Gaia Series 67: Second Hand Items - Towards a Recycling Revolution

This week’s episode delves into Japan’s booming second-hand goods market showcasing stories of global sustainability and cultural affinity.

In this episode of Japan Hour, we are taken into the thriving second-hand goods market in Japan, a world where “Used in Japan” signifies quality, nostalgia and a rich cultural story. From massive auctions in Higashimatsuyama City to bustling second-hand stores in Thailand, viewers get an inside look at how discarded items transform into treasures, contributing to an international recycling revolution and redefining waste as wealth.

The episode opens in a former home centre in Higashimatsuyama, Saitama, now home to one of Japan's largest auctions of second-hand goods. The auction, held five times a month, draws buyers from all corners of the world, and especially from Southeast Asia. Boxes stacked with stuffed toys, retro fans from Japan’s Showa era, and antique electronics fill the venue. An item of particular interest—a vintage fan bearing the "National" logo, typical of 1950s Japanese bathhouses—draws competitive bids, eventually selling for 40,000 yen ($340 SGD) to a buyer from Pakistan. “I have a buyer in Dubai,” he explains. “It doesn’t matter if we can actually use them or not.” For him and many others, the allure lies in the nostalgia and quality that Japanese goods represent.

Among the notable players in this episode is Hamaya, one of Japan’s leading exporters of used home appliances. As a company dedicated to reusing what others discard, Hamaya supplies goods to 40 countries worldwide. Hamaya's CEO, Shigeru Kobayashi, reflects on how his business began 30 years ago with a single container of scrap electronics sent to Africa. “We even have items like this,” he says, gesturing to a huge stuffed bear likely destined for Europe. For Kobayashi, the appeal of Japanese second-hand goods goes beyond utility. “Let’s increase the use of the phrase ‘Too good to waste,’” he urges, underscoring Hamaya’s commitment to sustainability and cultural preservation.

Thailand in particular, is where Japan’s used goods are a booming business. This is helped by the strength of the Thai baht which has over the past few years, steadily been appreciating against the weak Japanese yen. In bustling markets and newly established “recycle shops” in the suburbs of Bangkok, Thai buyers eagerly snap up Japanese items, from electronics to traditional furniture. One buyer who spent over four million yen at the auction proudly explains her vision of transforming her area into a “Japan Town” filled with second-hand Japanese stores. “I want to make this whole area into stores selling second-hand Japanese products,” she says enthusiastically. Her stores, meticulously designed to emulate Japanese retail aesthetics, draw crowds that line up hours before opening, eager to grab a piece of Japan’s unique cultural and material history.

Another intriguing figure is Shoichiro Yanai, a 47-year-old Japanese entrepreneur who transformed a struggling shopping mall in the suburbs of Bangkok into a hub of second-hand Japanese goods. Yanai’s “Miami Bayside” mall spans an area equivalent to Tokyo Dome and features 20 shops selling everything from furniture to clothes. When asked about his success, Yanai credits it to the trust that the “Used in Japan” label commands. “They are not just buying my stuff because it’s cheap,” he explains. “They buy because the quality is high.” Yanai’s business model, featuring staggered store openings and heavily discounted prices, encourages competitive buying and creates an experience akin to a treasure hunt.

The appeal of Japanese goods in Thailand, however, goes deeper than mere quality and affordability. With 1.3 million Thai tourists visiting Japan annually, Japanese products have become symbols of an aspirational lifestyle for many. The episode shows how the COVID-19 pandemic, which temporarily halted these visits, only intensified Thai interest in Japanese goods, as stores filled with Japanese products became nostalgic spaces replicating a cultural experience many had missed.

Japan Hour also takes viewers to Mongolia, where Hamaya has embarked on a bold new venture. Recognising Mongolia’s environmental challenges, Kobayashi’s team, led by former Defense Force officer Masakazu Shimada, explores opportunities to turn Mongolia’s growing waste problem into a sustainable business model. In the streets of its capital of Ulaanbaatar, Shimada witnesses mountains of discarded electronic goods, including valuable circuit boards filled with rare metals. “If you compare it to iron, it will fetch 10 or 20 times the price,” Shimada notes, amazed by the untapped potential. His team partners with local businessman Batazaya Boldbataar to build a dismantling factory that will recycle these valuable metals.

The episode showcases the burgeoning partnership between Hamaya and Mongolian stakeholders, united by a shared vision of environmental responsibility. In a celebratory scene under the Mongolian night sky, Batazaya raises a toast, pledging his commitment to the project with the Mongolian phrase “za,” a word implying a full-hearted commitment. The factory, set to span 2.4 hectares of land, will not only recycle precious metals but also offer Mongolians a new source of sustainable employment and economic growth.

Kobayashi’s vision goes beyond mere profit; it aligns with Japan’s broader commitment to sustainable development. Hamaya has already been recognised with the UN’s Sustainable Development Goals (SDG) Promotion Best Company Award, a testament to its innovative recycling efforts. Kobayashi himself, visiting Mongolia for the first time, is hopeful about the venture’s success. “First of all, Mongolia is fond of Japan. It’s also easy to do business here,” he says, his optimism a reflection of the strong ties between the two nations, bound by an Economic Partnership Agreement that facilitates tax-free trade.

The episode concludes with a powerful reminder of the shifting attitudes towards sustainability in Japan and beyond. As people worldwide grapple with inflation and environmental concerns, the second-hand goods market, valued at 6.2 trillion yen, continues to grow. 

This week’s episode beautifully encapsulates how discarded objects from Japan find new life and meaning abroad, becoming symbols of quality, nostalgia, and sustainability. Through the stories of Kobayashi, Yanai and countless buyers across Asia, the episode paints a portrait of a global community united by a commitment to conserving resources and celebrating cultural heritage. In a world increasingly aware of the environmental costs of consumerism, the “Used in Japan” brand has become more than a label—it’s a testament to Japan’s enduring commitment to quality and sustainability.