Mar 15, 2012

Japan - Japan’s convenience culture cashing in on ‘quake customers



Vending machines and convenience stores – or konbibi as they’re known in Japan – are bucking the trend of Japan’s slow, post-earthquake recovery and are making the most of new market opportunities.

Today, Suntory Holdings Ltd. announced that in response to clients’ needs, following the Great Easter Japan Earthquake, it will install 5000 ‘high-performance’ vending machines which can supply drinks during power outages.

The disaster-ready machines come in two types: one that stores energy in batteries and the other that comes with a handle, which can be cranked to generate electricity.

Vending machines have been identified as an increasingly important feature on the streets of Japan in the wake of last year’s disaster.

Although Kirin Holdings, Japan’s largest food and beverage company, had almost 20,000 million yen losses related to last year’s earthquake, both Kirin and Suntory saw markedly increased sales in mineral water in the same time period with Suntory recording a 22 per cent increase on last year’s figures.

And it’s no surprise. Japan has the highest vending-machine-to-person ratio in the world with one vending machine for every 23 people. So when most shops closed down following the disaster, the cheap and convenient jidouhanbaiki was the natural choice.

In its business strategy for 2012 Suntory said its vending machines could act as a “lifeline and offer information communication capacity in the wake of disasters”.

As a result the company will also install vending machines that provide free drinks during disasters and has tested machines that include an electronic disaster message board in Sendai.

But Japan’s vending machines aren’t the only success stories from last year’s earthquake and tsunami.

All three of Japan’s largest convenience store chains  – Family Mart, Lawson Inc. and Seven Eleven operator, Seven & I Holdings Co. – posted profit increases.

In fact, profits at all three chains were the highest ever.

The Wall Street Journal explains how convenience stores became make-shift shopping centres for many of northern Japan’s people.

“When 41 of the factories that produce for Seven Eleven in the northeast were forced to close after the earthquake and tsunami, the remaining 128 facilities rerouted the most essential items up north – rice balls, pre-prepared lunch boxes and sandwiches. Stock was back to normal less than a month later, according to the company’s website.

By the time American forces were arriving on March 12 to begin their joint rescue operation with Japan, Lawson had already shipped 40,000 cup ramen north, and Family Mart had provided 100,000 units of noodles, candy and jello to the disaster-stricken areas, according to their website.”

Although konbini provide a more familiar shopping experience, it’s important to remember that there are almost 120 times more vending machines than there are convenience stores in Japan. This means that expensive but innovative moves like Suntory’s disaster message board vending machines are not so far-fetched an idea as some may think.

Vending machines, and to a lesser extent konbibi, have always been a talking point for first time visitors to Japan. Whether it’s the variety of items on sale – from business cards to lettuce grown inside the machine – or their sheer quantity, they are certainly a national icon. And it’s great to see they’ve bounced back even stronger.

Anna Watanabe
Asian Correspondent.com



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