Professional Documents
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Consumer
Goods
Partner in Japan
G&S International Japan
Web www.gs-int-ltd.com
GDP by country (%, US$ billion, 2007) Per capita GDP (2007)
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... the world's second-biggest retail market with 13.03 trillion yen = $144 billion sales p.a.
(Source: Jetro, 2008)
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CON Japan 2009
• global economic down-turn, private consumption fell by 0.4 percent amid
• Japan’s GDP fell 3.3 percent (quarter-on-quarter), for all for 2008, it shrank 0.7 percen,
the first decline in nine years, according to the Cabinet Office (main reasons: shrinking
global demand and historic strong yen let exports collapse)
PRO Japan 2009
• Japan still 2nd biggest economy/retail market behind the USA
• private consumption in Japan is up 30% in the past 20 years (1989 – 2009)
• saving ratio is down from 14,5% to 2,6% in the same term (1989 – 2009)
• high appreciation of Japanese consumer of foreign quality goods (fashionable life-style)
• Japan has lowest self-sufficiency rate among G7, results in big demand for food imports
• to revive the economy, Japan's parliament passed a contentious 4.8 trillion yen ($52.2
billion) stimulus plan in January 2009, including a cash payout that amounts to 12,000
yen ($133) per individual (20,000 yen for inhabitants younger than 8, or older than 65),
the cash payout is believed to stimulate the Japanese retail market demand in 2009
• Japan is the country with the highest foreign currency and gold reserves (equivalent to
more than one-trillion-dollar US), the Japanese government plans to put part of it into
a stimulus plan for Japanese manufacturers and consumer markets
• the currently strong Japanese yen (1 EUR down from 165 yen in summer 2008 to 115
yen in March 2009) makes imports to Japan about 30% cheaper than a year ago
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Speaking generally, following keywords apply to Japan:
Number in ,000
METI Japan, 2008
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Japanese consumers are early adopters and move
fast to stay on the cutting edge of the latest
technologies.
Source: The Global Competiveness Report 2007” World Economic Forum, 2007
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Luxury
Foreign high-end retailers have for years enjoyed Total Per Capita Sales of Top 5 Retail Markets
strong sales in the Japanese market, which also
serves as an unrivalled market for developing of
high-end consumer products.
Convenience
A fast-paced lifestyle and the growth of e-commerce
in Japan has created a strong market for foreign non-
store retailers who provide quick and easy access to
their products.
Style
Foreign apparel retailers, not able to do without such
a vital market for apparel, continue to expand their
businesses to this fashion-forward location.
Comfort
Home furnishing centers report growth year after year
and are broadening their offerings to helping
consumers achieve comfortable living environments,
rather than only selling household products. Source: IGD Global, 2007
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Japan’s need for importing food opens opportunities
for European food brands
Some differences that Japan really set it apart from Japan Household Spending by Category, 2007
other advanced markets is consumer spending:
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Giving gifts is a major part of Japans’ culture
In Japan, food is often the best gift. Japanese consumers are
famous for their taste of expensive chocolate, wine, or even
fruits. In the high-end supermarkets of downtown Tokyo,
premium apples cost up to 16 EUR a piece.
But not only premium and luxury is driving the Japanese gift
and present market. It is more the custom to hand-over a gift at
almost every occasion in life, let is be a visit to a friends‟ house
or even returning to office from a short trip. Japanese want
people around them let know their appreciation by giving a gift.
Moreover, Japanese often return a gift in exchange, once
they‟ve received one. Receive a foreign (European branded)
product as a gift is seen as valuable; shows high appreciation.
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The Japanese retail market can be divided into two categories: the volume
market that mainly consists of relatively low-priced daily products, and the
trend-conscious market for consumers that are highly sensitive to fashion,
life-style and technology trends.
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Giants
in a
huge
market
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Japan convenience store sales up 7.0%
in January 2009
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As more shoppers look to the convenience of being
able to shop from their computers and mobile phones
outside of regular store hours, the non-store retail
sector has been growing steadily.
TV shopping
During FY 2008, the 10 leading TV shopping
companies sold a total of 210 billion yen worth of
merchandise, a 25% increase from the previous year.
Sales for FY 2009 are forecasted to amount to more
than 230 billion yen.
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• Extreme focus on quality and on customer service
• Need to show long term committement to Japan
• Excellent distribution and service network a must
• Some adaption to the Japanese market often required
• Extreme need and request for technical information and
documentation
• Close and frequent communication to partner and customers
necessary to maintain well-working long-term relations
• Focus hard on hiring top people (a pool of very talented
Japanese are available if you screen carefully). Use recruiting
agencies and headhunters rather than printed or internet ads
• OK to take a premium price still, although the market is
becoming more competitive
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1) People
People are first. As anywhere else people are key to your success. Customers are
people, employees are people, your business partners, your suppliers, Government
regulators, your competitors are people. You need to accept that Japanese people may
think differently than you do. In business in Japan this can be crucial.
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G&S Japan are providing market entry and marketing/ sales for European
companies in Japan. The firm serves companies especially in retail and
consumers goods that plan to start or expand business operations in Japan.
Please contact us for more details on the Japanese retail & consumer goods market!
G&S
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