Wholesale sector in Japan - statistics & facts
A bluefin tuna for the price of a designer house and melons for the price of a new car - bids of this scale are not uncommon at Japan’s wholesale markets. However, wholesaling entails more than bidding wars at food wholesale markets, as wholesalers are an integral link in upholding supply chains throughout the country. Along with the retail sector, the wholesale industry is one of the largest contributors to Japan’s gross domestic product, with a 14.3 percent share. Although information technology has enabled manufacturers to sell to retailers directly, wholesale intermediaries remain a trusted logistics hub that provides their customers with value-added services.
Wholesalers are an essential link in supply chains that remains relevant to their customers through value-added services. They have further expanded to online sales channels to optimize transactions, and the rapidly growing B2B e-commerce market indicates that this strategy will be key in the competition with the direct sales channels of manufacturers.
Multifaceted general traders
The number of specialized wholesalers is plentiful, but seven general traders that have the financial capacity to deal with various commodities add another layer to distribution systems in Japan. Known as sogo shosha, they are the largest trading companies in Japan that have also invested in wholesale operations, with Mitsubishi Corporation in the lead. The distribution of domestically produced goods is the main business of large-scale wholesalers, but the flourishing foreign trade in Japan is benefitting the sogo shosha that boasts a large network of subsidiaries and affiliates overseas.Wholesalers role in retailing
The Japanese retail sector is fragmented and counts a high number of small and individually owned stores that offer a broad range of products but lack storage areas. Apart from their role of bulk purchasing and reselling, wholesale businesses are also repackers with logistics services. They repack commodities into smaller lots and bundle orders for different products into one delivery.Fresh food markets and the persistence of intermediaries
Within the food and beverage segment, wholesalers are permitted to trade at physical marketplaces for fresh foods. Among the 65 central wholesale markets under governmental supervision, the Toyosu Market is best known for the high bids for domestic Pacific bluefin tuna at the first annual auctions. Licensed businesses procure perishables from the markets and repackage them for smaller establishments in the hospitality sector such as restaurants and hotels.Wholesalers are an essential link in supply chains that remains relevant to their customers through value-added services. They have further expanded to online sales channels to optimize transactions, and the rapidly growing B2B e-commerce market indicates that this strategy will be key in the competition with the direct sales channels of manufacturers.
