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He didn't say Jpop needs to become like Kpop, he was commenting on how Kpop is popular because of it's sleek production (e.g. compare tight SNSD routines to AKB48), he's probably also alluding to the fact that Kpop has by far overtaken Jpop in terms of global interest.
And then he says that Ayu is trying to counter that by bringing some of that quality to Jpop, but it falls flat after Shake It♥
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