Peter Buckley and Sierk Horn
Published
Aug, 2009
Although Japanese firms have a longstanding reputation for superior marketing capabilities, they have historically struggled to adapt to the local nuances of international markets. But it seems that, in the face of rapid globalisation and two decades of economic stagnation, lessons have been learnt. This examination of the strategies used by three iconic Japanese businesses to penetrate the new and potentially massive Chinese marketplace shows that they have been highly sensitive to the intensely competitive local market, and remarkably skilful in their approaches.
By using detailed case studies of the three companies – retailer Itô-Yôkadô, cosmetics firm Shiseidô and car manufacturer Toyota – the authors offer an insight into the recent evolution and current capabilities of Japanese international marketing. In particular, the paper highlights the ability of these firms to identify and respond to the needs and wants of local consumers, to exploit the growing Chinese interest in luxury goods, and to control their position within the market as a whole. But the authors stress that it would be dangerous to over-generalise: as the case studies show, it is not realistic to assume any single ‘Japanese’ strategy for the Chinese market. Moreover, this market is changing rapidly. Japanese firms operating in China have to continue on the trajectory of flexible and pragmatic approaches.
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