While automakers and electronics makers are posting huge losses amid the global economic slowdown, some companies are making record profits.

The key to their success is focusing on domestic demand instead of overseas markets while touting the low prices and distinctive features of their products and services.

According to Shinko Research Institute Co, 10.5 per cent of companies listed on the First Section of the Tokyo Stock Exchange that have released earnings results for the past five business years or longer and that have a market value of at least 50 billion yen expect record pretax profits for the business year ending in March.

One example is Oriental Land Co, which operates Tokyo Disney Resort. Oriental Land forecasts its sales and pretax profit will hit a record in the business year ending in March. The number of visitors to Tokyo Disney Resort also is expected to set a record high of 27.1 million, up 6.6 per cent from the previous year.

While part of its success is due to special events to celebrate the 25th anniversary of the theme park, another arrow in the firm’s quiver was its steady promotional efforts. The company dispatched buses painted with Disney characters to 29 cities to advertise its attractions and had Mickey Mouse and other Disney characters appear at local festivals.

McDonald’s Holdings Co (Japan) attracted customers with its low-price menu items, such as coffee and fried chicken at 120 yen, despite the consumer trend toward eating in rather than dining out. Its annual net profit through December hit an all-time high of 12.3 billion yen.

Shoe manufacturer-retailer ABC-Mart Inc. expects to post a record pretax profit of 21.1 billion yen in the year ending in February.

The company has increased the number of products produced in-house so market trends can be quickly reflected in new items. This strategy proved to be effective giving the firm a hit product with its mouton boots. About 10 models priced at 5,000-18,000 yen are on the shelf this winter.

Beverage maker Suntory Ltd put off price hikes to September, while rivals raised their prices following a rise in material costs, which won over thrifty consumers. Its lower-priced third-category beer Kin-mugi was popular, and the beer division was in the black for the first time since the company entered the beer market in 1963. The company’s annual pretax profit was a record 79.2 billion yen in the year that ended in December.

Brisk sales in US, Europe

Nintendo Co.’s Wii video game console proved extremely popular in the United States and European markets, which have been plagued by the financial crisis. With sales of the Nintendo DS handheld console marking a year-on-year increase, the firm is expected to post record 530 billion yen in operating profits for the business year ending in March.

DeNA Co, which mainly handles the cell phone portal business, is expected to post record sales, ordinary profits and after-tax profit for the business year ending in March.

The company attributes its brisk sales to the economic downturn.

"An increasing number of people are refraining from going out and are looking for reasonable products on their mobiles and PCs before going shopping," a company spokesman said.

Cost-cutting efforts

NTT Corp also is expected to post consolidated operating profits of more than 1 trillion yen for the business year ending in March. Though the figure is not a record high, the company is likely to take over from Toyota Motor Corp as Japan’s top-earning listed company.

The telecommunications firm has managed to drastically cut costs. NTT Docomo Inc scrapped its sales method of offering free mobile phones to customers in exchange for paying sales-linked bonuses to cell phone sales.

K’s Holdings Corp, a chain of consumer electronics retailers, is expected to post record ordinary profits of 19 billion yen for the business year ending in March.

The firm’s cost-cutting efforts boosted its profits. As part of such efforts, the firm has been opening stores in suburbs, where rent is relatively low.

"In many stores, rent is less than 10 per cent of those in prime locations," a company spokesman said.