Japanese publishing giant, KADOKAWA Corp, has reported a decrease in profits, attributed to its heavy investment in the "Narou-trend" - a popular form of online amateur literature that has taken Japan by storm. The financial situation unfolded recently, causing a stir in both the publishing and investment communities. Critics question whether the heavy emphasis on this particular trend and neglect of other literary genres played a role in the company's recent financial slump.

The Narou-trend (derived from "Let's Become a Novelist" website) has a significant cultural impact in Japan, reflecting a shift in literary preference towards amateur literature. However, KADOKAWA's financial losses highlight possible concerns over the sustainability of heavy investment in such trends. In Japan, there is a keen interest in the balance between tradition and innovation in cultural industries like publishing.

In the US and EU, companies also take financial risks investing in trending cultural phenomena. The rise of streaming in the entertainment sector and the resultant plunge in DVD sales is a parallel example. The key is maintaining balance and diversification in investments, to manage the risks associated with rapidly changing consumer tastes.