YKK (Japan)

YKK has its headquarters in Japan, but operates in several other facilities and makes decisions based on those specific regional characteristics. What current companies lack this type of approach and representation and what issues have they experienced because of it?

This question blends nicely with last week's discussions surrounding Twitter's expansion into foreign markets. One of the key factors of YKK's success was its "commitment to stakeholders." YKK has "this ability to identify and analyze local interests and stakeholders (which) has allowed the company to expand internationally and assimilate seamlessly into different cultures around the world." A specific example was how YKK aligned its values with those in a Macon, GA, manufacturing plant.

Last week, we discussed the Twitter ban of Nigerian President Buhari, only for it to be reversed months later. The issue with Twitter (and the tech industry) is that they can expand quickly because they are an internet-based business. This expedites expansion into foreign markets, which, in many cases, may lead to a lack of analysis of local interests and/or customs. And it is easy to see why. When you are a publicly traded company, you are expected to provide a return for shareholders and are evaluated four times a year. You must show growth.

In contrast, we can argue that a privately held company in the manufacturing sector "can't move fast and break things." They need to make sure their development is thoughtfully executed. YKK demonstrates this well, as they ensured that their stakeholders in Georgia believed in the work they were doing at a company they trusted.

If you worked for YKK, how would you try to innovate or expand their products and offerings? If business just continued as usual, would they make it another 88 years? Why or why not?

I do not believe any business is assured success by repeating past actions. YKK has developed a strong strategy that has aided its growth for 88 years. However, as technology, politics, and the global economy (to only name a few) change over time, a company must always be aware that it might have to pivot. The most successful companies do this (Coca-Cola, DuPont, Disney). The companies that don't acclimate to external forces go bankrupt (Blockbuster, Kodak, Toys R Us, Borders Books).

With the growth in the fast fashion category, I imagine that the emerging zipper suppliers in China are earning this business based on low costs. This is how they are gaining market share. As YKK, I would propose that the company looks to conduct sales with medium to high-end fashion manufacturers who can pay a premium for a zipper. They avoid growth in the fast fashion category and position themselves as the premier zipper that has been around for 88 years. Creating a divide in the quality while also being able to share their story of sustainability practices. A recycling rate of 82.3% is far above the industry norm and far above the EPA goal set for 2030 (50%). This is a great opportunity to share the story that YKK is about sustainability as they do not do business with fast fashion and have incredible recycling rates. Lastly, this helps the more visible clothing and purse manufacturers make sustainability claims for their brands.