In the past twelve months, Ito Yokado has reorganized itself into Seven & I Holdings and bulked up with Seibu and Sogo department store holding company Millenium Retailing. Motoya Okada’s already quite beefy Aeon group has continued its push to bulk up — even going so far as to wrestle with Don Quijote over a box lunch / home replacement meal manufacturer. A score of other retailers have begun casting furtive glances at other retailers outside their immediate industry. What’s going on? Read the rest of this entry »
The New Zaibatsu – Japan’s Retailers Rush to the Altar
March 25th, 2006Retail – Global or Local?
March 12th, 2006As a retailer’s primary market matures, two conversation threads begin to resonate in the boardroom. Do we introduce a new concept in a market we know well? Do we take a concept and corporate culture we know well and expand abroad? Or do we do both?
In 1993, having spend the better part of a year putting together The Gap’s Japan market entry plan I had opportunity to present to The Gap’s executive committee. Five minutes into the presentation, Mickey Drexler quietly rose and left the room — thus making it eloquently clear that The Gap would not be going to Japan that year. Had there been a discussion it would have only repeated the conversations taking place around these strategic choices at that time. Namely with thin resources, Gap Shoes still in test, Gap Body and Old Navy about to launch and a raft of other issues, was it the appropriate time to start Japan?
The companies and concepts change, but the conversations remain the same. What is the most efficient allocation or re-investment of a retailer’s cash flow once their core market matures? Read the rest of this entry »
Joint Venture Happiness
February 12th, 2006Many joint ventures do not work out. The most common reason for this is that the objectives for creating the joint venture today are usually much clearer than the venture’s endpoint in a mature market or market niche still some years in the future. Here’s how to maximize your happiness and that of your partner. Read the rest of this entry »
Japan GMS woes: Playing the Monkey in the Middle
January 30th, 2006Japan’s General Merchandise Stores, most notably represented by Ito Yokado, Aeon (Jusco) and Daiei face a significant shift of consumers away from their stores. Don’t underestimate the challenge this sector faces just to maintain share, much less regain ground. Read the rest of this entry »
Retailers talk to each other
December 3rd, 2005Retail is a village. Despite being in direct competition for the customer’s wallet, as a general rule, retailers communicate more among each other than do manufacturers. Read the rest of this entry »