How Regions Can Solve the "Money Challenge" and "Long-Distance Challenge"

――How can the "money challenge" and the "long-distance challenge" be overcome?

Kashiwao: "New consumption" offers the potential to increase income through engagement with the region. Also, by having a base of living in a rural area, living costs can be reduced. In an era of 100-year lifespans, with growing anxiety about issues like the pension system, I believe that connecting with regions is the key to solving income-related challenges.

To solve the "long-distance challenge," it's important to combine information and communication technology (IT) with tourism-based stays. The COVID-19 pandemic made online meetings commonplace, but it also reminded us of the importance of meeting in person. Last year, we conducted a demonstration experiment connecting Shibuya and Obihiro using Sony's telepresence system, "Mado" (Window). Using this technology, we are developing programs that encourage people from Tokyo to visit Tokachi and promote local interaction. HOTEL NUPKA functions as a place where people can gather and build deep relationships with the region in this way.

The telepresence system "Mado"

――What was the catalyst for this "new consumption" initiative?

Kashiwao: A major turning point was the opening of HOTEL NUPKA's annex, "NUPKA Hanare," in 2021, which was created by renovating part of the Obihiro branch building of Dai-ichi Life Insurance Company, Limited. Dai-ichi Life invests a portion of the insurance premiums it collects in real estate for long-term management, and the renovation of the Obihiro branch was part of that. During the large-scale renovation of this building, their real estate department, conscious of ESG real estate investment that goes beyond mere profit to include regional contribution, resonated with our concept of community-contributing hotel management. This led to the birth of "NUPKA Hanare."

NUPKA Hanare

Furthermore, we signed a three-party collaboration agreement with Obihiro City to "create and expand the relationship population through workations," agreeing to use this facility as a base for generating a relationship population. Then, in 2024, Dai-ichi Life's real estate department proposed that we hold an event to increase Tokachi's relationship population in the open underground space connected to the "D-LIFEPLACE Sapporo" office building, which was completed in 2023, and Sapporo's underground walkway (Chi-Ka-Ho). As we planned this event, the concepts of "new consumption" and the "relationship population-based regional trading company" came together, and the concrete concept developed from there.

D-LIFEPLACE Sapporo

Building a Lifestyle Involved in Both the Region and the City as Part of the "Relationship Population"

――Could you also elaborate on the "relationship population," a keyword that has come up frequently?

Kashiwao: The "relationship population" refers to people who, without fully relocating, maintain a continuous connection with a region and contribute to its development. They have a deeper connection than tourists and actively participate in the local economy and society without being permanent residents, for example, by taking part in local events or helping with the sales and marketing of local products. The relationship population plays a significant role in revitalizing regions by acting as a bridge between the region and the city.

This concept of a "relationship population" originated in the mountainous areas of the Chugoku region. It began as an initiative to promote personnel exchange from urban areas like Hiroshima and Okayama to sustain agriculture in the mountains. By having urban dwellers continuously engage with rural villages, a new form of support for local industries and culture was created.

The concept of the "relationship population" between cities and regions

Tokachi is one of Japan's leading large-scale agricultural zones, and I believe the role of the "relationship population" in this region can be very dynamic. Until now, regional revitalization efforts have mainly focused on increasing the exchange population through tourism promotion to boost economic effects from tourist spending. In Tokachi, however, we expect the relationship population to go beyond that and play an active role in continuously supporting the entire industrial base of the region, such as in the production of agricultural goods and crafts, and even in the operation of restaurants and commercial facilities.

Furthermore, being part of the relationship population is an opportunity for urban dwellers to find new purpose and value in their lives. For example, based on concepts like "life shift" and the "100-year life," by being involved in both the region and the city, people can build a new lifestyle while contributing to society. It is against this backdrop that we are advancing the concepts of "new consumption" and the "relationship population-based regional trading company," aiming for a sustainable model where cities and regions grow together. When the urban relationship population promotes regional products, new relationships are built with consumers, which in turn leads to "new consumption."

――In terms of "engaging with a region," "new consumption" feels somewhat similar to the "hometown tax" (furusato nozei) system. What are your thoughts on that?

Kashiwao: The "hometown tax" system is one way to support a region, and it shares the common point of consumers contributing to a region. However, in many cases, the hometown tax is a one-time involvement in the form of a donation. "New consumption" aims to go beyond that to build a deeper, more sustainable relationship with the region. The essence of "new consumption" is not just about receiving a return gift, but about consumers empathizing with the activities and challenges of producers and creating a relationship of mutual benefit through direct support.

A Key Feature of New Consumption: A System Where Consumers Actively Participate

――In recent years, it's become more common for rural producers to sell their products on their own e-commerce sites, which are then purchased by people in the city. What is the major difference between that and "new consumption"?

Kashiwao: Purchasing from an e-commerce site is a very effective way to support producers. However, "new consumption" is significantly different in that it goes beyond a simple transaction of goods. It involves consumers empathizing with the producers' efforts and passion and taking action to support them. For example, with an e-commerce site, the relationship often ends with the purchase. In "new consumption," however, there is a system for active consumer involvement, such as deepening connections with producers, helping with marketing activities in urban areas, or visiting the location to interact with producers directly. This is the major difference.