1. Marketing applied
to a different culture
The Japanese example.

2. Understand local specificities …

3. Approaching Japan’s specificities
Culture
Demographics
History
Education
Geography
Language

4. Geography
Population density

5. Geography : hypercentralization
« Greater Tokyo » Area :
35 Mn people, world’s most populous
urban area

6. Geography Lesson #1 : open H.Q in Tokyo !
25% of national population
> 40% population below 40 years old
most key companies (advertising, distribution, law)
have their H.Q. in Tokyo
Advantage : need only 1 office in Japan to address most
of market, especially for consumer goods, fashion,
hightech, telecoms…
Hurdle : highly competitive environment :

7. Geography #2 High Density
Scarce Space
Innovation

8. Geography #2 High Density
Innovation : capillary Distribution
(CONVENIENCE STORES ‘conbini’)

9. Geography #2 bis High Density Urban Sprawl
Convenience stores @
train stations
Avg. 2 hours train /day CAPTIVE MARKET FOR :
Mobile phone services

10. Geography #2 bis
The mobile phone’s tiny screen is
capturing an increasing part of people’s
time. « Economics of attention »
Japan- mobile penetration
http://asie.atelier.fr/telecom/mobilite/article/chiffres-2006-de-la-telephonie-mobile-au-japon

11. Mobile phone services :
Geography #2 bis
Mangas, TV, Social
Networking

12. Geography Lesson #2 : Distribution strategy
« Conbini « rather than supermarkets
http://www.youtube.com/watch?v=reGN92nSNbQ
Location Access Frequ. Of Avg. Surface References
visit Purchase
Supermarket City Car 1-2/week $100 >1000sqm >10,000
(France, outskirts
USA)
Conbini <5m. Foot 2-3/day $10 100sqm >1000
(Japan) From
subway
station

13. Geography Lesson #2 : Distribution strategy
43,667 convenience stores in Japan [2007] :
7-Eleven, Lawson (Mitsubishi Corp.), FamilyMart...
Items offered :
-most items found in supermarkets (“100 sq meter, 1000
items”)
- And :
* Courier, or postal service, photocopying, fax.
* ATMs.
* Utilities and other bills ; tax payment.
* Tickets :concerts, theme parks, airlines etc

14. Geography Some failed experiences :
4 stand alone stores, too
http://www.telegraph.co.uk/finance/2726058/Boots-ends-Japanese-
venture.html expensive (partner :
Mitsubishi Corp)

15. Vodafone’s failure & takeover by Softbank (Jp)

16. Geography Lesson #2 : Distribution strategy
DANONE relies on Mitsubishi Corp to distribute Volvic

17. The key role of Trading houses (GTC) in Distribution
sōgō shōsha? 総合商社
>50 % of Japan's foreign trade
- Domestic sales of the nine largest = 31% GDP
- Mitsubishi Corp. : largest company in Japan

18. The GTC : a key partner to access Japanese Market?
Real Estate Transportation

19. Geography #3 Expensive urban real estate
A large market for
Luxury brands …
why ?
In Tokyo :
€400/mois €1100/mois
Parking space, NOT covered Studio, 30 sqm
Avg Salary (30y university graduate : €2000)

20. Geography #3 Lesson #3 :
a large majority of young urban professionals
(especially female) live with their parents until mariage,
these ‘parasite single’ have very large purchasing
power

21. Geography #3 Lesson #3 : the main market is young
women living in Tokyo !!
‘selfish’
Elegant
casual
popular
http://107gou.seesaa.net/category/5172585-1.html

22. Geography #3 Louis Vuitton
Catering for young urban female employees…
Hermès

23. -The longest life expectancy
Demographics
-1 Mn people turn 65 every year since 2002
- Population starts declining
INNOVATION

24. Demographics

25. Language and signs

26. Language and signs Lesson : Innovating by seeking simplicity
Retailing of household & consumer goods
Distinguished by design minimalism, recycling, no waste
and no-logo or "no-brand" policy.
*Mujirushi Ryōhin = No Brand Goods http://www.youtube.com/watch?v=qKVA_aM_Bgs
Shop in Paris

27. History + Culture
Centuries of ACCULTURATION:
(1)Discover/import a foreign product, concept (ceramics, tea, just in time)
(2)Improve and innovate on original product/concept
#1 : A relentless curiosity towards whatever is FOREIGN :
Fine foods
Brands
Traveling (‘la route des vins en Bourgogne’…)

28. History + Culture
#2 : seek PERFECTION in Services, Products, wrapping
very high standards in the services industry :
a challenge to foreign newcomers on the market
expectations in products quality.
packaging / wrapping .

29. History + Culture
出る釘は打たれる
deru kugi ga utareru
« the nail that sticks up gets hammered down »

30. History + Culture
#4 : Gregarious purchasing behavior :

31. History + Culture
#3 : a culture of gift making, celebration of effort and
shaming of difference.
Sankin kōtai (参勤交代 / "alternate attendance")

32. History + Culture
#5 : Leisure and Tourism bring you shame :
In 1999; 56% of trips <5day ;
29% : 6-10days
旅の恥はかきすて
(« conceal this shameful journey » )
http://www.chusho.meti.go.jp/pamflet/hakusyo/h13/gif/13213432.gif

33. History + Culture
Lesson #4
-A niche : alibi-seller
http://query.nytimes.com/gst/fullpage.html?res=9C02E7D9123CF932A25754C0A96F958260&se
c=&spon=&pagewanted=all

34. -A niche : alibi-seller
http://query.nytimes.com/gst/fullpage.html?res=9C02E7D9123CF932A25754C0A96F958260&se
c=&spon=&pagewanted=all

35. Distribution
-Types channels japan
-Train malls : Yokohama queens square
-http://www.qsy.co.jp/english/index.htm
-
-

36. Subway station.
Problem : how to get pedestrian
to come to the new commercial area,
‘Ebisu Garden Place’
‘Ebisu Garden Place’

37. Subway
Airconditioned, covered Walkway
« Garden Place »

39. Reinventing the city : verticalizing the city’s functions
Atago
Roppongi Hills
Shiodome
Shanghai

40. http://www.foodnavigator.com/Legislation/Snow-Brand-Milk-scandal-spirals-downwards
Marketing applied
to a different culture
The Japanese example.
Dr Luc BEAL
IDRAC-ICAR January 2009