In the last two decades, Japan’s channels of distribution have developed substantially. There are many distribution channels for consumer and industrial products. Small retail businesses are the most common places of consumer purchases due to limited space and dense metropolitan populations. As a result, shops usually stock small quantities of a product, while wholesalers provide small quantities of a product more frequently. This system is brought by the Japanese cultural preference for doing business with face-to-face interaction, as well as loyalty or a sense of responsibility in relationships. The expenses of this ineffective distribution system are passed on to the customer at the product’s ultimate price. This approach is being challenged by the growth of businesses and eCommerce.
The keiretsu system’s vestiges may still be found in Japan’s current distribution and sales structure. These broader integrated company organizations, which were culturally engrained in Japanese economic interactions, revolve around banks and trade enterprises. Even though the keiretsu structure has deteriorated significantly, these organizations have business offers that span the whole industry, from manufacturing to distribution. Because of their size, established ties, and customer loyalty, they are either incredibly handy and effective for individuals they serve or a huge competition for smaller businesses. For new exporters to Japan, the distribution channels that these corporations control might be a stumbling block.
Dakishana is in good hands with our customers. We strive for a well-earned reputation by honesty. By selecting the right people to do business with conduct comprehensive due diligence. COVID-19 pandemic ultimately changed business continuity, there are necessary changes of distribution models for long-term trust with customers. The process looks like avoiding risk profiles. Japanese insurers have immediately mobilized in response to the COVID-19 pandemic as of May 2020 (PricewaterhouseCoopers, 2021). The battleground for insurers who have previously leaned on face-to-face (F2F) distribution and people-intensive operations covers all fronts: mass consumer acquisition, business operations, and claims distribution.
Page Author: Daisy Magdaleno
