It's like a hidden autocracy, people in the west probably think it's a democracy here. I mean, people can vote, but there's really only a single party with the same old ideas.
I once read that the reason Buddhism became popular in Japan so quickly is because it gave people a break from the rigid hierarchy everyone was used too. I often wonder why it's less popular now and whether that's an accident.
People can be very individualistic in Japan as well, it just expresses itself in a different way than more Western cultures. It is very broad generalization, but in the west we like to show ourselves as more individual than we really are, while it tends to be the opposite in Japan. Open conflict avoidance is certainly more common in e.g. corporations in Japan, at least in my experience. But that's a very narrow definition of collectivism.
As far as I can see we're not so different from Japan, other than the fact we have more crime and our cities are dirtier because individualistic Westerners are too lazy to use rubbish bins.