Section 4: In this section we will discuss the marketing and supply chain in Japan.

Upon in completing this section, we are expected to understand the current characteristics of the
marketing and supply chain management and choose appropriate strategies for doing business.

For introduction: Japan’s distribution system is a mixture of numerous traditional mom and pop style
distributing system and highly efficient modern supply chain management. Therefore, it is distribution
side of logistics and not the supply chain management that differs so greatly from the americal styles.

Ang mom and pop style distributing system ay colloquial term na ginagamit to describe a small, family
owned or independent business. Kadasalan sa mga mom and pop store ay nahihirapan makipaglaban sa
mga malalaking stores. Furthermore, mom and pop businesses benefit from local consumers who are
determined to pump their communities to promote local economic growth.

Next is traditional and distribution channel. The Japanese consumer market has huge potential.
However, unlike the consumer market in the U.S, the Japanese consumer market is much more
diversified. Japan has been a diversified market, with the financial sector, insurance companies, auto
industries, manufacturing and trading companies having a fair representation.

Consumers required more varities and emphasize flexibility and convenience. This market characteristics
required different marketing strategy.

As part of Japanese culture, the Japanese hold the complicated view to work foreigner and this view as
carried over an important product which makes difficult to American companies to market their product
in japan.

Next is connections are important. Sa Japanese business culture, importante yung connection and
relationship to build business network and to ensure success. And isa rin ito sa challenges ng foreigners
na gusting magbusiness sa japan.

According to japan commercial ad, around 50% of consumer purchases are completed at neighborhood
small stores and yung statistics na to is mas mababa kaysa sa united states.

Next is the current issues in Japan. In recent years, large distributor tulad ng supermarket, discount
stores, escpecially yung mga retailers at department stores ay naging popular sa japan. Karaniwang
binebenta sa mga stores na to is yung mga foreigner products at target nila is yung mga urban
consumers.

Another factor that may alter consumption in japan is the sluggish economic development the country
experienced during the last decade. This economy recession is the company lower income, deflation,
and higher unemployment. Dahil dito naging mas sensitive ang mga Japanese sa price nila kumpara dati
and then naging opportunity ito ng foreign product since mas mababa ang price nito kaysa sa domestic
product but their price is lower because Japanese preferred domestic product.

So next is pricing. The current economic reality in japan has made price increasingly important factor for
purchase. However, yung pricing ng U.S products at nakadepende sa distribution channels. U.S in the
end market are priced at 3 times of FOB or free on board price.

Furthermore, because of the economic downturn, many small middle men are more willing to reduce
markups in order to survive the market.
Isa pang factor ang domestic shipping cost and fluctuation of yen. The shipping costs among Japanese
port or from port to distribution centers are very expensive. Therefore, good supply chain management
particularly in terms of anticipating demand mat bring an advantage over other competitors who do not
practice good supply chain management.

Importante to kasi isa ito sa best way para makipag compete sa Japanese domestic products in the
Japanese market.

One factor that international companies mut account for that domestic companies do not need to worry
about is fluctuation of yen to their home currency. The yen has fluctuated dramatically over the past few
years this the foreign exchange rate us an important factor to consider when developing your pricing
strategy.

Next is we will talk about the locate a partner. The best way to enter japan consumer market is build a
presence in the local market however it is expensive and only suitable for large companies. And for small
and medium size the U.S exporters, finding an afent or distributor partner may be more realistic when
searching for a partner in japan.

Always remember the Japanese business culture when you are planning to build a business in japan.

Japanese business people usually use connections to introduce someone whom they’ve never met face
to face. So mag eeffort ka talaga kapag gusto mo magbusiness sa japan pero malaking tulong yon para
maging successful yung business.

To attract the attention of a potential Japanese partner, a good image is very important. This image
includes superior quality, price competitiveness, innovation and a commitment to personal
relationships. You should also know your agents business. Their credut competitiveness, sales coverage
and the willingness to market your product.

Next is the challenges for U.S exporters. Japanese attitude ti foreign products as discussed price is
becoming more important in purchasing decision.

However, the traditional view toward foreign products still has an important influence on Japanese
consumption preference.

Therefore finding a way to compete with Japanese domestic products is critical to successfully selling a
product.

The increasing price sensitivity of the Japanese consumers maybe helpful for marketing US products.
Remember that successful marketing goes beyond low price promotion distribution strategy and local
presence are all important for U.S product.

The next challenge is how to build good relationship with Japanese partners. Good relations requires
substaintial personal contact.

Which is important to let your Japanese partner know you better.

Japanese language skills are also very valuable. Probably the most effective way to do business in japan
is to learn from the Japanese being engage in your business and work as hard as a Japanese.
By now, you should have learned some valuable information about marketing US product in japan such
as the importance of price distribution and market characteristics.