Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 25 pages
Data source: Published sources
Topics:
Wal-Mart; Japan; Retail; EDLP (every day low prices); Low price; Rollback; Ito-Yokado; Seiyu; Daiei; Aeon; SMART; Supplier; Japanese consumers; Discount; Inventory
Share a link:
https://casecent.re/p/72153
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In the 1980s, the Japanese retail market was dominated by local players like Daiei, Aeon and Ito-Yokado. The Japanese government started encouraging foreign trade and foreign retailers started entering Japan. With the entry of these retailers, the domestic retailers witnessed decline in their sales. To protect the interests of the local players, Large Scale Retail Store Law (LSRSL) was amended by the Japanese government in the late 1980s, which restricted the entry and expansion of foreign retailers in Japan. In the 1990s, when the LSRSL was amended to encourage foreign trade in Japan, a few players like Carrefour and Costco entered Japan. To encourage more foreign investment, the Japanese government abolished the LSRSL in 1998 and a few companies like Wal-Mart and Tesco started studying the Japanese market. In 2002, Wal-Mart entered Japan through an alliance with Seiyu. In spite of Wal-Mart''s efforts, it witnessed losses consecutively since it entered Japan due to its low pricing strategy and also due to Seiyu''s ineffective management. In 2006, to succeed in the Japanese retail market, Wal-Mart decided to introduce both high and low priced items. It remained to be seen whether Wal-Mart would succeed in Japan.
About
Abstract
In the 1980s, the Japanese retail market was dominated by local players like Daiei, Aeon and Ito-Yokado. The Japanese government started encouraging foreign trade and foreign retailers started entering Japan. With the entry of these retailers, the domestic retailers witnessed decline in their sales. To protect the interests of the local players, Large Scale Retail Store Law (LSRSL) was amended by the Japanese government in the late 1980s, which restricted the entry and expansion of foreign retailers in Japan. In the 1990s, when the LSRSL was amended to encourage foreign trade in Japan, a few players like Carrefour and Costco entered Japan. To encourage more foreign investment, the Japanese government abolished the LSRSL in 1998 and a few companies like Wal-Mart and Tesco started studying the Japanese market. In 2002, Wal-Mart entered Japan through an alliance with Seiyu. In spite of Wal-Mart''s efforts, it witnessed losses consecutively since it entered Japan due to its low pricing strategy and also due to Seiyu''s ineffective management. In 2006, to succeed in the Japanese retail market, Wal-Mart decided to introduce both high and low priced items. It remained to be seen whether Wal-Mart would succeed in Japan.