-1-JPN-6001-90000-25-01RolandBerger&PartnerJapanLtd.–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Delhi–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–KualaLumpur–LisbonLondon–Madrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–ZurichMetroCash&CarryinJapan–DiscussionMaterial–Tokyo,November23,1999-2-JPN-6001-90000-25-01TworeferencecasesofstoresforbusinesscustomersinJapanareinterestingforMetroC&CReferencecasesofstoresforbusinesscustomersinJapanFailurecaseOfficeDepot(Officesupply)SuccesscaseJoyfulHonda(Buildingcontractionmaterial/tools)-3-JPN-6001-90000-25-01TheofficesupplymarketisnotclearlyintegratedinJapan,however,thestationerymanufacturersplayanintegratorroleValuechainoftheofficesupplymarketinJapanStationeryStationerymanufacturerStationerywholesalerOthersupplywholesalerOthersupplymanufacturerOthersupplies(e.g.tea,tissuepaper,detergent)StationeryretailerTraditionalothersupplyretailerCatalogsalesUserCompaniesComputerComputermanufacturerSalescompanyHardwarevendorSoftwarevendorSystemintegratorDealerComputersupplymanufacturePreliminaryFurnituremanufacturerFurniturewholesalerFurnitureDesignofficeFurnitureretailerCopymachinemanufacturerOfficeequipmentanditssupply(e.g.copymachine,facsimile)ElectronicsappliancemanufacturerPapermanufacturerTonermanufacturerSalescompanyOfficeequipmentdealerMassretailer-4-JPN-6001-90000-25-01DeliveryserviceisverypopularintheJapaneseofficesupplymarketandeveninthestationerymarket80%ofsalesforcorporationsisestimatedtobereceivedthedeliveryserviceSource:RolandBerger&PartnersEstimateStationerymarketinJapan,199710%20%70%30%CorporationsIndividuals70%33billionyen77billionyenStationeryretailerOTCsalesStationeryretailerdeliverysales45%20%10%25%OthersDepartmentstoreSupermarketStationeryretailerCatalogsales:DeliverserviceTotal110billionyenPreliminary-5-JPN-6001-90000-25-01SalesatlistpricearedominantinthestationeryOTCmarket,however,20-30%discountarecommoninthedeliverymarketSource:RolandBerger&PartnersPricecomparisonofstationery-Index10010070-8070-80DepartmentstoreStationeryretailerOTCsalesStationeryretailerdeliverysalesCatalogsalesPreliminary-6-JPN-6001-90000-25-01OfficeDepotenteredtheJapanesemarketin1997,howeverithasnotbeensuccessfulinthestorebusinessSalesformatSituationReasons•Wrongdestinationcategory–ThecomputeristhedestinationcategoryintheUSA,butdidnotworkinJapan•PriceisnotsoattractivetocompensatethedeliveryserviceStoresalesNotsuccessful•TheofficesupplycatalogsalesbusinessisgrowinginJapan•However,manystrongJapaneseplayersareinthemarketalreadyCataloguesalesSomehowsuccessfulOfficeDepotinJapan-7-JPN-6001-90000-25-01SupplychainofbuildingmaterialshasnotbeenmodernizedwellinJapanandvarietyofend-users'choicesdependsoncontactedprofessionalbuildingconstructor(PBC)/contractorSupplychannelsofbuildingconstructionmaterialsSource:RB&PFieldResearchOverseasmanufacturersDomesticmanufacturersTradingfirmsPrimarywholesalersSecondarywholesalersLocalbuildingmaterialshopsHardwareshopsHomeCentersHousingconstructioncompaniesLocalhousebuildersLocalspecialtyworkshopsConsumerBIY/EasyOrderDIY-8-JPN-6001-90000-25-01SinceHCisinferiortotraditionalretailersinmanyaspectsofbuildingmaterialsupplylikeproductassortmentandqualityofstockatpresent,PBCsdonotbuymateria...