- Reduction of Domestic Prices and Expanded Consumer Choice
Consumers are developing more diverse tastes and now demand a wider range of goods and
services from which they can choose. They not only want choice, but they also want
products that provide greater comfort and a sense of material well-being.
Efforts by the private sector to reduce costs, in line with structural reform カジノシークレット ブラックジャックhe distribution
industry, have led to a long-term commitment to selling cheaper yet better goods. This
practice has been criticized by some, however, for generating unwanted deflationary pressure
withカジノシークレット ブラックジャックhe Japanese economy.
In general, however, productivity improvements カジノシークレット ブラックジャックhe manufacturing sector and streamlining
カジノシークレット ブラックジャックhe distribution and transportation industries are indicative of a sustainable response by
these industries. Resulting changes, カジノシークレット ブラックジャックurn, will help to reduce domestic prices to the level
of international prices and will serve to boost real income levels. Consumers now enjoy a
much wider range of choice in quality as a result of the cooperative efforts of distribution and
manufacturing industries, which have teamed-up to develop safer, higher-quality products
tailored to the Japanese consumer.
Table 1: Declinカジノシークレット ブラックジャックn Consumer Prices - FY '91 vs. FY '94
Household Appliances: VCRs | -29.0% |
Miscellaneous Household Goods: Tissue Paper | -13.4% |
Clothing: Suits | -9.0% |
Alcohol: Imported Wine | -9.4% |
Source: Consumer Pricカジノシークレット ブラックジャックndex (Economic Planning Agency)
- Greater Convenience for Consumers
Consumer lifestyles have changed considerably in recent years, reflecting social changes such
as the aging of the population, urban development and the rising number of women カジノシークレット ブラックジャックhe
workforce. As a result, the distribution industry has changed as well, in an effort to provide
new and different services to Japan's changing society.
Following revisions to the Large-Scale Retail Store Law, many retailers have extended their
hours and reduced annual holidays, making it easier for working men and women to do their
weekly shopping. The number of convenience stores, geared to customer satisfaction in
location, hours and services, has increased significantly, as has the number of non-store
retailers, like catalog sales firms and vending machines. These changes have also made
shopping easier for the elderly and those living in rural areas.
Table 2: Closing Times at Top 20 Supermarkets
Closing Time | 18:30 | 19:00 | 19:30 | 20:00 | 20:30 | 21:00 | 22:00 |
Before Revisions | Number of Stores | 8 | 563 | 322 | 380 | 5 | 18 | 9 |
% of Total | 0.6 | 43.1 | 24.7 | 29.1 | 0.4 | 1.4 | 0.7 |
After Revisions | Number of Stores | 4 | 98 | 73 | 1,112 | 5 | 20 | 12 |
% of Total | 0.3 | 7.4 | 5.5 | 84.0 | 0.4 | 1.5 | 0.9 |
Note: May '94 amendments to the Large-Scale Retail Store Law allowed retailers to extend
their hours from 7:00 to 8:00 PM without submitting notification, and to reduce the number of
holidays from to 44 to 24 without notification. #2 - "Before Revisions" refers to April '94
and "After Revisions" to May of '94.
Source: "Retail Reform", September '94
Table 3: Annual Holidays at the Top 20 Supermarkets
Holidays | 44 or More | 25-43 | 24 | Less than 24 |
Before Revisions | Number of Stores | 27 | 559 | 508 | 248 |
% of Total | 2 | 41.7 | 37.9 | 18.5 |
After Revisions | Number of Stores | 6 | 98 | 870 | 368 |
% of Total | 0.4 | 7.3 | 64.3 | 27.4 |
Note: Same as Table 2
Source: "Retail Reform", September '94
Table 4: Rise of Convenience Stores and Non-Store Retailers
(In Billions of yen)
| 1988 | 1991 | 1994 |
Total Sales | Total Sales | Increase (%) | Total Sales | Increase (%) |
Convenience Store | 5,013 | 6,985 | 39.3 | 8,335 | 19.3 |
Home Sales | 13,101 | 16,640 | 27.0 | 14,266 | -14.3 |
Mail Order / Catalog Sales | 1,359 | 2,122 | 56.1 | 2,462 | 16.0 |
Sales from Vending Machines | 1,032 | 1,382 | 34.0 | 1,569 | 13.5 |
- Note:
- A convenience storカジノシークレット ブラックジャックs defined as a retail outlet with at least 50 and no more than 500
Square meters in sales floor area, of which no less than 50% is self-service, and which
is open at least 12 hours daily and/or closes after 9:00 PM.
This definition includes non-chain stores and those not open 24 hours. Home Sales
refers to sales カジノシークレット ブラックジャックhe home or similar location by visiting sales representatives,
including automobile sales.
Source: "Commercial Statistical Survey" (Ministry of International Trade and Industry.)
- Efficiency Improvements to the Overall Distribution System
The appreciation of the yen is steadily making our worst fears about the hollowing out of
industry, into stark realities. Japan's most pressing task is to boost the overall efficiency of
all domestic economic activities, from production through consumption, as a single unified
system, in order to guarantee employment levels.
Distribution, manufacturing, transportation and related industries are utilizing information
technologies which link diverse areas such as product planning and development, production,
ordering, retailing, inventory control. transportation and accounts payable. Integrated
management and operation in a number of these areas, albeit on a limited scale, are helping to
reduce costs. カジノシークレット ブラックジャックhis way, although there is still room for further efficiency カジノシークレット ブラックジャックhe areas of
business practices, transportation, sales management, in general, the manufacturing,
distribution and retailing industries are working together to streamline and integrate the
wholesaling industry. Their efforts are in fact eliminating some "wholesalers or middlemen"
who have long symbolized the inefficiency of the Japanese distribution industry.
Table 5: Declining Size of Distribution Industry Relative to GDP
| 1982 | 1985 | 1988 | 1991 | 1992 | 1993 |
Added Valuカジノシークレット ブラックジャックn Distribution Industry/GDP (%) | 14.9 | 13.4 | 12.9 | 12.8 | 12.8 | 12.6 |
Source: Annual Report on National Accounts (Economic Planning Agency)
Table 6: Decline カジノシークレット ブラックジャックhe W/R Ratio
| 1979 | 1982 | 1985 | 1988 | 1991 | 1994 |
Total | 2.65 | 2.93 | 2.74 | 2.63 | 2.69 | 2.50 |
Food Products | 2.59 | 2.57 | 2.58 | 2.48 | 2.44 | 2.22 |
Note: W/R Ration = (Wholesale Sales - Sales to Industry - Sales to Overseas Buyers) / (Retail Sales)
Source: Commercカジノシークレット ブラックジャックndustry Statistics (Ministry of International Trade and Industry)
- Urgency of New Business and Job Creation
As noted in Keidanren's Interim Recommendations of the Committee on New Industries/New
Businesses titled "Proposals for the Creation of New Industries and New Enterprises" (July
'95), given the maturation of Japan's leading industries, the most important priority for
industrial policy is revitalizing the economy by creating new industries and businesses, which
will カジノシークレット ブラックジャックurn create new jobs.
Structural reform カジノシークレット ブラックジャックhe distribution industry has produced a variety of new forms of business,
especially withカジノシークレット ブラックジャックhe category of larger retailers. Examples include variety discounters and
factory outlets. Foreign firms as well have entered this new arena as discounters and mail
order retailers. These developments have steadily begun to generate new jobs,
notwithstanding the occasional labor supply/demand imbalance linked to location, age of
workforce and other factors.
Table 7: Increasカジノシークレット ブラックジャックn New Stores
| 1991 | 1994 | Increase |
All Retailers | 1,600,000 | 1,500,000 | -6.6% |
Large Retailers (50 employees and up) | 8,000 | 10,000 | 23.0% |
Medium-size Stores (5-49 employees) | 320,000 | 350,000 | 9.7% |
Small Stores (1-4 employees) | 1,270,000 | 1,140,000 | -10.9% |
Source: Commercカジノシークレット ブラックジャックndustry Statistics (Ministry of International Trade and Industry)
Table 8: Job Creation
| 1991 | 1994 | Increase |
All Retailers | 7,000,000 | 7,380,000 | 5.5% |
General Supermarkets | 230,000 | 270,000 | 17.4% |
Specialty Supermarkets | 260,000 | 370,000 | 38.4% |
Convenience Stores | 360,000 | 490,000 | 38.0% |
Source: Commercカジノシークレット ブラックジャックndustry Statistics (Ministry of International Trade and Industry)
- Rising Imports of Finished Products
In order to address the continued appreciation of the yen and reduce economic friction with
other nations -- particularly with the United States and Europe -- Japan must promote
harmony and unity between its domestic and overseas markets and seek an "expanded
equilibrium" カジノシークレット ブラックジャックhe trade imbalance, reducing it to an appropriate level.
The distribution industry is now attempting to procure finished goods カジノシークレット ブラックジャックhe international as
well as the domestic market. Coupled with growing imports of intermediate goods by the
manufacturing sector, this trend has served to boost the ratio of product imports, has opened-
up the Japanese market to the international community and passed on the benefits of the
strong yen to Japanese consumers.
Table 9: Rising Product Import Ratio
| 1984 | 1987 | 1990 | 1993 | 1994 | 1995 (first half) |
Product Import Ratio (%) | 29.8 | 44.1 | 50.3 | 52.0 | 55.2 | 57.7 |
Note: Product Import Ratio = Product Imports/Total Imports (in US $)
Source: Product Import Trends (Japan External Trade Organization)