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- Direct Marketing
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- A relatively recent development has been the significant
- growth of direct marketing in Japan. According to Japan
- Direct Marketing Association (JADMA) estimates, total sales
- revenue of its members in JFY 1988 (Japan Fiscal Year --
- April 1, 1988 - March 31, 1989) was $8.8 billion, an
- increase of nearly 31 percent over the previous year.
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- U.S. direct marketers enjoy the benefit of a well-educated
- Japanese populace with a high level of discretionary income
- and a great curiosity about the United States.
- Interesting, unique, well-made, brand-name items, adapted
- to Japanese tastes or sizes, sell well in Japan. The
- following are two marketing methods which illustrate how
- U.S. products are being successfully sold through direct
- marketing in Japan:
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- One marketing approach is to use a non-duty-free-catalog
- aimed at travelers. Japanese going overseas on holiday
- desire to minimize the time spent shopping for "obligatory"
- gifts and souvenirs for friends, relatives, and co-workers.
- Japanese consumers will often know before going overseas
- the gifts that they want to buy. Many travel magazines
- describe in detail the "best shops" in the major U.S.
- cities that Japanese should visit. Airline companies and
- travel agents have been aggressively promoting catalog
- sales of non-duty-free imported goods, especially
- cosmetics, accessories, gifts, and food (excluding most
- brand-name luxury goods, which have an exclusive agent in
- Japan). Travelers place the orders before departing and
- the goods are delivered to their home after they return.
- These goods are imported just like other imports
- (customs-cleared, customs duty paid, and consumption tax
- paid), so the price is higher than if purchased by the
- traveler overseas, although usually lower than the retail
- price at department stores in Japan. The primary value of
- this service is convenience. There is great opportunity
- for firms with an innovative approach for reaching and
- servicing this market.
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- Another marketing method is to utilize the foreign catalog
- sales corner at 50 major Japanese post offices. This
- approach, employing the so-called International Mail Order
- Support Service (IMOSS), allows customers to select
- merchandise from a foreign company's catalog, pay for the
- merchandise by international mail order or credit card, and
- receive shipment directly from the seller located overseas.
- There is no need for the direct marketer in this case to
- stock inventory in Japan.
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- One negative market condition affecting direct marketing is
- that the Japanese consumers desire to inspect a product
- prior to purchase. Successful Japanese catalog companies
- maintain a showroom where the customer can examine the
- product before ordering. Also, some of the largest catalog
- sales operations are managed by well-established department
- stores and other reliable retail chains.
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- Japanese consumers are demanding about the condition and
- packaging of goods. Everything must arrive in perfect
- order, just as if they had purchased the item in a store.
- It is very common that goods are returned for claims of
- damage. Direct marketing should not be seen as a way to
- get around the Japanese customer's expectation of strong
- after-sales product support.
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- Without a well-established position, it is unrealistic for
- a U.S. company to expect to rent a mailing list, send an
- English-language catalog directly from the United States to
- Japanese individual customers, and be inundated with orders
- placed by these customers. U.S. companies aiming to enter
- this market should at least be prepared to make an
- investment in service functions such as market research and
- product support. In addition, a representative in Japan
- can act as a liaison with the U.S. supplier to handle
- receipt of claims, customs clearance, public relations, and
- the preparation of a Japanese-language catalog.
- Warehousing and delivery can be managed by the
- representative as well.
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- The Japan Direct Marketing Association: In response to the
- recognized need for assistance in the direct marketing
- field and with the guidance of the Japanese Ministry of
- International Trade and Industry (MITI), the Japan Direct
- Marketing Association (JADMA) was founded as Japan's first
- and only officially recognized direct marketing association
- on October 11, 1983. The aims of JADMA are: advancement
- of a standard of commercial ethics in the direct marketing
- industry; promotion of fair business practices; consumer
- protection and education; a systemized structure for
- settling consumer complaints; modernization of the direct
- marketing industry; representation of the trade's interests
- with appropriate government agencies; conducting seminars
- and developing educational programs; collection and
- distribution of information from both domestic and
- international sources; and greater contact and cooperation
- with related trade associations overseas. In addition,
- JADMA conducts research aimed at exploring the future
- potential for utilizing new media forms by the direct
- marketing trade. JADMA's address is:
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- The Japan Direct Marketing Association No. 32 Mori
- Building, 3-4-30 Shibakoen Minato-ku, Tokyo 105 JAPAN
- Phone: 011-81-3-3434-4700 Fax: 011-81-3-3434-4518
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