The Japanese market

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The Japanese market
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A. Facts Figures

• Official Name Nippon (Nihon)
• 377 835 km²
• Head city Tokyo
• Religions Buddhist, Shinto (all together 84)
• 8 regions Hokkaido, Tohuku, Kanto, Chubu,
  Kinki, Chugoku, Shikoku, Kyushu
• 47 departments

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Facts Figures

• Population 128 millions
• Most important cities - Tokyo (12/35)
  including Yokohama - Osaka (5/14)
• Activ Population (2005)
• 66.5 million 60.4 total population
• Unemployment (2006) 4

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B. Go ahead to Japan
Why should I go ? Lets see the 10 main reasons
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1. A rich country
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The 2d economy in the world

• GNP 4.600 billion
• Japan 11 of GNP from all over the world
• allmost 50 from american economy
• 3 times chinese economy
• France Germany

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2. Japan a dynamic country
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Strong and durable expansion

• Financial system cleaned up
• Since 2001
• profits for companies
• better remuneration for employees
• better mood for employees

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3. A big reliable market
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123 billons consumers with strong purchasing
power

• GNP / pers. 2d OECD after US
• Annual income 32 000 (average)
• consumption because of ageing population
• gt - savings 7.1
• Regular customers

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4. Markets to be won
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Opportunities for a mature economy

• Growing aerea
• - TIC
• - Environnement
• - Ageing
• - Food industry, consumer goods

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5. An innovative country
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Important means for research and development

• Budget for research and development
• 3.35 of GDP
• Japan 1st country for patents
• Important partner for industries

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6. A stable and reliable country
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A market with clear rules

• Observs rules Corporate Governance
• An excellent position for the Coface (A1)
• Very little payments problemsLike Netherlands,
  Germany

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7. A modern country
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Efficient Infrastructures

• 20 national airports all over the country
• High speed trains
• High road density
• High Internet connection rate
• Enthusiasm for new technologies

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8. A country which opens itself to the world
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More foreign direct investment

• In constant increase because of
• - deregulation- political action
• Foreign Investor n1 USA Foreign Investor n2
  France

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9. A good position in Asia
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The reference in Asia

• Very strong business relationship with China
• Asia 60 of Japanese commercial excedent
• 45 of goods exchanges in Japan
• Partnership with Japanese companies a good way
  to enter the Chinese market
• Influence of Japan on Korea, Taiwan and China

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10. A pleasant living environment
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C. Food retail in Japan
Market share  food  37,6

• Variable dimension (average 250 m2)
• More than 80 from turnover in  Food
  Beverage 
• Almost 1.200 Brand name for 18.000 salespoints
• A few retail divisions with national distribution
  
• Very qualitative retail divisions (fine grocery
  etc..) MEIDI-YA, SEIJO ISHII, KYNOKUNIYA, IRAKI,
  KOHYO, etc..
• Consolidation in central purchasing agencies
  CGC, NICHYRIU, National Supermarket Association

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 GENERAL MERCHANDISE STORE 
Market share  food  12,7

• Big-sized (more than 1.500 m2)
• Between 45 and 60 from turnover in  Food
  Beverage 
• More or less 50 Brand name for 1.600 salespoints
• A few retail divisions with national distribution

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 CONVENIENCE STORE 
Market share  food  15,3

• Between 30 and 250 m2
• Open 24 hours a day, all year long
• Franchising
• Between 75 and 80 from turnover in  Food
  Beverage 
• About 20 Brand name et nearly 39.600 salespoints

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 DEPARTMENT STORE 
Market share  food  4,4

•  upscale 
• Between 15 and 30 from turnover in  Food
  Beverage 
• Nearly 200 Brand name and 500 stores
• A few retail divisions with national distribution

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MAIN DISTRIBUTORS IN JAPANTurnover  food  2004
Billions Yen
PM
7,0
4,5
3,6
3,1
2,6
2,3,
2,2
1,7
1,5
1,5
1,4
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MAIN FOREIGN DISTRIBUTORS IN JAPAN
CARREFOUR AUCHAN WAL MART
METRO COSTCO TESCO
CARREFOUR AUCHAN WAL MART
METRO COSTCO TESCO
Former Carrefour bought by AEON in
2005 Trading via PLAISIR SELECTION
AUCHAN Share in SEIYU - Losses Rumor of
disinvestment - 2 Centers ( 1 opening soon) 7
CashCarry Take over Brand names C-2 (80 stores
in 2003) FREC (20 stores in 2004)
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D. Before starting .

• The Japanese market demands
• - respect
• - quality of service
• - good packaging
• - patience sometimes even 3 / 5 years
• Because of
• - long decision process
• - strong competition
• - in Japan, they work for long relationships

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Dont forget !

• Strong relationship
• - be modest
• - be loyal
• History of the product and price
• Which kind of distribution ? National / regional
• Be carefull with the request of exclusivity
• Who wants to export in Japan must spend some
  money

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Thank you very much for your attention !