Evolution, Revolution & Innovation: An exploration of Japanese retail
Mar 30, 2023 MB
Our BCG Group General Manager, Simon Cummins has just embarked on a journey through Japan’s extraordinary retail industry. Here’s what he discovered…
Japan is a country that has captured the world's imagination with its stunning natural beauty, fascinating culture, and mouth-watering cuisine. A country that is not only rich in history but is also an authority in technology and modernisation, Japan is without a doubt, a tourist haven.
As someone with a keen interest in retail, I was particularly intrigued by Japan's unique retail culture. I had heard stories for years about the country's innovative approach to retail, which combines traditional practices with cutting-edge technology to create an unparalleled shopping experience. Eager to experience it for myself, I embarked on a 14-day study tour of Japan's retail industry to discover what makes it so distinctive and successful.
First stop: Tokyo
When I first set foot in Tokyo, it was immediately clear that I was in a retail paradise. The city is full of towering department stores, luxury boutiques, and trendy streetwear shops. I started my tour in the heart of Tokyo's shopping district, Ginza. There, I found myself surrounded by high-end fashion houses and some of the most opulent shopping experiences I have ever seen.
Strolling along Tokyo’s busy streets, I discovered that Japan's retail industry is about more than just luxury brands, it is all about convenience. True enough, convenience stores are a ubiquitous feature of Japanese society. I visited several major chains, including 7-Eleven and Family Mart. These stores offer a dizzying array of goods, from fresh sushi to toiletries and electronics. It was fascinating to learn that convenience stores in Japan also double as community hubs, where people can pay bills, pick up packages, and even access medical services.
It was hard to miss the abundance of vending machines throughout Japan. These machines dispense everything from hot and cold drinks to hot meals and even fresh flowers. They are a testament to Japan's convenience culture, and I found myself using them on a daily basis.
Another aspect of Japanese retail that fascinated me is the country's innovative approach to cash handling. Despite the rise of digital payments, cash is still king in Japan. I saw numerous examples of cutting-edge cash handling technologies. Self-checkout machines and cash deposit ATMs are just two examples of how Japan is leading the way when it comes to handling physical currency.
Next: Nagano’s rural retail scene
After a few days in Tokyo, I travelled to Nagano, where I explored the more rural side of Japan. Even in these smaller towns, the convenience culture is alive and well, with vending machines and convenience stores found in almost every corner. I also visited a local farmer's market and witnessed how traditional Japanese produce is being sold using modern retail techniques.
On to Kyoto: A fusion of old and new
My study tour continued in Kyoto, where I was struck by the city's mix of ancient traditions and modern retail practices. I visited traditional markets that have been in operation for centuries and witnessed how these markets are incorporating modern retail strategies. One standout example was the Nishiki Market, which dates back over 400 years and has been modernised with digital signage and interactive displays.
And Last but not least: Osaka’s street markets
Finally, I explored the Osaka’s vibrant street markets. These markets are a hub of activity, with vendors selling everything from clothing to souvenirs to street food. One particularly memorable experience was visiting the Kuromon Ichiba Market, which has been a fixture of Osaka's food scene for over 190 years.
As my study tour came to an end, I was filled with a sense of awe and admiration for Japan's retail industry. The country's unique blend of time-tested traditions and modern technology has resulted in an industry that is both innovative and customer focused. I left Japan with a newfound appreciation for the power of retail. I’m excited to see where this dynamic industry goes next, and with my Japanese experience in hand, I’m inspired to continue improving and innovating BCG’s product offerings to live up to our promise to bring the best business solutions possible to our customers.
Email: Retail@briancummins.com.au
Phone: 1300 66 22 14
