Shinise

In Japan, shinise (老舗, "old shop") are long-established businesses that have been in operation for a long time, at least for a hundred years.[1] Some are older than a thousand years. Japan has significantly more very old businesses than other countries, and they and their products enjoy a particular prestige in Japan.

Founded 705, the Nishiyama Onsen Keiunkan is the world's oldest hotel and one of Japan's oldest companies.

Characteristics

Long-established companies are particularly common in Japan, which is home to over half of the world's companies that are older than 200 years.[2] As of 2020, the country had more than 33,000 shinise, of which 3,100 were older than 200 years, 140 older than 500 years and at least 19 who say that they have been operating for over 1,000 years.[1] Shinise are a source of national and regional pride, and are the subject of governmental promotion, business management books and travel guides.[1]

Frequently, shinise are relatively small family businesses guided by a particular set of principles (kakun).[1] These principles tend to emphasize continuity, tradition, longstanding business relationships, sticking to the core business, accumulating cash reserves and avoiding debt and other risk. This limits growth but helps the companies weather even severe crises.[2][1][3] Some shinise, however, have grown to be leading players in their fields, such as the video game maker Nintendo[2] or the general contractor Takenaka.[3]

The prevalence of shinise in Japan is attributed to the particularities of Japanese culture, such as reverence for traditions and one's ancestors, and Japanese history, such as the country's relatively long global isolation prior to the 19th century.[3][2] To ensure familial continuity, shinise owners without children of their own sometimes adopt one of their male employees.[3] One effect of the high prestige that shinise enjoy in Japan is that startups are less respected or appreciated than elsewhere.[3]

Shinise products

Buying something from a shinise imparts particular prestige in Japan, connoting the "pinnacle of taste".[2] This Japanese preference for shinise is distinguished from the appreciation most societies have for luxury goods in that it does not only include expensive, long-lasting items such as cars and watches, but also everyday objects and food.[2]

This consumer preference may have roots in Japanese society's predilection for conformity, which makes it so that somebody who owns a shinise item is certain not to be ridiculed for it, and frequently respected.[2] As a result, brand loyalty to shinise is often intense, which in turn helps these companies survive for a long time.[2]

List of shinise

This incomplete list aims to include all shinise older than 500 years (founded before 1520), and selected notable younger shinise.

Company	Location	Business	Date of establishment	Ref.
Nisiyama Onsen Keiunkan	Hayakawa	Hot spring hotel	705	[2]
Tanaka Iga Butsugu	Kyoto	Buddhist religious goods	885	[1]
Ichiwa	Kyoto	Roasted mochi restaurant	1000	[1]
Ichimonjiya Wasuke	Kyoto	Confectionery	1000	[3]
Tsuen Tea	Uji	Teahouse	1160	[3]
NBK	Seki	Machine parts (originally iron kettles)	1560	[1]
Takenaka	Osaka	Construction	1610	[3]
Gekkeikan	Kyoto	Sake and plum wine	1637	[2]
Nintendo	Kyoto	Video games (originally playing cards)	1889	[1]
Kikkoman	Noda	Soy sauce and other food	1917	[1]

References

1. Dooley, Ben; Ueno, Hisako (2 December 2020). "This Japanese Shop Is 1,020 Years Old. It Knows a Bit About Surviving Crises". The New York Times. ISSN 0362-4331. Retrieved 2020-12-02.
2. Kageyama, Yuri (27 April 2015). "Why Japan has the most old companies in the world". Business Insider. Retrieved 2020-12-02.
3. Lufkin, Bryan (12 February 2020). "Why so many of the world's oldest companies are in Japan". BBC. Retrieved 2020-12-02.