

– Promotion of internationalisation.

TRADE PROMOTION AND IMAGETRADE PROMOTION AND IMAGE2005-2008 SECTOR STRATEGIES

Industrial and technology productsCommunications campaign regarding Spain’s image in technologyCorporate co-operation on ICT, biotechnology and environmental projects

Services

Design Services: Encouraging Japanese Industry to be aware of and take an interest in Spanish expert designers (Industrial, Textile, Fashion and Graphic Design, Interior and Multi-sector Design) (Technical Design Conferences in Tokyo)Publishing Sector: increasing awareness of Spanish books in non-Spanish speaking countries (joint participation at the TIBF, the Tokyo International Book Fair)Educational Services: the aim is to promote the teaching of Spanish as a Foreign Language in Japan (Linguistic Agents’ Meeting at the Pacific Rim Workshop) Musical Instruments: Encouraging musical instrument sales in Japan, particularly the Spanish guitar.

43 PROMOTIONAL ACTIVITIES ARE PLANNED

8 involve taking part in trade shows (3 official pavilions, 1 information pavilion and 4 joint participations)

6 direct trade missions, 10 reverse missions and 1 study mission. 1 design sector technical day, 4 consumer goods sector exhibitions and 3 promotional campaigns for the wines and interior decor sectors.

By sectors 45% of these activities are in consumer goods, followed by 25% in food and farming, 16% in services and 14% in industrial products

TRADE PROMOTION AND IMAGE2005 ACTIVITY2005 ACTIVITY

INVESTMENT PROMOTIONINVESTMENT PROMOTION

Organisation of informative and training activities on investment in Japan at the centre of internationalisation experiences

Framework co-operation agreement on the subject of promoting investment with institutions specialising in attracting investment into Japan

Programme to back up trips to explore investments (PROSPINVER)

Spanish-Japanese corporate assembly (Nov. 2005)

Strengthening the PAPI programme in support of

investment projects

INSTITUTIONAL BACK-UP INSTITUTIONAL BACK-UP ACTIVITIESACTIVITIES

Organising seminars to attract japanese investment

Encouraging visits by Keidanren delegations to Spain

Promoting the Spain-Japan forum

Reinforcing the bilateral committee with high level visits

Visit by the Prince of Asturias to Expo Aichi 2005

ICEX – INFORMATION-TRAINING HUMAN RESOURCES

INFORMATIÓN Launch in December 2005 of a reverse web-site in Japanese .

Publication of a Country file in Japanese in 2006

Increase of number of specialist conferences and seminars for sectors and products of interest in Japan Conferences to study the Japanese market are planned in 2005 in Barcelona,

Seville, Caceres and Valencia on 12,14,16 and 19 of December. From 2006-2008 there are plans to continue organising this type of conference for certain products or sectors of interest in Japan (consumer and farming mainly).

Exporta international meeting place

TRAINING Of professionals in foreign trade and investment who specialise in the Japanese

market for the internationalisation process in Japan

Increasing the number of internationalisation interns on placement at the Economic and Trade Office in Tokyo to 6 (5 specialising in internationalisation and one in IT.) New technology scholarship winner.

New technology intern on placement in Tokyo

SPAIN’S PROMOTIONS PROGRAMME IN SPAIN SPAIN’S PROMOTIONS PROGRAMME IN SPAIN 20052005

OBJECTIVE: • To reinforce Spain’s image generally paying

special attention to its sight-seeing and scenic assets

• Support for developing and marketing linguistic and cultural tourism products and trying to diversify regional destinations

2005 BUDGET: Promotions € 519,353Advertising € 900,000

TOURISM PRODUCTS: Cultural tourism (65%) in its various forms: individual and package tourism, business and incentives tourism (20%), linguistic tourism (15%)

TURESPAÑ ACTIVITIES IN THE AREA TURESPAÑ ACTIVITIES IN THE AREA OF TOURISMOF TOURISM

ACTION ON THE DEMAND FOR TOURISM:

• Improving and widening the range of content in Japanese onTurespaña's www.spain.info web-site

• Advertising campaign• Press familiarisation trips• Sponsoring festivals (Flamenco)• Collaboration agreement for the Aichi Universal

EXPO

TURESPAÑ ACTIVITIES IN THE AREA TURESPAÑ ACTIVITIES IN THE AREA OF TOURISMOF TOURISM

ACTION ON PROMOTING THE RANGE ON OFFER: • Trade Fairs (Jafa WTF, Korea World Travel Fair).• Direct marketing (Camino de Santiago, Heritage

Cities)• Trips for agents

2005-2007 Activities

Trade backing    

ICEX PROMOTION   9,5

INFORMATION AND TRAINING 1

Investment backing    PROMOTION OF AND BACKING FOR INVESTMENT PROJECTS   0.7

Tourism backing    

PROMOTION AND ADVERTISING   1,4

Total   12,6

BUDGET FOR THE JAPAN CMDPBUDGET FOR THE JAPAN CMDP

FOLLOW-UP FOR JAPAN CMDPFOLLOW-UP FOR JAPAN CMDP

◘ Market barriers

◘ Impact and results of promotion and image-related activities

◘ Promoting exports and bilateral business co-operation for high-tech industries

◘ Maintaining and boosting Japanese investment into Spain

Follow-up Action In charge

SGCOMEX

ICEX

ICEX

State Corporation for Investment Promotion (SEPI)

Plan Handler OFECOMES

TOKYO