Release Details

Possible Japanese wage hikes may boost event spending, TryHard CEO says

Published 13/11/2025

Investing.com - A potential increase in wages across Japan could have lead to more consumer spending on festivals, clubs and other cultural events, TryHard Holdings CEO Rakuyo Otsuki has told Investing.com.

Labor unions in Japan have recently suggested that they will focus on securing bumper pay hikes in 2026. Rengo, the country’s biggest labor union umbrella group which represents some 7 million members, has said it is seeking wage jumps of 5% or more next year.

It would equal what Rengo demanded for this year, a campaign which contributed to the largest rise in wages in more than three decades.

In an exclusive interview, Otsuki predicted that higher disposable income could have a “positive effect on experiential consumption.”

But, he added, operating costs such as labor expenses could rise, meaning the Japanese entertainment industry “will need to balance profitability with the delivery of service value.”

“We will continue initiatives that support sustainable growth, including improving service quality and operational efficiency to adapt to changes in consumption and cost structures,” Otsuki said.

The comments come as Otsuki is attempting to grow TryHard, the 12-year old Osaka-based entertainment company behind Japanese dance music festival Music Circus which has expanded its operations to include everything from consultancy and management services to venue sub-leasing and restaurants, into a more global business.

In August, TryHard officially went public on the Nasdaq index, becoming the first Japanese entertainment group ever to be listed.

Proceeds from the flotation, which amounted to approximately $7 million before deducting underwriting discounts and other offering expenses, were allocated “first and foremost” to strengthening the group’s financial base and stabilizing working capital, Otsuki said.

“This has improved continuity in our existing businesses while enabling us to prepare for new store openings and new business development,” he noted.

TryHard’s drive to expand beyond Japan is being supported by a domestic operating environment that is “very favorable,” Otsuki argued. A campaign focused on “regional revitalization” under new Prime Minister Sanae Takaichi offers particular tailwinds for companies looking to leverage local culture on a global scale, he said.

However, he warned that factors such as exchange rates and geopolitical developments can both hit inbound demand and push up the cost of inviting overseas artists to Japan. Meanwhile, the Bank of Japan is reportedly set to hike interest rates at its upcoming policy meeting later this month, with officials keen to address risks to inflation and a weaker yen.

Sweeping U.S. tariffs have recently been one of the major influences on these trends, although resilient export data in October has led some economists to suggest that the effect of the tariffs has so far been limited.

Otsuki said that, as a company committed to “bringing Japanese culture and regional attractions to the world,” TryHard will manage external risks proactively.

Source: Possible Japanese wage hikes may boost event spending, TryHard CEO says By Investing.com