Globalization of the Distribution System

The Japanese distribution system has two distinctive characteristics: too many very small retailers and multiple layers of wholesalers. Up until the present day, these two features have been noted by researchers in Japan as well as other countries. In reality, however, Japan’s distribution system went through a dramatic and historic change known as the “1985 Shock.” This resulted in a decrease in the number of retail stores and challenged the long-held belief that Japan’s distribution system was characterized by a multitude of such retail stores. This change marked a shift towards the so-called the global standard or “globalization.” This study analyzes the 1985 Shock and describes the true state of the globalization of Japan’s distribution system. This paper consists of four sections: Outline of the “1985 Shock” in Japan’s distribution structure, Innovations in Japan Supermarkets, Innovations in Japan’s Convenience Stores, and Conclusion.