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Focusing domestic demand is secret to their success

ANN/TheYomiuri Shimbun
While automakers and electronics makers are posting huge losses amid the global economic slowdown, some companies are making record profits.
The key to their success is focusing on domestic demand instead of overseas markets while touting the low prices and distinctive features of their products and services.
According to Shinko Research Institute Co, 10.5 per cent of companies listed on the First Section of the Tokyo Stock Exchange that have released earnings results for the past five business years or longer and that have a market value of at least 50 billion yen expect record pretax profits for the business year ending in March.
One example is Oriental Land Co, which operates Tokyo Disney Resort Oriental Land forecasts its sales and pretax profit will hit a record in the business year ending in March. The number of visitors to Tokyo Disney Resort also is expected to set a record high of 27.1 million, up 6.6 per cent from the previous year.
While part of its success is due to special events to celebrate the 25th anniversary of the theme park, another arrow in the firm's quiver was its steady promotional efforts. The company dispatched buses painted with Disney characters to 29 cities to advertise its attractions and had Mickey Mouse and other Disney characters appear at local festivals.
McDonald’s Holdings Co (Japan) attracted customers with its low-price menu items, such as coffee and fried chicken at 120 yen, despite the consumer trend toward eating in rather than dining out. Its annual net profit through December hit an all-time high of 12.3 billion yen.
Shoe manufacturer-retailer ABC-Mart Inc. expects to post a record
pretax profit of 21.1 billion yen in the year ending in February.
The company has increased the number of products produced inhouse so market trends can be quickly reflected in new items. This strategy proved to be effective giving the firm a hit product with its mouton boots. About 10 models priced at 5,000-18,000 yen are on the shelf this winter.
Beverage maker Suntory Ltd put off price hikes to September, while rivals raised their prices following a rise in material costs, which won over thrifty consumers. Its lower-priced third-category beer Kin-mugi was popular, and the beer division was in the black for the first time since the company entered the beer market in
1963. The company's annual pretax profit was a record 79.2 billion yen in theyear that ended in December.
Nintendo Co.'s Wii video game console proved extremely popular in the United States and European markets, which have been plagued by the financial crisis. With sales of the Nintendo DS handheld console marking a year-on-year increase, the firm is expected to post record 530 billion yen in operating profits for the business year ending in March.
DeNA Co, which mainly handles the cell phone portal business, is expected to post record sales, ordinary profits and after-tax profit for the business year ending in March.
The company attributes its brisk sales to the economic downturn.