Market Information
Asia Pacific

The Retail Grocery Market in Japan

March 2001

Prepared by the Market Research Centre and the Canadian Trade Commissioner Service

© Department of Foreign Affairs and International Trade
(FaxLink no. 34117)

The Market Research Centre produces a wide range of market reports by region and sector for Canadian exporters. For further information, please contact:

Market Support Division (TCM)
Department of Foreign Affairs and International Trade
E-mail: mrc@dfait-maeci.gc.ca

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Trade Evaluation and Analysis Division (TEAD)
Agriculture and Agri-Food Canada
Contact: Jim Lowe
Tel.: (613) 759-7652
Fax: (613) 759-7505
E-mail: lowej@agr.gc.ca

Agri-Food Trade Service: (http://ats.agr.ca)

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter.

EXECUTIVE SUMMARY

In 1999, the Japanese retail market had sales of approximately $2 trillion⁽¹⁾. The Japanese retail market is dominated by small and medium sized retailers, which account for over 70% of total sales. Unlike in most developed countries, large retailers in Japan account for a relatively small portion of sales; the top ten chains account for only 7.4% of total sales. Large retailers have been hindered by legislation such as the Large-scale Retail Store Law, However, recent deregulation has provided opportunities for large domestic and foreign retailers to expand their operations in Japan.

Sales through most retail channels, including supermarkets, hypermarkets, and department stores, have been declining. Slumping sales arose as a result of difficult economic times in recent years, which has led consumers to become more aware of how they spend their money. Convenience stores represent one of the few areas of the retail sector that has experienced growth. This sector now has over 40 000 retail outlets, with annual sales in excess of $84 billion.

While many retailers are restructuring their operations, in order to return to profitability, they are also providing new services and undertaking new initiatives to attract consumers. E-commerce is probably the most common approach retailers are taking to attract customers. Other services offered include bills payment, airline ticket sales, and home delivery. Retailers have also begun renting out floor space within their stores to other retailers or fast food chains, in an attempt to attract consumers who may not otherwise shop in their stores.

International retailers such as Carrefour (France), Costco (United States), and Wal-Mart (United States) have also entered the Japanese market within the last decade. These retailers have taken advantage of declining real estate prices, shrinking sales of large domestic retailers, and less stringent regulations governing large-scale outlets to establish themselves in the market. Competition from large foreign retailers is likely to force domestic companies to re-examine their purchasing and distribution systems.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

MARKET OVERVIEW

Opportunities
Actual and Planned Projects
Competitive Advantage Through Canadian Government Policies and Initiatives

RETAIL CHANNELS

Supermarkets/Hypermarkets
Convenience Stores
Foreign Retailers
E-Commerce

MARKET LOGISTICS

Distributors and Wholesalers
Direct Sales
Agents and Sales Representatives
Suggested Business Practices
Import Regulations
Local Standards, Certificates or Registrations

PROMOTIONAL EVENTS

KEY CONTACTS AND SUPPORT SERVICES

BIBLIOGRAPHY

OTHER REFERENCE MATERIAL

Internet Sites

MARKET OVERVIEW

In 1999, the Japanese retail market consisted of more than 1.4 million outlets with sales of nearly $2 trillion. Unlike North America or Europe, where large retailers account for a significant share of total sales, Japanese sales are distributed over a far greater number of retailers. More than one million small, local stores accounting for over 70% of total retail sales. In fact, as seen in Table 1, the top ten retailers accounted for only 7.4% of total sales, while the top 100 companies accounted for less than 20% of sales.

* Sales figures are based on company fiscal-year statistics: March 1999 to February 2000.
Source: Moriyama & Partners. C-Store in Japan, January 2001.

Sales through Japanese supermarkets and hypermarkets have been steadily declining in recent years. According to the Japan Chain Stores Association (JCSA),⁽²⁾ 2000 marked the fourth straight year that sales declined through these distribution channels. Sales decreased by 5.1% from 1999 to $224.4 billion in 2000. This represents the largest decrease in sales since 1977, when the JCSA began collecting sales data for these outlets. Food sales, which account for approximately 50% of total supermarket sales, decreased by 3.6% in 2000, to $116.2 billion.

Department stores have also been subject to declining sales in recent years. In 2000, sales decreased (also for the fourth consecutive year) by 1.8% to $121.7 billion. Food sales account for slightly less than one quarter of total department store sales. In 2000, food sales totalled $28.3 billion, down 1.0% from the previous year.

While most retail sectors have experienced declining sales in recent years, convenience stores represent an exception to this trend. Convenience store chains have been expanding in both the number of outlets they run and in the volume of sales that they conduct.

In recent years, large Japanese retailers have faced increased competition from relatively new, smaller retail chains. These smaller retailers have benefited from lower real estate rates and rising consumer demand for less expensive, good-quality foods to expand their businesses.

According to the JCSA, there are currently more than 7000 chain stores in Japan, 111 of which have a national presence. The number of chain stores decreased by approximately 175 over the previous year, while the number of national chains decreased by eight over the same period. Total sales through national chains were $222.8 billion.

In an effort to increase sales, supermarket operators have begun renting out portions of their floor-space to speciality retailers, fast food outlets, and entertainment companies. Supermarkets profit not only from the rent paid by other businesses but also from the fact that these other businesses attract clientele which may decide to make purchases at the supermarket because it is convenient for them. For example, Ito-Yokado Co. is renting out a portion of one of their new supermarkets to Tokyu Recreation Co., which operates an eight-screen cinema in the rented space. Also, McDonald's and Daiei Inc. have come to an agreement that will see 30 McDonald's outlets open in Daiei-owned stores before the end of 2001. McDonald's is also running outlets in stores owned by Jusco Co., among others. Agreements between supermarket outlets and clothing retailers are also becoming more common.

Deregulation

Over the last 25 years, strict regulations governing the retail industry have been one of the greatest factors influencing retail development in Japan. The Large-scale Retail Store Law, introduced in 1974, allowed the Japanese government to maintain close control of all aspects relating to a new, large store opening. Store size, location, and business hours were just a few of the factors affected. This law was created to provide good opportunities for small and medium-sized retailers by controlling the activities of larger retailers. Not surprisingly, small retailers flourished while a relatively small number of large retail stores were opened between 1974 and 1990.

During the 1990s, the Japanese government passed a number of revisions to the Large-scale Retail Store Law. These amendments served to make it easier for large scale retailers to open new outlets by instituting changes such as:

• increasing the number of hours retailers were allowed to be open each day;
• changing the number of compulsory closing days from four per month to 44 per year (this enabled retailers to stay open on Sundays during holiday periods);
• increasing the minimum store size regulated by this legislation; and
• reducing the amount of time and number of agencies that had to review new store applications.

In 2000, the Large-scale Retail Store Law was replaced by the Large-scale Retail Store Location Law. The main difference between these two pieces of legislation is that the new law focusses on the effects of a new store from a standpoint of minimizing noise pollution, environmental pollution while maintaining the visual appeal of the area, whereas the old law served to protect small and medium-sized businesses. In addition, the responsibility for enforcing the new legislation is held mainly by the local governments instead of the central government.

Consumer Profile

In 1999, the average Japanese consumer spent approximately 72% of their disposable income while the remaining portion was saved or invested. Food accounted for the largest portion of consumer spending at 22.5%, down 2.6% from the previous year. Although food expenditures decreased, total expenditures declined by roughly the same amount (2.5%).

Large supermarkets have not proved to be overly successful in Japan, where consumers have shown a preference to shop at small, local retailers. However, with the recent economic downturn and the growth in the number of large retail outlets, many consumers are increasingly shopping at large retailers, who tend to offer items at lower prices than small retail outlets. In other words, price has become more of an issue recently.

Declining sales can be largely attributed to the difficult economic period that Japan experienced in the late 1990s. Although sales of foods and beverages have not declined as sharply as many other products, they have still been affected by increased consumer awareness of where they spend their money. No longer are consumers willing to purchase brand-name or imported foods "at any cost". For the most part, consumers now seek out good quality foods at a reasonable price.

While North American and European companies have begun putting a greater emphasis on customer service in recent years, Japanese retailers have always provided a high level of service to their customers. Not only do Japanese retailers provide ample training for their staff, but foreign visitors are oftentimes surprised by the number of employees available to help customers. This level of service is expected among consumers; retailers who provide inadequate levels of service risk losing market share in the highly competitive Japanese market.

Congestion within Japan's urban centres means that many customers either walk or use public transportation to get to and from retailers. As a result, most consumers prefer to shop at retailers that are located relatively close to where they live. Consumers also tend to make multiple trips to food retailers each week, buying smaller amounts of food during any one trip than North American consumers. Transportation issues, limited storage space within the home, and the desire for fresh products when preparing meals are the main reasons for this tendency.

Home delivery is increasingly available to consumers as retailers attempt to distinguish themselves from competitors by providing additional services. However, many consumers do not take advantage of delivery services as they tend to make food purchases every few days, and delivery charges are an additional cost that they do not wish to incur. Busier schedules also make it difficult for many consumers to arrange a time to have their purchases delivered. Elderly and physically disabled consumers, who may have more difficulty transporting foods to their homes, are the most common users of delivery services.

Gift-giving is an extremely important Japanese tradition. Expensive, imported foods are a common gift given to family, friends, and co-workers. Many retailers generate a significant portion of their annual sales leading up to Japanese holidays.

Opportunities

For specific product opportunities, exporters should consult reports available on the InfoExport Web site (http://www.infoexport.gc.ca) or contact the Department of Foreign Affairs and International Trade (Japan Division - PJP) or the Canadian Embassy in Japan.

Actual and Planned Projects

In January 2001, Daiei announced that it signed a tie-up agreement with Niko Niko Do Co., a medium-sized supermarket operator based in southwestern Japan. The agreement covers the areas of distribution, personnel exchanges, and the supply of products. Niko Niko Do expects that this agreement will give them more bargaining power with wholesalers and distributors, as well as allowing the company to position itself for further expansion. Niko Niko Do has 44 outlets in the Kumamoto, Fukuoka, Saga, and Nagasaki prefectures.

GlobalNetXchange (which was established by major U.S. and European retailers, including Carrefour, Sears, and Roebuck and Co.), in collaboration with Mycal and Daiei, will begin operating a new, Japanese-language e-marketplace in March 2001. The new business-to-business exchange will attempt to facilitate relationships between retailers, wholesalers, and manufacturers in the Japanese marketplace.

On October 1, 2000, supermarket chain Sapporo Food Centre took control of Hokkaido Jusco. This purchase from Jusco Co.( which previously owned a 90% share of Hokkaido Jusco) strengthens Sapporo's presence in the northern prefecture of Hokkaido. It also provides Jusco with additional resources to help fund its restructuring process. The combined company now has 34 retail outlets and was forecast to make an operating profit of approximately $595 million in the fiscal year ending March 2001.

Competitive Advantage Through Canadian Government Policies and Initiatives

The Canadian Agriculture and Food International (CAFI) Program

The Canadian Agriculture and Food International (CAFI) Program is a key element of Canada's international strategy. It is designed to support Canada's agriculture and food industry by helping to build long-term international strategies that will help ensure the industry is well-positioned to succeed in key markets, and to respond to increasing consumer demands and global competition.

The CAFI Program matches industry funds dollar for dollar to support activities that enhance and promote Canada's reputation as the world leader in supplying safe, high-quality agriculture, agri-food, beverage, and seafood products that meet the changing demands of world markets.

In this way, the Canadian agriculture and food industry will enjoy improved access to global markets, and will strengthen its ability to increase international sales.
http://www.agr.gc.ca/int/cafi-picaa/index_e.php?page=intro

Program for Export Market Development

The Program for Export Market Development (PEMD) helps Canadian companies enter new markets by sharing the costs of activities that companies normally could not or would not undertake alone, thereby reducing risks involved in entering a foreign market. Eligible costs and activities include market visits, trade fairs, incoming buyers, product testing for market certification, legal fees for international marketing agreements, transportation costs of offshore company trainees, product demonstration costs, promotional materials, and other costs necessary to execute a market development plan. Activity costs are shared on a pre-approved, 50/50 basis.

The PEMD refundable contribution ranges from $5,000 to a maximum of $50,000. Preference is given to companies with fewer than 100 employees for a firm in the manufacturing sector and 50 in the service industry, or with annual sales between $250,000 and $10 million. Other components of the program include international bid preparation (Capital Project Bidding) and, for trade associations, developing international marketing activities for their membership. For additional information visit http://www.infoexport.gc.ca/pemd/menu-e.asp or call 1-888-811-1119.

WIN Exports

WIN Exports, a database of Canadian exporters and their capabilities, is used by trade commissioners around the world and by Team Canada Inc partners in Canada to match Canadian suppliers with foreign business leads, and to share information on trade events. To register your company in WIN Exports or for more information, visit http://www.infoexport.gc.ca/winexports/home_e.html or call 1-888-811-1119.

RETAIL CHANNELS

Supermarkets/Hypermarkets

Daiei

Daiei is Japan's largest retailer, with approximately 85 subsidiaries. Although best known for its majority ownership of the Lawson convenience store chain (32.9% as of August 2000), Daiei also owns supermarkets, hypermarkets, specialty retailers, department stores, restaurants, hotels, and real estate businesses. Daiei is headquartered in Kobe, Japan and currently has a market share of only 5%.

In November 2000, Daiei announced that it planned to cut 4000 jobs and close 32 unprofitable stores. The layoffs and closures are part of a restructuring plan aimed at reducing the company's debt, estimated to be between $31 billion and $33 billion.

More recently, Daiei also approached trading house Mitsubishi Corp. about the possibility of Mitsubishi expanding their share of Lawson Inc.--Japan's second-largest convenience store chain, which is owned by Daiei. Currently, Daiei owns 35.1% of Lawson, while Mitsubishi is the second-largest shareholder with 20%. Daiei hopes that the sale of shares will enable the company to reduce its debt by $27-30 billion. No agreement had been announced at the time this report was written.

Mycal

With 120 subsidiaries, Mycal is Japan's fourth-largest retail chain. In addition to its more than 300 Mycal and Pororoca supermarkets, the company also has stakes in specialty retailers, real estate companies, financial and management services, as well as department stores. Mycal is headquartered in Osaka, Japan.

In January 2001, Mycal announced restructuring plans intended to reduce the company's liabilities from its present level of $16 billion, to $10.4 billion by February 2004. In addition to cutting its workforce by 4.4% (2700 employees), Mycal plans to shut down 50 less profitable stores. It also hopes to raise $4.1 billion through the sale of assets, including equipment, property and shares, in its subsidiaries such as Mycal Card Inc., Japan Maintenance Co., and People Co.

Other

In January 2001, Izumiya Co. announced restructuring plans in light of their projected losses of nearly $200 million for the fiscal year ending February 28, 2001. Izumiya intends to close nine unprofitable supermarkets as well as reduce its staff by 400 (11% of its total staff), by February 2003, as part of its restructuring process.

Convenience Stores

The convenience store concept in Japan was imported from the United States. However, since the first convenience store opened in 1971, the sales figures and number of retail outlets has grown exponentially to nearly 40 000 stores with annual sales of $84.2 billion in 2000. Not only has the popularity of these retailers exploded, but the strategies, technologies, and services now offered by stores in Japan exceeds those offered by many U.S. chains.

Although new convenience stores have been opening throughout Japan at a rapid pace over the last 25 years, growth has been slowing in recent years. The market is expected to reach its saturation point within the next 5-10 years. The convenience store market is dominated by the seven largest chains: Seven-Eleven, Lawson, FamilyMart, Circle K, Daily Yamazaki, Sunkus, and Ministop. Together, these chains account for over 70% of convenience store outlets and 86% of sales (see Table 2).

Convenience stores have not been subject to many of the government regulations that have regulated both the operation and expansion of retailers within the Japanese market. As a result, while most supermarkets and hypermarkets have been hindered in their expansion, the larger convenience store chains have grown by 100-500 stores annually since the early 1980s. In addition, most convenience stores were open 24-hours-a-day, while other retailers were restricted to opening from 10 a.m. to 6 p.m.

In a recent survey conducted by Seven-Eleven, proximity was cited as the single most important factor determining whether or not a consumer would shop at a specific convenience store. Approximately half of the respondents stated that they could walk to a convenience store within five minutes.

With the growth of convenience store chains, many small, independent retailers were absorbed into franchise operations. Many independent retailers discovered that operating as a member of a chain retailer was quite profitable. Not only did store franchises provide marketing training and superior delivery systems, but they also gave retailers the purchasing power to get the best products available. While independent retailers may have a difficult time convincing manufacturers of popular products to sell their products through individual stores, franchise operations have the purchasing power to obtain the best products. Not surprisingly, consumers are more likely to make repeat purchases at outlets which sell the most popular or best-quality goods. Approximately 95% of all convenience stores are part of a chain.

Like North Americans, Japanese consumers have shown a willingness to pay higher prices for items sold through convenience stores. Most shoppers purchase the majority of their foods at supermarkets or hypermarkets and only pick up a few (last minute) items at convenience stores. Lawson has found that most purchases from its stores are consumed within 30 minutes after the customer leaves the store.

Most large convenience store chains use point-of-sale systems, which track store inventory by item and automatically reorder items when stock gets low. This system can also create customer profiles by tracking sales of items by age, sex, and time of purchase. Convenience stores typically carry 2000-3000 items at any time, with retailers changing up to 70% of their stock annually in response to consumer demands for certain items.

In the early 1980s, convenience stores began offering customers the means with which to pay their utility bills as well as to conduct other business transactions. Initially, consumers were not overly receptive to this concept. However, now more people pay their utility bills through this method than through other sources such as banks or post offices. Although this service provides minimal revenues to retailers, convenience stores believe that this brings additional customers into their stores, who may then make purchases that they would not have otherwise. Convenience stores now have terminals at which customers can purchase airline or concert tickets.

Seven-Eleven Japan Co. Ltd.

Japan's first Seven-Eleven outlet opened in 1974. Seven-Eleven grew so quickly that by 1993, its pretax profits exceeded those of its parent company, Ito-Yokado. With over 8,100 stores and annual sales in excess of $27.1 billion, Seven-Eleven is the dominant convenience store retailer in Japan.

Lawson, Inc.

Lawson, the second largest convenience store chain in Japan, is one of the only retail chains to have stores nationwide. Although Lawson had nearly 7,400 stores in 1999, it continues to open outlets throughout Japan. The company aims to have more than 100 stores in each prefecture within the short term.

FamilyMart Co., Ltd.

FamilyMart, which had sales of over 10.8 billion in 1999, was sold by the Seibu Saison group to the Itochu group in 1998. Although FamilyMart earns the largest share of its revenue through its stores in Japan (which are mainly found in and around Tokyo), it has also expanded its operates to other countries in Asia, including Thailand and Taiwan.

Circle K Japan

Circle K is the fourth largest convenience store chain in Japan. However, within the Tokai area, where the majority of its stores are located, it is the dominant convenience store chain. Circle K has achieved its success through aggressive merchandise development.

* Sales figures are based on company fiscal-year statistics, March 1999 to February 2000.
Source: Moriyama & Partners. C-Store in Japan, January 2001.

Foreign Retailers

A number of foreign companies have entered the Japanese retail market in recent years. The recent slump in the Japanese market has provided good opportunities for international retail chains hoping to take advantage of low real estate costs and a growing interest on the part of consumers for discounted goods. Foreign companies hope to be able to gain market share from the nation's top retailers, many of whom are undergoing a restructuring process over the next few years in an attempt to once again become profitable.

Understandably, foreign retailers face a number of challenges in establishing themselves in the Japanese market. Two of the most pressing concerns involve the size of retail outlets and the establishment of relationships with suppliers and distributors in Japan. While North American and European markets are accustomed to large retail outlets that offer a huge selection of products, this is a relatively new concept in Japan, where consumers are used to dealing with small, local retailers. Many customers initially feel overwhelmed by the size of foreign outlets, as well as the quantity and variety of products that these outlets stock. As for relationships with suppliers, many international retailers prefer to forge direct relationships with suppliers, thereby eliminating middlemen and reducing costs. However, Japanese manufacturers have traditionally used wholesalers/distributors to sell to retailers. Only time will tell if Japanese consumers will adjust to these larger retailers, or whether they will maintain their preference for smaller outlets, and to what degree the distribution process will change.

Whether or not foreign retailers are able to establish themselves in the Japanese market long-term, their presence will undoubtedly elicit changes in the retail structure. Most likely, retailers will attempt to reduce the number of wholesalers and distributors that they use in order to streamline their distribution processes and thereby reduce costs to customers.

In addition to the companies outlined below, other international retailers, including Metro AG (a German retailer), are reportedly investigating sites for potential outlets, possible wholesalers/distributors, as well as potential partners interested in opening grocery outlets.

Carrefour

Currently, Carrefour is one of the world's largest retailers, operating 715 hypermarkets, 2400 supermarkets, and 5600 discount and convenience outlets in 27 countries. In 2000, the Carrefour group of retailers had sales in excess of $115 billion.

In December 2000, Carrefour opened its first hypermarket in Japan, located in Makuhari, just east of Tokyo. The store is significantly larger (12 000 square metres) and carries more product lines (60 000) than most hypermarkets in Japan. Currently, the company purchases 55% of its inventory directly from manufacturers. Carrefour estimates that the store will need to attract approximately 5500 customers daily, or two million customers annually in order to cover its costs. The company plans to open another two outlets early in 2001 (one at Machida, south of Tokyo, and the other in Osaka) and be running approximately a dozen hypermarkets in Japan by 2003.

In order to deliver low prices, Carrefour depends on cutting out wholesale middlemen. Although Japan's distribution system is slowly improving, there are still multiple layers of wholesalers and distributors. It was not surprising, therefore, that Carrefour experienced a number of problems in initially setting up its distribution system. It still relies on 45 wholesalers to deliver products from more than 1600 suppliers. The arrival of Carrefour stores in Japan has already led competitors, such as Daiei and Ito Yokado, to lower their prices (at stores located close to the new Carrefour outlet) and re-examine their distribution methods, to make them as efficient as possible.

Wal-Mart

Wal-Mart is the world's largest retailer, with more than 1000 stores outside the United States, including 492 in Mexico, 242 in the United Kingdom, 173 in Canada, 95 in Germany, 20 in Brazil, 15 in Puerto Rico, 11 in Argentina, nine in China, and six in South Korea. In the fiscal year ending January 2000, Wal-Mart generated sales of $245 billion (US$165 billion) through all of its retail outlets.

Wal-Mart plans to open its first store in Japan in 2002. The company intends to establish a Japanese subsidiary in summer 2001 to facilitate the opening of its future outlets. The first store will be a 160 000 square-foot supercentre, reportedly to be based in Makuhari, a major city between Osaka and Tokyo.

Costco

Costco opened its first outlet in Japan in 1999 on the southern island of Kyushu. The company has stated that it intends to open another 5-10 stores by 2005. Although Costco refuses to disclose its Japanese sales figures, it has increasingly sourced its products from Japanese suppliers in an attempt to reduce costs. Currently, Costco buys over 80% of its products directly from Japanese suppliers, compared to roughly 70% when the company opened its first store.

Costco opened its second outlet, in Makuhari, on December 13, 2000. This store is intended to provide direct competition for Carrefour's first store, which opened only five days earlier.

E-Commerce

In 1999, the Japanese government estimated that 19.1% of the population had personal computers, with 12.1% connected to the internet. In addition, approximately 1% of all retailers had on-line stores. Although this still represents only a small portion of the total industry, the statistics are slightly skewed due to the large number of small, local retailers. Most large retailers have on-line stores, or use E-commerce.

Both retailers and industry analysts believe that E-commerce will grow significantly in the near future. In 1998, consumer E-commerce was estimated to total $891.5 million. By 2003, the investment bank Schroders Japan forecasts that E-commerce will exceed $44.1 billion.

Perhaps the greatest hindrance to E-commerce sales is widespread consumer wariness about giving credit card information on-line. In response to these concerns, retailers are examining the possibility of enabling consumers to order on-line and then pay at a retail outlet. Products could either be picked up at the time of payment or they could be delivered for an additional charge.

Many of the large retailers, including 7-Eleven and Lawson, have set-up E-commerce Web sites in recent years, in an attempt to capitalise on the growing popularity of on-line shopping among Japanese consumers.

MARKET LOGISTICS

Distributors and Wholesalers

The Japanese food distribution system is characterized by multiple layers of distributors and wholesalers--many of whom specialize in certain products--who have developed close relationships with manufacturers, retailers, importers and other wholesalers. Distributors who specialize typically handle competing product lines and some or all promotional activities. Depending on the specific agreement, distributors and wholesalers may also oversee customer support.

Choosing the appropriate wholesaler or distributor is a crucial step in accessing the Japanese market. Working closely with a Japanese partner helps to ensure that a product meets all regulations, standards and quality marks, which is essential to operating successfully in Japan. Producers are expected to communicate frequently with their distributor or wholesaler, and this generally includes taking one or more trips a year to Japan. A lack of correspondence is generally interpreted as of a lack of commitment. Good communication often determines the efforts that distributors and wholesalers make to promote a producer's products.

Although the number of direct sales to Japanese retail outlets has increased in recent years, smaller grocery stores and speciality shops still depend on wholesaler services. Money collection, delivery service and inventory maintenance are just a few of the services that wholesalers provide for smaller retail outlets.

When seeking the services of a distributor or wholesaler, exporters should consider the relationship that these individuals have with local governments, buyers and banks; the condition of their facilities; and their willingness and ability to keep inventory. Canadian producers are advised to review the provisions of Japanese law with a qualified lawyer before entering into an agreement with a prospective partner.

Direct Sales

Due to the increasingly competitive nature of the Japanese market, a growing number of retailers are initiating direct sales agreements with manufacturers. This form of distribution not only reduces costs to the retailer, whose savings are passed on to the consumer, but it is also more efficient than shipping products through (multiple layers of) distributors/wholesalers. Although some Japanese retailers have shown some resistance to this change, preferring to maintain longstanding relationships with wholesalers/distributors, the arrival of foreign-owned retailers (most of which prefer direct sales relationships) has provided the impetus for domestic companies to at least examine the possibility of purchasing products directly from the manufacturer.

Agents and Sales Representatives

Agents are excellent channels through whom to introduce new products into the Japanese market. While agents solicit business and enter into agreements on behalf of the exporter they are representing, they do not take ownership over the products they sell.

An exporter must weigh a number of factors when selecting an agent, including:

• region(s) covered by the agent;
• reputation;
• product knowledge;
• experience in handling the exported product;
• commission to be paid;
• what (if any) after-sales service is provided;
• track record; and
• size and quality of the agent's staff.

These attributes can best be assessed during a visit to Japan. Manufacturers should also ensure that responsibilities are clearly defined before entering into a long-term relationship.

Suggested Business Practices

Japanese companies are extremely efficient and expect their foreign business associates to operate in the same way. Late arrival for meetings is deemed to be unacceptable and can taint an otherwise positive relationship.

Initial meetings with Japanese businesses should be arranged through a mutual contact, such as the Canadian Embassy in Japan. Initial meetings often serve as an opportunity to build personal rapport and to agree on common interests.

Another important factor for Canadian exporters to remember is that most Japanese business initiatives start at the bottom of a company and "work their way up". Foreign companies often bypass lower levels of administration in an attempt to appeal to senior personnel. More often than not, alienation of key decision makers is the only result of this type of approach.

Many Japanese companies view a permanent market presence as a necessity to doing business with foreign companies. Regardless of the quality of the product, a supplier who does not have a local presence to deal--in Japanese--with any problem or enquiry that may arise, will have difficulties establishing business ties with Japanese companies. Although this need can usually be fulfilled by the appointment of a competent agent or distributor, this does not excuse producers from making relatively frequent trips--at least once or twice a year--to Japan.

The use of interpreters is strongly recommended for business meetings. Interpreters allow Japanese business associates, even those who speak English, to feel more relaxed and perhaps provide more details than they could while speaking English. Interpreters should be briefed about both companies involved, specific products, and the objectives of the meeting. Following the meeting, Canadians should be debriefed by the interpreters about the tone and any non-verbal exchange that may have taken place among the Japanese business associates.

Participation in some of Japan's many specialized trade shows and exhibitions are an excellent method for potential exporters to both assess the market and make contacts. Due to the extensive preparatory requirements of these events, combined with the need to communicate in Japanese, selection of an agent or distributor before attending the show is usually a prerequisite to effective participation.

Import Regulations

Imported food products require certification from the Japanese Ministry of Health, Labour and Welfare (MHLW) before sale in the Japanese market. Certificates are valid for six months and are very product specific. In other words, different varieties of the same product all must be certified individually. Canadian exporters can have their products certified by a MHLW-approved laboratory in Canada before shipment. This will help avoid unnecessary delays or expenses upon the products arrival in Japan. A list of ingredients as well as a brief description of the manufacturing process must be included with the product(s) when they are submitted to the lab.

The Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) requires certain certificates for quarantine inspection of fresh products such as meat and vegetables (including frozen meat and vegetables). Exporters should consult MAFF or the Japan External Trade Organization (JETRO) to ensure that all necessary certificates are included in any shipment.

The Japanese Agricultural Standards (JAS) mark is a widely-used voluntary mark which informs consumers that the product adheres to government labelling and quality standards. This system is open to foreign producers and tends to make imported products more appealing to consumers.

Canadian exporters can obtain, for a fee, a carnet, which permits temporary importation of commercial samples without having to pay duties or posting bonds. However, any product listed on the carnet must be re-exported. More information can be obtained from the Canadian Chamber of Commerce, which issues the carnets.

Local Standards, Certificates or Registrations

All products exported to Japan must be accompanied by a set of shipping documents. It is recommended that Canadian exporters use the services of a Japanese customs broker, importer, agent or distributor to ensure that all essential documentation is correctly prepared and arrives with the shipment. All documents should be completed in both English and Japanese in order to avoid any unnecessary delay. Among the required documents are the following:

Commercial Invoice. The commercial invoice serves as a bill to the buyer from the exporter and must accompany every shipment to Japan. Invoices must be signed by the exporter. The invoice should be thoroughly checked, since any error or omission can result in delays, fines or even confiscation of the goods. The invoice must include the following information:

• place and date of issue;
• names and addresses of importer and exporter;
• detailed description of the merchandise, including identifying marks, quantities, numbers and varieties;
• method of shipment;
• signature of responsible officer, along with name and title;
• all insurance and freight charges; and
• shipper's invoice number and customer's order number.

Exporters should consult their customs broker to determine how many copies of the commercial invoice should be sent with each shipment, since the number of copies required depends on the product being shipped. Any promotional information should also be included with the commercial invoice.

Export Declaration Form (Form B-13). Exporters whose shipments have a value of $2,000 or greater must complete Form B-13. Although exporters are technically responsible, agents, brokers or carriers typically complete the form and submit it on behalf of the exporter.

Packing List. A packing list is necessary when multiple packages are shipped, unless the commercial invoice provides the required information. The list should include the number of packages within one case; the net, gross and legal weights of each case and of the total shipment; and the volume, count, or weight (whichever is applicable) of individual packages, as well as of the shipment as a whole.

Bill of Lading. The bill of lading is the shipper's recognition of receipt of the shipment. Each shipment may contain a set of bills of lading, one copy of which should be kept on file, while other copies are sent to the importer and customs broker. The bill of lading should include:

• description of the product(s);
• temperature requirements (for perishables);
• weights and measurements of the packages and their types;
• ports of origin and destination;
• names and addresses of the shipper, importer and customs broker;
• any freight or other charges incurred;
• number of bills of lading in the full set; and
• carrier's acknowledgment of receipt on board of the goods for shipment.

Certificate of Origin: A certificate of origin verifies that the goods originate in Canada and are therefore subject to all duties or taxes that apply to Canadian products.

Packaging and Labelling: Packaging and labelling regulations can vary significantly, depending on the specific product being shipped. As a result, Canadian exporters should consult with Japanese business counterparts and government agencies to ensure that all regulations are met before shipment. In general, all packaged retail food must have the following information clearly written, in Japanese, either directly on the package or attached with a seal or stick-on label:

• name of the product;
• statement of what the product is;
• expiry date;
• storage requirements;
• country of origin;
• alcohol content, by volume (where applicable);
• manufacturer's lot or batch number;
• all nutritional information;
• a list of ingredients and weights in metric units; and
• a list of additives, preservatives, or colouring used.

Many exporters use stick-on labels or seals for products that are not specifically produced for the Japanese market. These labels or seals can be affixed to the product either in Canada or in Japan before retail sale.

Authentication of Documents

Documents that need to be authenticated, such as certificates of sale and letters authorizing an exporter's local agent or importer to act on their behalf, must first be notarized in Canada. Exporters can have the notarized documents authenticated, at no cost, by sending them to the Authentication and Service of Documents (JLAC) division at the Department of Foreign Affairs and International Trade.

PROMOTIONAL EVENTS

Supermarket Trade Show
Spring 2002 (Annual)
Tokyo Big Sight (Tokyo International Exhibition Centre)
Tokyo, Japan Foods and miscellaneous goods sold at self-service stores and retail stores and facilities, equipment and systems for sales of such products

Organizer:
Japan Self-Service Association
TOC Building, 9^th Floor
7-22-17 Nishi-Gotanda, Shinagawa-ku
Tokyo 141-0031, Japan
Tel.: (81-3) 3494-3836
Fax: (81-3) 3494-3838
E-mail: seikyo@jssa.or.jp
Internet: http://www.jssa.or.jp
(in Japanese)

E-Food
June 13-15, 2001 (Annual)
Tokyo Big Sight (Tokyo International Exhibition Centre)
Tokyo, Japan Marketplaces, on-line malls/shops, SCM softwares, EDI, EC systems, data warehouse tools, CTI, SFA, ERP, fulfillment services, packaging equipment, storage services

Organizer:
The Japan Food Journal
Tokyo Tatemono Building
1-9-9 Yaesu, Chuo-ku
Tokyo 103-0028, Japan
Tel.: (81-3) 3271-4815
Fax: (81-3) 3271-4818
E-mail: tenjikai@nissyoku.co.jp
Internet: http://www.nissyoku.co.jp
(in Japanese)

Foodex Japan
Spring 2001 (Annual)
Chiba, Japan International food and beverage exhibition

Organizer:
Japan Management Association
Hiroaki Uyeno
3-1-22 Shibakoen
Minato-ku
Tokyo 105-8522, Japan
Contact: N.Tagashira
Tel.: (81-3) 3434-8116
Fax: (81-3) 3434-8076
E-mail: tomio.inoue@jma.or.jp
Internet: http://www.jma.or.jp

Japan Food
October 2002 (Biennial)
Osaka, Japan International food show; also contains Food-Tech, Japan's international food engineering and industry show

Organizer:
Osaka International Trade Fair Commission
1-5-102 Nanko-kita
Suminoe-ku
Osaka 559, Japan
Contact: H. Tanaka
Tel.: (81) 6612-1212
Fax: (81) 6612-8585
E-mail: info@fair.or.jp
Internet: http://oitfc.fair.or.jp

KEY CONTACTS AND SUPPORT SERVICES

Canadian Government and Industry

Canadian Embassy
7-3-38 Akasaka, Minato-ku
Tokyo 107-8503, Japan
Tel.: (81-3) 5412-6200
Fax: (81-3) 5412-6247
Contact: Greg Giokas
E-mail: tokyo.fn@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/ni-ka

Canadian Consulate-Fukuoka
FT Building, 9^th Floor
4-8-28 Watanabe-Dori, Chuo-ku
Fukuoka 810-0004, Japan
Tel.: (81-92) 752-6055
Fax: (81-92) 752-6077
E-mail: fukuoka@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/ni-ka

Canadian Consulate-Nagoya
Nakato Marunouchi Building, 6^th Floor
3-17-6 Marunouchi Naka-ku
Nagoya 460-0002, Japan
Tel.: (81-52) 972-0450
Fax: (81-52) 972-0453
E-mail: ngoya@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/ni-ka

Canadian Consulate General-Osaka
2-2-3 Nishi-Shinsaibashi, Chuo-ku
PO Box 150
Osaka Minami 542-8691, Japan
Tel.: (81-6) 6212-4910
Fax: (81-6) 6212-4914
E-mail: osaka@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/ni-ka

Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Ave.
Ottawa, ON K1A 0C5
Contact: Kim Otte
Tel.: (613) 759-7535
Fax: (613) 759-7506
E-mail: ottek@agr.gc.ca

Canadian Commercial Corporation
50 O'Connor St., 11th Floor
Ottawa, ON K1A 0S6
Tel.: (613) 996-0034
Fax: (613) 995-2121
E-mail: info@ccc.ca
Internet: http://www.ccc.ca

Canadian Food Inspection Agency (CFIA)
59 Camelot Dr.
Nepean, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-6653
E-mail: cfiamaster@agr.gc.ca

Canadian International Development Agency (CIDA)
Business Co-operation Branch, Bureau for Asia
200 Promenade du Portage
Hull, QC K1A 0G4
Tel.: (819) 997-7901
Fax: (819) 953-5024
Internet: http://www.acdi-cida.gc.ca

Alliance of Manufacturers and Exporters Canada
1 Nicholas St., Suite 1500
Ottawa, ON K1N 7B7
Tel.: (613) 238-8888
Fax: (613) 563-9218
Internet: http://www.the-alliance.org

Business Development Bank of Canada
5 Place Ville Marie, Suite 400
Montreal, QC H3B 2G2
Tel.: 1-888-463-6232
Fax: (514) 283-0617
Internet: http://www.bdc.ca

Canada-Japan Trade Council
75 Albert St., Suite 903
Ottawa, ON K1P 5E7
Tel.: (613) 233-4047
Fax: (613) 233-2256
E-mail: cjtc@magi.com
Internet: http://magi.com/~cjtc

Canadian Chamber of Commerce
Internet: http://www.chamber.ca

In Montreal
1255 University St., Suite 1510
Montreal, QC H3B 3X2
Tel.: (514) 866-4334
Fax: (514) 866-7296

In Ottawa
Delta Office Tower
350 Sparks St., Suite 501
Ottawa, ON K1R 7S8
Tel.: (613) 238-4000
Fax: (613) 238-7643

In Toronto
BCE Place, Heritage Building (Galleria)
181 Bay St.
PO Box 818
Toronto, ON M5J 2T3
Tel.: (416) 868-6415
Fax: (416) 868-0189

Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca

Authentication and Service of Documents (JLAC)
Tel.: (613) 992-6602
Fax: (613) 992-2467

Japan Division (PJP)
Tel.: (613) 995-1281
Fax: (613) 943-8286 or 944-2397

Market Support Division (TCM)
Tel.: 1-800-267-8376 or (613) 944-2045
Fax: (613) 943-1103

Tariffs and Market Access Division (EAT)
Tel.: (613) 992-2177
Fax: (613) 992-6002 or 944-4840

Export Development Corporation
151 O'Connor St.
Ottawa, ON K1A 1K3
Tel.: (613) 598-2500
Fax: (613) 237-2690
E-mail: export@edc4.edc.ca
Internet: http://www.edc-see.ca

Agriculture and Agri-Food Canada

The Agri-Food Trade Service regional contacts are:

Al McIsaac
St. John's, Nfld.
Tel.: (709) 772-0330
E-mail: mcisaaca@agr.gc.ca

Chris Pharo
Charlottetown, P.E.I.
Tel.: (902) 566-7310
E-mail: pharoc@agr.gc.ca

Shelley Manning
Halifax, N.S.
Tel.: (902) 426-2137
E-mail: mannings@agr.gc.ca

Bernard Mallet
Moncton, N.B.
Tel.: (506) 452-3732
E-mail: malletb@agr.gc.ca

Marc Chénier
Montreal, Que.
Tel.: (514) 283-3815 (510)
E-mail: chénierm@agr.gc.ca

Sharon Burke
Guelph, Ont.
Tel.: (519) 837-5831
E-mail: burkess@agr.gc.ca

Roy Gordon
Regina, Sask.
Tel.: (306) 780-7134
E-mail: gordonr@agr.gc.ca

Rodney Dlugos
Edmonton, Alta.
Tel.: (403) 495-5526
E-mail: dlugosr@agr.gc.ca

Fay Abizadeh
Winnipeg, Man.
Tel.: (204) 983-8622
E-mail: abizadehf@agr.gc.ca

Shun Ishiguro
New Westminster, B.C.
Tel.: (604)666-9803
E-mail: ishiguros@agr.gc.ca

International Trade Centres

For export counselling or publications for Canadian exporters, contact a local International Trade Centre by calling 1-888-811-1119.

Japanese Government Contacts

Embassy of Japan in Canada
255 Sussex Dr.
Ottawa, ON K1N 9E6
Tel.: (613) 241-8541
Fax: (613) 241-2232

Foreign Investment Promotion Development Corporation (FIND)
ATT Building
2-17-22 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3224-1203
Fax: (81-3) 3224-9871

Japan Health Food and Nutrition Food Association
6-1, Jingumae 2-Chome
Shibuya-ku
Tokyo 150, Japan
Tel.: (81-3) 5410-8231
Fax: (81-3) 5410-8235

Japan Standards Association
4-1-24 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3583-8003
Fax: (81-3) 3586-2029

JETRO-in Japan
2-2-5 Toranomon, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 3582-5562
Fax: (81-3) 3582-5027

JETRO Business Support Centre
ATT Building
2-17-22 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 5562-3131
Fax: (81-3) 5562-3100

JETRO Standards Information Service
2-2-5 Toranomon, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3582-6270
Fax: (81-3) 3589-4179

Ministry of Agriculture, Forestry and Fisheries
1-2-1 Kasumigaseki, Chiyoda-ku
Tokyo 100-8950, Japan
Tel.: (81-3) 3591-2874
Fax: (81-3) 3501-3720

National Food Research Institute
2-1-2 Kannondai
Tsukuba, Ibaraki-ken 305, Japan
Tel.: (81-298) 38-7971
Fax: (81-298) 38-7996

Ministry of Foreign Affairs (MOFA)
Standards Information Service
2-2-1 Kasumigaseki, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3580-3311
Fax: (81-3) 3503-3136

Japan Standards Association
International Standardization Co-operation Centre
Olumu Building, 3^rd Floor
4-6-11 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3583-8073
Fax: (81-3) 3582-2390

Japanese External Trade Organization (JETRO)-in Canada
In Montreal
1 Place Ville-Marie, Suite 1506
Montreal, QC H3B 2B5
Tel.: (514) 879-5617
Fax: (514) 879-5618
Internet: http://www.jetromontreal.org

In Toronto
181 University Ave., Suite 1600
Toronto, ON M5H 3M7
Tel.: (416) 861-0000
Fax: (416) 861-9666
Internet: http://www.toronto.jetro.org

In Vancouver
World Trade Centre
999 Canada Place, Suite 660
Vancouver, BC V6C 3E1
Tel.: (604) 684-4174
Fax: (604) 684-6877
Internet: http://www.jetrovancouver.org

Ministry of Health and Welfare
2-2 Kasumigaseki, 1-Chome
Chiyoda-ku
Tokyo 10, Japan
Tel.: (81-3) 3503-1711, ext. 2442

Ministry of International Trade and Industry (MITI)
1-3-3 Kasumigaseki, Chiyoda-ku
Tokyo 170, Japan
Tel.: (81-3) 3501-1664
Fax: (81-3) 3501-5912

National Agriculture Research Center
3-1-1 Kannondai
Tsukuba, Ibaraki 305, Japan
Tel.: (81-298) 38-8510
Fax: (81-298) 38-8484
E-mail: www@narc.affrc.go.jp
Internet: http://ss.narc.affrc.go.jp/index-e.html

National Institute of Agrobiological Resources
2-1-2 Kannondai
Tsukuba, Ibaraki 305-8602, Japan
Tel.: (81-298) 38-7406
Fax: (81-298) 38-7408
E-mail : www@abr.affrc.go.jp
Internet: http://ss.abr.affrc.go.jp/index_e.html

National Research Institute of Agricultural Engineering
2-1-2 Kannondai
Tsukuba 305, Japan
Tel.: (81-298) 38-7513
Fax: (81-298) 38-7609
Internet: http://ss.nkk.affrc.go.jp/index-e.htm

Trade Associations/Chambers of Commerce in Japan

American Chamber of Commerce in Japan (AACJ)-Kansai Chapter
Business Centre 301, East Court Two
1-14 Koyocho Naka, Higashi Nada-ku
Kobe 658, Japan
Tel.: (81-6) 857-9745
Fax: (81-6) 857-6714

Japan Chain Stores Association (JCSA)
Toranomon 40-Mori Building
5-13-1 Toranomon, Minato-ku
Tokyo 105-0001, Japan
Tel.: (81-3) 3433-1290
Fax: (81-3) 3433-1297

Japan Chamber of Commerce and Industry
Tosho Building
3-2-2 Marunouchi, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3283-7608
Fax: (81-3) 3216-6491

Japan Convenience Food Association
Kimura Building, 3^rd Floor
5-5-5 Asakusabashi, Taito-ku
Tokyo 111, Japan
Tel.: (81-3) 3865-0811
Fax: (81-3) 3865-0815

Japan Council of Shopping Centres (JCSC)
Forefront Tower, 13^th Floor
3-12-1 Kachidoki, Chuo-ku
Tokyo 104-0054, Japan
Tel.: (81-3) 3536-8121
Fax: (81-3) 3536-8120
E-mail: jcsc@mail.magical.egg.or.jp
Internet: http://www.tip.ne.jp/jcsc/english/index.html

Japan Department Stores Association (JDSA)
Yanagiya Building
2-1-10 Nihonbashi, Chuo-ku
Tokyo 103-0027, Japan
Tel.: (81-3) 3272-1666
Fax: (81-3) 3281-0381
E-mail: info@depart.or.jp
Internet: http://www.depart.or.jp (In Japanese)

Japan Food Service Association
Hamamatsucho Central Bldg.
1-29-6 Hamamatsu-cho, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 5403-1060
Fax: (81-3) 5403-1070

Canadian Chamber of Commerce in Japan (CCCJ)
Chez Irene Building, 2F
7-4-7 Akasaka, Minato-ku
Tokyo 107-0052, Japan
Tel.: (81-3) 3224-7824
Fax: (81-3) 3224-7825
E-mail: cccj@twics.com
Internet: http://www.cccj.or.jp

Japan Foreign Trade Council, Inc.
World Trade Centre Building
2-4-1 Hamamatsu-cho, Minato-ku
Tokyo 100, Japan
Tel.: (81-3) 3435-5950
Fax: (81-3) 3435-5979

Japan Frozen Food Association
No. 2 Katsuraya Building
10-6 Kobuna-cho, Nihonbashi, Chuo-ku
Tokyo 107, Japan
Tel.: (81-3) 3667-6671
Fax: (81-3) 3669-2117

Nagoya Chamber of Commerce and Industry
2-10-19 Sakae, Naka-ku
Nagoya 460, Japan
Tel.: (81-52) 221-7211
Fax: (81-52) 231-5213

National Association of Supermarkets (NAS)
Okubo Fuji Building, Suite 505
2-7-1 Okubo, Shinjuku-ku
Tokyo 169-0072, Japan
Tel.: (81-3) 3207-3157
Fax: (81-3) 3207-5277
Internet: http://www.super.or.jp (In Japanese)

Osaka Chamber of Commerce and Industry
2-8 Honmachi-bashi, Chuo-ku
Osaka 540, Japan
Tel.: (81-6) 944-6400
Fax: (81-6) 944-6409

Tokyo Chamber of Commerce and Industry
3-2-2 Marunouchi, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3283-7540
Fax: (81-3) 3284-1208

Canadian Banks in Japan

Bank of Nova Scotia
Fukoku Seimei Building, 21st Floor
2-2 Uchisaiwaicho 2-Chome, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 593-0201
Fax: (81-3) 593-0414

Bank of Montreal
Mitsui Nigokan
1-1 Nihonbashi-Muromachi 2-Chome, Chuo-ku
Tokyo 103, Japan
Tel.: (81-3) 246-0103
Fax: (81-3) 246-4215

Canadian Imperial Bank of Commerce
Hibaya Kokusai Building, 8^th Floor
2-2-3 Uchisaiwai-Cho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 5512-8901
Fax: (81-3) 3591-3169

National Bank of Canada
Ogawamachi-Mitsui Building, Suite 502
3-Kanda-Ogawamachi 1-Chome, Chiyoda-ku
Tokyo 101, Japan
Tel.: (81-3) 292-6361

Royal Bank of Canada
Hibaya Kokusai Building, 14^th Floor
2-2-3 Uchisaiwaicho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3501-1382
Fax: (81-3) 3508-0403

Toronto-Dominion Bank
Kamiyacho Building, 16^th Floor
3-20 Toranomon 4-Chome, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 5473-1610
Fax: (81-3) 5473-6899

Commercial Banks in Japan

Asahi Bank
1-1-2 Ohtemachi, Chiyoda-ku
Tokyo 100-8106, Japan
Tel.: (81-3) 3287-2111
Fax: (81-3) 3212-3663

Bank of Tokyo-Mitsubishi
2-7-1 Marunouchi, Chiyoda-ku
Tokyo 100-8388, Japan
Tel.: (81-3) 3240-1111
Fax: (81-3) 3240-4764

Daiichi Kangyo Bank
1-1-5 Uchisaiwai-cho, Chiyoda-ku
Tokyo 100-0011, Japan
Tel.: (81-3) 3596-1111
Fax: (81-3) 3596-2179

Daiwa Bank
2-2-1 Bingo-machi, Chuo-ku
Osaka 540-8610, Japan
Tel.: (81-3) 271-1221
Fax: (81-3) 268-1337

Sakura Bank
1-3-1 Kudan-Minami, Chiyoda-ku
Tokyo 100-8611, Japan
Tel.: (81-3) 3230-3111
Fax: (81-3) 3239-1022

Sanwa Bank
3-5-6 Fushimi-machi, Chuo-ku
Osaka 541-8530, Japan
Tel.: (81-3) 206-8111
Fax: (81-3) 229-9305

Export-Import Bank of Japan
1-4-1 Ohtemachi, Chiyoda-ku
Tokyo 100-8144, Japan
Tel.: (81-3) 3287-9500
Fax: (81-3) 3287-9579

Fuji Bank
1-5-5 Ohtemachi, Chiyoda-ku
Tokyo 100-0004, Japan
Tel.: (81-3) 3216-2211
Fax: (81-3) 3201-0527

Industrial Bank of Japan
1-3-3 Marunouchi, Chiyoda-ku
Tokyo 100-8210, Japan
Tel.: (81-3) 3214-1111
Fax: (81-3) 3215-0367

Japan Development Bank
1-9-1 Ohtemachi, Chiyoda-ku
Tokyo 100-0004, Japan
Tel.: (81-3) 3270-3211
Fax: (81-3) 3245-1938

Sumitomo Bank
4-6-5 Kitahama, Chuo-ku
Osaka 541-0041, Japan
Tel.: (81-6) 627-2111
Fax: (81-3) 282-8330

Translation Agencies in Japan

Access Japan Inc.
Tokyo Tatemono Shibuya Building, 8^th Floor
3-9-9 Shibuya, Shibuya-ku
Tokyo 150, Japan
Tel.: (81-3) 5467-4723
Fax: (81-3) 5467-4722

Berlitz Translation Service
Akasaka Annex Building
2-17-42 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 3505-3356
Fax: (81-3) 3582-7393

Dynaword, K.K.
Kakihara Asahi Eitai Building, 10^th Floor
3-7-13 Toyo, Koto-ku
Tokyo 135, Japan
Tel.: (81-3) 5632-5001
Fax: (81-3) 5632-5011

Forte Inc.
5-28-10 Sendagaya, Shibuya-ku
Tokyo 306, Japan
Tel.: (81-3) 3353-3545
Fax: (81-3) 3354-2845

Inter Group Co. Ltd.
Builco Building, 5^th Floor
3-7-3 Nakatsu, Kita-ku
Osaka 531, Japan
Tel.: (81-6) 372-8048
Fax: (81-6) 372-6164

Sansei International Inc.
Pukide Daini Building, 8^th Floor
4-1-21 Toranomon, Minato-ku
Tokyo 105, Japan
Tel.: (81-3) 3433-1560
Fax: (81-3) 3433-1612

I.S.S. Service Centre Inc.
23-3 Ichiban-cho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3230-2521
Fax: (81-3) 3262-6633

Japan Onvention Service Inc.
Nihon Press Centre Building
2-2-1 Uchisaiwai-cho, Chiyoda-ku
Tokyo 100, Japan
Tel.: (81-3) 3508-1215
Fax: (81-3) 3508-0820

Linguabank Inc.
2-3-18-502 Hirakawa-cho, Chiyoda-ku
Tokyo 102, Japan
Tel.: (81-3) 3234-7575
Fax: (81-3) 3234-7055

Linx Inc.
1-33-32-108 Hamadayama, Suginami-ku
Tokyo 168, Japan
Tel.: (81-3) 3478-0266
Fax: (81-3) 3302-3166

Simul International Inc.
Kowa Building No. 9
1-8-10 Akasaka, Minato-ku
Tokyo 107, Japan
Tel.: (81-3) 2586-8911
Fax: (81-3) 3583-8336

BIBLIOGRAPHY

Agence France-Presse. "Japanese Convenience Store Chain to Set Up E-Commerce Joint Venture," October 5, 2000.

------. "Carrefour Opens First Japanese Hypermarket," December 7, 2000.

------. "Mixed Response in Japan to French Retailer Carrefour's Store," December 9, 2000.

------. "Japanese Retailer Mycal to Cut 50 Outlets, 2,700 Jobs," January 24, 2001.

------. "Daiei Appoints New President as Founder Retires," January 30, 2001.

------. "Mitsubishi in Talks to Expand Stake in 24-hour Store Operator," February 7, 2001.

Asia Pulse. "GlobalNetXChange to Launch Japan Unit with Daiei, Mycal," December 15, 2000.

Asian Wall Street Journal. "North Asia: Japan's Retailers Face Foreign Threat-Carrefour and Costco Take On Supermarkets," December 7, 2000.

Business Wire. "GlobalNetXchange Announces Formation of Subsidiary to Serve Retail Industry in Japan; Japanese Retailers Daiei and Mycal are Founding Members," December 13, 2000.

------. "Viewlocity Helps World's Second-Largest Retailer, Carrefour, Connect with Global Trading Partners," February 5, 2001.

Dow Jones International News. "McDonald's to Open Eateries in Daiei Stores-Nikkei," January 22, 2001.

Japan External Trade Organisation. Regulations and Practices-Retail Business, November 2000.

Japan Quarterly. "Convenience in Store: Japan's Quick-Stop Retailers," Japan 1, 2000.

Japan Weekly Monitor. "Daiei Inks Business Tie-Up with Midsize Retailer Niko Niko Do," January 22, 2001.

------. "Mycal to Cut 410 Billion Yen Debts, 2,700 Jobs in 3 Years," January 29, 2001.

------. "Sales Down for 4^th Year at Supermarkets, Department Stores," January 29, 2001.

Jiji Press English News Service. "Foreign Retailers Spark New Competition in Japan," December 25, 2000.

Moriyama & Partners. C-Store in Japan, January 2001.

Supermarket News. "Wal-Mart May Open Japanese Store in 2002," January 8, 2001.

United States Department of Agriculture. Japan-Retail Food Sector 1999/2000 Interim Update, August 8, 2000.

OTHER REFERENCE MATERIAL

Internet Sites

Agri-Food Trade Service: http://ats.agr.ca

Canada-Japan Trade Council: http://magi.com/~cjtc

Canadian Chamber of Commerce in Japan: http://www.cccj.or.jp

Canadian Embassy in Japan: http://www.dfait-maeci.gc.ca/ni-ka

Department of Foreign Affairs and International Trade: http://www.dfait.maeci.gc.ca

Embassy of Japan in Canada: http://embassyjapancanada.org

ExpoGuide: http://www.expoguide.com

ExportSource: http://exportsource.gc.ca

Global Window-A Guide to Business Success in Japan: http://www.anderson.ucla.edu/research/japan/mainfrm.htm

Governments on the WWW-Japan: http://www.gksoft.com/govt/en/jp.html

InfoExport: http://www.infoexport.gc.ca

Japan Customs: http://www.mof.go.jp/~customs/conte-e.htm

Japan External Trade Organization (JETRO):
http://www.jetro.go.jp/top/index.html

Japan Information Network: http://jin.jcic.or.jp

Japanese Government-related WWW Servers:
http://www.cao.go.jp/index-e.html

Japanese Ministry of Finance: http://www.mof.go.jp/english/files.htm

Japanese Web Sites: http://www.magnet.state.ma.us
/export/ASIA.HTM#japan

Management and Co-ordination Agency of Japan, Statistics Bureau and Statistics Centre: http://www.stat.go.jp/english/1.htm

Ministry of Agriculture, Forestry and Fisheries of Japan:
http://www.maff.go.jp/eindex.html

Ministry of Foreign Affairs of Japan: http://www.mofa.go.jp

Ministry of International Trade and Industry: http://www.meti.go.jp/
redirect/index_U.html

National Agriculture Research Centre: http://ss.narc.affrc.go.jp/index-e.html

National Food Research Institute: http://www.nfri.affrc.go.jp

Strategis: http://strategis.gc.ca

Tradeport: http://www.tradeport.org

Trade Show Central: http://www.tscentral.com

United States Department of Agriculture (USDA): http://www.fas.usda.gov

1. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD Information Services, Tradeline, January 2001.

2. For contact information regarding key organizations mentioned in this report, see Key Contacts and Support Services.