Opportunities for UK retail service companies in Japan

Citation

(2004), "Opportunities for UK retail service companies in Japan", International Journal of Retail & Distribution Management, Vol. 32 No. 3. https://doi.org/10.1108/ijrdm.2004.08932cab.001

Opportunities for UK retail service companies in Japan

Opportunities for UK retail service companies in Japan

Trade Partners UK is the leading government organisation for helping companies based in the UK to achieve their export potential. It aims to improve business performance through sales and investments overseas. TPUK's international trade teams are active in over 200 posts world-wide and are available in over 40 UK offices.

In nearly all areas of the business, consumer and retail sevices sector the UK is uniquely placed through historical links with the European Union, the USA, the Commonwealth and other English-speaking countries to undertake work on an international or global scale.

Recently, TPUK commissioned a fact-finding mission to investigate opportunities for UK retail services companies in Japan. Eric Doherty (Retail Planning Innovations) and Professor Leigh Sparks (Institute for Retail Studies, University of Stirling) carried out the research. Their report is now available from TPUK via their Web site (www.tradepartners.gov.uk), or from Alison Scott, Export Promoter, Japan Unit, Trade Partners UK.

Retailing is the UK's top service sector industry, employing around 2.4 million people in the UK. Its turnover rose from just over £80bn in 1984 to £175bn in 1998. With the continuing development of cross-border franchising, some of the UK's world-class companies have seen considerable success in overseas markets, particularly in Central Europe. Overseas outlets of UK stores provide excellent shop-windows for UK products. Many retailers are expanding internationally and in a variety of ways, including franchising, acquisition and joint ventures. E-commerce is another driver and allows retailers to test customers in overseas markets via their Internet sites before opening a store.

Over the past 50 years Japan's economy has resembled a hybrid mixture of state planning and free market. It has been heavily regulated, based on the needs of its traditional philosophies and networking loyalties. However, over the past 15 to 20 years the market has opened up steadily in most sectors. The Japanese government has been encouraging inward investment, while making fundamental structural changes across the board in order to liberalise the market. Opportunities exist in Japan for UK companies from the wide range of consumer, industrial and service sectors.

The TPUK report considers the current economic climate; the composition of the Japanese retail distribution sector; some of the peculiarities of Japanese retailing and the issues faced; and then moves on to consider where these opportunities lie. The UK is good at a wide range of retail services, including branding, logistics, human resources, operational management and customer analysis; these are all areas identified where opportunities will exist to assist Japanese businesses in coping with an uncertain future. Consideration is also given in the report to some of the possible constraints faced by UK companies doing business in Japan, and advice is provided as to how TPUK can help win business in Japan.

The entry of Tesco into the Japanese market will stimulate greater awareness of the excellence surrounding UK retailers. Now is the right time to consider doing business in Japan.