Tokyo, October 16, 2017 - CBRE Research today published “Japan Retailer Survey”; a report that gauges Japanese retailers’ intentions to expand abroad and their recent international store-opening strategies.
When respondents (retailers) were asked about their existing international presence and appetite for future expansion, the most frequent response was, “Have already opened stores overseas and are planning to expand further,” chosen by 41.4% of retailers. This was more than double than those who selected the reverse option, “No plan to open stores overseas but planning to expand stores domestically,” chosen by 17.1% of respondents. All in all, more than half of the respondents gave a positive response when asked whether they were planning to expand overseas or grow their international presence.
For those who were considering expanding overseas, when asked why, the most frequent responses were, “Limitations to expanding in the domestic market,” and “To improve brand awareness”, each chosen by 48.6% of respondents. For retailers who were unfavourable towards growth overseas, the most common reason behind their stance was, “To focus on the operation of domestic stores,” chosen by 50% of respondents. The second most popular option was, “Difficulty in providing the same service and securing inventory as our domestic stores,” which was selected by 39.3% of survey participants.
The survey asked which regions retailers were considering for their overseas expansions. The most popular response was “Asia” (96.8%). With strong economic growth forecast in emerging markets and a lower start-up cost, Asia is popular for all retail sectors.
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