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Current and future developments in Consumer markets:  The Retail Response Roy Larke, PhD. Editor JapanConsuming.com Professor, University of Marketing & Distribution Sciences, Kobe, Japan
The Build-up to Current Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Today’s agenda
The Build-up to Current Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Today’s agenda
Another retail revolution? ,[object Object],[object Object],Landmarks in retailing The only way modern Daiei can win!
1982: Retail store numbers decline … Landmarks in retailing Source: Census of Commerce. Note: 1999 figures adjusted for survey differences.
1985: Wholesaling begins to stagnate Landmarks in retailing Source: Census of Commerce. Note: 1999 figures adjusted for survey differences.
1989: Pop! The Bubble Bursts ,[object Object],[object Object],[object Object],[object Object],Landmarks in retailing
The Build-up to Current Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Today’s agenda
1990s: the lost decade Nothing Nineties Figures not adjusted for inflation
What really happened in the 1990s? ,[object Object],[object Object],[object Object],[object Object],[object Object],Nothing Nineties
Consumer worry: High Prices ,[object Object],[object Object],[object Object],[object Object],[object Object],Nothing Nineties
Income & Expenditure Flat in 1990s Nothing Nineties
1990–98: Monthly Savings increase 21%
Money in the bank: Savings for Working Households Mode: ¥2.65 mn Median: ¥9.00 mn Mean: ¥13.56 mn Nothing Nineties
Plenty to spend ,[object Object],[object Object],[object Object],[object Object],Nothing Nineties
Retail response: more of the same ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Nothing Nineties
Higher than some countries… ,[object Object],[object Object],[object Object],[object Object],[object Object]
Get bigger now, improve later Sales space & sales density Daiei Aeon (Jusco) “ Bigger is always better”
Steady growth but still down Ito-Yokado Mitsukoshi “ Bigger is always better”
NCR: No consumer response ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The retail problem
Consumers are also bored… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The retail problem
What do consumers want? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],New consumer demand
The Build-up to Current Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Today’s agenda
Keys to Japan’s new retailing ,[object Object],[object Object],[object Object],[object Object],Lessons for retailers
Aoyama Shoji’s Question
Japan discovers brand marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Branding
The day my life changed… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Internationalization
Internationalization of Japanese retailing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Internationalization
Retail Entry: 1967-2000 Number of new firms Lessons: Internationalization
Overseas retailers in Japan, 2000 Lessons: Internationalization
Americans arrive late: Overseas retail entry by period Lessons: Internationalization
A long way to go… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Internationalization
Too much too soon? Carrefour got it right!
Carrefour got it right, but… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],What Carrefour taught Japan
Keys to Japan’s new retailing ,[object Object],[object Object],[object Object],[object Object],Lessons for retailers
Friendly face of customer service ,[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Customer service
Friendly face of consumer service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Customer service
Japanese retailers want to control supply chains too ,[object Object],[object Object],[object Object],[object Object],[object Object],Lessons: Customer service
The Build-up to Current Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Today’s agenda
Conclusions: the challenges ,[object Object],[object Object],[object Object],[object Object],The future
Japanese market, 2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Future: Consumers
Still too expensive by far: World’s most expensive cities Economist, July 2001 Future: Consumers
Japanese retailing, 2010: 1 ,[object Object],[object Object],[object Object],[object Object],[object Object],Future: Retailers
Japanese retailing, 2010: 2 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Future: Retailers
Japanese retailing, 2010: 3 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Future: Retailers
Thank you For more information: http://www.japanconsuming.com/ [email_address]
IGD Global Retail Index GRI Weighting: Turnover (20%), No Countries (10%), % Overseas turnover (10%), Presence in key regions (15%), Home market dominance (10%), Clarity of Global Strategy (15%), Global culture (10%), Level of int’l learning (10%) 54 59 10 Tesco 60 60 5 Metro 72 72 1 Wal-Mart 78 80 3 Ahold 83 83 2 Carrefour GRI 2000 GRI 2001 Global Sales Rank
Classement des groupes selon le tr é sor de guerre Million Euro Cost of 6% of Seiyu = 52 million euro (approx). = 0.3% of Wal-Mart’s bugdet Source: Prof Marc Dupuis, ESCP-EAP -2,487 -2,710 Carrefour 87 714 Rinascente 1,401 2,167 Auchan 4,433 4,584 Tesco 4,113 6,133 J. Sainsbury 10,589 14,606 Wal-Mart 1998 1999
Challenges facing Wal-Mart ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Japanese opposition to Wal-Mart ,[object Object],[object Object],[object Object],[object Object],[object Object]
Thank you For more information: http://www.japanconsuming.com/ [email_address]

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ETP Test

  • 1. Current and future developments in Consumer markets: The Retail Response Roy Larke, PhD. Editor JapanConsuming.com Professor, University of Marketing & Distribution Sciences, Kobe, Japan
  • 2.
  • 3.
  • 4.
  • 5. 1982: Retail store numbers decline … Landmarks in retailing Source: Census of Commerce. Note: 1999 figures adjusted for survey differences.
  • 6. 1985: Wholesaling begins to stagnate Landmarks in retailing Source: Census of Commerce. Note: 1999 figures adjusted for survey differences.
  • 7.
  • 8.
  • 9. 1990s: the lost decade Nothing Nineties Figures not adjusted for inflation
  • 10.
  • 11.
  • 12. Income & Expenditure Flat in 1990s Nothing Nineties
  • 14. Money in the bank: Savings for Working Households Mode: ¥2.65 mn Median: ¥9.00 mn Mean: ¥13.56 mn Nothing Nineties
  • 15.
  • 16.
  • 17.
  • 18. Get bigger now, improve later Sales space & sales density Daiei Aeon (Jusco) “ Bigger is always better”
  • 19. Steady growth but still down Ito-Yokado Mitsukoshi “ Bigger is always better”
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 26.
  • 27.
  • 28.
  • 29. Retail Entry: 1967-2000 Number of new firms Lessons: Internationalization
  • 30. Overseas retailers in Japan, 2000 Lessons: Internationalization
  • 31. Americans arrive late: Overseas retail entry by period Lessons: Internationalization
  • 32.
  • 33. Too much too soon? Carrefour got it right!
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42. Still too expensive by far: World’s most expensive cities Economist, July 2001 Future: Consumers
  • 43.
  • 44.
  • 45.
  • 46. Thank you For more information: http://www.japanconsuming.com/ [email_address]
  • 47. IGD Global Retail Index GRI Weighting: Turnover (20%), No Countries (10%), % Overseas turnover (10%), Presence in key regions (15%), Home market dominance (10%), Clarity of Global Strategy (15%), Global culture (10%), Level of int’l learning (10%) 54 59 10 Tesco 60 60 5 Metro 72 72 1 Wal-Mart 78 80 3 Ahold 83 83 2 Carrefour GRI 2000 GRI 2001 Global Sales Rank
  • 48. Classement des groupes selon le tr é sor de guerre Million Euro Cost of 6% of Seiyu = 52 million euro (approx). = 0.3% of Wal-Mart’s bugdet Source: Prof Marc Dupuis, ESCP-EAP -2,487 -2,710 Carrefour 87 714 Rinascente 1,401 2,167 Auchan 4,433 4,584 Tesco 4,113 6,133 J. Sainsbury 10,589 14,606 Wal-Mart 1998 1999
  • 49.
  • 50.
  • 51. Thank you For more information: http://www.japanconsuming.com/ [email_address]