Assignment 3

NEELAM KUMARI

(M033-15)
List the retail advantages an independent retailer in Japan has over larger
retailers. How has Zen Nippon Shokuhin used these ?
The retail advantages of an independent retailer in Japan over larger retailers are: These retailers know their customers better than large retailers
They offer discount and their target customers , pensioners cherish such offers
Japanese laws has impeded establishments for large retailers
Low mobility of housewives for shopping and the need for freshness
Low household income and lack of consumer durables (refrigerators) created need
for frequent trips.
Small retailers are economically efficient
Zen Nippon Shokuhin has used these advantages by use of technology to analyse the need to
current customer base and use more amiable means to cater to their needs.
Since their customers are pensioner who wait for offers they have used technology to
introduce loyalty card based discounts on their most purchased item.
Sources:
1. http://factsanddetails.com/japan/cat24/sub158/item912.html
2. http://www8.gsb.columbia.edu/rtfiles/japan/WP%2017.pdf

Data is important to Zen Nippon Shokuhin. How does this data get collected ? and
used? What other areas of use can you see for this data?
The data gets collected using a software called Retalix which analyses loyalty card and
purchase history to derive consumer behaviour.
The daily analysis on collected data help them analyse the pattern and act on the information
to the changing preferences of consumer.
It also helps them offer discounts for bargain seeking consumers.
The other areas where this data can be used are:

In case of Product development

In case of Market development
In case of basket analysis for upcoming change i.e., change in buying behaviour can be
correlated to an upcoming event, hence relevant coupons can be offered

Source: http://www.businesswire.com/news/home/20150720005026/en/JapaneseIndependent-Retailer-Chain-Qlik-Analyze-Customer

In your opinion, how can technology help the independent retailer, since there
have been many changes and leaps in the area of technology since 2011?
Yes technology can help independent retailers in todays scenario where online websites are
defining convenience and delivery. The fight omnipresence comes as a next step. The retailers
can only sustain their presence in the market through the delivery of value to customers.
And the customers needs can be best captured by their basket analysis for which technology
can serve the purpose.

On the downside it may cost maintenance charges for the IT infrastructure but the costs
would be negligible considering the loyalty and repeat purchases in mind.