A Pilot Test of Discrimination in the Japanese Distribution System

Abstract

Japanese trade practices continue to receive a great deal of discussion in both academic and trade circles. Foreign manufacturers of consumer goods believe that Japanese channel members do not provide foreign goods with the same level of support that domestic goods receive. Unfortunately, this has been difficult to validate since the level of analysis usually neglects merchandising support at the store level-where the success or failure of a product is often determined. A pilot study was conducted to develop a methodology that compared the relative levels of distribution and merchandising support for foreign and domestic brands. An intensive analysis of one product category in 131 Japanese retail stores was used to determine whether, after controlling for market share. foreign brands within the product category receive comparable treatment on a variety of merchandising indices. Results indicate that foreign products receive fair treatment.

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