1. How to make Japan retail market entry a success
How to make Japan retail market entry a success? 4 key success factors for profitable and sustainable retail expansion
FUKUTOKUSHA K.K.

2. #1 Create “Magic” with the 1st Store
Locate the brand’s 1st store in TOKYO in prime location e.g. Ginza or Shinjuku, facing the street
For the brand to spread word-of-mouth across Japan and rise awareness most efficiently
Such a location requires high rent, so the store must make super-high sales from super-high customer transaction, therefore…
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3. #1 Create “Magic” with the 1st Store
PR the brand through Japanese media BEFORE 1st store opens to give brand a highly fashionable image
Make Japanese consumers feel hunger for the brand and have them eagerly wait for the brand
Then, consumers will line up in “Gyouretsu”
Make sure cameras will wait for 1st store opening and the photos will be disseminated across media

4. #2 Build Bond with “Developers”
Almost all shopping complexes in Japan are built by major “Developers” e.g. AEON or railway companies
Building good relationship with “Developers” is a must to achieve successful store expansion
If a brand succeed in achieving profitability with the store in prime location, shopping center tenancy offers will be awarded by “Developers” to the brand
But don’t rush; hierarchy exists
among “Developers”—
prioritize business with higher
hierarchy “Developers”

5. #3 Be Prepared for the Fast Expansion
Every successful retail company experiences fast market expansion stage
When the time comes, flood of new store opening opportunities come all at once
Securing human resources and finance become very critical at that stage
Build relationship with
labor market and finance
market before the fast
expansion stage starts,
in order not to miss
the chance for growth

6. #4 Be Prepared with New Store Concepts
When a brand grows and penetrates in Japan market, new store concepts become necessary to grow further for two reasons;
“Developers” start requesting new “news” as a tenancy condition to revive media attention
“Small” size store type become necessary to secure real estate location for further expansion
Small physical store size
Small sales but profitable

7. To learn more about store development and branding in Japan, please visit our website Thank you.