FOCUS; Japan Franchise Market

Japan Market
Overview of the Market.
At a Glance
Japan’s economy is recovering moderately with the economic
growth forecast for 2014 at 1.4%. Consumer confidence is
strong and consumption has been supported by limited to no
individual debt.
Due to the size, status and
sophistication of the Japanese
market, it is regarded as a
trend-setter and origin of content
for all Asia. Because of this, Japan
offers a great test bed for
franchisors wishing to enter Asia
as a whole.
The World Bank reported that
consumption in 2012 was 61% of
GDP.. Retail food sales were just
shy of $500 billion and
expenditure was $3,735 per
capita, representing the second
biggest expense behind housing.
In October 2012 there were 1,286
franchising chains with 245,263
outlets. 2012 total sales were
¥22.2 trillion equating to around
10% of overall retail sales.
In order, the biggest sectors:
1. Retail.
2. Convenience store.
3. Restaurant.
4. Service sector.
Approximately 39.6% of total
turnover at franchised outlets is
from convenience stores (CVS)
and about 18.1% from food
service chains. The biggest
growth (14% increase)
2011-2012, was seen in the
internet and TV shopping
sectors.
Key Franchise Points
* 23% of household expenditure goes on food compared to
5-7% in the US and 10-12% in Europe.