Amazon Japan’s Convenience
Source material: 51.01 The Cambrian Palace
Original title: 生活がどんどん便利になる! 日本流アマゾンの全貌
Date: 2024/01/18
Company: Amazon Japan
Guest: Jasper Cheung
Guest Overview
Jasper Cheung
Key Information
- Name: Jasper Cheung
- Born: October 26, 1964 in Hong Kong
Career
- 1986: Graduated from Hong Kong University Department of Industrial Engineering
- 1986-1987: Joined Cathay Pacific Airways as an Airline Planning Officer
- 1987: Moved to Canada, enrolled in York University’s business school
- 1987: Joined Procter & Gamble Inc. as a Finance Analyst, later acquired Canadian citizenship
- 1990: Obtained MBA from York University
- 1995-1997: Procter & Gamble’s Finance Manager for Northeast Asia Health, Beauty, Food and Beverage (Japan Detergent) division, assigned to Japan
- 2000: Joined Amazon Japan as Finance Director
- 2001-2011: President of Amazon Japan
- 2011-2021: Co-president of Amazon Japan with Jeff Hayashida
Personal
- Married to a Japanese woman, has one child
- Hobbies: watching movies, reading, physical exercise
Publications
Note Overview
Tailoring to the Japanese Market
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Cheung emphasized the importance of Japan as a critical market for Amazon:
“Japan is an extremely important country for Amazon, and we have always been thinking about what kind of services are necessary for Japan.”
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He noted that Amazon’s goal is to provide solutions that exceed the high expectations of Japanese consumers:
“We must always evolve, because the needs of customers in Japan are extremely high, and we must provide solutions that exceed their expectations.”
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Examples of localized services include the “Amazon Sommelier” program for personalized wine recommendations and the “Japan Store” on Amazon’s global marketplaces to support SMEs.
Addressing Delivery Challenges
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Cheung discussed how Amazon partnered with local businesses like milk delivery services to create the “Amazon Hub Delivery” initiative:
“By working with local stores, we can create a delivery system that is a win-win for everyone involved.”
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This addressed the impending driver shortage due to regulatory changes, leveraging the existing infrastructure and workforce of local partners.
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Cheung emphasized the importance of collaborating with delivery providers to optimize operations:
“We are always in communication with delivery providers, sharing our technology and discussing how we can work together to improve efficiency.”
Importance of Corporate Culture
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Cheung highlighted Amazon’s customer-centric philosophy and culture of continuous innovation, rooted in Jeff Bezos’ “Day 1” mentality:
“We must always evolve, because the needs of customers in Japan are extremely high, and we must provide solutions that exceed their expectations.”
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He noted that this mindset, combined with strong leadership and effective communication within the organization, were crucial drivers of Amazon’s success in Japan.
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Cheung also touched on his own background as an international executive, stating:
“I’m an international person, and I don’t like to boast, but I do see that as a strength that I can leverage.”
The Day 1 philosophy mentioned in the interview is a core tenet of Amazon’s corporate culture that was instilled by founder Jeff Bezos. This concept is critical to understanding Amazon’s approach to innovation and growth, especially in the context of their success in the Japanese market.
According to Bezos and Amazon’s leadership, “Day 1” refers to the mindset of treating every day as the first day of the company’s existence. This implies:
- Constant Reinvention: Viewing the company as being in a perpetual start-up mode, rather than resting on past achievements.
- Customer Obsession: Maintaining an unwavering focus on understanding and meeting the evolving needs of customers.
- Embracing Change: Being willing to constantly experiment, take risks, and disrupt the status quo in the pursuit of improvement.
Adapting to Regulatory Challenges
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Cheung discussed how Amazon navigated Japan’s resale price maintenance system for books, which restricted discounting:
“Originally, the free shipping was more of a necessary evil, but we made it the main focus and really promoted the value it provided to customers.”
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This innovative approach, combined with the launch of Amazon Prime, allowed the company to offer compelling value propositions to Japanese consumers.
Expanding Product Selection
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Cheung highlighted Amazon’s efforts to build an expansive product selection, including the massive inventory of used books:
“We have around 30,000 used book listings currently on Amazon.”
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This wide-ranging product offering, from new to rare and hard-to-find items, was a key competitive advantage for Amazon in the Japanese market.
Bezos’ Unconventional Interview Question
When Cheung was first appointed as the President of Amazon Japan, he recounted a curious interaction with Bezos:
“Suddenly, Bezos asked me a strange question: ‘By the way, how many window panes are there in Tokyo?’”
This seemingly random question caught Cheung off guard, as he recounted:
“Why on earth would he ask that?”
Rather than being flustered, Cheung approached the question methodically, drawing on his knowledge of Japan:
“Let’s see, Tokyo has a lot of 4-person households, and on average there are about 5 window panes per room. So if you multiply that out…”
Cheung then proceeded to provide Bezos with an estimated calculation of the total number of window panes in Tokyo.
After Cheung’s response, Bezos simply smiled, suggesting he was satisfied with the answer. This interaction provides several insights:
- Assessing Adaptability: Bezos likely posed the unconventional question to gauge Cheung’s ability to think on his feet and adapt to unexpected situations - a crucial skill for leading Amazon’s expansion in Japan.
- Valuing Local Knowledge: By asking about a Japan-specific detail, Bezos emphasized the importance of deeply understanding the local market and being able to apply that knowledge effectively.
- Encouraging Analytical Thinking: Bezos’ approach encouraged Cheung to approach the problem methodically, drawing on available information to formulate a thoughtful response. This aligns with Amazon’s data-driven decision-making culture.
- Evaluating Cultural Fit: The interview question also served as a test of Cheung’s cultural fit, as Bezos wanted to ensure he could navigate the nuances of the Japanese market and society.
Others
“If you know the right method, you can do it - that’s what I’ve learned.”
“There are always challenges, but I think that’s what makes it fun.”
“When you’re in a startup, you have to be willing to try new things and not be afraid of failure.”
“The most important thing is to keep an open mind and be willing to learn.”
“Don’t be afraid to take risks and try new things. That’s how you grow and succeed.”
“Listen to your customers and be responsive to their needs. That’s the key to building a successful business.”
“Surround yourself with talented people who can challenge you and help you grow.”
“Stay curious and keep learning. The day you stop learning is the day you stop growing.”
“Believe in yourself and your vision, but be willing to adapt and change as the market evolves.”
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