Asking Snow Peak's President: How to Build a Globally Competitive Brand

Forbes JAPAN's " Small Giants " project discovers companies across Japan that may be small in scale but are poised to take flight globally.

To address the challenges faced by many Small Giants, Forbes JAPAN held an "Online Mentor-Protégé Consultation Session." This time, the protégé seeking advice was Yoshimitsu Houkou, President of Chikusui Canicom (Ukiha City, Fukuoka Prefecture), the Grand Prix winner of the "Small Giants Award 2022-2023." His mentor was Futoshi Yamai, President of Snow Peak (Sanjo City, Niigata Prefecture).

President Yumiko, who handles agricultural machinery, expressed to President Yamai, "I'd like to hear about brand strategies that work globally." While President Yamai gave a thorough explanation to the junior president's concerns, he actually admits there was a time he felt President Yumiko had one over on him regarding branding. The ensuing exchange of counter-questions is also a must-read.

【Chikusui Canicom】
In 1948, the current president's grandfather founded Houkou Agricultural Tools Manufacturing. The Houkou family's roots lie in sword smithing. The company manufactures approximately 50 types of grass cutters, known for distinctive names like "Grass Cutter Masao" and "George the Wilderness Bodyguard." Gradually expanding as an agricultural machinery manufacturer, its 2022 sales reached a record high of ¥8.77 billion. The company employs 278 people. In 2022, exports were robust, accounting for 60% of business, with transactions reaching overseas companies in 53 countries.
 

【Snow Peak】
Founded in 1958 in Sanjo City, Niigata Prefecture, known as a "town of manufacturing," Snow Peak is an outdoor equipment manufacturer. Its social mission is "to connect nature and people, people and people, and restore humanity." Beyond developing and selling camping gear and apparel domestically and internationally, it engages in diverse ventures including regional revitalization and business solutions.

 

"We weren't consciously focused on branding"

President Hōgyō of Chikusui Canicom (hereafter Hōgyō): Canicom primarily focused on OEM production emphasizing high quality in the 1980s. However, in 1989, we introduced CI (Corporate Identity) and began strengthening our own brand.

Although we expanded overseas starting with our entry into North America in 2001, the first decade saw little success. However, by 2022, overseas sales accounted for 56% of our total revenue, meaning over half of our sales now come from the global market.

Snow Peak is synonymous with high quality, strong brand power, and aspiration. Could you tell us what prompted you, Mr. Yamai, to focus on branding, and what principles you keep in mind?

Snow Peak President Yamai (hereafter Yamai): I wasn't consciously focusing on branding. I positioned myself as Snow Peak's biggest fan and representative user, implementing one idea at a time based on what I thought the company should be. I believe this is precisely what shaped the Snow Peak brand.

Yasuyuki: So, Snow Peak's identity as a high-end brand wasn't inherited from the previous generation? Did it develop after you joined the company?

Yamai: Under my father, we made mountaineering gear. Since mountaineering equipment involves people's lives, we had to make products of solid quality. In that sense, I think the corporate culture he left behind included a strong commitment to making good products properly.

Then, after I joined Snow Peak, I launched the camping goods business. We meticulously crafted each new, stylish camping item and also offered comprehensive proposals, including system design.

Yamai: We offer a "lifetime warranty" on all Snow Peak products, reflecting our confidence in their durability.

I believe Snow Peak became a brand by cherishing the corporate culture my father left behind and continuing to pursue what I wanted to do.

I believe Mr. Yutaka is also working hard to carry on his father's wishes. In that sense, our positions are the same, right?

Yutaka: In my case, my father, the Chairman, has an exceptionally strong commitment to branding. His approach to branding is the idea that "Canicom must never change as Canicom."

On the other hand, I wanted to increase overseas sales and expand our products internationally. I believed we needed to use Canicom to create new products that customers would use.

For agricultural machinery, I believe the new branding approach lies in adding new value as a work tool—like using the chassis not just for transport but also for spreading fertilizer—to create new customers.

President Yamai, as you build your own camping brand, do you intend to pass on the same vision to the next generation of employees? Or do you hold a flexible view that change is acceptable for creating new markets? Which is it?

Approaching with a shared mission

Yamai: Until around 2014, Snow Peak's core business was planning, manufacturing, and selling camping gear. We developed products that were overwhelmingly superior in functionality, design, and durability compared to competitors, and were system-designed. We built our business by cultivating fans one person at a time.

What Snow Peak is doing now is leveraging the power of camping to expand into various businesses.

We believe camping can restore humanity, revitalize companies, and serve diverse purposes, so we're tackling these ventures. Broadly speaking, we're committed to expanding camping's inherent social mission and potential. Connecting people to nature, connecting people within nature—under this mission, we approach everything without constraints, involving all employees.

I'm part of the second generation, and while we have many third-generation employees, I especially want them to help expand this vision.

Yukiyuki: I definitely feel attitudes toward camping have changed significantly. For me, camping was always associated with school activities—something I did reluctantly while battling bugs.

At Snow Peak's Okuhita Camp Field in Oita Prefecture, they use Canicom mowers. I've heard that by utilizing Snow Peak camping gear, the campground creates added value, allowing them to set prices higher than the typical market rate. Seeing them use it as a premium brand, fully convinced of its value, is both educational and instructive.

Asking Snow Peak: How to Compete Globally

Yukiyuki: Canicom's domestic sales are either flat or declining at an annual rate of 1-2%, partly due to the shrinking agricultural population. This makes overseas expansion increasingly crucial. Snow Peak has stores in Portland, USA, and London. How do you approach "branding" for competing globally?

Yamai: I believe the main battlegrounds for Snow Peak's overseas expansion going forward will be the US and China. Europe and Oceania follow next, but our approach remains consistent everywhere. We promote differentiated "stylish camping gear" within the camping category, produce campgrounds, and enhance experiential value by spreading Japanese-style camping and glamping.

Yamai: In the U.S., backpacking, RVs, and trailer camping are mainstream. Stylish family campgrounds like Japan's, where people load camping gear into SUVs, 4WDs, or minivans, are rare. Snow Peak has been developing this style of camping business in Japan since 1988, and we now need to replicate it in the U.S. and China.

Yukiyuki: Personally, when I stayed at a cottage in Japan that had electric appliances, it was incredibly cold even on snowy days. That made me think about how to endure the cold and how to make camping possible in places without radio waves or power sources – it sparked ideas for new camping styles.

Yamai: There are various camping styles. In eastern Japan, people tend not to use power much, while in western Japan, some campers use electric blankets at power sites. About 15 years ago, the most you'd see was a hot water bottle. Now, in winter in eastern Japan, people seem to keep warm by putting a stove inside their shelters. I think camping styles have changed quite a bit with the times.

Yukari: Canicom also made a generator-equipped machine before—the "Den-do Yoshimi" we featured in the Small Giants Award. That was originally designed as a transporter for camping gear requiring power.

Yamai: Really? I didn't know that.

Yasuyuki: At first, it didn't sell at all. But it sold a little during the Great East Japan Earthquake, and then it ended up selling the most in American cornfields. Originally, we marketed it as a machine that could transport all the equipment you'd take to a campsite and also serve as a power source there.

When President Yamai thought, "I've been beaten"

Yamai: Honestly, I don't think, "I've been beaten by this person" in terms of branding. But the way you communicate with customers buying farm equipment, including the humor, is incredibly sophisticated. On that point, I think, "Man, I'm totally outclassed."

Conversely, I was really curious to ask: How is it overseas? Do you incorporate humor into your communication and business development like in Japan, or is it more serious overseas?

Hiroyuki: It's about half and half. America was under my direct jurisdiction, so I figured, "Let's just have fun with it." When we first entered the market, we had machines named "Hillary" and "Bushcutter George," which caused quite a stir. That was right during the Hillary vs. Bush election campaign, so it was pretty sensitive territory. Yeah, I got yelled at big time.

Since my English isn't that great, I played both sides (laughs). For "Bush Cutter George," I told Bush supporters, "Cutter (= won) is victory."

When I took the multi-purpose electric cart named "Standing Hiroshi" to overseas clients, they asked, "What does this mean?" So I'd say, "As Brad Pitt." Anyway, I've been in America for 19 years now, and I've come to accept that it's just me.

Yamai: I think Canicom's business expansion should be done globally. Branding like that usually doesn't work easily, but it's succeeding thanks to Mr. Yakou's character, right?

Even within agricultural machinery, there are various functional differences, but I feel that the "emotional value" is what's truly appealing to both the buyers and the farmers doing the work. I have a strong sense that the number of people buying into that emotional value will keep growing, and in that realm, Canicom seems poised to dominate.

The art of naming is "Canicom's exclusive patent."

Yukihiro: Here's another example of overseas expansion. For the "Grass Cutter Masao," we kept the name unchanged in Thailand, the US, and Europe, but in Australia, we named it "Razorback," meaning "wild boar." You see, when our "Masao" is in motion, it looks like a wild boar eating grass.

Yukiyuki: With the original "Grass Cutter Masao," we only sold about 30 units per year. Changing the name boosted sales to 600 units annually. Does Snow Peak ever change product names for overseas markets?

Yamai: We generally keep the same names overseas. For example, our LED lantern "Hoozuki" becomes "Hozuki Lantern." We also have a desire to intentionally circulate Japanese names.

Regarding our corporate message, "Add outdoor fun to your life," we use the alphabetized "NOASOBI" quite extensively. It does tend to stick in people's minds better.

Yukari: I think "NOASOBI" is really great.

We established the slogan "We deliver duty and humanity," presenting "GIRI TO NINJO" in alphabetical form. But in America, it was mistaken for "GIRL AND NINJA," and people asked if we were a company selling that kind of thing. We ended up rewriting it as "DUTY AND HUMANITY," but that's just boring.

That's why we use the phrase "Craftsmanship is Enka." The term "Enka" is firmly established in Japanese, which was really great. We sometimes explain that Enka is "Japanese Soul."

In our generation, the previous generation's influence is still incredibly strong. But I'm starting to fear that the next generation might say, "Don't we just need to drop the naming altogether?"

Yamai: Naming sense is Canoncom's specialty, so I hope you keep doing it forever.

There's a phrase, "fuyu-ryu-ko" (eternal and changing). For Canicom, what must remain unchanged, and what should evolve? To pass it on to the next generation, it would be great if your generation, Mr. Yuriko, could properly sort out what's eternal and what's changing.

Furthermore, I believe Mr. Hokou is a leader who can foster more environmentally conscious global citizens. It would be wonderful if he could initiate changes that transform the world of agriculture.

Yasuyuki: Let's definitely collaborate on that.

Yamai: Want to collaborate? Like on road apparel or something.

Masayuki: The line name would be "Snow Peak Masao," I guess (laughs). For example, campers could do grass cutting or tree planting. There seem to be all sorts of new possibilities with camping x agricultural machinery.

[After the Online Mentor-Mentee Consultation]

 

Words from the Mentor (President Yamai)
I believe Masao's energetic drive sparked a breakthrough, winning the Small Giants Grand Prix, which has given courage to successors and SME presidents across Japan.

Generally, I think many companies in the industrial manufacturing sector are serious, obsessive, technologist or engineer types who aren't great at communication. Within that, Canicom has humor in its communication. At the same time, it's amazing how you balance that with the high quality of your industrial products and the high standards of your manufacturing, investing in your factory.

I hope they continue this management style – creating products that are overwhelmingly superior to competitors' while maintaining both aspects, and using humor in their communication. If there's anything I can do as a senior colleague, please don't hesitate to ask. I'll come to Kyushu, and I'd love for you to visit Sanjo too.

Lessons from the Junior President (President Yuriko)
I've struggled with whether my own style—just charging ahead recklessly—is truly sustainable.

What defines a high-end brand? What convictions underpin it? My conversation with President Yamai taught me this. It has become both greater motivation and a weapon to compete globally.

"Delivering more refined craftsmanship and enka music to the world." I intend to soar like an eagle, embracing this as my mission. I'll be coming to Sanjo for grass cutting and camping, so I look forward to your continued guidance then.

Text by Akari Toku Planning by Makoto Sasagawa (Dentsu Inc.)