3The ChallengesWhen the project began, the project team created a list of all the negative factors hindering the hearing aid adoption in Japan. To change attitudes, we had to adapt our PR strategy and repeated efforts to communicate the value offered by hearing aids.Linking ⇒ Establishing the foundation for creating various servicesThe three portal sites— “my Rionet” for end users, “Rionet SalesPort” for retailers, and “Rionet MedPort” for healthcare professionals—will be linked through a customer base named the Rionet Customer Link, thereby completing a circle in a system that can provide value to all those interested in hearing.The Rionet Circle is a system built on Rion’s platform to connect our hearing aid customers (hearing aid users), healthcare professionals, and hearing aid retailers through digital technolo-gies. It allows users to share information with each other and lets us communi-cate the value and appeal of hearing aids to a wide audience.Once realized, the system will also allow us to offer consultations and solutions to our customers through their smartphones and other devices while presenting subsequent courses of action in a timely manner. For health-care professionals and retailers, the sys-tem will make it possible for RION to refer our customers to them to provide access to high-quality services and use-ful promotional information while dra-matically reducing some of the hurdles associated with hearing aid sales.Currently, four sites have been launched: the intuitive and easy-to-un-derstand "Rionet Hearing Aid" brand site, the “my Rionet” information site for end users, the “Rionet SalesPort” business site for retailers, and the “Rio-net MedPort” information portal site for healthcare professionals. The first phase has just been completed. We plan to strengthen the links between these four sites in the second phase, then expand the system by adding various digital functions, including an online reservation system and web consulting. We presently have 20 to 30 people cur-rently working on this project, which is scheduled to be completed in 2025.This project was inspired by the problem of the relatively low rate of hearing aid use in Japan. The adoption rate of hearing aids in Japan, calculated based on the number of people who are aware of their hearing loss and the number of people who use hearing aids, remains extremely low: 15.2%. This per-centage is generally 30–40% in devel-oped countries in Europe and the Unit-ed States, meaning Japan’s adoption rate is less than half these rates. Moreover, we have learned that of the people who have actually purchased hearing aids, many gradually stop using them.Numerous factors have been cited, including cultural factors, the character of the Japanese people, simply the high cost of hearing aids, among others. In any case, the current situation is that people who need hearing aids do not fully understand their value.“Until now, as a hearing aid manu-facturer, we’ve been trying to solve this problem by developing increasingly higher quality products,” explains Masataka Ota, head of the Business Strategy Section, who has spearheaded the project. “But after decades of seeing that this approach has been ineffective, the idea emerged and gradually spread within the company that Rion should take the lead in communicating the val-ue of hearing aids directly to customers. In 2015, despite the vertical structure at the time, a project team crossed depart-mental boundaries was formed and began frequent discussions. I think we started referring to the concept for this initiative as the Rionet Circle around 2018.”In an era of the overabundance of material goods, there was a great de-mand for a change in the mindset of the manufacturers in order to survive, even when compared to other industries.Ota remembers a sense of deep conviction felt at the time. “It’s no lon-ger enough to simply manufacture products. We must focus on added val-ue through our products.” Another turning point in the devel-opment of the Rionet Circle concept occurred in 2016, when a small study group joined the team. The group had been seeking measures to encourage otolaryngologists to become more actively involved in hearing aid sales.“What we realized was Rion’s str-ength,” says Ota. “Rion manufactures hearing testing devices (audiometers), which are sold to hospitals and clinics across the nation, for which Rion boasts a high market share in Japan. We believe this is a defining strength other manu-facturers lack. Assume someone notices a problem with their hearing and visit an otolaryngologist for a hearing test. Of course, some will improve with treat-ment, and some will purchase hearing aids, possibly from different manufac-turers. However Rion is already conn ect -ed to the patient during the hearing test performed with our products. This seemed like a tremendous advantage.”In the future, as well as the current hearing aid manufacturers, major ear-phone manufacturers may also opt to become players in the hearing aid mar-ket. If that happens, competition in this market may become even more fierce. The project team looked for a concept that would make the most of Rion’s strengths, rather than relying solely on its products. And one such strength is Discovering that the greatest strength of the Rionet hearing aid does not lie in the hearing aid itselfHearing aids in Japan aren’t widely adopted for the following reasons:– People aren’t aware of their hearing loss.– It doesn’t occur to people to buy hearing aids.– People don’t consult their doctors.– Doctors are reluctant to recommend hearing aids.– Hearing aids are expensive.– The hurdles to purchasing hearing aids are quite high.– There is psychological resistance to wearing them.Strengthening processes and sharing information are essential to changing user awareness.Masataka OtaBusiness Strategy Section, Medical Instru ment Division. Joined Rion in 2001. After working in hearing aid sales in the Sales Department, he was transferred to the Tokyo Sales Office as a startup member and gained experience with sales of medical testing equipment. He has been assigned to the Planning Department (currently the Business Strategy Section) since 2011. With his appointment as Deputy Head of the Medical Instrument Division on April 1, 2023, he will continue to lead the Rionet Circle.
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