Executive Briefings

Why Japanese Products May Be Unknown to Many Consumers in Emerging Markets

If you're a consumer in one of the world's developed economies and you think that Japan is full of powerhouse exporters, you're right. Hitachi, Panasonic, Sony, Toyota - many Japanese multinationals became household names in the second half of the 20th century. If you're a consumer in an emerging market, though, you probably don't view Japanese companies the same way. In fact, it's possible that you have never used a product made by one of those giants.

Most Japanese companies moved up from the bottom in developed countries, but they have chosen to enter developing countries at the top of the consumer pyramid. Afterward they have struggled to move into the middle and low-end segments, where economies of scale and scope - and profits - can be found. As a result, these companies are at risk of becoming also-rans in the world's fastest-growing
markets.

That poses a threat to their very existence. After all, growth in the developed economies is slowing to a crawl.

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Keywords: international trade, supply chain planning, investing in emerging markets, Japanese FDI in emerging markets

Most Japanese companies moved up from the bottom in developed countries, but they have chosen to enter developing countries at the top of the consumer pyramid. Afterward they have struggled to move into the middle and low-end segments, where economies of scale and scope - and profits - can be found. As a result, these companies are at risk of becoming also-rans in the world's fastest-growing
markets.

That poses a threat to their very existence. After all, growth in the developed economies is slowing to a crawl.

Read Full Article


Keywords: international trade, supply chain planning, investing in emerging markets, Japanese FDI in emerging markets