It's not that they couldn't if they wanted to; they could. But the history of domestic demand has been for cheap pens --the BICs/Papermates of the world. Their history of consumer products has been very utilitarian from pens to the mao jackets and the "iron furnace in every yard"[1] program to bootstrap industrialization onto a country where it arrived late. So, the opportunity arrived where they had plenty of availa…
Would that be the middle income trap? With a median age that's close to Japan's in the 90s, it's a worry.