business

Strong yen spurs Japanese consumers' purchase of U.S. goods

29 Comments

MyUS.com, the leader in international package forwarding and shipping, has witnessed a huge surge in the desire of U.S. products from Japanese consumers. Last week marked a record low for the U.S. dollar to the yen, which most likely correlates with this latest buying frenzy.

So far, MyUS.com said it has seen a 450% increase in shipping volume from customers residing in Japan. The shipped items range from gaming and electronic products to household items, such as vacuums to high-end apparel and jewelry brands such as Coach and Tiffany.

“MyUS.com has always had a strong fan base within Japan. However, this latest surge in buying and shipping in the U.S. could easily be attributed to the recent strengthening of the yen combined with the weakening of the dollar,” says Eric Baird, CEO and founder of MyUS.com. “With a strong yen, many residents of Japan are finding local goods to be cost-prohibitive and therefore turning to the U.S. retailers. Many of our global customers are referred to us by friends or relatives, so when there’s an increase in traffic from a particular country, it tends to be multiplied for us.”

MyUS.com said it is seeing the same type of surge from the Swiss market as well. They are experiencing similar currency values skyrocketing. Both nations are taking full advantage of the greater purchasing power being afforded them. The exchange rates have become so favorable that foreign consumers have gone beyond their usual luxury and electronic buying patterns to also include purchasing every day household items abroad as well.

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29 Comments
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Strong yen Japan or strong other currencies nations is good news for US Economy and Other Nations ,wanting to export to strong currency nations.

The changes happen,for good. Richer nations with strong currencies and US/others increasing export and import,is the way to go.

0 ( +0 / -0 )

More like increasing exports for the USA and imports for Japan. Buying dollars will help reverse the high yen. If not well not much will. Everything in America is so cheap! Oh while off subject I no longer live in Okinawa, so you will here no more pap from me. You would not believe the house you can buy in America for less than a condo in Okinawa.

0 ( +0 / -0 )

The Yen is strong, but oats still cost Y1000 a kilo, about six times the UK price. Someone is making large profits.

4 ( +4 / -0 )

Here in Japan, meanwhile, we are still paying high prices for American products (at least where I shop). When asked why the prices are still so high, the explanation given is that the prices are based on when the product was first purchased. So today's prices are based on those of a year or so ago. But then when informed that the dollar-yen exchange rate has been rather low (or high, depending on how you look at it) for several years now ... why haven't the prices changed at all? The answer is usually a shrug of the shoulders. Somebody's making a killing somewhere ... Meanwhile, we consumers are still faced with high prices for American (and even European) products.

2 ( +3 / -1 )

The prices in the foreign food import shops have dropped in the Kansai area. Apple computer prices have also dropped. What else do I need? Life is bliss with cheaper single malts and apples!

0 ( +0 / -0 )

"we are still paying high prices for American products"

Say hello to all the middlemen and import taxes.

4 ( +4 / -0 )

zichi; Is there any shops you know (not online) in Kansai that sell British baked beans? I used to buy Waitrose brand at Peacocks but they do not seem to have now. There are indeed a lot of bargains compared to before especially grocery items and as stores can get them at a good price the variety increases.

-3 ( +1 / -4 )

@steve

I think some stores like Sogo maybe, but because generally it's a difficult item to find we just make our own but we use soya beans instead of harricot which I have never seen here?

0 ( +0 / -0 )

zichi; Thanks. Is that a department store? I have heard of it. I go to Osaka quite often and Koba occaisionally, i guess they will have stores there.

-3 ( +0 / -3 )

There's a Sogo dept store in most major cities just check out the food floor. The last time I mentioned it, it was deleted but the foreign buyer club in Kobe and they do deliveries?

0 ( +0 / -0 )

Can someone explain why so little is done to curbe the strenght of the YEN? The USD/YEN has decreased from 120 to 77 abouth today in only 3 years. We see the same towards the euro/YEN From 170 to 106 today. It will not be sale of any cars to Europa and USA with this. Reading the latest reports from Japan. The central bank is more talking up the currency than down the latest days? It is such a huge increase fo rthe JPY. Why is also not Japan doing more with increasing the reserve currency?

0 ( +0 / -0 )

myus? Who decided they were the leader?

1 ( +1 / -0 )

The yen is not strong. It's the weak US dollar that makes the yen look strong. All fiat currencies are being debased. In other words it's a race to the bottom and the dollar is dropping even faster than the yen. This is what happens to all ponzi schemes in the end because that is what the current system is, a ponzi scheme. All you need to do is compare the price of gold, silver or any basic commodity to any fiat currency and it should become obvious that the yen has not strengthened at all.

The financial system was destroyed in 2008 and has been propped up since then with quantitative easing (money printing) and other tricks. That's about to change, perhaps starting with the default of Greece, or one of the other southern European countries. The domino affect from that will be like Lehman Brothers on steroids.

0 ( +1 / -1 )

steve@CPFC - Yamaya has Van Camp's Pork & Beans from the U.S. - try 'em, you'll like 'em!

0 ( +0 / -0 )

The europeans, the japanse and the US are working in the same market. It wount be many sales to Europe with this. If Euro and USD falls because of debt the YEN should collapse with most debt in the world. The YEN has also risen much against the asian currencies. There must be better balance between the currencies

0 ( +0 / -0 )

" meanwhile, we are still paying high prices for American products"

Covert or overt import restrictions (exclusive import permit, etc., such as the renowned government collaborating auto importer for American cars) artificially jack up prices to protect local products.

2 ( +2 / -0 )

Everything in America is so cheap!

Yuri,everything in Japan is so expensive due to a compounded failure of fiscal/monetary policies of Japan in decades run by LDP that was not really focused on CPI.

0 ( +0 / -0 )

why haven't the prices changed at all?

Edojin, one of the reason is that Japanese distribution system has not yet been stream lined for consumers. It is designed that several layers of small businesses are making a profit in process before products get to you. It is not good for consumers, but it is good for small businesses because they are getting a benefit of distribution of wealth.

0 ( +0 / -0 )

The financial system was destroyed in 2008 and has been propped up since then with quantitative easing (money printing) and other tricks. That's about to change, perhaps starting with the default of Greece, or one of the other southern European countries. The domino affect from that will be like Lehman Brothers on steroids.

weedkila, I could not agree with you more. All of us will sink deeper if the default of Greece is not successful. And I am very pessmistic that the Europe has not found the solution yet. Hell will fly if the problem is not solved. Japan has a similar problem like Greece. The governments are filled with non performing bureaucrats who have been on walfare (payroll) for decades. Japan needs to start watching wasteful spending (Overtime, paying for taxi, and etc) of bureaucrats. Japan needs a drastic change now; a big SURGERY. Taking an ASPIRIN is only delaying a pain and it does not cure a core problem underneath. Otherwise, Japan will be a next victim of default.

0 ( +0 / -0 )

@Tine Jordbræk

The YEN has also risen much against the asian currencies.

When central banks endlessly print digital fiat currency -- and that includes Japan's central bank -- then the currency does not rise. It just looks like it does because you're comparing paper with paper. It's important to make the distinction between a "strong" yen and a yen which is "not as weak" as other currencies because our hard earned cash is being inflated away by the central bankers.

There are other factors too which make it seem like the yen is strong such as large amounts of money being converted back to yen (carry trade). But ultimately yen, dollars, euros or whatever currency you choose is only PAPER (fiat) without any backing such as gold as it used to be.

In history ALL fiat currencies have gone the way of the dinosaurs and I believe the average life is about 30 - 40 years. (The US went off the gold standard in '71 and other countries followed). This slow motion collapse that we're seeing now was designed to fail from the start because all money was created through debt and only the principle is lent, never the interest which has to be paid back on top of the loan. It's the ultimate scam.

0 ( +0 / -0 )

The dollar does not seem to be losing its purchasing power at least in America. Odd the price of Japanese goods is less here as well. Thus it must be the greedy corps in Japan that are destroying our nation. How much profit is enough for these greedy ****?

0 ( +0 / -0 )

Japan is not cheap........

0 ( +0 / -0 )

Japan is cheap if you live like a Japanese.

1 ( +1 / -0 )

But why is nt the Japanese goverment and the central bank doing more to curbe the strenght of YEN?

0 ( +0 / -0 )

Will sombody wake up Costco into selling more US items. I imagine there are too many Japanese buyers working for them who know nothing about what foreigners want or like and believe that's what only the Japanese people want. When approaching the subject to store managers, they all say that the Japanese government puts a block on items that don't meet their specs. Excuses, excuses.

0 ( +0 / -0 )

Jack Stern.

Not excuses, excuses. Ever checked the list of items that are prohibited to be imported into the states, canada, EU, etc.

Kettle = black, Pot = black.

0 ( +0 / -0 )

*edojin Sep. 11, 2011 - 12:03PM JST

Here in Japan, meanwhile, we are still paying high prices for American products (at least where I shop). When asked why the prices are still so high, the explanation given is that the prices are based on when the product was first purchased.*

We get the same BS story here in the US when the price of crude oil drops but gasoline prices don't.

0 ( +0 / -0 )

Why any infomed American voter would favor such a weak dollar,so weak that it now faces risk of replacement as the world's reserve currency,should be one of the most important questions of the approaching presidential race.

0 ( +0 / -0 )

Good info. interesting to know what's going on with the Yen.

0 ( +0 / -0 )

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