Japan's domestic demand industries are accelerating their expansion in the Asian market.

by wgyuvs8a on 2012-02-22 11:48:07

This year, the number of overseas stores of Japan's five major convenience store groups has reached 1.5 times that of domestic stores in Japan. Due to the sluggish domestic demand, the "reversal of inside and outside" phenomenon of Japan's domestic demand industries such as retail and takeout is gradually increasing, and the trend of domestic demand industries actively investing in emerging markets in Asia is becoming increasingly obvious.

According to Japanese media reports, in the 2011 fiscal year, the total net increase in the number of stores of Japan's five major convenience store groups was about 1600. Meanwhile, the net increase in the number of overseas stores of four convenience stores that have already entered the overseas market, including 7-11, Lawson, FamilyMart, and Mini Stop, reached about 2500 during the same period. In addition to having opened stores in the South Korean market, Abe Nobuyuki, president of Mini Stop, also said: "We plan to open stores in three Southeast Asian countries within two or three years."

In addition to convenience stores, Uniqlo, Japan's famous casual wear brand, plans to open 108 new stores overseas before August next year. So far, in October and November, new stores have been opened in New York and Seoul respectively. Regarding this, Tadashi Yanai, chairman and president of Uniqlo, said: "In order to become the world's leading casual wear brand, we must enter the rapidly growing Asian market."

Companies in the takeout industry, such as Watami and Yoshinoya, also have ambitious overseas store opening plans. In 2011, the number of overseas stores opened by Watami increased by 26 compared to the previous year. It is currently planning to enter the South Korean and Thai markets, with a plan to open about 200 overseas stores by 2016. The Yoshinoya Group plans to open at least 1000 new overseas stores by February 2016, while the plan for domestic additions during the same period is only 800.

While expanding significantly overseas, the domestic retail and takeout markets in Japan are showing a continuous shrinking trend. According to statistics from the Ministry of Economy, Trade and Industry, Japan's domestic retail sales in 2010 were approximately 135 trillion yen, a decrease of 7% compared to the peak year of 1996. According to data from Japan's comprehensive research center for the takeout industry, Japan's takeout market in 2010 decreased by about 20% compared to 1997.

The entry of Japan's retail and takeout industries into the market is mostly concentrated in the Asia-Pacific region. The expansion of the middle class in Asia has brought potential markets. Additionally, the popularity of Japanese food culture and fashion trends in Asia has also helped Japan's retail and takeout industries expand into overseas markets. Furthermore, Japan's government decision to participate in TPP negotiations and its hope to promote free trade in East Asia may further accelerate the pace of Japan's retail and takeout industries entering overseas markets.