Japanese Department Store : A Failure in Globalisation
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Transcript Japanese Department Store : A Failure in Globalisation
Japanese Department Store
: A Failure in Globalisation
Rika Fujioka
[email protected]
1
Globalisation of Retailing
A few successful retailers in globalisation
Sales
rank
Ratio of
overseas
store
Ratio of
overseas
sales
Countries
of
operation
Mitsukoshi(Japan)
63
35.7%
1.4%
7
Eaon (Japan)
17
1.1%
11.2%
4
Muji (Japan)
-
29.6%
11.9%
15
Wal-mart(US)
1
43.0%
24.2%
13
Carrefour(France)
2
78.5%
54.2%
26
Tesco (UK)
4
43.6%
24.0%
13
2
The Early Development
Late 19th Century
Vanguard
of Foreign Trade in Japan
Import Western Products
Trade Textile Products
Early 20th Century
Transform
them into Department Stores
Catch Up with European Stores
3
Declining Sales during WWⅡ
Table 1: Total sales of All department
Stores (thousands of Yen)
1,000,000
Consumer demand
Little merchandise
Clerks been inducted
Limited sales area
800,000
600,000
400,000
200,000
0
1938 1939 1940
1941
1942 1943 1944 1945
4
Activities in Manchuria
Tap New Growing
Market
‘Gaisho’ Department
and Trading
Department Meet
the Demands of
Japanese Army and
Concern in
Manchuria.
Total Imports
Imports from Japan
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1922 1923 1924 1925 1926 1927 1928 1929
5
Mitsukoshi’s Development
Open a Branch
In Seoul in 1906
In Dalian in 1928
Store (7500 ㎡)
Rely on Sales in
Overseas Branches
Sapporo(Japan)
Dalian (China)
2.9 million Yen
6.8 million Yen
Seoul (Korea)
11 million Yen
6
In the Era of High Economic Growth
All Retail Stores (left-hand scale)
Department Stores (right-hand scale)
160,000,000
16,000,000
140,000,000
14,000,000
120,000,000
12,000,000
100,000,000
10,000,000
80,000,000
8,000,000
60,000,000
6,000,000
40,000,000
4,000,000
20,000,000
2,000,000
0
0
1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1979 1982 1985 1988 1991
7
New Forays into Europe and US
For Domestic Store’s Merchandise
Understand
Fashion Trend
Find New Fashion Brands
For Gaisho Customers
Loyal
Customers
→Ethnic Enclave Market
8
Ethnic Enclave Market
London Mitsukoshi Opened in 1979
Target: Gaisho customers
Japanese Tourists
Japanese Residents
In transition
After the 9/11 terrorist attacks in 2001
Tourist
Decreased in Number
Japanese Economic Depression
Expatriate
Employee were Younger and Fewer.
9
For the department stores’ development
Either Close or Change the Strategy
Frankfurt
and Munich closed in 2008
London expanded customers to include
Asian customers.
Role of Overseas Branches
Domestic
Strategy
For Loyal Customer
For Upmarket Merchandise
10
Development in Asian Countries
Cater for Japanese Tourists and Residents
Hong
Kong
Adaptation into the Local market
Isetan’s
Hybrid store in Singapore
Mitsukoshi in Taiwan
11
For Further Development
Did Complementary Strategy for
Domestic Market
Need Full-scale Global Strategy
Asian Developing Countries
Decline
Population in Japan
Yet to Work Out a New Strategy
12
Conclusion
What Did Globalisation Mean to
Japanese Department Stores?
Focus on Growing Market and Sales
Sufficient Domestic
Market
Lack of Standardisation
Contribute to Heighten the High End Store
13