Wednesday, February 10, 2010

"Preferential Gift" to Shareholders by Japanese Companies

Like America, Japan is a capitalist country in which investors can buy stock in companies in the hopes that it will rise in value, but unlike the U.S. there are some interesting things companies do to make their stock more attractive. It's common for large companies here to issue kabunushi yutai or "preferential shareholder gifts" to individuals holding a certain amount of company stock, a custom that's tied to the tradition of giving seasonal gifts twice a year. If you've got stock in McDonald or Starbucks, you'll get a booklet of coupons for free products sent to you, while Ito Ham distributes a succulent ham to all shareholders with 1000 or more shares. Asahi Beer sends a beautiful gift box of its flagship Super Dry to its shareholders, while the Mercian company actually creates a special premium wine for holders of the company's stock. But the king of the "shareholder gift" game has to be Takara Tomy, which creates rare fashion dolls that are only available for purchase by shareholders, which means I have to keep coming up with ways to keep my wife from buying stock in the company, since she loves Licca-chan dolls. This tradition of giving perks to shareholders may seem strange, but in a country where gift-giving is as important as it is in Japan, it's a cheap way for companies to create goodwill among their stockholders and (if the gifts are really special) generate some buzz for their company.

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