Saturday, May 8, 2010

Relocation Outlook- Shrinking Japan Market

I have seen some surveys recently that indicate that 2010 is potentially going to be much more healthy than 2009.


In AIRINC's recent survey, they reported that 47% of respondents that their expat populations would decrease in 2009, but in 2010 88% of respondents are confident that numbers will remain the same or increase this year. This result is shown in the below graph.

The above is encouraging for the industry, but will it hold true in Japan?

Much of the increase in assignments will probably be attributed to the growth in China and India, which are the destinations for huge volumes of exaptriates even now.

What is interesting however, is that India and China are also considered to be 2 of the most challenging destinations for administrators, and also 2 of the locations that see the most assignment failures.


A Brookfield survey indicates that on average 6% of assignments fail (it is higher in China and India) as a result of spouse / partner dissatisifaction, inability to adapt, other family concerns and poor candidate selection.


For Japan, I would say that the risk of assignment failure is considerably less that the average, and that our destination is probably becoming one of the least challenging locations, unless you are perhaps living outside of Tokyo.


From a relocation company perspective, this is not good news for us in relocation in Japan, as relocation companies actually thrive on locations being very challenging. I envy our partners in India and China who have many problems to solve. Here in Japan are problems are less, and the Japanese economy is on a decline. Our market is certain to shrink over the coming years.


More Than Japan Housing, More Than Japan Cars and Furniture, More than Japan Serviced Apartments, More Than Japan Destination Services, More Than Japan License Conversion, More Than Japan Information!
The H&R Group is MORE THAN RELOCATION!

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