1. 日本小売業の最新動向 Recent Retail Trend in Japan 日本小売業協会 国際担当部長 近江 淳 Japan Retailers Association Director General Manager International Affairs Division Jun Omi

2. ABOUT JRA The Japan Retailers Association (JRA) was founded in May 1978, promoted by the Japan Department Stores Association, Japan Chain Stores Association and other organizations involved in retail, centered on the Japan Chamber of Commerce and Industry and with the objective of healthy development of the retail industry in Japan and to contribute to the lives of the nation's people.

3. The JRA carries out activities together with numerous organizations Japan Department Stores Association Japan Chain Stores Association Japan Supermarket Association New Supermarket Association of Japan Japan Specialty Store Association Japan Foodservice Association Japan Franchise Chain Association Japan Voluntary Chain Association Japan Council of Shopping Centers Japan Independent Stores Association Japanese Consumers' Co-operative Union Federation of Specialty Store Association in Japan The Japan Chamber of Commerce and Industry The Tokyo Chamber of Commerce and Industry

4. ABOUT FAPRA The Federation of Asia-pacific Retailers Associations (FAPRA) was founded in 1989. Its has implemented its activities and developed itself with the aim of discussing issues shared in the region, promote information exchange and friendship, thereby contributing to the development of commerce, the improvement of retailers’ status and the improvement of citizens’ lives in the region.

5. Member OF FAPRA 17 countries & area ・ Japan ・ Korea ・ Chinese Taipei ・ China ・ Hong Kong ・ Thailand ・ Philippine ・ Fiji ・ Malaysia ・ Mongolian ・ Singapore ・ Indonesia ・ New Zealand ・ Australia ・ India ・ Turkey ・ Vietnam

6. Photos of APRCE in Singapore October 11-13

7. History of last APRCE 1983 The 1 st APRCE held in Tokyo, Japan 1985 The 2nd APRCE held in Seoul, Korea 1987 The 1 st APRCE held in Hong Kong 1989 The 4th APRCE held in Singapore 1991 The 5th APRCE held in Bangkok, Thailand 1993 The 6th APRCE held in Manila, Philippine 1995 The 7th APRCE held in Kuala Lumpur, Malaysia 1997 The 8th APRCE held in Adelaide, Australia 1999 The 9th APRCE held in Taipei 2001 The 10th APRCE held in Jakarta, Indonesia 2003 The 11th APRCE held in Christchurch, New Zealand 2005 The 12 th APRCE held in Beijing, China 2007 The 13th APRCE held in Tokyo, Japan 2009 The 14 th APRCE held in Seoul, Korea 2011 The 15 th APRCE held in Singapore 2013 The 16th APRCE is held in Istanbul, Turkish

8. 1982 年以来 29 年の歴史を持つアジア最大の小売業の祭典 The 16 th Asia-Pacific Retailers Convention & Exhibition Venue ： Turkey Istanbul Date ： September 23-26, 2013

9. LOGO of the Istanbul Conference 16th APRCE ISTANBUL 2013 Asia-Pacific Retailers Convention & Exhibition

10. Recent Retail in Japan ･ Total retail sales in Japan over previous years ･ Market size in Japan ･ GDP & GDP per capita ･ Ratio of Modern trade in Japan ･ Global Retailers in Japanese market

11. 11

12. Population, size of consumption & per capita Country or AreaPopulation (100M) Size of market(b $) Consumption per capita($) Japan 1.3283921838. 4$ China 13.316131213. 1$ India 11.9683574. 6$ Asean 5.88571478. 1$ USA 3.01001033367. 1$ South America 3.917424467. 7$ EU 5.01051621032. 8$ Africa 9.5912960. 6$ 12

13. Trend of GDP in Japan

14. Trend of Population(2000 ～ 2010) Japan, China, India & other continent 14

15. Shrinking Domestic Retail Market in Japan Shrinking domestic market due to rapid aged society, shrinking population, & stagflation Percentage of Over 65 yrs old

16. Reduction of Small Store & Total units Store unit Source: Ministry of International Trade & Industry (MITI) 2006 Bubble bursting in 1991

17. Bigger stores & shopping centers ITO-YOKADO

18. Total retail sales in Japan over previous years

19. Reconstruction from great earthquake in Eastern JAPAN

20. Entry & Withdrawal of global retailers in Japan black-entry, red-withdrawal 1980 Channel/Louis Vuitton/Gucci 1991 Toysras/Prada 1995 GAP 1998 Boots/ZARA 1999 Costco/Sephora 2000 Carrefour 2001 Metro 2002 Wal-Mart 2003 Tesco 2009 Forever 21/Abercrombie-Fitch 20

21. Structure of Retail industry India China Japan USA Number of stores 12M5.46M1.3M1.65M Ratio of modern trade 6%25%65%88% Sum of year Sales 150b$440b$1350b$2660b$ Number of employer 20M30M12M150M Per capita sales(1 store) 13000$81000$104000$161000$ Number of employer at each store 1.714.116.137.17 Number of store per 1000 people 11.134.259.295.86 Number of store per 1k ㎡ 3.560.573.120.17 21

22. Ratio of Globalization sales amount of global retailers in Japan Total sales amount % Global RetailersLess than 2.0%

23. Consumption per capita in the world （ 2008 ： unit /$ ） 23

24. All Rights Reserved, Copyright © ㈱富士通総研 2008 24 Change of consumption target : commodity to non-commodity Recently, the consumer’s expenditure composition tends to shift; from commodity to non-commodity. When assuming such a trend continue toward 2010, commodity consumption ratio in 2010 might decrease by 2.2 points than that in 2004.

25. Comparison of sales by primary retail format and trends ( Ｕｎｉｔ：Ｂｉｌｌｉｏｎ Ｙｅ ｎ )

26. All Rights Reserved, Copyright © ㈱富士通総研 2008 26 Reorganization of retailing group by M&A NOW 2003 2005 2007 Millennium Retailing Seven & i Holdings J.FRONT RETAILING H2O Retailing Isetan Mitsukoshi Holdings & & & UNY & IZUMIYA AEON & DAIEI edion Group DCM Japan Department store GMS Home center Electronics center

27. All Rights Reserved, Copyright © ㈱富士通総研 2008 27 Domestic Ranking : Sales of retailers in 2012 Ranking CompanyFormat Sales in 2012 (M $)1 $=100\ Year/ year １（２）Seven & I Holdings Co.,Ltd. Group（GMS、Department store、CVS） 47863-6.5% ２（１）Aeon Co., Ltd. Group （GM store、Drugstore、 CVS・・） 465081.9% ３（４）Yamada Denki Co., Ltd.Discount （Electronics）18354-15.8% ４（３）Mitsukoshi-Isetan Holdings Department store 123991.6% ５（５）J.Front Retailing Co., Ltd. Department store 9414-0.9% ６（７）First-Retailing Co.LTD Specialty stores928611.3% ７（６）UNY Co., Ltd.Supermarket9076-4.2% ８（９）Takashimaya Co., Ltd.Department store8581-1.3% ９（８）. Daie Co., LTDSupermarket8093-4.7% 10(10)Edion Co., LtdDiscount （Electronics）7590-15.8%

28. TOP 3 of Department Stores (M $)1 $=100\ RankCompanySales Amount Number of Store Share of Format 1Mitsukoshi- Isetan 12399 3419.9% 2J.Front Retailing 9414 2015.1% 3Takashimaya 8581 2413.8%

29. TOP 3 of GMS (M $)1 $=100\ rankcompanySales amount Number of stores Share of format 1Seven & Ai Group 4783644925.5% 2Aeon Group46507108424.7% 3Uny Group90761094.8%

30. TOP 3 of Discount(Electric) (M $)1 $=100\ rankcompanySales amount Number of stores Share of Format 1Yamada denki 18354 64029.3% 2Edion 7590 113012.1% 3K’s Denki Holdings 726037211.6%

31. TOP 3 of CVS(2012) (M $) rankCompanySales (M $) Number of store Share of format 1Seven-Eleven Japan 350841545838.9% 2Lawson169341115118.8% 3Family Mart15845918217.6%

32. TOP 3 of drag store (2012) (M $)1 $=100\ RankCompanySales Amount Number of Store Share of Format 1Matsumoto- Kiyoshi Holdings 4346107311.5% 2Sun Drag386862110.2% 3Sugi Holdings32737188.6%

33. All Rights Reserved, Copyright © ㈱富士通総研 2008 33 All Rights Reserved, Copyright © ㈱富士通総研 2008 33 Sales trend of E-Retail Spread of new channel : E-Commerce 出典：百貨店の業界再創造研究報告書（日本百貨店協会）

34. 5 Key words of Japan retail Industry Smaller Stores Shifting to major urban centers Price and Value Compound Development Senior Customers

35. The latest retail trends : “ Smaller stores ”

37. The latest retail trends : “shifting to major urban centers”

38. Structure & trend of population in Japan (unit: 1000 person)

39. 高齢者・生産人口・子供の人口推移 Trend of Old-person ･ Children & Worker

41. The latest retail trends : “ price and value ”

42. Trend of real Income (unit: yen/per month)

43. All Rights Reserved, Copyright © ㈱富士通総研 2008 43 Shelf display Fitting room Search for other clothes in dressing room e － Recommendation Provided for article information Active Type RFID Communicate to Cellular phone Availability in stock 平成 17 年度 三越フューチャーストア実証実験報告書より加筆転載 Future Store in Japan---Denim

44. All Rights Reserved, Copyright © ㈱富士通総研 2008 44 The customer can check a stock by oneself immediately Be in supply or Not Stockyard Shoes counter 平成 16 年度 百貨店アパレル電子タグ実証実験報告書より加筆転載 Approach in Japan ---RFID

45. The latest retail trends : “compound development” Establish as an annex to Convenience store with Drugstore, 9 companies 112store opened

46. Development of new format CVS + Drags

47. The latest retail trends : “senior customers”

49. Best format for Japanese retail market “ small & sophisticated supermarket ”

50. All Rights Reserved, Copyright © ㈱富士通総研 2008 50 Europe and U.S. ＭａｎｕｆａｃｔｕｒｅＭａｎｕｆａｃｔｕｒｅＲｅｔａｉｌｅｒＲｅｔａｉｌｅｒ Purchase ・ Supply Manufacture Process Delivery Stock Marketing Selling Service ＤｉｓｔｒｉｂｕｔｏｒＤｉｓｔｒｉｂｕｔｏｒ Delivery Sort Stock Sort Japan ＭａｎｕｆａｃｔｕｒｅＭａｎｕｆａｃｔｕｒｅ ＤｉｓｔｒｉｂｕｔｏｒＤｉｓｔｒｉｂｕｔｏｒ ＷｈｏｌｅｓａｌｅｒＷｈｏｌｅｓａｌｅｒＲｅｔａｉｌｅｒＲｅｔａｉｌｅｒ Manufacture Process Stock Process Stock Sort Marketing Stock Service Selling Delivery SortService Marketing Delivery Service Structure of Distribution Industry Purchase ・ Supply