Food and beverage to Japan

Preparing for the Japanese market

Introduction
What do you need to do to prepare for exporting to Japan? How do you start researching the competition? What is the potential of your product in Japan?

This report has been developed to help you make an informed decision whether Japan is the right market for you.

Japan is an attractive market for Australian food companies due to its significant population base with a relatively high average income. It is Australias number one export destination for food and beverage. However, due to ongoing economic stagnation, global competition and recent significant disasters there is a greater expectation from the Japanese consumer to buy products at a more competitive price point, or for pr oducts to over deliver on the price-quality ratio. To succeed you will have to be more competitive, innovative and appealing.

The Japan market is tough, but there are still quality opportunities for the right companies with the right products, the best quality and the best packaging. Retail access is via huge supermarkets, smaller chains with an international flavour, independent gourmet outlets and mini-marts.

A broad overview of the Japan food market

Over the decades the Japanese diet has extended from traditional fare to international cuisine; in fact, almost every possible cuisine is catered for amongst the many restaurants in Tokyo. The Japan market is now a highly sophisticated and highly competitive global food market where suppliers have responded energetically to consumer demand for high quality, international and healthy products. Japan has a significant food culture a travel souvenir is almost always food related, gift giving after holidays is a mandatory part of culture and more often than not, those gifts are something special that can be eaten. The Japan market is easier to enter if you have: A real point of difference Products which are the same or similar to items already on the shelf have to compete on price, which alone makes market entry difficult. Use your research to help define your Unique Selling Proposition (USP) specifically for Japan, help the importer and retailer understand how listing your product will help their business in the long term.

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Produce for the market Be prepared to make adjustments to your product to meet Japanese market and consumer requirements. For example, Japanese consumers prefer smaller sizes and portions, or individual portion packaging.

Unusual flavours Japanese consumers appreciate different and new eating experiences. For example, while green tea and sakura (cherry blossom) are traditional flavours in Japan, you will see interesting flavour combinations such as gorgonzola and honey.

Eye-catching and image enhancing packaging Packaging is everything in Japan, it is an integral part of their culture and is not only applicable for food and beverage but for all goods. Consumers are design-aware and highly value aspirational/individualistic packaging. Average packaging will not be accepted in Japan it must be of a very high level with attractive designs and significant information in Japanese.

Shelf space The premium supermarkets with international flair offering a price point more receptive to Australian products often have limited shelf space. It may be required that not only do you need to pack smaller portions but you may also need to pack in a different package shape. Ideally, something that stands out but also taking up minimum horizontal shelf space.

Quality awards from renowned food events A respected award can assist to persuade discerning consumers to try a new product.

A focus on the environment Environmental issues are important in Japan in terms of production, product and packaging. Make sure this is highlighted on your packaging, marketing material, website, etc.

Food safety and traceability Do you have formalised systems in place to ensure traceability of your product and / or all ingredients in your product? Food safety and traceability is important if you have a formalised system in place this is an excellent selling point highlight this in your marketing material and where possible on your packaging. Major retailers and supermarket chains are becoming more conscious about standardisation of quality standards and therefore an increasing number of suppliers are applying internationally recognised standards such as SQF and Global GAP.

A free from selling point As in many first world markets, food choices in Japan are increasingly as much about health as flavour. Many consumers actively look for products that are gluten, fat or sugar free.

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A healthy benefit Nutritional information labelling is educating Japanese shoppers into healthier food options. Low fat, low sugar or low salt can be very persuasive selling points.

Competitive pricing This doesnt mean cheap although value is more important than ever at the moment for the major retailers (supermarkets) during the global economic crisis. It means being price competitive in your sector and meeting expectations that you will over deliver on taste/quality against price.

Promotional flair Your importer will expect you to have the financial and physical resources to help with promotions. You should be prepared to contribute creative ideas for innovative and cost-effective marketing and promotion.

High quality marketing material This needs to be export-focused with the most important information translated into Japanese. Dont assume what works in Australia will work in Japan.

A clear website Your website will need to include an international/export section with the most important selling information in Japanese and linked in with key Japanese search engines, your importer etc. Clear pictures of your products and the packaging are vital and if you prefer not to go into detail to this extent on your website due to copyright concerns then you will need an email version to send to short-listed / qualified prospects.

Clear export price information You need good documentation that describes your export product range. This should include a clear photograph of your packaging, together with packaging information (such as package size dimensions, the number of units per master carton, number of master cartons per pallet etc).

An Australian domestic track record You will often be asked: How successful are you in the Australian market? Where do you sell (locally and/or in multiple Australian states)? What market segment do your products occupy? What promotional activity has worked well for you in Australia?

Supply capacity This is crucial because your importer will be making a significant investment of time and effort in promoting your new product, you must have the capacity and capability to meet projected demand.

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Online research
Before you travel to Japan you can do some useful food and beverage research checking price/quality/brand comparisons online. Internet shopping and home delivery in the food and beverage sector is very popular in Japan, and its growing strongly. Unfortunately, many sites are in Japanese. W eve included some sites below in English and have highlighted relevant Japanese language sites that offer a good visual presentation. Major department stores and supermarkets Mitsukoshi Department Main and Ginza Top www.mitsukoshi.co.jp/shop?EcLogicName=category.displayindex&genre_cd=20 Food www.mitsukoshi.co.jp/shop?EcLogicName=category.displaylarge&genre_cd=20&lcat_cd=2040

Takashimaya Isetan Top www.isetan.co.jp/icm2/jsp/shops/index.jsp Food Top www.takashimaya.co.jp/shopping/ Food www.takashimaya.co.jp/shopping/food/

www.isetan.co.jp/icm2/jsp/shops/foods/index.jsp;jsessionid=8E090047B479AE9FF46F9E78602E2B9C

AEON Supermarket Shinagawa Seaside Store (AEON Group)

Top http://netsuper.aeon.jp/shinagawaseaside/shop/top.aspx
TopValu (AEONs PB)

http://netsuper.aeon.jp/shinagawaseaside/shop/category_list.aspx?CD=F1002977&WKCD=F1002977& View=lnkbImageList&Sort=default&Init=true
Food and alcohol

http://netsuper.aeon.jp/shinagawaseaside/shop/category_list.aspx?CD=F1002321&WKCD=F1002321& View=lnkbImageList&Sort=default&Init=true
Ito-Yokado Supermarket Oimachi Store (7&I Group) Top www.iy-net.jp/nsmarket/shoptop.do?shopcd=00176 Seven Premium (7&Is PB) www.iy-

net.jp/nsmarket/getfirstcategoryproducts.do?shopcd=00176&categoryCode=10006 Food www.iy-net.jp/nsmarket/getfirstcategoryproducts.do?shopcd=00176&categoryCode=10001 Beverage and alcohol www.iynet.jp/nsmarket/getfirstcategoryproducts.do?shopcd=00176&categoryCode=10002

Online based retail stores Rakuten This is the biggest online shopping mall in Japan selling a wide range of food and beverage products. Examples are as follows:

Seafood http://search.rakuten.co.jp/search/mall/-/100236/?l-id=gt_fod_l_xs

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Meat http://search.rakuten.co.jp/search/mall/-/100228/?l-id=gt_fod_l_xs Rice, grain, cereal http://search.rakuten.co.jp/search/mall/-/110472/?l-id=gt_fod_l_xs Dairy products http://search.rakuten.co.jp/search/mall/-/100262/?l-id=gt_fod_l_xs Fruit and vegetables http://search.rakuten.co.jp/search/mall/-/100246/?l-id=gt_fod_l_xs Sweets and confectioneries www.rakuten.co.jp/category/sweets/ Water and soft drinks www.rakuten.co.jp/category/drink/

Amazon Japan Food www.amazon.co.jp/%E9%A3%9F%E5%93%81/b/ref=sa_menu_food5?ie=UTF8&node=70903051 Yahoo Japan Food http://shopping.yahoo.co.jp/category/2498/recommend Radish Boya www.radishbo-ya.co.jp/index.html Organic and health food shop Oisix www.oisix.com/ Natural and organic food shop Comparison shopping engine The following website searches product prices at different retailers enter the product name in the search engine.

Kakaku.com Food http://kakaku.com/food/ Drinks http://kakaku.com/drink/

Self-guided retail tours in Tokyo

When you arrive in Tokyo we suggest you research the food and beverage offering at the following department store food halls, small chain supermarkets with an international flair, food retailers and major supermarkets. Tokyo & Nihonbashi area 1. Mitsukoshi (B1 and B2)

www.mitsukoshi.co.jp/shop?EcLogicName=storeinfo.storetopInfo&tenpoCd=10
Address: 1-4-1 Nihonbashi Muromachi Chuo-ku Tokyo | Tel: +81 3 3241 3311 Access: 1 min walk from subway Mitsukoshimae station, 5 min walk from Nihonbashi station (B11 exit), 10 min walk from JR Tokyo station (Nihonbashi exit). See 1 on the map 2. Takashimaya (B1 and B2) www.takashimaya.co.jp/tokyo/index.html Address: 2-4-1 Nihonbashi Chuo-ku Tokyo | Tel: +81 3 3211 4111 Access: 5 min walk from JR Tokyo station (Yaesu North exit), 4 min walk from subway Nihonbashi station (B1 exit). See 2 on the map 3. Meidi-ya www.meidi-ya-store.com/store_guide/kyobashi.html Address: 2-2-8 Kyobashi Chuo-ku Tokyo | Tel: +81 3 3271 1134

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Access: Located on top of the exit number 7 of subway Kyobashi station. See 3 on the map

Map around Tokyo and Nihonbashi stations

Mitsukoshimae station
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Nihonbashi station Tokyo station

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Kyobashi station
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Roppongi and Azabujuban area 1. Precce Premium www.tokyu-store.co.jp/precce_premium/ Address: Level B1 Gardenside Tokyo Midtown 9-7-4 Akasaka Tokyo | Tel: +81 3 5413 5109 Access: 1 min walk from subway Roppongi Station. See 1 on the map 2. Motomachi Union (Newest store open 24 hours) www.unionex.co.jp/open/roppongi.html Address: The Roppongi Tokyo Plaza 3-7-1-101 Roppongi Minato-ku Tokyo | Tel: +81 3 3582 9450 Access: 3 min walk from subway Roppongi station, 7 min walk from subway Roppongiicchome station. See 2 on the map 3. Meidi-ya www.meidi-ya-store.com/store_guide/roppongi.html Address: 7-15-14 Roppongi minato-ku | Tel: +81 3 3401 8511 Access: 1 min walk from subway Roppongi station (exit 2). See 3 on the map 4. Dean & Deluca www.deandeluca.co.jp/storelocations/market/roppongi/

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Address: Level B1, Tokyo Midtown 9-7-4 Akasaka Minato-ku Tokyo | Tel: +81 3 5413 3580 Access: 1 min walk from subway Roppongi Station. See 4 on the map 5. Nisshin World Delicatessen www.nissinham.co.jp/nwd/ Address: 2-34-2, Higashiazabu Minato-ku Tokyo | Tel: +81 3 3583 4586 Access: 3 min walk from subway Azabujuban station (exit 3 or 6). See 5 on the map, it is also a relatively short walk from the Austrade Tokyo office located at the Australian Embassy.

Map around Roppongi and Azabujuban stations

Roppongi station
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Azabujuban station
5

Australian Embassy

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Shibuya and Omotesando area 1. Tokyu Department Store Toyoko Store (famous Tokyu Food Show deli section)

www.tokyu-dept.co.jp/toyoko/
Address: 2-24-1 Shibuya Shibuya-ku Tokyo | Tel: +81 3 3477 3111 Access: 1 min walk from JR Shibuya station. See 1 on the map. 2. Seibu www2.seibu.jp/wsc-customer-app/page/020/dynamic/top/Top Address: 21-1 Udagawacho Shibuya-ku Tokyo | Tel: +81 3 3462 0111 Access: 2 min walk from JR Shibuya station. See 2 on the map.

3. Kinokuniya International in Omotesando www.super-kinokuniya.jp/store/international/

Address: Level b1 AO Bldg 3-11-7 Kitaaoyama Minato-ku Tokyo | Tel: +81 3 3409 1231 Access: 2 min walk from subway Omotesando station (exit B2). See 3 on the map.

4. Peacock Store in Aoyama www.peacock.co.jp/peacock_shop_info/east_aoyama/aoyama.html

Address: 3-1-34-101 Minamiaoyama minato-ku Tokyo | Tel: +81 3 3404 6661 Access: 2 min walk from subway Omotesando station (exit B2). See 4 on the map.

Map around Shibuya and Omotesando stations

Omotesando station
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2 1

Shibuya station

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Shinjuku area 1. Isetan www.isetan.co.jp/icm2/jsp/store/shinjuku/index.jsp Address: 3-14-1 Shinjuku Shinjuku-ku Tokyo | Tel: +81 3 3352 1111 Access: 1 to 3 min walk from subway Shinjukusanchome station (exit B3,4,5), 5 min walk from JR Shinjuku station, 7 minute walk from Odakyu or Keio line Shinjuku station. See 1 on the map. 2. Odakyu www.odakyu-dept.co.jp/shinjuku/ Address: 1-1-3 Nishishinjuku Shinjuku-ku Tokyo | Tel: +81 3 3342 1111 Access: 1 min walk from JR Shinjuku station. See 2 on the map. 3. Takashimaya (Kinokuniya on B1) www.takashimaya.co.jp/shinjuku/index.html Address: 5-24-2 Sendagaya Shibuya-ku Tokyo | Tel: +81 3 5361 1111 Access: 1 min walk from JR Shinjuku station (New South exit), 5 min walk from subway Shinjuku station. See 3 on the map. 4. Seijoishii www.seijoishii.co.jp/index.html Address: level 1 Lumine Shinjuku 2 3-38-2 Shinjuku-ku Tokyo | Tel: +81 3 3348 5133 Access: 1 min walk from JR Shinjuku station (East South exit). See 4 on the map.

Map around Shinjuku station

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Shinjukusanchome station

Shinjukku station

Shinagawa area 1. AEON Supermarket Shinagawa Seaside store www.aeon.jp/aeon/shinagawaseaside/ Address: 4-12-5 Higashishinagawa Shinagawa-ku Tokyo | Tel: +81 3 5715 8300

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Access: 1 min walk from Rinkai Line Shinagawaseaside station. See 1 on the map. 2. Ito-Yokado Supermarket Oimachi store www.itoyokado.co.jp/blog/176/ Address: 1-3-6 Oi Shinagawa-ku Tokyo | Tel: +81 3777 6611 Access: 2 min walk from JR Shinagawa station. See 2 on the map. 3. Queens Isetan www.queens.jp/shops/tokyo/13_shinagawa.html Address: Level 3 Atre Shinagawa, 2-18-1 Konan Minatoku Tokyo | Tel: +81 3 6717 6262 Access: 2 min walk from JR Shinagawa station. See 3 on the map. 4. Dean & Deluca www.deandeluca.co.jp/storelocations/market/shinagawa/ Address: Level 2 Atre Shinagawa, 2-18-1 Konan Minatoku Tokyo | Tel: +81 3 6717 0935 Access: 2 min walk from JR Shinagawa station. See 4 on the map. 5. Seijoishii www.seijoishii.co.jp/index.html Address: Level 1, Lumine the Kitchen 3-26-27 Takanawa Minato-ku Tokyo | Tel: +81 3 3445 2611 Access: 2 min walk from JR Shinagawa station. See 5 on the map. Map around Shinagawa station

Shinagawa station
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Shinagawaseaside station Oimachi station

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Disclaimer
Austrade does not endorse or guarantee the performance or suitability of any introduced party or liability for the accuracy or usefulness of any information contained in this Report. Please use commercial discretion to assess the suitability of any business introduction or goods and services offered when assessing your business needs. Austrade does not accept liability for any loss associated with the use of any information and any reliance is entirely at the users discretion.

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