[Nighttime Economy] Explore new ways to spend the night.

This article is about NEWSKOOL, a night design company that aims to create an innovative ecosystem with the mission of "creating a night that everyone can enjoy." A discussion report on the online seminar "Nighttime Economy Future Prediction NEWSKOOL x IIYO" by IIYO, a night rebranding unit launched by volunteers of NOMURA Co., Ltd. planners who think about how to spend a night.
*The online seminar was held on July 16, 2021.

The theme of the seminar was "Future Prediction of the Nighttime Economy," and we talked about "What is the nighttime economy?"

From the left, Yuki Takahashi (NOMURA Co., Ltd., Ltd./planner), Akihiro Kimura (NEWSKOOL/Representative Director), Tomoe Naganaga (NOMURA Co., Ltd., Ltd./planner: left the company in August 2021), Yumasa Okamoto (NOMURA Co., Ltd., Ltd./planner). Okamoto was in charge of proceeding.

About IIYO and NEWSKOOL

Okamoto
First of all, please introduce IIYO and NEWSKOOL.

eternity
This is Nagacho from IIYO. With the aim of "designing a new way to spend the night that everyone can enjoy", young planners from NOMURA Co., Ltd. formed a unit and started activities this year. The reason for this is that people generally have strong prejudices and preconceptions about "enjoying the night", and I thought that the possibilities were not being fully utilized.
Before COVID-19, I used to go to clubs a lot, but when I say "going out at night", I often get a so-called Parisian image... I think this is one aspect of night outing, but we The image of the night that is aimed at is a little different. I would like to reexamine the charm of the night, which has not received much attention until now, such as the unique stimulation and silence of the night and the special feeling different from the daytime, and increase the options for how to spend the night so that everyone can participate. increase. That's why I'm currently looking for friends who can sympathize with me.

Okamoto
I see. Certainly, there is still a fixed image of the night. That's why I can understand that there is an unexplored area there. What kind of activities does NEWSKOOL do as a company?

NEWSKOOL's business content and the importance of night design

Kimura
As a night design company, we are developing two businesses: "night design business" and "marketing consulting business". The reason why I focus on the night is because I believe that there remains the freedom necessary for innovation at night. Our goal is to create a night that everyone can enjoy, in response to the diversity of the future. We are working to enrich

Okamoto
It is wonderful! As a member of IIYO, I can sympathize. It's precisely because we both think the same that this dialogue was realized.

What is Nighttime Economy?

Okamoto
First of all, could you give me your definition of the nighttime economy?

Kimura
The night-time economy is defined as "economic activity between 6:00 p.m. and 6:00 a.m." Not only going to clubs and pubs, but also watching Netflix at home after work, and going to the gym for self-investment are all part of the nighttime economy. There are various stakeholders here. We are also citizens if we live a normal life, workers if we go to work, consumers if we participate in events, and tourists if we go on vacation.
It is said that the night time has three values. "Nighttime Economy", "Night Culture" and "Night Socializing".
Night is the time when new cultures are likely to be born. Unlike during the daytime, when you go to an izakaya at night, you may hit it off with the person sitting next to you who you don't know at all. It is a feature of the night that it is easy to forget the title of the day and foster new encounters and communities. The three values interact with each other, and the night has the potential to make the whole world more interesting by repeating this cycle.

Definition of night time economy and its economic effects
Night time economy refers to activities from 6pm to 6am the next day. It is defined as increasing economic effects by expanding ways to enjoy nighttime in accordance with local conditions and creating consumption activities and attractions unique to nighttime.
In terms of economic effects, London in the United Kingdom and New York in the United States are cited as leading cities in the field of night-time economy. According to information from the Tourism Agency's Tourism Resources Division, data released in April 2017 shows that London's nighttime economy has an economic effect of approximately 3.7 trillion yen and creates approximately 723,000 jobs. I know that there is. On the other hand, in New York, it has generated an economic effect of approximately 2.1 trillion yen and employment for approximately 196,000 people.
Source: Knowledge collection for promoting the night-time economy /Ministry of Land, Infrastructure, Transport and Tourism, Tourism Agency, Tourism Resources Division

Okamoto
I see, the nighttime economy is a very familiar and broad concept. With that in mind, can it be said that the nighttime economy has been given the name of what we were already doing naturally?

Kimura
That's exactly right. It can be said that it is precisely because the term "nighttime economy" was coined that we are now able to discuss nighttime activities themselves.

Nighttime economy in Japan and the world

What is the current state of Japan's nighttime economy?

Okamoto
What was the situation in Japan's nighttime economy before Corona?

Kimura
Until 2019, Japan's tourism demand was growing significantly, and the nighttime economy was emphasized in the tourism context. In a survey of foreign tourists visiting Japan, nightlife experiences were cited as one of the most dissatisfying points about traveling in Japan. Japan's nighttime economy is less competitive than other countries, and the market size is small. However, according to the questionnaire for the corona disaster, Japan is ranked high in the ranking of countries that people want to visit after the end of the corona crisis. It is expected that a considerable number of inbound tourists will return after the end of the corona virus, so I think it is necessary to expand the content of the night time zone.

Examples of overseas night-time economies

Okamoto
surely. When we go abroad, we can have fun from midnight to morning, but in Japan, there is no place to hang out after 10:00 p.m. On the other hand, what about the nighttime economy overseas?

Kimura
Before COVID-19, there was a multi-trillion-yen market around the world. New York, London, and Singapore were particularly focused. In NY, the subway is in operation 24 hours a day so that you can enjoy a variety of night entertainment including Broadway. In London, nightclubs are protected as cultural venues and the government officially supports the nighttime economy. Singapore has focused on IRs as a tourism strategy and has been very successful economically.
However, when activated, problems arise. The so-called tourism pollution, such as drunkenness, littering, and club noise. Kyoto has already become a problem in Japan, but if this kind of problem is left unaddressed, administrative restrictions will be imposed, content will be restricted, and people will not be able to gather, resulting in a decline in real estate value and international competitiveness. It will be connected. For this reason, countries with developed nighttime economies have tried to introduce area management through public-private partnerships and the Night Mayor* system, and have made rules for everyone to spend their nights comfortably.

* Separately from the daytime, the person in charge who specializes in nighttime administration.

Impact on the nighttime economy during the coronavirus pandemic

Okamoto
I would like to hear more about the impact of Corona on the nighttime economy.

Takahashi
After researching it, I found that it had a big impact. In March 2020, when the coronavirus began to spread, a project called SAVE OUR SPACE was launched by a call from volunteers in the music industry. As part of this effort, in order to understand the actual impact on the nighttime economy, a questionnaire targeting more than 400 night venues such as live houses, nightclubs, and music bars has been released. Looking at the results, the most common response was that sales decreased by 50% in March 2020, and the most common response was that sales decreased by 100% under the first state of emergency declaration in April and May. This means that there are no sales. Even after the declaration is over, the majority of respondents said that sales would decline by 70% to 90%, as the recovery would not be complete. In addition, when asked how severe it would be if this situation continues, the majority of the respondents said they do not know for one to six months. As a music fan myself, this result was pretty shocking.
Such a sense of crisis has been conveyed to fans through the communication of people involved in music, and crowdfunding was carried out one after another last year. For example, night club VENT in Omotesando has collected more than 4 million yen against the target amount of 3 million yen. The same is true around the world, with Berlin's techno mecca Tresor club raising over $100,000.

Okamoto
It's huge! I can feel the strong desire of the fans to leave this place as it is.

Takahashi
It really is. By continuing steady efforts, the situation of major night venues in Japan closing one after another has been avoided so far, but there is news that de school in Amsterdam, which was one of the world's top clubs, has stopped operating. I think that the critical situation will not change.

Okamoto
It is very difficult to deal with an unprecedented event like this.

Kimura
That's true, but historically, the pandemic has also been a tipping point in values. In the Spanish flu 100 years ago, the consumption appetite that had been suppressed with the end of the pandemic exploded at once, and a large economic effect is occurring in the tourism and entertainment market.

Okamoto
That's right. It is more important to start thinking about the nighttime economy for after/with corona from now on.

About the future nighttime economy
A future in which content evolves, not just nighttime content.

Okamoto
I would like to make more in-depth predictions about the future of the nighttime economy. What kind of changes do you think there have been in terms of night entertainment and how you spend your leisure time due to the coronavirus pandemic?

eternity
I think we can explain how to enjoy entertainment from two perspectives: "evolution of virtual content" and "slow entertainment that does not diverge".

Okamoto
What exactly do you mean by "evolution of virtual content"?

"Evolution of virtual content"

eternity
I think that the increase in virtual events instead of real ones is the first trend that occurred during the pandemic. Last year, world-famous rapper Travis Scott made headlines when he performed live on the online game Fortnite, attracting more than 27 million people from around the world. In fact, Fortnite's online live has been held since before Corona, but I think that the stay home has triggered an increase in the number of people who participate, and it has become recognized at once.

eternity
In addition, world-class festivals were held one after another virtually. For example, the art and music festival "Burning Man" held in the state of Nevada in the United States is set in the middle of the desert, making each art work and burning the city one week laterThe world of Mad Max of the movie It's a super self-sufficient event like. In America, the festival is so popular that some people bet their entire life on Burning Man, but as you can imagine, the environment is harsh, so the physical hurdles to participate are quite high. In 2020, however, it was held online, and it became possible to participate easily, so it was a welcome attempt for beginners.
One of the world's top 3 EDM festivals in Belgium, "Tomorrowland" will also be held online. It's a difficult event to even get tickets for, with 180,000 tickets sold out in a second. The stage production is also elaborate like a theme park, and the tickets are sent in a box with a key like a treasure chest. The design of the detailed experience that impresses the participants is the reason for its popularity, but if you actually go to the full day, the ticket price alone will cost more than 100,000 yen, and you can't get a ticket in the first place. If it's virtual, it's 2,000 yen per person, and I think it's quite an innovation that anyone with an internet connection can participate. Even if infection control measures are no longer necessary, I hope that the virtual event will remain.

Takahashi
There were many online music event distributions in Japan. Among them, there is an electronic music and technology art event called MUTEK, which is characterized by having a network of artists not only in Japan but around the world. I have been able to participate many times, and I have heard from the organizers that last year it was held at the same time as MUTEK in Mexico. I was able to view the archive of the event, and I was able to feel the true potential of online events that transcend geographical and time constraints.

eternity
From the perspective of immersion in the virtual space, rapper kZm's virtual live is full-fledged, and participants operate their own avatars and enter the Metaverse filled with the world view of the artist, immersing themselves in both music and virtual space. It was immersive. This is also an experience that can not be done in real live.
Kimura: Virtual Shibuya and Harajuku, which has been held since 2020, is also interesting. Last year, while various events were forced to be canceled due to the influence of the corona virus, new ways of enjoying the city appeared, such as collaborating with various contents by creating an online city. This year, Harajuku also appeared as a virtual reality, and while the way of culture shifted from the real to the virtual, the fact that it can be accessed from homes and cafes has shown how free entertainment can be regardless of time and place.

Okamoto
It's fun to be able to go to bed in your own home and feel like you're hanging out with your friends in Shibuya or Harajuku.

"Slow entertainment that doesn't dissipate"

Okamoto
Then, can you tell us about the second “slow entertainment that does not dissipate” about how to enjoy the new entertainment of the corona disaster?

Takahashi
In exchange for not being able to hold events where large numbers of people can gather and have fun, I think there are more opportunities to spend time quietly facing one's inner self. For example, in May 2021, I participated in an event called "STAY IN AMBIENT" at the art hotel BnA_Wall in Nihonbashi. Among electronic music, there is a genre called ambient, but unlike dance music, it does not have a clear rhythm, and it is music that is relaxing. It was an event where you could have a special accommodation experience, such as listening to the live performance while sleeping in the hotel event space, or waking up listening to the speaker in the guest room. The organizer is Iwakabe Ongakusai, a team that originally planned and operated festivals, and according to them, the idea of focusing on ambient was born when they thought about what kind of music event could be done because of the corona crisis. .

eternity
I also participated. This is how I learned about the ambient genre, and it was a new experience.

Kimura
Another interesting event is the "sleep" event held by composer Max Richter. Held in Los Angeles, Sydney, and other places around the world, these concerts begin at midnight and end in the early morning, deliberately to lull the audience to sleep. It's also interesting that this document has been made into a movie in the corona misfortune.
Also, in the context of slow and chill, I think CBD is trending. CBD is an ingredient extracted from the cannabis plant and is expected to have a relaxing effect, relieving stress and pain. When you hear the word cannabis, it is easy to imagine that it is illegal and dangerous, but it is legal and recognized by the Ministry of Health, Labor and Welfare. Recently, gummies, teas, and supplements using CBD oil have been sold in Japan as well. In Shibuya, CBD coffee is also available at Udagawa Cafe, which originated from night cafes. It's good to be active and have fun, but don't be too active. I think it's a proof that a new wave is coming that we are actively incorporating CBD and other trials in a slow and chill context.

Okamoto
Recently, the so-called "getting fit" system, such as saunas and meditations, has become popular, and the same trend is also seen in entertainment, isn't it?

Regional × nighttime economy

Examples of night time economy in rural areas

eternity
Slow entertainment is also being developed in rural areas. Last year, the Japan Tourism Agency selected 31 projects, mainly in rural areas, as projects to create new time markets by utilizing nighttime and early morning hours. The Nighttime Economy Promotion Association (JNEA), a general incorporated association, is also cooperating.
As one of these projects, I will introduce the case of Yachiyoza in Kumamoto Prefecture. Yachiyoza is a theater with a history of more than 100 years, and has been designated as an important cultural property because it retains the style of traditional kabuki theaters such as masuseki and hanamichi. A premium dinner event for wealthy people was held as a new tourism content here by the local tourism council. In the historical symbol of the area, while appreciating dances and music that are part of the local culture, you can enjoy dishes made with local ingredients.
As a result of digging deep into the true charm of local resources, it seems to be an example of discovering both the temporal and economic possibilities of creating tourism content of a quality that satisfies the wealthy while making use of the night time. think.

Okamoto
NEWSKOOL also has a project rooted in the local community.

Kimura
Yes, we have an event called "Born Now". This is a festival held at a temple that our co-representative started when he was a university student. Before the coronavirus started, we collaborated with temples in various parts of the Kanto region, and collaborated with DJs, artists, and local people to create festivals centered on HIPHOP and techno. In 2019, it was held at Zenkoji in Omotesando, and 1,500 people gathered.

Okamoto
It's interesting to have a festival at a temple. How did you make the event happen while involving the local people?

Kimura
I think there are many ways to do this, but at our house, we value going to meet people. After meeting local people and getting introduced to them, participating in local festivals and interacting with local people, feeling the story of the town and digging up its history, and so on, we continued our steady work, and finally everyone. etc. Rather than simply holding an event, we engage in dialogue so that they can understand that we want to create a flow that will revitalize the region with the event as a starting point.

lastly
Significance and future development of the night time economy

eternity
I think that the evolution of virtual content has expanded the frontage to night entertainment. People who have been unable to participate in night events due to high hurdles are now freed from time and place restrictions and can enjoy night content. As the number of opportunities to participate increases, the knowledge of users increases and they become more discerning, so I think that content providers will be required to provide even higher quality.

Takahashi
With COVID-19 as an opportunity, I feel that each person has started to examine what kind of experience they really want to participate in. The conventional method of gathering people for the time being and making it an event will no longer work, and it is important to think about the value that is unique to the place and to gather people who sympathize rather than all targets. I think it is. I feel that such a change in values and our way of thinking about providing diversity in how to spend the night are very compatible.

Kimura
There are still many issues to be solved at night, and there are still unseen values asleep. In order to solve and discover them, I think that the crisis situation of the corona disaster is an opportunity to further evolve entertainment and tourism. I believe that new content will be born after the fusion of digital and real, and culture will be born after the big change in nighttime itself. We would like to work on various things so that we can embody the mission of creating a night that everyone can enjoy.

Okamoto
It's interesting to look at "evolution of virtual content" and "slow entertainment that doesn't diverge" from the perspective of communication, as they both have different directions. The former lowers the hurdles of communication online, making it easier to form a community. In the latter, on the other hand, you immerse yourself in yourself without the need for communication.
In this way, I feel that the possibilities of new ways to spend the night will expand as the way of enjoying entertainment evolves in a different direction with the corona as an opportunity.

The photos in this article were taken by Hideki Sato, an editorial staff member of nomlog, and written by Yumasa Okamoto, an editorial staff member of nomlog and a member of IIYO.
IIYO has just started, but we will continue to work with NEWSKOOL and various other people to create a diverse and tolerant night.
Stay tuned for our next activity report!