Buyer-related cases

Taking the direct procurement of Japanese department stores and large supermarkets as an example, this paper illustrates the importance of overseas direct procurement to retail enterprises, hoping to inspire domestic retail enterprises.

Japanese department stores have many years of experience in purchasing goods directly from foreign manufacturers, and the procurement arrangements are very careful. Setting up overseas offices in major fashion centers around the world is a basic step. The most popular places are Paris, Milan, new york and Hongkong. The main function of overseas offices is to monitor international fashion trends. The second step is to organize a group of buyers who specialize in overseas purchasing and go to major fashion production centers to find suitable products every season. The buyers of the head office in Japan are in close contact with the staff of overseas offices and cooperate in product planning. The quality of imported products is supervised by another expert group in Japan.

Products directly imported from Asia can occupy a place in Japanese department stores, mainly because the quality of goods from Asian manufacturers is constantly improving and the prices are suitable, which is attractive to Japanese consumers in recession.

Supermarkets in Japan also purchase goods directly from overseas manufacturers. In addition to considering price concessions, they also hope to establish the style of the store itself by buying special goods overseas. Most foreign products in Japanese supermarkets are imported through trading companies or wholesalers, so similar goods are likely to be sold in other supermarkets. Consumers can't tell the difference between different supermarkets. For supermarket groups, it is difficult to establish a style without their own brand-name goods, let alone attract and maintain a group of regular customers. In the retail industry, establishing a unique image is an indispensable means to expand the market. Department stores have been very successful in this respect, but supermarkets have not made full use of this marketing skill.

It is worth mentioning that Japanese supermarkets have a new view on their roles as retailers and buyers. In the past, trading companies were almost entirely responsible for selling goods and selecting products, but now individual supermarket groups have realized that this may not be the best arrangement. Although trading companies are familiar with international and Japanese fashion trends, supermarket staff may have more knowledge in store promotion, product display and customer response. Therefore, the management of Japanese supermarkets believes that their employees are more capable of selling goods for supermarkets than trading companies after proper procurement training. Therefore, many supermarkets in Japan point out that purchasing goods directly from overseas is definitely their policy to expand their business in the future.