How to make Japan retail marketentry a success?

4 key success factors for profitable and sustainable retail expansion

FUKUTOKUSHA K.K.

#1 Create “Magic” with the 1st StoreLocate the brand’s 1st store in TOKYO in prime

location e.g. Ginza or Shinjuku, facing the street For the brand to spread word-of-mouth across

Japan and rise awareness most efficientlySuch a location requires high rent, so the store must

make super-high sales from super-high customer transaction, therefore…

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#1 Create “Magic” with the 1st StorePR the brand through Japanese media BEFORE 1st sto

re opens to give brand a highly fashionable image Make Japanese consumers feel hunger for the br

and and have them eagerly wait for the brand Then, consumers will line up in “Gyouretsu”

Make sure cameras will wait for 1st store opening and the photos will be disseminated across media

#2 Build Bond with “Developers”Almost all shopping complexes in Japan are built by

major “Developers” e.g. AEON or railway companies Building good relationship with “Developers” is a

must to achieve successful store expansionIf a brand succeed in achieving profitability with the

store in prime location, shopping center tenancy offers will be awarded by “Developers” to the brand

But don’t rush; hierarchy existsamong “Developers”—prioritize business with higher hierarchy “Developers”

#3 Be Prepared for the Fast ExpansionEvery successful retail company experiences fast

market expansion stage When the time comes, flood of new store

opening opportunities come all at onceSecuring human resources and finance become very

critical at that stage Build relationship with

labor market and financemarket before the fastexpansion stage starts,in order not to missthe chance for growth

#4 Be Prepared with New Store Concepts When a brand grows and penetrates in Japan

market, new store concepts become necessary to grow further for two reasons;

1. “Developers” start requesting new “news” as a tenancy condition to revive media attention

2. “Small” size store type become necessary to secure real estate location for further expansion Small physical store size Small sales but profitable

To learn more aboutstore development in Japan,

please visitRetailingJapan.com

Thank you.