Transcript Japanese Department Store : A Failure in Globalisation

Japanese Department Store
: A Failure in Globalisation
Rika Fujioka
fujioka@osaka-ue.ac.jp
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