Global Marketing Article 2

Village Life and Inefficient Retailing

Japanese social life and consumption patterns are much more particularistic than in most western nations. Tokyo, for example, is a collection of "villages," each with its shopping center. Because houses and refrigerators are small and fresh fish and vegetables are greatly prized, the Japanese shop daily. They go by bicycle or on foot, and shop in thousands of mostly small, mom and pop stores supplied by two tiers of wholesalers. Service is very personal and friendly, and the predilections of individual customers are well known.

Supermarkets and chain stores are hindered by the Large Scale Store Law and its application by local governments. Small shopkeepers are an important constituency and are protected. Quite a few used to work in companies that produce the goods they currently sell. They can exchange defective goods quickly, preventing unfavorable publicity for the company. But such a system is not without its costs. Supermarkets are fewer, standardization is less, and distribution costs are higher. Even successful foreign chains, like Kentucky Fried Chicken, employ twice as many people in Japan as they do in the States. The additional workers wrap the chicken carefully, bow, and smile. Japan spends on honorifics, people whose main task appears to be greeting and thanking customers.

The 24-hour economy has an impact on daily life in Japan. Convenience stores that are open late in the evening are now starting to boom.

Universal Products

The Dutch universalistic orientation is expressed in their preference for universal products: a limited variety, available in large quantities, with a reasonable quality and a low price. The success of Hema department stores, clothing retail company C&A, the Dutch-based wholesaling company Makro, and the company brands of food retailer Albert Heijn can be attributed to this preference. The Swedish furniture retail company IKEA has been extremely successful in the Netherlands by using a strategy that appeals to this preference for the universal product.

This preference might seem to be in contradiction with Dutch individualism. Although the Dutch want to express their individualism in their buying habits, they don't do this by buying specialty products or famous brand names. They try to express their individualism by looking for what they consider to be creative variations and combinations of universal products.

Marketing for Particular Needs

Singaporeans are very particularistic about festive days. A festive day of any ethnic group is welcomed as a reason to celebrate and offer sales specials. Where, other than in Singapore, would you find a shop with a sign saying "Jesus is the reason for the season" to make people aware of the Christmas sales? Just before the Hindu Diwali festival, advertisements in the newspaper for cars, computers, and just about anything are labeled as "Diwali specials."

Singapore has always been a very diverse society in which the need for marketing to different ethnic groups has been taken for granted. Since the beginning of the last century, Chinese Singaporeans have distinguished between "Chinatown business," "ah so business" (Chinese business outside of Chinatown), and "ang moh companies" (western business). Because of rapid economic developments, different age groups in Singapore have very different consumer patterns as well, and it is extremely important to differentiate marketing for the different age groups.

Singaporean companies have a tradition of adapting to different market needs in a flexible way. A major Singaporean bank has this as its slogan for home loans: "The one thing we're very rigid about is flexibility."