Retailers invade Japans side of the aisle - PowerPoint PPT Presentation

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Retailers invade Japans side of the aisle

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The transition from being a relatively closed market to a market foreign ... Inefficiency in the consumer market. A mature and alluring market ... – PowerPoint PPT presentation

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Title: Retailers invade Japans side of the aisle


1
Retailers invade Japans side of the aisle
  • Nikkei Weekly, June 2003
  • Tommy Kleven
  • Mkt 311

2
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

3
A mature and alluring market
  • But also highly inefficient, with middlemen
    between manufacturers and retailers
  • Foreign retailers seek to smooth the distribution
    line

4
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

5
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.

6
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.

7
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