marketing applied to a different culture, the case of japan
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Marketing applied
to a different culture
The Japanese example.
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UnderstandUnderstand local local specificitiesspecificities … …
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Approaching Japan’s specificities
Demographics
Culture
HistoryHistory
Education
Geography
Language
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Geography
Population density
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Geography : hypercentralization
« Greater Tokyo » Area :
35 Mn people, world’s most populous
urban area
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Geography Lesson #1 : open H.Q in Tokyo !
� 25% of national population
� > 40% population below 40 years old
� most key companies (advertising, distribution, law)
have their H.Q. in Tokyo
Advantage : need only 1 office in Japan to address most
of market, especially for consumer goods, fashion,
hightech, telecoms…
Hurdle : highly competitive environment :
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Geography #2 High Density
Scarce Space
Innovation
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Geography #2 High Density
Innovation : capillary Distribution
(CONVENIENCE STORES ‘conbini’)
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Geography #2 bis High Density � Urban Sprawl
Convenience stores @
Avg. 2 hours train /day � CAPTIVE MARKET FOR :
Mobile phone services
Convenience stores @
train stations
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Geography #2 bis
� The mobile phone’s tiny screen is
capturing an increasing part of people’s
time. « Economics of attention »
http://asie.atelier.fr/telecom/mobilite/article/chiffres-2006-de-la-telephonie-mobile-au-japon
Japan- mobile penetration
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Geography #2 bisMobile phone services :
Mangas, TV, Social
Networking
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Geography Lesson #2 : Distribution strategy
� « Conbini « rather than supermarkets
http://www.youtube.com/watch?v=reGN92nSNbQ
Location Access Frequ. Of
visit
Avg.
Purchase
Surface References
Supermarket City Car 1-2/week $100 >1000sqm >10,000Supermarket(France, USA)
City outskirts
Car 1-2/week $100 >1000sqm >10,000
Conbini(Japan)
<5m.Fromsubwaystation
Foot 2-3/day $10 100sqm >1000
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Geography Lesson #2 : Distribution strategy
43,667 convenience stores in Japan [2007] :
7-Eleven, Lawson (Mitsubishi Corp.), FamilyMart...
Items offered :
-most items found in supermarkets (“100 sq meter, 1000 items”)
- And : * Courier, or postal service, photocopying, fax.* ATMs.* Utilities and other bills ; tax payment.* Tickets :concerts, theme parks, airlines etc
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Geography Some failed experiences :
http://www.telegraph.co.uk/finance/2726058/Boots-ends-Japanese-venture.html
4 stand alone stores, too expensive (partner : Mitsubishi Corp)
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Vodafone’s failure & takeover by Softbank (Jp)
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Geography Lesson #2 : Distribution strategy
DANONE relies on Mitsubishi Corp to distribute Volvic
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The key role of Trading houses (GTC) in Distribution
sōgō shōsha?総合商社総合商社総合商社総合商社
>50 % of Japan's foreign trade - Domestic sales of the nine largest = 31% GDP- Mitsubishi Corp. : largest company in Japan
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The GTC : a key partner to access Japanese Market?
Transportation Real Estate
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Geography #3 Expensive urban real estate
A large market for
Luxury brands …
why ? In Tokyo :
Parking space, NOT covered
€400/mois
Studio, 30 sqm
€1100/mois
Avg Salary (30y university graduate : €2000)
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Geography #3 Lesson #3 :
� a large majority of young urban professionals
(especially female) live with their parents until mariage,
� these ‘parasite single’ have very large purchasing
power
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Geography #3 Lesson #3 : the main market is young
women living in Tokyo !!E
lega
nt
casu
al
‘selfish’
popularhttp://107gou.seesaa.net/category/5172585-1.html
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Geography #3
Catering for young urban female employees…
Louis Vuitton
Hermès
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Demographics-The longest life expectancy
-1 Mn people turn 65 every year since 2002
- Population starts declining
INNOVATION
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Demographics
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Language and signs
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Retailing of household & consumer goods
Distinguished by design minimalism, recycling, no wasteand no-logo or "no-brand" policy.
*Mujirushi Ryōhin = No Brand Goods
Language and signs Lesson : Innovating by seeking simplicity
http://www.youtube.com/watch?v=qKVA_aM_Bgs
Shop in Paris
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Culture History +
Centuries of ACCULTURATION:
(1)Discover/import a foreign product, concept (ceramics, tea, just in time)
(2)Improve and innovate on original product/concept
#1 : A relentless curiosity towards whatever is FOREIGN :
Fine foods
Brands
Traveling (‘la route des vins en Bourgogne’…)
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#2 : seek PERFECTION in Services, Products, wrapping
� very high standards in the services industry :
a challenge to foreign newcomers on the market
� expectations in products quality.
Culture History +
� expectations in products quality.
� packaging / wrapping .
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出る釘は打たれるderu kugi ga utareru
« the nail that sticks up gets hammered down »
Culture History +
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#4 : Gregarious purchasing behavior :
Culture History +
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#3 : a culture of gift making, celebration of effort and
shaming of difference.
Culture History +
Sankin kōtai (参勤交代 / "alternate attendance")
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#5 : Leisure and Tourism bring you shame :
Culture History +
In 1999; 56% of trips <5day ; 29% : 6-10days
http://www.chusho.meti.go.jp/pamflet/hakusyo/h13/gif/13213432.gif
旅の恥はかきすて(« conceal this shameful journey » )
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Lesson #4
-A niche : alibi-seller
Culture History +
http://query.nytimes.com/gst/fullpage.html?res=9C02E7D9123CF932A25754C0A96F958260&sec=&spon=&pagewanted=all
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-A niche : alibi-seller
http://query.nytimes.com/gst/fullpage.html?res=9C02E7D9123CF932A25754C0A96F958260&sec=&spon=&pagewanted=all
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Distribution
-Types channels japan -Train malls : Yokohama queens square
-http://www.qsy.co.jp/english/index.htm
--
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Subway station.
Problem : how to get pedestrian
to come to the new commercial area,
‘Ebisu Garden Place’
‘Ebisu Garden Place’
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Subway
Airconditioned, covered Walkway
« Garden Place »
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Roppongi HillsAtago
Reinventing the city : verticalizing the city’s functions
ShiodomeShanghai
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Marketing applied
to a different culture
http://www.foodnavigator.com/Legislation/Snow-Brand-Milk-scandal-spirals-downwards
Dr Luc BEAL
IDRAC-ICAR January 2009
The Japanese example.