Amidst today's turbulent international and economic climate, various issues are surfacing. There is a growing movement to reexamine societal structures and business practices from the perspective of "sustainability." Trends like "V2H" (using EVs as power storage for disaster preparedness) and the "Wood Shock" (prompting reevaluation of Japan's timber industry reliant on imports) are part of this wave. Examining these key terms may reveal shifts in the business environment and corresponding approaches. This article highlights five trending keywords currently in focus.
" Digital Payroll " Gains Attention: Will It Change the Tide of Payment Business?
One of the goals of the April 2023 legal revision was to promote cashless payments, and it lifted restrictions on "digital payroll." This allows employers to pay employees using electronic money or payment apps. While the legal amendments included safeguards to prevent user disadvantage—such as prohibiting the forced adoption of digital pay and the use of non-cashable points or cryptocurrency—challenges remain, including the risk of fraudulent account use and increased operational burdens for companies. Though adoption is still limited, interest is growing following announcements by e-money providers entering the spot work market, stating they aim to "realize digital pay in the future." Should these movements expand, it is anticipated that the usage scenarios and user demographics for cashless payments will also evolve. Let's keep an eye on the future developments of "digital wages," which could impact various businesses.
Articles related to digital payroll covered by Dentsu-ho can be found here
Power Your Home from Your EV with " V2H ": Making Electric Vehicles More Sustainable
"V2H/VtoH" stands for "Vehicle to Home." It refers to a system that not only charges household appliances using power from EVs (electric vehicles) but also features bidirectional power supply functionality, allowing electricity stored in the EV's battery to be sent back to the home. Treating the car like a storage battery allows it to serve as a power source during outages, aligning with the "phase-free" concept of utilizing everyday items during emergencies like disasters and with "disaster prevention DX." It also enables fast charging at home, helping alleviate the shortage of charging stations. Integrating with solar power generation enables more efficient electricity usage, offering benefits from a sustainability perspective. Multiple "V2H" products were showcased at the Japan Mobility Show held from October to November 2023. While challenges like installation costs remain, further adoption is anticipated, driven by the growing prevalence of EVs and heightened sustainability awareness.
Articles related to V2H covered in Dentsu-ho can be found here
The Light and Shadow of D2C Inc. Business Brought by " EC Aggregators "
While D2C Inc. has seen rapid expansion, primarily in the US, signs of a slowdown have emerged in recent years. "EC aggregators" are companies that acquire e-commerce brands, primarily D2C Inc. companies, and enhance their corporate value by improving and strengthening their marketing and branding. Alongside the D2C Inc. boom, several "EC Aggregators" became unicorn companies. However, such success is not necessarily sustainable, and recently, the bankruptcy of a prominent "EC Aggregator" has been reported. While the future of "EC Aggregators" is far from assured, as one trend in the e-commerce business landscape, it might be worthwhile to deepen your understanding of them to consider how your own company should adapt to changing times.
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The " Offering " IT Companies Are Strengthening. What the Future Proposal-Based Business Looks Like
Recently, Japanese IT companies have increasingly been offering services labeled as "offerings." The term "offering" was originally commonly used by foreign consulting firms, implying the provision of services or solutions. In the IT industry, it often carries the nuance of a consulting-style business model. This involves proposing a comprehensive package—such as transferring know-how and expertise or implementing systems—rather than the traditional sales approach of simply doing whatever the customer requests. However, there is no clear, universally accepted definition; each company currently uses the term based on its own interpretation. For example, a major IT company refers to its DX initiatives—which combine various products and service portfolios—as "offerings." For now, keep the term "offering" in mind as it gains traction beyond the consulting industry, and watch how its usage evolves.
Articles related to Offerings covered in Dentsu-ho can be found here
The Prolonged " Wood Shock ": Questioning the Future of Japan's Forestry Industry
The "Wood Shock" refers to various problems arising from soaring timber prices in the first half of 2021. It is believed to have started when remote work became established during the COVID-19 pandemic, coupled with high demand for new housing in the US, leading to hoarding of timber. Even after timber demand stabilized, the problem persisted long-term, exacerbated by factors like the invasion of Ukraine. Prices remain elevated compared to pre-2021 levels. Japan, heavily reliant on imported lumber, has also been significantly impacted, facing issues like soaring housing costs and construction schedule delays. The shock continues to affect not only the housing industry but also many others, including musical instrument makers using wood as raw material and power companies engaged in biomass power generation. While efforts to review forestry practices and utilize domestic timber are underway as countermeasures, the situation has not yet fully stabilized. From an SDGs perspective, perhaps it's time to take another look at the issues surrounding the "Wood Shock."
Articles related to the Wood Shock covered in Dentsu-ho can be found here
This month, we focused on keywords gaining global attention, such as "EC Aggregator" and "Wood Shock." Terms related to accelerating DX, like "Digital Payroll" and "Offering," also continue to draw significant interest. As business and societal challenges grow increasingly complex, the question of how to effectively introduce new systems—digital technology foremost among them—as solutions becomes ever more critical. If you are exploring future business strategies and solutions in light of current social conditions, please feel free to reach out to us.
The information published at this time is as follows.
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