China becomes the preferred market for overseas retail stores in Japan
In the global retail market, Asia has indeed shown good development potential in recent years. In the 2016 Global Retail Development Index released by ATKearney Consulting, the top five are all Asian countries, including China, India, Malaysia, and Indonesia. In the 2017 Global Retail Development Index, India, China, and Malaysia are still in place. The top three.
China is still one of the most attractive retail investment markets. The Washington Post previously reported that China’s total retail sales could reach 5.8 trillion US dollars (about 37 trillion yuan) in 2018, and it is expected to be equal to the United States or even more than the United States.
The fast-growing Chinese market has brought development opportunities to those Japanese retailers that have entered. For example, the UNIQLO parent company Fast Retailing Group’s revenue and net profit reached a record high in 2017. The main driving force for profit growth came from Greater China, where operating profit was 50.1 billion yen, up 37% year-on-year. Uniqlo plans to achieve the goal of opening 1,000 stores in China in fiscal year 2021. Judging from the February 2018 results released by the MUJI parent company, the most outstanding performance is also in the Chinese market. Revenue increased by 25.4% year-on-year to 68.9 billion yen (about RMB 4.03 billion), which has become the brand. The second largest market in the world. In addition, Japanese convenience stores have also accelerated the pace of the Chinese market.
In addition to China, many Japanese brands have also begun to actively expand the Southeast Asian market. At the end of 2017, Don Quixote, Japan’s largest drug store, opened its first store in Singapore, called "DON DON DONKI", and will open a second in 2018. In March of this year, Uniqlo opened its first brand flagship store in Bangkok, which is considered to be a sign of its expansion in Southeast Asia. In May, Nojima, a Japanese home appliance chain, opened its second store in Singapore.
However, in the face of overseas markets that are different from the local business environment, Japanese retail companies are also facing many challenges. Compared with the acquisition of local companies, they began to prefer to cooperate with local companies to help the development of overseas business.
Regarding the question of “What are the plans for overseas business in the future?”, the company that has opened stores and plans to open stores has chosen “the cooperation with local enterprises”, accounting for 39.4%, exceeding the “M&A local enterprises”. "Options. In the 2016 survey, the proportion of “M&A local companies” was the highest.
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