Richard Collasse has chaired the EBC for the past six years. He defines the organization as “the lobbying arm of the EU national Chambers of Commerce present in Japan”. A country that he knows and loves to such an extent that it became the subject of his novel (1).

Commerce International: You are President of Chanel Japan, as well as being Chairman of the EBC until 2008. How did you come to be appointed to this position and what is your role?
Richard Collasse: “By sheer hard work! Although I have been President of Chanel Japan for the past 13 years, I have been with the company since 1984. This progression reflects the ethos of a company which places a high priority on the long run, patience, loyalty and, of course, the qualities required to preside over the destiny of such a major company with creative momentum – and not just from a management perspective.
The length of time that I have spent in Japan, my experience of the market and involvement over many years in the work of the EBC, as well as my position as Chairman of the Cosmetics Industry Committee between 1990 and 1992, have provided me with in-depth knowledge of how the EBC functions from the inside. My consular positions were also a contributory factor. I have been a Foreign Trade Advisor for France in Japan and Hong Kong for the past 20 years and Chairman of the Japanese branch of the CCE for two years. I was also President of the French Chamber of Commerce and Industry in Japan for three years.
Within the EBC, there was a need for someone to unify the opposing forces, with a clear vision of the organization’s mission. I act as a driving force, representing the needs of European companies in Japan. I am also the “stone in the shoe” of the Japanese government as I strive to obtain the reforms and changes which are necessary to support the new global trends in the Japanese economy which will be of benefit to our companies.”

C.I. : What links does the EBC have with the European CCIs?
R.C.: “All our Chambers are important: they are the EBC’s stakeholders. I am accountable to the Presidents of the European CCIs established in Japan for the EBC’s actions. They are members of the Board of Governors and were responsible for my appointment. Although the three major Chambers2 are extremely important in terms of funding levels, we ­respect the principle of country equality. Although some CCIs are small, they are vital to the successful functioning of the EBC thanks to their ­involvement, enthusiasm and highly European philosophy.”

C.I. : Do you work in collaboration with the American Chamber of Commerce in Japan and other international CCI networks?
R.C.: “Absolutely. In many common domains such as taxation and intellectual property, as well as in sectors such as cosmetics where there is “strength in unity” when dealing with the Japanese authorities. On the other hand, there is obviously no contact in sectors where we are in head-on competition, such as aeronautics (Airbus versus Boeing!), or which are politically sensitive, such as defence and space.
But, apart from the ACCJ (American Chamber of Commerce in Japan, ed.) and the EBC, very few foreign Chambers have a significant presence here.”

C.I. : What has disappointed you in the law intended to facilitate cross-border mergers? What is your relationship with the Nippon Keidanren business federation which played such a leading role in the introduction of this law?
R.C.: “We are pleased that the law has been passed. It remains to be seen how it will be implemented: in complete good faith or with firewalls and poison pills which will make it difficult, indeed impossible, to enforce. The fact that the principle of capital gains tax deferral on paper profits from share exchanges has been accepted is a step forward, even though the Keidanren strongly opposed this principle and, more generally speaking, the triangular share exchange scheme.
So, as you can imagine, our relationship with the Keidanren, which is highly protective of the interests of the “dinosaurs” of Japanese industry, is not very good. On the other hand, we have an excellent relationship with the Keizai Doyukai (the Japanese Association of Corporate Executives, ed.) and organizations such as the Japanese CCIs (Osaka, Tokyo, etc.). These organizations realize that our requests for reform are directed at revitalizing entire areas of the Japanese economy and that they will also be of benefit to local companies, particularly SMEs and SMIs.”

C.I. : What is your opinion with regard to the demographic issue in Japan? What are the consequences for foreign and, in particular, European economic players?
R.C.: “The demographic issue is worrying, but reversible if the Japanese government (and Japanese couples!) decide to solve the problem.
It would appear, however, that the highest authorities in Japan believe that the country does not really need a population of 127 million inhabitants and are allowing it to decrease to a low – as yet undisclosed – level which is considered healthier for the future stability of the country. Japan’s thinking is very long term and based on historical memory. I am referring to Japan’s disgrace in the 1920s when it was unable to feed its people and had to allow whole swathes of emigrants to leave the country – mainly in the direction of South America. The one thing that is certain is that, according to a top official in the Japanese government, Japan “will not repeat the mistakes that have been made by some European countries in terms of immigration.
In the same way as any other economic players operating in Japan, European companies will have to adapt to an ageing, declining population, with rapidly-changing consumer behaviour and lifestyle habits. Indeed, there will be new opportunities in many sectors for European companies.”

C.I. : How would you compare the policy of innovation pursued by Japan with that of France and, more generally, Europe? In your opinion, is this where the true driving force of Japan’s growth lies?
R.C.: “You mean France has a policy of innovation (excluding the CNRS which produces researchers who often never discover anything!)? [sic] Joking apart; even during Japan’s decade of depression, rather than decreasing its fundamental and applied research funding, it increased it.
Japan is a country where companies take research initiatives and, in return, receive active backing from the State. Although research is still of high quality in France, it loses its momentum due to inadequate funding and the ridiculous levels of pay that are offered to researchers in comparison with the other major economic powers in the world. Inadequate links with the corporate world represent a serious deterrent to the emergence of active, healthy, productive research.
Innovation is definitely a mainspring of Japanese growth, but it is not the only one. The willingness of companies to restructure, their ability to bounce back, the intrinsic creativity of the Japanese (and I lay particular stress on this point), as well as the weak yen, are all crucial factors which should not be ignored.”

1 Richard Collasse, “La Trace”, Seuil, 2007.
2 The French, German and British Chambers of Commerce, by order of size.