Holmes Institute HK2042 Retail Management Report: Australia vs Japan

This report provides a comparative analysis of the retail management systems in Australia and Japan. It begins with an executive summary highlighting the key differences and similarities in the retail landscapes of both countries, including market structures and the impact of technology. The report then delves into background information, exploring the historical development and current state of the retail industries in Australia and Japan. Section 1 compares the retail market structures, while Section 2 estimates the potential size and profitability of the retail industries in both countries. Section 3 analyzes the potential problems facing the retail industries, and Section 4 considers the cultural aspects affecting retailing. The report concludes with recommendations and a comprehensive list of references, offering valuable insights into the retail management practices in the Asia-Pacific region. The report addresses the challenges and opportunities within the retail sector in both countries, offering a detailed overview of the market dynamics, profitability, and cultural considerations.

Management
Retail management
Student’s name
9/22/2019

Retail management 1
Executive Summary
This report mainly highlights the retaining management of Australia and Japan which Australia
retailing system mainly comprises numerous departmental stores, mega malls, shops were
developed in very less time. Along with this, change in locality and technology generates a lot
more changes in the retailing system of Australia. In terms of structure, Australian retailing
system structure, it has a significant contribution to economic output of around $53 billion over
4% of GDP. Other than this, when we consider the japan retailing structure there are around
52,725 retailing stores. In terms of japan retailing system, JETRO, Japan is the world's second-
largest retail market with the sales value exceeding 1.3 billion (150 trillion yen). Moreover, japan
challenges highlight the low productivity performance, higher operational reasons for
productivity gaps, industry dynamics, certain external barriers to productivity growth are major
reasons for the lower productivity. In Australian concern, major issues in terms of the retail
industry highlight the lack of technological advances, which majorly affects the profitability as
well as productivity at large.

Retail management 2
Contents
Introduction......................................................................................................................................2
Background information on retailing system in Australia and Japan..........................................2
Section1...........................................................................................................................................3
Difference in structure of retail market in both countries............................................................3
Section 2..........................................................................................................................................4
Estimation of potential size and profitability of retail industry in both countries.......................4
Section 3..........................................................................................................................................6
Analysis of potential problems facing retailing industry in both countries.................................6
Section 4..........................................................................................................................................7
Consideration cultural aspects affecting retailing in both countries............................................7
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................9
References......................................................................................................................................10

Retail management 3
Introduction
When we talk about the retiling system of Australia, it mainly highlights information about the
discounted stores and the supermarkets, which mainly deals in various products, household
products, furniture, food, and novelty products. As such, products are inexpensive in nature are
offered at the discounted rates. In comparative to it, the japan-retaining system mainly highlights
that there is a detailed segmentation of international and local products; moreover, there are
historic numbers of stores and selling spaces and values with company names and brand market
shares. Other than this, it is also seen that japan retailing system also having a major impact over
the consumers' lifestyles, growth drivers in grocery retailing and lastly, there is an
implementation of the new digital technology (Evans, 2011)
Background information on the retailing system in Australia and Japan
In terms of the Australia retailing system, they mainly carry colorful retail heritage. There are
numerous departmental stores, mega malls, shops were developed in very little time. As behind
the counters, the Australian retailing system has developed many newer customs and products in
the form of specialist shops. Along with this, change in locality and technology generates a lot
more changes in the retailing system of Australia.
Other than this, it is also seen those in earlier times, after the war, a lot more growth was
highlighted; there was an increase in purchasing power of the customers, which also helped
Australian retailing market to grow. Moreover, the change in the demographics and the market
size also has generated more chances as an opportunity for the enhancement of the Australian
retail market in the long run (Wrigley, & Lowe, 2014)
However, in terms of Japan retailing system, it is the second-largest retail market with more
value in comparison to Australia and the other countries. Their system is totally made entirely of
wholesalers and retailers. As japan, wholesalers have more influence than any other country has.
Other than this, it is also seen that the japan-retaining system has efficient and generates low-cost
delivery. Moreover, japan manufacturers or importers need to deal with few wholesalers to get
its product marketed and delivered to vast numbers of retailers through japan (Grugulis, &
Bozkurt, 2011)

Retail management 4
Section1
The difference in the structure of the retail market in both countries
If we talk about the Australian retailing system structure, it has a significant contribution to
economic output of around $53 billion over 4% of GDP. Moreover, the regulations also have a
direct impact on the Australian industry. Australian retail industry is very diverse and
heterogeneous in nature. At the same time, it has also analyzed that the development of online
retail is creating further diversity across the industry and challenging the market position.
However, currently, when we see today, Australia's online retail industry has grown at a faster
pace (Cubbin, 2013).
Currently, when we see the retailing system of Australia, it mainly covers 1, 40,000 retail
businesses, accounting for 4.1 percent of GDP and 10.7 percent of employment is shown.
Moreover, it also highlights the diversity aspect of a business, which mainly deals in the region,
retail format, competition within the market, and nature of goods sold. From this, it highlights
that both currents as well as long-term aspects are challenging in nature. Retail sales growth has
a slowdown, as now customers are saving more of their incomes and their spending is increasing
over the various ranges of the non- retail services. This shows that the retail sector of Australia
has faced various competitive challenges, and recently in terms of online retailing and the entry
of new and innovative global retailers are seen. Other than this, workplace relations regulations
do not have much sufficient workplace flexibility for the adoption of best practices productivity
measures in the retail industry of Australia (Cubbin, 2013).
Other than this, when we consider the japan retailing structure there are around 52,725 retailing
stores, as they are more focused over or much of their selling is done online by the Japanese
customers that compete with the product design and range in the convenience stores. When we
talk about the total sale of the japan, retailing landscape, it is approximately, 1 trillion per annum
and most of the retail sale is contributed by food and almost two-third of the entire retailing
system (Kono, 2016).

Retail management 5
At the highest level, Japanese retail data follow the American convention of dividing retail into
food, GM, clothing, and supermarkets. Hence, from the above data, we can state that Japan in
retail concern shows the absence of a huge supermarket group, the scales of the convenience
stores are higher. Thirdly, most important the presence of online marketing and retailing is
higher so there are multi-branded competitors that are likely to be stronger than in any market in
which the customers tend to enter. Hence, from the above information, we can state that the
Japanese retailing system is quite unfamiliar with the structural feel to it. Department stores
groups dominate the landscape; supermarket tends to be the biggest players in the entire market.
Hence, despite the strong presence of department stores, fashion sales still happen by specialist
retailers, which tend to show or highlight the awful condition of convenience stores in Japan
(Cubbin, 2013).

Retail management 6
Section 2
Estimation of potential size and profitability of the retail industry in both
countries
(Morikawa, 2016).
In terms of the potential size and profitability aspect of Australia, when we see the above chart of
the Australian retailing sector, it highlights the rising of the retaining sector and leads to the
growth in the market. Right from 2004, it has seen that the Australian retailing sector is
increasing and generating profit by considering all forms of the retailing sector at one go, which
shows that Australia in its all sectors is earning more than expected. There is not much difference
in earning every year or had an earnings of around 3% to 4%. Therefore, with such increment in
the percent, every year states that there is a slow and steady growth of the retailing sector of
Australia. The well-known companies, which are settled within Australia, have gained much
from their physical stores and made money from the online sources. Companies such as
Woolworth, Wesfarmers, Wal-Mart, Coles who deals in the retailing sector have earned a lot as

Retail management 7
their product offerings as they are those who are mostly applied or used by every household of
Australia, and in this, in term these companies are well known because of their product quality,
offerings, and packaging and services benefits. Hence, with time it is also seen that the
competition in the retail sector has increased in recent years within the firms who are delivering
various yet similar products. So, the graph overall states that the companies within the increase
in sales are majorly contributing to the profitability aspects in the long run (Morikawa, 2016).
In terms of japan retailing system, JETRO, Japan is the world's second-largest retail market with
the sales value exceeding 1.3 billion (150 trillion yen). Statistics of the total retail of japan
highlights that it is on the rising position, which highlights that this is profitability in concern to
the retailing sector of Japan. This is all because of the main reason, firstly, supermarkets
shopping has long surpassed department store in which newer trends comes to the way, as more
of the products are sold more on an online basis, while supermarket, selling consumable goods
such as foods and beverages are susceptible to online competition.
All this profit generation, are because of the attractive investment by malls, decreasing rents in
prime shopping areas, more and more customers are turning to internet shopping which is more
feasible for foreign, remote investors. Other than this, the shops are also far cheaper, far better
diversity and there is an option of hedging investment.
Lastly, it is also seen that there is a huge boom in internet shopping and its expansion to the
inclusion of the same day or next day services. Hence, such aspects lead to the huge growth in
supermarkets and other businesses too. As from the upsurge, we can state that the market is
currently is red hot with demand far outstripping supply, creative approaches such as the
acquisition of existing older supermarkets with the view to demolishing and reconstruction is the
highly profitable strategy adopted to generate the long term success (Morikawa, 2016).
Section 3
Analysis of potential problems facing the retailing industry in both countries
In general, when we see the potential problems in the retail industry mainly highlights the
changing spending patterns, increased competition, and economic uncertainty are certain issues,
which majorly affects the business at large. Currently, major issues in terms of Australian retail

Retail management 8
industry highlights about the lack of technological advances as countries like china applies 3d
printing, considering the concept of meeting customers need at a newer level and creating retail
jobs in the future. Another issue highlights market globalization, which is continuously
increasing competition from overseas retailers from both, online and physical stores. In this
concern, brick and mortar retailers are in pressure to extend their trading hours to meet the
customers' demand. Moreover, Retailers experiencing a skills shortage mostly results in
significant availability of career opportunities.
Other than this, it is also seen that the impact of overall economic conditions majorly impacts the
retailing system of Australia. This mainly including debts levels interest rates, unemployment
levels, housing values and as these reasons have a major impact over the customers' desire and
comfort to spend Lastly, issues related to fraud detection and loss prevention are the major
issues that weaken the retailing system of Australia at large. In terms of Japan, retailing system is
low because of the productivity performance, higher operational reasons for productivity gaps,
industry dynamics, certain external barriers to productivity growth are major reasons for the
lower productivity (Fernie, & Sparks, 2018).
Lastly, it is also seen that the customers are changing at the rapid rate as in this concern it is very
much important for the retailers to have data to understanding what exactly the customers’ needs
are and being able to deliver on those needs. Similarly, Australia in a similar concern has to turn
out many actionable insights, which are received in the form of data of the customers’ and this
particular aspect helps in gaining competitive advantage and seize the market share for the
future. Other than this, it is also seen that the cost bases are also increasing, supply chain and
logistics are one of the major challenges that mainly do not fit for the Omnichannel world.
Hence, such aspects delay the growth of the country and make it more challenging than ever
(Fernie, & Sparks, 2018).
In japan's concern, it is seen that retailers and consumers are feeling the weight of tariffs, as the
retail industry leaders association are seeking exception to the levies on the various products as
companies warn that there are almost certain to pass on costs to the united shoppers. Other than
this, japan retailers also face certain challenges or issues in terms of shipping costs, duties, taxes,
export laws, and regulations which makes the return process very much frustrating for further

Retail management 9
business operations which mainly includes the documentations and cumbersome calculations
(Lorenz, 2015).
Other than this, certain issues such as changes in the condition surrounding the entire japan
retailing market likewise, changes in the customers’ choices, preferences and wants, changes
made in the consumption and food retailing and there are the diversifying food needs of the
customers. People are more concern about the food safety aspect. Other than this, people and
retailers are more committed to solving social and environmental issues and challenges.
Moreover, the transaction volume and business condition are also getting affected. These aspects
state that the function of the price setting, as well as function of payment system, is also majorly
affected (Fernie, & Sparks, 2018).
Section 4
Consideration of cultural aspects affecting retailing in both countries
The cultural aspect of the country differ from one another people over there have a difference in
their taste, preferences, choice which they have in varieties of products which they wear,
different eating habits and a lot more due to which the retailers and their retailing aspects are
affected. There are certain social factors, which majorly influence and define the lifestyle of
families, communities, socioeconomic status and religion. Such factors have a major impact on
retailers of the country, their business decisions and their online selling options. Currently, when
we see the retailing trends of various countries, today, the entire economy is mainly influenced
by the internet, as the role of the influencers continue to grow (Stimson, 2011)
The retail culture of Australia majorly deals with the set of collective beliefs, values, and
attitudes, which mainly reflects the leadership style and psyche. Here it is seen that acceptance
and commitment to the retail culture around an ethos that people such as customers and
employees are alike in nature. Firstly, collective beliefs highlight the collective beliefs and
participation through positive encouragement in the safe environment of open communication
helps in delivering people things beyond expectation. This shows that Australian retailers apply
their full mindset that majorly affects productivity at large and this helps them in generating

Retail management 10
more sales and generation of more profit than usual (Carpenter, Moore, Alexander, & Doherty,
2013).
Other than this, values and attitudes also majorly affect the retailing system of Australia at large.
As retailers in this, value their customers their choices, preferences, participation, positivity,
family and personal development such aspects are contributed in cultural aspects and lead to the
generation of confidences, productivity and overall development of the retail sector at large.
In japan cultural terms, it plays the most significant factor, which determines the behavior of the
customers. Access to the market majorly requires product adjustment. Hence, this shows that the
japan customers love to enjoy the unique character tics in regarding the manner of expressing the
demand, reactions. Such cultural aspects majorly affect the working of the retailing of japan at
large (Carpenter, Moore, Alexander, & Doherty, 2013).
Conclusion
From the above report, we can conclude that Japan and Australia are two different countries,
which are dealing with various products. In various ways, such various ways such as cultural
differences, the difference in structure, the earning, the profitability aspects, and lastly, the
issues, challenges and problems in concern to the retailing sector majorly affect the success
stories of the retailing aspects of both the countries. Differences in people's choices want, and
preferences are the basic concern, which affects the retailing sector at large. Other than this, the
diversity aspect of a business, which mainly deals in the region, retail format, competition within
the market, and nature of goods sold are also a certain reason for positive and negative impact
over the retail sector.
Recommendations
 In the recommendation aspect, in caparison to japan, Australia needs to work over the
technology aspect as japan, china all these countries are so advanced in terms of the
technology aspect, that their retailing is strong majorly due to this factor.

Retail management 11
 In the future, the retail industry should do focus on the customers' preferences as if the
customers are treated well, then factor will turn them into loyal customers. Look for
better consistency when hiring the sales staff.
 Get more personal with the customers in which connecting with the customers in a
personally relevant way continues to be the best way to get them to know like they started
trusting you.
 Work over the technical aspects, convenience facilities for the customers so that it helps
in improving the profits of the retail stores on a larger scale.
 Keep on modernizing the merchandising so that customers get attracted to it and hence,
tend to buy those because it does carry some uniqueness within it.