Changes in consumer prices can make an enormous difference in Japan. Akagi Nyugyo, the maker of the GariGarikun, just ran a one-minute television ad to apologize for increasing prices. The gain was relatively trivial -- from 60 yen to 70 yen -- but it was the first price increase in 25 years. In Japan and abroad the unusual apology attracted media attention and highlighted Japan’s culture of respecting customers.
Akagi Nyugyo stated that production costs were rising, making it impossible to hold the price at 60 yen. The company decided to do a national TV spot rather than quietly announcing the change. Executives in the ad took up a standing position as they bowed down and apologized for the increase. They had said the decision was one meant to preserve quality and keep ice pops available. The offer was framed as a genuine gesture to admit the effect on loyal clientele.
Companies increase prices fairly lightly in many countries. This includes humility of course, but in Japan businesses tend to be humble and accountable. When the changes affect consumers, public apologies are commonly issued even if it's a small change. Akagi Nyugyo commercial, however, illustrated this tradition by making it clear that a Japanese business places high value on customer trust. The bows of executives represented respect and responsibility to the customer by making clear that the consumers are more important than any other source of money.
The ad soon went viral, with audiences raving about the company playing it straight. Others said the apology made them even more loyal to GariGarikun. Others laughed, saying a 10‑yen increase isn’t exactly ten cents in U.S. currency. And it was picked up on international media — with a discussion comparing Japan’s approach with the way many of its peers do this, where price increases are frequently announced with no hint of apology.
Several salient factors are raised on the basis of this incident:
- Consumers Trust: Respectful interactions build trust.
- Corporate Culture: Japanese companies generally value humility over profits.
- International Influence: The ad turned Japan into a model of Japanese business principles on the world stage.
- Economic Risks: Price increase makes even proven products obsolete making companies adapt.
Akagi Nyugyo’s apology when he increased the price of GariGarikun ice pops demonstrates how business customs can be significantly influenced by cultural values. That was a minor increase, but the company’s public statement and explanation of the change resonated with consumers on a profound level. In Japan, trust with the customers is more important than profit, where even that low price increase should be respected and enforced.
