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Successful Deregulation Campaign in Japan

INOUE PUBLIC RELATIONS, Tokyo / CONCUR JAPAN / 2017

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Overview

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Credits

OVERVIEW

Description

To bring about a change in Japan’s archaic regulations, we realized we needed to work simultaneously on many fronts. Not only did we need the support of relevant associations, but also competitors.

One industry association we reached out to was for multi-function printer manufacturers who were concerned that deregulation would negatively impact demand for paper used in receipts. We patiently pitched the mutual benefits of cloud-based expense management solutions. And as swift and unified action was required, we also invited competitors to participate in the project in order to foster a new market, rather than merely seeking Concur Japan’s growth.

And to reach out to a wider audience, we issued an April Fools’ Day press release that went viral. The prank claimed that Concur had built a biomass power generation plant to burn huge volumes of soon-to-be-unnecessary paper receipts. This helped to push public opinion in support of the campaign.

Execution

Below PR activities were implemented over a relatively short period (see Timeline, attached separately):

• Created comprehensive, fact and figure-based Information Kit

• Interviewed and collected case studies of corporate entities encumbered by onerous regulations

• Surveyed CFOs with the cooperation of Japan CFO Association

• Built relationships with supportive companies and associations

• Secured full support of Concur management

Media relations

• Leaked “progress reports” to journalists, and final results to The Nikkei ahead of the official press release.

• Collaborated with US-based parent to co-organize media seminars on deregulation

• Arranged interviews and gained feature-article coverage

Government relations

• Repeatedly briefed ranking government officials, MOF, National Tax Agency, METI and others.

• Met with the Deputy Chairman of the ruling Liberal Democratic Party, a key figure on the Tax Research Panel, and surveyed other influential members of the Administration

• Once the administration decided to back deregulation, held lectures and assisted in drafting guidelines to ensure desired deregulation outcomes.

Outcome

• December 2015: The administration in effect authorizes deregulation with the announcement of its Outline of Tax Reform Proposals, which includes granting mobile snapshots of receipts the same validity as originals. In September 2016, revision of the eDocumentation Law brings about deregulation.

• Exposure in print and broadcast media more than quintupled compared to before the launch of our program pitching deregulation

• The market and customers both welcome deregulation, with Concur Japan receiving 2.5 times more inquiries from interested prospects. This leads Concur Japan’s 2016 sales to grow by 150% YoY

• Competitors also released products taking advantages of the loosened rules, sparking new activity and growing the whole segment. According to ITR, by 2019 the market will be 48.5% bigger than it was in 2015.

• The work of Concur Japan, the Japanese subsidiary of a foreign company (with only 80 employees) to effect deregulation became itself the focus of intense media interest, resulting in publication of the story in a book on PR professionals.

• The program, by associating deregulation and better expense management processes, also fostered a new awareness that expense management should be a strategic management priority.

• The cloud-based expense management solutions market is forecast to grow 80-fold by 2025. Concur’s share is estimated at more than 55% in 2020.

• Within government, these changes are positioned as the greatest successful instance of deregulation designed to support its growth strategies and as such it is having positive implications for other policies and deregulatory efforts.

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