Cool Japan Initiative: A Deep Dive into its Journey and Future

How It Started and Key Milestones

Roots of soft power and early groundwork

Japan’s ambition to harness cultural soft power began long before Cool Japan became a policy slogan. In the early 1980s, the Ministry of Foreign Affairs distributed the drama Oshin overseas. The show was successful in 68 countries. This success proved that storytelling can build international goodwill.
In 2002, journalist Douglas McGray coined the term “Gross National Cool”. He used it to describe how Japanese anime, manga, fashion, and cuisine were capturing global attention. This happened even during economic stagnation. These ideas convinced policymakers that cultural exports serve national interests.

Institutionalizing Cool Japan (2010–2013)

• June 2010: The Ministry of Economy, Trade and Industry (METI) established the Creative Industries Promotion Office. This action signaled the government’s intent to support creative exports.
• 2013: The Cool Japan Fund Inc. (CJF) launched as a public–private investment fund with ¥50 billion of government capital to promote Japanese culture abroad.

Successes and Misses

Notable successes

• Tokyo Otaku Mode (2014) – an online platform selling otaku merchandise was recognized as a successful investment. It showcased Japan’s pop‑culture goods to global fans and was highlighted by CJF as an early triumph – japantoday.com.
• Sentai Holdings (2019) – a $30 million investment strengthened Japanese anime’s distribution in North America. This helped deliver anime to major streaming services and cinemas, broadening the fan base.
• Wine Gallery/Good Pair Days (2022) – CJF’s partnership with an Australian–U.K. online retailer leverages personalized recommendation technology to introduce Japanese sake to millennial consumers in those markets cj-fund.co.jp. It’s a targeted approach that applies data analytics to cultural exports.
• Inside Travel Group (2024) – by investing in a U.K.-based cultural adventure tour operator, CJF taps inbound tourism from the U.K., U.S. and Australia, offering tailor-made trips that connect travellers with Japanese artisans and communities.
• Regional tourism & ryokan projects (2016–2025) – investments in the Setouchi DMO, Suiden Terrasse hotel, and Atona luxury ryokan fund showcase Japan’s commitment. Japan is focused on revitalising local economies and offering high-end experiences cj-fund.co.jp

Failures and lessons

• WakuWaku Japan TV channel (2014) – the satellite channel broadcasting Japanese content in Asia struggled to find an audience. It ultimately incurred heavy losses yokogaomag.com.
• The Japan Store (Kuala Lumpur, 2016) – a partnership with Isetan to showcase Japanese products. It closed after a few years due to poor sales yokogaomag.com.
• Lack of foreign input: Many initiatives were designed by domestic officials. There was minimal overseas consultation. This led to projects that didn’t resonate with target audiences yokogaomag.com.
• Fragmented governance: Overlapping ministries and a lack of clear KPIs created inefficiencies and hindered accountability.

Countries & Regions: Who Embraced Cool Japan?

Strong impact markets

• North America: The U.S. remains the largest international market for anime. Parrot Analytics data (cited by market researchers) notes that anime is more popular in Japan. However, the United States is the biggest international market. It is significantly ahead of the Philippines. CJF’s investment in Sentai Holdings and partnerships with U.S.-based platforms like Tastemade (2018) demonstrate this focus cj-fund.co.jp.
• Southeast Asia: Investments in JumpStart vending machines (Indonesia) and cold‑chain logistics (Vietnam) show that CJF sees ASEAN countries as promising growth markets. Consumers in Indonesia, Vietnam, and the Philippines have embraced Japanese snacks, anime and tourism.
• Europe & Oceania: Projects such as the Wine Gallery sake initiative in Australia/UK and the Inside Travel Group tourism investment emphasize Europe as a strategic region. Fashion brand collaborations and a planned cross‑border innovation fund also target European startups cj-fund.co.jp.

Markets with limited investment

The Cool Japan Fund has been cautious about investing in regions where Japanese culture is less known. They are also wary of areas where regulatory risks are high.

• Latin America & Africa: CJF exports anime and consumer goods through private companies. However, CJF has not made notable direct investments in Latin American or African markets. There are several reasons. These include limited market research and lower purchasing power. Additionally, there is a prioritization of Asia-Pacific and Western markets where there is already strong brand awareness.
• Middle East: Early plans to promote Japanese agriculture and food in the Middle East were proposed. However, few large-scale projects have materialized. High logistics costs and complex distribution networks appear to be barriers.

Future Plans and Reboot Strategy

To tackle criticisms, the Cabinet Office’s Intellectual Property Strategy Headquarters issued a New Cool Japan Strategy in June 2024.

Key goals include:

• Economic targets: Expand overseas anime/game revenues to ¥20 trillion and generate a ¥50 trillion annual economic impact by 2033.
• Digital transformation: Adopt AI, VR and Web3 technologies to modernize content production and distribution.
• Cross‑sector collaboration: Move from selling products to offering high‑value experiences by linking anime, food, tourism and design.
• Stronger coordination: Introduce a plan–do–check–act cycle, data collection and unified KPIs to overcome ministerial silos.
• Creator support & IP protection: Offer financial aid to young producers, strengthen anti‑piracy measures, and develop domestic distribution platforms.

Expansion into new regions

CJF’s president Kenichi Kawasaki has signaled an intention to expand beyond Asia. He is focusing on Europe and the United States for mid‑to‑late‑stage investments. He is also exploring sectors like fintech and microfinance. The fund’s investment in Grover (Germany) and cross‑border innovation funds in Taiwan show a pivot toward global tech ecosystems. Additionally, there are plans to leverage Japan’s inbound tourism boom by developing integrated cultural experiences around the Osaka‑Kansai Expo 2025.

How the Reboot Could Succeed (and Where)

For the new strategy to achieve its ambitious goals, Japan can focus on these actions:

1. Centralize governance and metrics. Establish a single coordinating body and use data‑driven KPIs, as the new strategy proposes.
2. Co‑create with global partners. Involve foreign producers, marketers and influencers to ensure cultural products resonate internationally; lack of foreign input hampered earlier projects.
3. Empower grassroots creators. Provide grants and distribution support for indie studios and regional artisans to foster authenticity and avoid “top‑down” culture.
4. Invest in digital platforms. Develop Japan‑owned streaming and e‑commerce channels and adopt AI/VR/Web3 technologies.
5. Offer immersive experiences. Integrate tourism, food and entertainment into premium packages to attract high‑spending travellers.
6. Protect IP and support creators. Strengthen anti‑piracy measures and fair compensation.
7. Diversify regional focus. Continue investments in Southeast Asia and Oceania while exploring under-served markets like Latin America. The U.S. should remain a priority because it has a dominant anime market. Europe should see more partnerships in fashion, design, and tourism.

The Cool Japan initiative can transform cultural prestige into long‑term economic impact. This can be achieved by unifying strategy. It also requires embracing technological change and partnering with both foreign experts and local innovators.

In case you want to read more:

Douglas Gray “Gross National Cool” – https://pueaa.unam.mx/uploads/materials/McGray_Gross-National-Cool.pdf?v=1627598201