Income Segmentation although Guinness don’t directly segment its product into different segments, Guinness beers are more expensive to the consumer because they target customers may be willing to pay more for what some pensive to be a distinctive taste – a taste which is more expensive to produce. The Japanese distribution system Distribution channels in Japan are very different from other countries; they are as inefficient as they are complex. The system is characterized by multiple layers of wholesalers who have developed close, personal relationships with other wholesalers, manufacturers, importers, and retailers.
Moreover, these intimate relationships often serve as an informal barrier to foreign companies wishing to sell directly to end-users or retailers. Many exporters find retailers/end-users unwilling to disrupt their longstanding, personal relationships with Japanese suppliers even when the foreign company can offer a product of superior or equal quality at a cheaper price. Many Japanese retailers/ end-users are unwilling to make the switch to an “unreliable” foreign supplier. They fear a lack of commitment on the part of the foreign supplier will lead to problems.
They also fear breakdowns in communication. This state of affairs has led many companies’ new-to-market exporters to complain of the complexity and lack of transparency of the Japanese system. An encouraging sign is the recent trend towards greater efficiency within the Japanese distribution system, resulting in fewer smaller retailers and wholesalers. Faced with deregulation and changing patterns of consumption, many Japanese companies are modifying marketing and sales strategies to take advantage of these developments.
Imports are already benefiting from these trends, as seen in increased sales by Japanese department stores and other mass merchandisers and by a variety of new retailing ventures that match changing Japanese lifestyles. There are also indications that some wholesalers are modernizing and consolidating operations, thus reducing more inefficient elements in the system. However, the process is slow. The characteristics of the distribution system are deeply rooted in the cultural history of Japan. How to Set Up Business in Japan/ Laws & Regulations on Setting Up Business in Japan Section 1.
Incorporating Your Business . 1 Types of operation in Japan Foreign companies generally establish a business presence in Japan in one of four modes. 1. 1. 1 Representative office Representative offices are established as locations for carrying out preparatory and supplemental tasks aimed at enabling foreign companies to engage in full-scale business operations in Japan. These offices may conduct market surveys, collect information, purchase goods and implement publicity/advertising efforts, but they are not permitted to engage in sales activities.
The establishment of representative offices does not require registration. A representative office cannot ordinarily open bank accounts or lease real estate in its own name, so agreements for such purposes must Instead De Selenga Day ten nana Outlet AT ten Torrent company or representative at the representative office in an individual capacity. 1. 1. 2 Branch office Foreign companies wishing to engage in business operations in Japan must establish a branch office or a subsidiary company. The simplest means for a foreign company to establish a base for business operations in Japan is to set up a branch office.
The branch office can begin business operations as soon as an office location is secured, he branch office representative determined, and the necessary information registered. A Japanese branch office is a business location that provides services in Japan decided upon by an organization authorized by the foreign company, and ordinarily is not expected to engage in independent decision making. A branch office does not have its own legal corporate status, but instead is deemed to be encompassed within the corporate status of the foreign company.
In general, therefore, the foreign company is ultimately responsible for all debts and credits generated by the activities of its Japanese branch office. A Japanese branch office, however, may open bank accounts and lease real estate in its own name. 1. 1. 3 Subsidiary company A foreign company establishing a subsidiary company in Japan must choose to establish the subsidiary company as a Joint-stock corporation (Kabuki’s-Aisha (K. K. )), limited liability company (Good-Aisha (LLC)), or similar entity stipulated by Japan’s Corporate Law.
Both unlimited partnerships (Gomes-Aisha) and limited partnerships (Gosh-Aisha) are granted corporate status under the Corporate Law, but they are rarely chosen in practice because equity participants bear unlimited ether than limited liability. All types of subsidiary companies can be established by completing the required procedures stipulated by law and then registering the corporation. A subsidiary is a separate corporation from the foreign company, so the foreign company will bear the liability of an equity participant stipulated by law for all debts and credits generated by the activities of the subsidiary.
Other methods by which a foreign company may invest in Japan using a Japanese corporation but without establishing a subsidiary are by establishing a Joint venture with a Japanese enterprise or investment company, and by equity participation in a Japanese enterprise. 1. 1. 4 Limited liability partnership (ALP) It is also possible to do business by using a Huge Seeking Jaggy Kumara. This type of entity, considered the Japanese version of a limited liability partnership (ALP), is not a corporation, but a partnership formed only by the equity participants, who have limited liability.
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