The role of medium-sized firms in retail change in Japan

Abstract

The processes and structures in the retail sector in Japan frequently are characterised as very traditional. Since the decade of slow growth in the 1990s a small group of medium-sized retail firms have adopted strategies that have allowed growth in sales and profit. These medium-sized firms, that are present in several sub-sectors of retailing, are becoming, through strategies focused on localisation and ‘newness’, the role models and catalysts for a more general change that is spreading through Japanese retailing.

Key words:

• Japan
• retailing
• marketing strategy
• structural change
• localisation
• innovation

Acknowledgements

The studies on which this paper is based were undertaken over an extended period during which the Authors received support from the Japanese Ministry of Education. Dawson also received support through a Japan Society for the Promotion of Science Fellowship based at Saitama University. This support is gratefully acknowledged. The authors additionally gratefully acknowledge the comments of two anonymous referees who helped us develop the focus of the material.

Notes

¹The selection of the case study companies that form the basis of this paper was made in the following way. An extended period of monitoring of changes in Japanese retailing was undertaken through residence and frequent visits to Japan. Interviews were conducted with commentators and analysts who highlighted activities of firms. Statistical analyses were undertaken based on official statistics and data from market research organisations. Having identified a number of medium-sized firms that appeared to be successful further in-depth desk research was undertaken on these firms, some being eliminated from consideration, before interviews were conducted with senior executives. The interviews were carried out between 1999 and 2003.