Comparing Retail Systems: Australia and Japan - HK2042 Report

This report provides a comparative analysis of the retail systems in Australia and Japan. It begins with background information on the retail environments of both countries, highlighting their historical development and current trends. The report then delves into the structure of the retail markets in each country, detailing their contributions to the GDP, the number of retail businesses, and the prevalence of online versus physical stores. It also estimates the potential size and profitability of the retail industries in both Australia and Japan, referencing key players and market statistics. Furthermore, the report identifies potential problems facing the retail industries in each country, such as technological limitations, fraud, globalization, productivity, and cultural aspects. Finally, the report includes a list of references used in the analysis.

Management
Retail Management

Background information on retailing system in Australia
Retailing in Australia carries the proud and the
colorful retail heritage.
Australian retailing system has developed so
much such as new goods and new customs are
in practice, there are developments of specialist
shops. Along with this, changes in locality and
technology have also geared up.
. Moreover, the change in the demographics and
market size generates more opportunities of the
enhancement of the retail industry (Grugulis, &
Bozkurt, 2011)

Background information on retailing
system in Japan
Japan retailing system, is the second largest retail
market with more value in comparative to
Australia and the other countries.
japan-retaining system has efficient and
generates low cost delivery.
Moreover, japan manufactures or importers need
to deal with few wholesalers to get its product
marketed and delivered to a vast numbers of
retailers through japan (Wrigley, & Lowe, 2014)

Structure of retail market of Australia
Australian retailing system structure, it has a
significant contribution to economic output of
around $53 billion over 4% of GDP.
Australian retail industry is very diverse and
heterogeneous in nature.
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 (Evans, 2011)

Structure of retail market of Japan
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 retail sale is
contributed by food and almost two third of the
entire retailing system.

Estimation of potential size and
profitability of retail industry of Australia

Cont..
Australian retailing sector, right from the 2004 it has seen
that Australian retailing sector is increasing and generating
profit by considering all form of retailing sector at one go,
which shows that Australia in its all sectors are earning
more than expected. There is not much difference in the
earning every year or had an earnings of around 3% to 4%.
Companies such as Woolworth, wesfarmers, Wal-Mart, Coles
who deals in the retailing sector have earned a lot as their
product offerings as they are those who are mostly applied or
used by every household of the Australia, and in this, in term
these companies are well known because of their product
quality, offerings, and packaging and services benefits.

Estimation of potential size and profitability
of retail industry of Japan
In terms of japan retailing system, JETRO, japan is
the world second largest retail market with the sales
value exceeding 1.3 billion (150 trillion yen).
Statistics of total retail of japan highlights that it is
on the rising position, which highlights that this is
profitability in concern to retailing sector of Japan.
 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 business too
(Stimson, 2011)

Potential problems facing retailing
industry by Australia
Australian retail industry highlights about the lack of
technological advances as countries like china applies 3d
printing, considering the concept of meeting customers
need at newer level and creating retail jobs in the future.
Issues related to fraud detection and loss prevention are
the major issues which weakens the retailing system of
Australia at large (Stimson, 2011)
Another issue highlights about the market globalization,
which is continuously increasing competition from
overseas retailers from both, online and physical stores.

Potential problems facing retailing industry
by Japan
 In term 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.
Japan retailers also face certain challenges or issues
in term of chipping costs, duties, taxes, exports laws
and regulations which makes the return process very
much frustrating for the further business operations
which mainly includes the documentations and
cumbersome calculations.

Cultural aspects affecting retailing of
Australia and Japan
The retail culture of Australia majorly deals with the
set of collective beliefs, values and attitudes, which
mainly reflects about the leadership style and psyche.
Japan cultural terms, it plays the most significant
factors, which determines the behavior of the
customers. The access to the market majorly requires
the product adjustment. Hence, this shows that the
japan customers loves to enjoy the unique character
tics in regarding to the manner of expressing the
demand, reactions. Such cultural aspects majorly
affect the working of the retailing of japan at large.

References
Evans, J.R., (2011) Retailing in perspective: the past is a
prologue to the future. The International Review of Retail,
Distribution and Consumer Research, 21(1), pp.1-31.
Grugulis, I., & Bozkurt, Ö. (Eds.). (2011) Retail work.
Macmillan International Higher Education.
Stimson, R. J. (2011) Australia's changing economic
geography revisited. Australasian Journal of Regional
Studies, The, 17(1), 22.
Wrigley, N., & Lowe, M. (2014) Reading retail: A geographical
perspective on retailing and consumption spaces. Routledge.