japan - bve online · • stereo typed thinking of japanese consumers example: france = cheese,...

SKW EAST ASIA LTD.SKWイーストアジア株式会社

©SKW East Asia Ltd. 2012

Japan - Forum Außenwirtschaftstag der Agrar- und

Ernährungswirtschaft

Erfolgreiche deutsche Lebensmittelin Nischen des japanischen Einzelhandels

12.06.2012Juergen Schmid



Overview

1. SKW East Asia Ltd. overview

2. Introduction to the Japanese retail market

3. Demands on German retail products in the food category

4. Consumer purchase decisions concerning foreign food products

5. How to establish foreign food products in the Japanese market

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SKW EAST ASIA LTD.Company overview

人々の生活と産業を豊かにするための手伝い

Help to enrich life ofpeople and industry

©SKW East Asia Ltd. 20122012/6/13 3

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Introduction & History紹介と沿革

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Departments

SKW East Asia Ltd. is an independent trading companysupplying a variety of industry sectors in Japan.Metallurgical products, construction polymers, ecologicalconstruction systems, food ingredients and foodproducts are our primary lines of business. Carefulselection of high quality products, efficient adaption tothe requirements of the Japanese market and a dedicatedcustomer service are the key factors of our lastingsuccess.

Metallurgy

Nature

ConstructionPolymers

EcoSystems

Who is SKW East Asia Ltd.

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Summary概要

Outlinecapital € 400 000

address Sanbancho KS Building 6FSanbancho 2, Chiyoda-kuTokyo 〒 102-0075 Japan

bank Mitsubishi UFJ Bank (Kanda)Shoukouchukin (Tokyo)Mizuho Bank (Kojimachi)

turnover € 23 mio. (2011)


Walter BolzerRepresentative Director

Chairman

Yasuyoshi IkezawaRepresentative Director

President

Oliver M. BolzerJürgen SchmidDirector Director

Hideo Haruta (CPA)Auditor

Board

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Metallurgical Productsメタラジカルプロダクツ

Products

Silicon Metal Rima Industrial

Ferro Alloys SKW Stahl-Metallurgie GmbH

Natural Graphite Graphit Kropfmühl, BogalaGraphite Lanka

Aluminium Sandwich Panels

Metawell

Plasma-sprayed Ceramics

Osaka Fuji Kougyou

Metallurgy

The Metallurgy Department providesNatural Graphite which is widely used in the ITindustry, Silicon Metal (the raw material forsemiconductors and silicone products) and theauxiliary materials of steel production – allessential products in today’s high-tech world.


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Construction Polymersコンストラクションポリマー

ProductsSuperplasticizerse.g. Polycarboxylate based “Melflux” BASF

Plasticizere.g. Lignosulphonate Arbo” Tembec Avebene

Rheology Modifierse.g. Polymer based “Starvis WR, T, S” BASF

Dispersion e.g. Acrylic based “Acronal” BASF

Flowing Agentse.g. Polycarboxylate “Castament” BASF

Rheology Modifiere.g. Polymer based “Starvis WR” BASF

The Construction PolymersDepartment is a specialized one-stop-shop additives supplier for constructionand refractory materials. We are offeringtechnical solutions with the best selectedadditives from world-class chemicalcompanies.


Construction Polymers

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Ecological Construction Systemsエコロジー建材

ProductsINTELLO, SOLITEX, TESCON pro clima

Insulation Material Blowing Machines

X-Floc

Silicate Paint Keim Farben

SHERPA Timber Connectors Harrer

Glass Fiber Mesh Reinforcement Vitrulan

EcoSystems Eco Systems provides ecological

construction systems for energy efficient housingdesigns in cooperation with EcoTransferJapan.Low energy house and passive house conceptsare our contribution to a sustainable energyconsumption in the future.


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Nature Productsネイチャープロダクツ

Products“Alpen Salz” rock salt Südsalz

“Sahne Wunder” whippedcream, Milkpowder

Hochwald

Decaffeinated coffee beans and tea flavors

CR3 Hermsen, Evonik Degussa

Natural anhydrous caffeine Stabilimento Farmaceutico Cav. G. Testa

FD coffee and fruits, Yoghurt powder Dr. Suwelack

“QimiQ” QimiQ Handels

Spices Aurapa and Fruitarom

Starter cultures Aurapa, Daniso

Phosphate Additives

Butterflavor

Hop, Hop products

CFB Budenheim

Jeneil Bio

Baywa, Evonik Degussa

Nature

The Nature Products Department offers a wide range of food products and functional food ingredients. Our products contribute to the overall taste and quality of food and are particularly convenient for our customers in the food retail and preparation industries.


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Nature ProductsBusiness lines and customer groups


Retail Business

Food Service&

Food Preparation

Know‐How

Specialty Products

AlpensalzSahneWunder

• Distribution to 11.000 super-market outlets

• Combined pro-motion (Train jack; Campaign)

• Decaffeinated Coffee & Tea

• Caffeine• Flavors• Special dairy

products• FD-Products• Functional

additives for meat processing

Food processing “using German Alpensalz”(brand tie-up)

Food service Using consumer brandaerosol whipped cream

Co‐Development• Meat processing• Beverage tech-

nology• Convenience

products• Customers em-

ployee education• Quality contest

DLG

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Brand tie-upAlpensalz inside

Snacks

Ham & sausages

MargarineFrozen food

Chocolate &candies

Drinks


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DLG Food Testing German quality standards in Japan

DLG contest in Japan

• Direct participation of Japanese meat processors for more than 14 Years.

• More than 27 companies have participated in February 2011 with approx. 300 products

• High reputation of DLG awards and evaluation for internal development, quality improvements and marketing.

• Since Year 2000 SKW East Asia Ltd is organizing DLG participation for customers

• In 2012 the first DLG Contest for ham, sausages andconvenience products in Japan will be organized by SKW East Asia Ltd. 85 companies registered over 500 products.



The Japanese Retail Market

1. Retail structure

2. Distribution and outlets at SKW East Asia Ltd.

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Key figures

• Supermarkets total: approx. 40.000 stores (nationwide)

• Chain-supermarkets with central shelving pattern: approx. 11000 stores

• Convenience Stores total: approx. 43.000 stores (nationwide)

• Department Stores total: approx. 270 stores (nationwide)

• SEA distribution with at least one SKU

• Supermarkets: approx. 11000 stores (central shelving pattern) in key region Kanto, Kansai, Kita-Kyushu, Sapporo (60% Japanese population)

• Department stores: approx. 100 stores nationwide• Convenience stores: approx.: 20 (Seikatsu Seika)

Sources METI Year 2011

The Japanese retail marketRetail structure


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Distributors Major outlet category

Gaban Spice A-Price, Toho, Seijo Ishi, Union, Tokyu Hands, Kaldi etc.

Kokubu Daiei, Maruetsu, Kasumi, Seiyu, Inageya, Marukyo, Uny, Ohkuwa, Ucoop, Izumiya etc.

Mitsubishi Shokuhin Ito Yokado, Aeon Retail, Daimaru Peacock, Summit, Odakyu Ox, Sotetsu Rosen, etc.

Nippon Access Life(Kanto/Kansai), Mandai, Ikari Super etc.

Yasuma The Garden, Mitsukoshi, Seibu, Daimaru, Kintetsu, Suboy etc.

Italian Foods Kinokuniya, Isetan, Sanwa, Precce, National Super etc.

Kato Sangyo Heiwado, Yaoko, Coop Kinki

Tokyo Salt Metro cash & carry

Nisshin Shoji Tokyu Store, Zennisshoku chain etc.

Others Don Quixote

Store number : 11,000 (End of March 2012)

The Japanese retail marketDistribution and outlets at SKW East Asia Ltd.


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Demands on German retail products in the food category

1. Shelf-life demand

2. Food additives and components

3. Packaging material size and climatedemands

4. High quality demands(Zero claim management)

5. Product distribution from warehouseto customer


2/3 Rule

Demands on German retail products in the food categoryShelf-life demands

• 2/3 of the remaining shelf-life must be guaranteed after the delivery into the retail outlet.

Example: Hochwald Sahnewunder (Spray type whipped cream) Shelf-life 9 months

• Otherwise automatically rejection of the product and dead stock

Transportation1.5 month

Rework0.5

month

Distribution1 month

Remaining shelf-life6 month

Total product shelf-life should be as maximal as possible!

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Stronger limitations on the application of food additives than in EU

• Limitation by substanceSweetener(Saccharin etc.)Trace elements(Iodine in salt)

• Limitation by production methodLimited organic solvents(water steam, carbon dioxide)

• Limitation by food categoryNatural or synthetically source (e.g. caffeine)

• Therefore some customers(e.g. COOP) ask for a complete disclosure of all recipe components in percentage.

Demands on German retail products in the food categoryFood sanitation and additive law

Reformulation is often necessary before product launch!

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Development of smaller units and resistant packaging

• Package size:Often half size of European package or smaller due to less consumption and small storage roome.g. Alpensalz 500g in Germany, 250g in Japan

• Package usability:stackableresealable

• Package stability:Strong package materials to avoid any pressure or transport damages.

• Climate stability:Heat stability due to tropical high temperaturesMoisture stability due to high humidity in summer

Demands on German retail products in the food categoryPackaging and package size

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Zero claim management

1. All imported products are checked piece by piece for packaging and production damages, misprints, dirt, rust, etc. Damaged products will be sorted out (2-10%)

2. Attachment of originality seals, lids, specification labels, special notification stickers etc.

3. Repacking into Japanese cartons

Demands on German retail products in the food categoryHigh quality demands

Very high costs for QA and repacking!

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Distribution types• Ambient:

All year’s temperature range between 4 and 30 degree CHigh humidityAmbient storage in retail stores is small and not temperature controlled

• Chilled:Temperature below 10 degree C.No storage below 4 degree C or 7 degree C for near term sales.

• Frozen:No certain problem with technical distribution,but temperature difference during repacking/reloading may cause partial thawing risk of quality losings and hygienic problems

Demands on German retail products in the food categoryProduct distribution from warehouse to customer

Challenging for European standardized products!

©SKW East Asia Ltd. 20122012/6/13 21

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Purchase decisions concerning foreign food products

1. Taste and appeal

2. Promotion support

3. Unit size and retail price

4. Brand image in home country



Matching customer perceptions

• Refined taste adapted to the Japanese consumer (e.g. sweetness)

• Unique combination of ingredients, taste and packaging

• Application of pure food components, easy to be identified and abdication of additives wherever possible

• Japanese customers tend to buy only perfect units surficial looks are more valuated than in Europe (“only cheap content is filled in cheap packages”)

• Functionality of the product(e.g. aerosol whipped cream)

• Convenient unit size for handling and storage adapted to the Japanese average consumption

• Matching unit prize

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Purchase decisions concerning foreign food productsTaste and appeal

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97 98 99 00 01

Volume [ton

]

Consumer products by unit size

A500

A250

A125

Year


¥700

¥470

¥350

Influencing the consumer purchase decision for foreign food products

• PR, retail support, POP, tasting demo, networking and cooperation

• Event sales

• Interactive campaigns for customers

• Direct acquisition and exchange of information

• Brand promotion in magazines, online, television, SNS

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Purchase decisions concerning foreign food productsPromotion support


What makes a product “German”?

• Stereo typed thinking of Japanese consumers

Example:France = Cheese, wineItaly = Pasta, olive oilGermany = Beer, sausages

established as best “Master in their category”

• Products with strong brand image and big market share in homearea can generate high assertiveness in the Japanese market, too.

• Associated as “Made in Germany” High qualityClean production area (e.g. Alps)Touristic spot (e.g. Black Forest)

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Purchase decisions concerning foreign food productsBrand image in home country




Establishing foreign food products in Japan

1. Chances in retail business

2. Key steps till product launch

3. Examples at SKW East Asia Ltd.

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Establishing foreign food products in JapanChances in retail business


Internal market research

• Convenient product for Japanese consumers size, portion, content, usability, product understanding(added value for health and nutrition)

• Strong brand image in Germany

Market changes

• Partly abolishment of the salt monopoly in 1997• Preparation of business several years before

(Currently more than 300 registered salt products.)

Food additive law changes

• Natural curing based on vegetable for meat products (2007)

• Anticaking agent Ferrocyanid (2002)• Nitrous oxide (2005)

Legal changes

Changes in law and administrative matter

• Customs tariff changes • Whipped cream (1995)• Salt (2002)

Key steps till product launch

If product and price is accepted

12 –18

mon

th

if positive


Introduction of new product to SKW East Asia Ltd.• Checking all known requirements

• Taste• Demands of Japanese customers• Food additives

1.

• Stability• Shelf-life• Calculation of retail price

Adaption for the Japanese market• Translation and adaption of food label• Package design• Presentation material• PR material• Homepage

2.

Business investments

Test market• Prototype

(Original package design with Japanese label attached )

• Test sales(e.g. at events related to Germany)

3.

Sampling/Negotiation with pot. buyers

4.

Product launch5.

Establishing foreign food products in Japan

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Establishing foreign food products in JapanExamples at SKW East Asia Ltd.

Success and failure

• AlpensalzMost successful foreign salt product among 300 registered brands.Number 4 Brand in the Tokyo area.

• SahnewunderMost successful aerosol whipped cream.Most of the competitors have retreated from the Japanese market.

• Meggle Butter BaguetteFirst product in category frozen bread with butter filling.

• Balance Top/Figure TopDiet meal replacement products.

So far more than 10 retail products have been checked in more than 10 years, without developing further than internal tasting and sampling stage.e.g. Vegetable, alcoholic beverage, power bar, cereals, smoothies, coffee cream, cheese, canned sausages, instant coffee, etc.


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Thank you for your attention.


〒102‐0075 Tokyo Chiyodaku Sanbancho 2 BanchiSanbancho KS Bldg. 6F(03) 3288‐7352www.skwea.co.jp


japan - bve online · • stereo typed thinking of japanese consumers example: france = cheese,...

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