Retailers invade Japans side of the aisle

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Retailers invade Japans side of the aisle

• Nikkei Weekly, June 2003
• Tommy Kleven
• Mkt 311

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The Article

• The articles focus
• The transition from being a relatively closed
  market to a market foreign retailers consider
  highly attractive
• Inefficiency in the consumer market

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A mature and alluring market

• But also highly inefficient, with middlemen
  between manufacturers and retailers
• Foreign retailers seek to smooth the distribution
  line

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The impact on the mkt mix

• More emphasis on distribution(place)
• Growth and integration have become more
  important in order to secure distribution
  channels.
• This has especially been seen within the food
  retail market

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Compared to Europe and the U.S

• The top five retailers in Japan do only account
  for 10 of the market share.
• In countries such as Britain, Germany and France
  the top five account for 50.
• Oligopoly rapidly forming in the U.S with
  Wal-Mart leading the way.

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Oligopolies impact on CB

• (Schott 2002, pp 29-37, AMA website)
• Less personal interaction between customer and
  retailer.
• Loyalty ensured by bonus programs rather than
  personal service.
• Big chains systematically gathering information
  about your purchases.

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