The Day the Wheel Was Invented
Nobody can be sure when the wheel was invented, but the staff at Mitsubishi Corporation's (MC) Kiev Office know when TOYO tire was "invented" as a leading Japanese brand in Ukraine. At the end of 2002, a mission from MC and the TOYO Tire & Rubber Co. ("TOYO") came to investigate this promising, fast-growing market in the heart of Europe. After visiting various tire vendors, MC finally selected an ambitious and dynamic newcomer to the tire business, Autoland. Based in the industrial part of Ukraine, Autoland boasts a nationwide network of dealerships.
Originally, the TOYO brand was completely unknown in Ukraine. Big players like Michelin, Goodyear and Continental had long enjoyed a smooth ride here. Therefore, the sales target for TOYO tires in FY 2003 was modestly set at around 2000 pieces, but Autoland far surpassed this goal, recording sales of 6,000 pieces. In 2006, sales surpassed 160,000 pieces (approximately 10 millions dollars in sales), thanks to an aggressive marketing approach, jointly coordinated by Autoland and Toyo Tire Europe (a joint venture of MC and TOYO), which included holding dealers' conferences and participation in various car-related events.
In the Driver's Seat
The Ukrainian automobile distributor NIKO sold 14,000 Mitsubishi Motors vehicles in 2006. When NIKO commenced sales activities in 1993, total sales were just 120 vehicles, as the Ukrainian economy stumbled following the collapse of the Soviet Union.
Despite the difficulties faced in the early days, NIKO was able to survive with the support of MC's team in Tokyo, Germany and Ukraine. NIKO continued to develop as a distributor, eventually making Mitsubishi Motors the number one selling imported car in Ukraine, beating out such rivals as Toyota, and it has defended its top position for three years running. Sales of cars in Ukraine have been increasing since 2000, when the economy started to boom, and NIKO is aiming to furnish new Ukrainian customers with 25,000 vehicles in 2007.
Please take a good look at a map of Europe and what lies to the west of the Ural Mountains. You'll see Ukraine in the center of Europe with the EU to the west, Russia to the east, and Turkey across the Black Sea to the south. You can see that Ukraine enjoys a very unique geographical location.
Kiev, the nation's capital, is a beautiful city with more than 1500 years of history. It is fitting that Japan's ancient capital, Kyoto, is one of Kiev's sister cities. During the 10th and 11th century, Kiev flourished as the capital of Kievan Rus, the first unified state of the East Slavs. Although Kievan Rus declined after the invasion of the Mongolians in 1240, a great empire with a similar name, Russia, would later develop to the northeast, but Ukraine was the original "Rus".
Ukraine finally got its independence in 1991 after the collapse of the Soviet Union, but in the 1990s, Ukraine's GDP dropped by nearly 50%. However after 2000, GDP finally began to grow. At the end of 2004, Ukraine posted remarkably strong growth, rivaling even that of China. Then in 2005, the growth of the economy dropped to just 2.6%, partly due to a dispute with Russia over energy supplies. But then last year, despite skyrocketing energy costs, Ukraine achieved growth of 7.1%, underscoring the real strength of the nation.
Ukraine's economic strengths include agriculture; industry, such as iron and steel, heavy machinery and spacecraft manufacturing; and resources, including uranium, iron ore, coal, manganese and excellent human resources. Possessing a domestic population of 47 million, Ukraine is at the center of a huge market, with 700 million people in the EU and Russia. Across the Black Sea, Ukraine looks out at Turkey and the Middle East and then to India. Drilling for oil and gas on the continental shelf of the Black Sea is looking to get underway. As a major grain-growing region, Ukraine is also seeking to increase production of bioethanol. A day may come when Ukraine no longer has to rely on Russia for energy.
MC is actively developing a wide range of business in Ukraine. It has maintained the top position in sales of imported cars (Mitsubishi Motors) for three consecutive years and is second in tire sales. Other activities include purchasing tens of millions of dollars worth of chemical products, non-ferrous metals and ferrous alloys; selling high performance resins and fibers, totaling several millions of dollars; and promoting collaboration in the iron and steel industry, including technology acquisition and joint research. In 2007, we are certain to exceed 500 million dollars worth of total contracted business—roughly fifty times the total recorded in 2001.
Despite the distance separating Japan and Ukraine, things from Japan are quite widespread here, including Japanese restaurants and sushi bars as well as high-quality cars and electronics. However, there is also one non-material thing of Japanese origin that I believe will deeply influence our future-the Japanese way of raising children.
Nowadays, many parents here are turning away from the strict, Soviet style of raising children and embracing a new approach to parenting that involves paying close attention to a baby's needs and feelings, replacing punishment and prohibition with gentle explanations and guidance, and always respecting a child's unique personality. We call this the "Japanese Way". With this great "guide" from Japan, we hope to create a happier, more affluent society, with children raised in a supportive environment that is full of love and understanding.
A Japanese culture boom began in Ukraine quite sometime ago, with Japanese restaurants and movies, as well as Haruki Murakami novels, enjoying widespread popularity. But another aspect of Japanese culture is now attracting attention-the language. Every year, about 2000 Ukrainians across the country study the Japanese language.
Each year, over 20 students enroll in the Japanese language and literature course at T. Shevchenko Kiev National University, one of Kiev's oldest universities. Last year, the Japanese Government allocated grant aid for this university's Japanese Language Department and MC had the honor of supplying language laboratory systems, along with computers, software and other equipment covered by the grant.
MC hopes that more and more young Ukrainians who choose to study Japanese will use this equipment and go on to become capable professionals that contribute to strengthening Ukrainian-Japanese relations.
One of Ukraine's biggest treasures is its rich natural environment, from the unique climatic zone in Crimea to the hilly and forested Carpathian regions. It is vital that this priceless asset be preserved for future generations. The Kiev Office has already taken many steps to honor the spirit of "Shoki Hoko" or "Corporate Responsibility to Society", defined as "striving to enrich society, both materially and spiritually, while contributing towards the preservation of the global environment" in MC's Three Corporate Principles, and further action is expected in the future. Taking care of the environment is one of the most important issues being faced. The activities of this office range from supplying environmentally-friendly construction materials like PVA fiber as an asbestos substitute to participating in environmental projects, such as emission reduction projects and efforts to improve local water supply. In this way, MC is striving to serve society in Ukraine and fulfill its duty as company of the 21st century.
|
