Faster reactions

Another reason for the decay of Japanese technology companies is the global economic downturn that has seen reduced consumer spending. Compared with traditional Japanese enterprises, Chinese and Korean companies have more flexible policies and faster reactions to market trends. They make similar goods such as flat TVs and smartphones at significantly cheaper prices and many have more functions.

For example, while many Chinese and Korean companies introduced 3D TVs last year, almost no Japanese companies had the latest technology on their shelves.

According to industry expert Liang Zhenpeng, Japanese companies have lost their leading position in technology. They have been overtaken by other countries' IT giants such as Apple Inc.

Liang said that while Chinese companies were introducing smart and cloud TVs, Japanese companies were not making any new moves to attract Chinese customers. According to the US-based research company NPD DisplaySearch, China's smart TV market will increase from $50 million in 2010 to $1.38 billion by 2016.

tuoyannan@chinadaily.com.cn