For a foreign interest, breaking into the business of Japanese interior design can be something like attempting to penetrate one of the most exclusive, private clubs on the planet. Renowned for meticulous, nearly obsessive attention to detail, the field of furnishing the interiors of Japan’s most important spaces is a job the country’s design professionals tend to view as a calling rather than a mere vocation. Such an unforgiving business environment makes the success of American entrepreneur Greg Lyon in Japan all the more inspiring.
With an international personal history that includes MBAs from both the National University of Singapore, and UCLA’s Anderson School of Management in Los Angeles, California, as well as stints in Seoul, Korea and Tokyo, Japan leading the efforts of legendary American furniture manufacturer Herman Miller, Lyon’s path has been typified by meeting new challenges head on. It was in that spirit that Lyon established his own furniture distribution concern in 2008 called Gregory Lyon, Inc., servicing the needs of some of the largest corporate and private customers in the country.
Journal: Describe how you got your start in the furniture business in Japan.
Greg Lyon: I had been working for a regional MNC in Tokyo who offered B2B & B2C shipping services. I wanted to get involved with manufacturing and importing products to Japan. When I learned of an opportunity to work at Herman Miller, I was very interested. In fact, while I was employed in Japan, my main responsibility was to cover the Korean market from Tokyo. I wasn’t as interested in covering Korea as I was working for Herman Miller, but after about 18 months I moved to Seoul and that was by far the best experience I could have gotten at the time.
Journal: What exactly is your connection to Herman Miller Japan (www.hermanmiller.co.jp) organizationally?
Lyon: I run an independent Herman Miller dealership that focuses on managing projects for MNCs. Herman Miller typically focuses on research, design, manufacturing and some marketing, while the bulk of the technical project work happens at dealerships such as mine. This is a new business model for Herman Miller in the Japanese market. I specifically employ bilingual staff, all of whom have lived overseas for significant amounts of time, in order to assist our clients (Japanese and non-Japanese staff and management). Often our clients have decision makers who are based overseas, but it is the local staff who need to implement new office projects. As such we aim to exceed expectations from multiple stakeholders who have different backgrounds.
Journal: What is the general size of the market in which you operate in terms of yearly revenue from all furniture suppliers in Japan?
Lyon: Since Japan is the second largest economy in the world, the furniture market is large and sophisticated. The size of the market that we operate in specifically (i.e. MNCs and firms who appreciate design and see the office environment as a strategic tool) is worth approximately $400 million per year, although the overall market is much larger.
Journal: What percentage of that revenue represents American-made and designed products?
Lyon: Herman Miller has produced some of the most classical and universally recognized products from the past one hundred years. As such there is a steady demand for what we offer. The percentage that accounts for American-made and designed products is growing. This is due to a change in perception of what an office in Japan should be, plus the fact that today’s generation of employees is quite different from that of even 10 years ago.
Potential employees, especially for globally competitive firms, need and look for more than just a paycheck. Part of their decision making process in determining whether they will join an organization is the quality of the working environment offered by the employer. In any market, an office can depict whether a firm is creative, supportive and humane or if it’s lifeless, dreary, and authoritarian.
In both scenarios, work still needs to get done but I think most people prefer the former as a backdrop to their best work. I’ve been operating for close to 18 months and revenue is growing as people become more familiar with my organization. Including myself, there are six card-carrying members of Gregory Lyon, Inc. In my time covering Korea, our revenue grew about 700 percent in five years. While Japan is a more sophisticated and highly competitive market, I have a more experienced team, a much better connection to existing accounts, and the overall market here is much larger than in Seoul. I therefore expect to see similar growth this time around, especially once the global economy picks up again.
