| Marketing/Distribution | |||
| Distribution Keiretsu (vertical) | Mftr - Wholesalers - Retailers (antena shops) | ||
| many layers in the distributive system | Maker -> Primary wholesaler -> (Large retailer -> Consumers, or) Secondary wholesaler -> (Medium retailer -> Consumers, or) Tertiary wholesaler -> Small retailer -> Consumers | cf (U.S.): Maker -> (Large retailer -> Consumers, or) wholesaler -> Medium retailer -> Consumers | |
| Sogo Shyosha (the general trading com.) | Mitui Bussan | Mitui Keiretu | |
| Mitubishi Shyoji | Mitubishi Keiretu | ||
| Sumitomo Shyoji | Sumitomo Keiretu | ||
| Marubeni | Huyou Keiretu | ||
| Nichimen, Nisshyo-Iwai, Iwatani Sagyo | Sanwa Keiretu | ||
| Ito Chyu Shyoji, Kanematu, Kawatetu Shyoji | Ikkan Keiretu | ||
| Other hundreds of small and medium-sized shosha | |||
| Their many roles: | Distribute in Japan what they import, and ship and store what they buy. => This puts the shosya near the top of the ladder of the domestic distribution chain. | ||
| Provide credit for small- to medium-sized firms, i.e., act as financial intermediaries. [Whereas the main banks "insure" the business of the top level of their group companies, the shosha "insure" the thousands of fringe firms via trade credit.] | See the Diagram below for: Buyer (issues Bill A and pays the bill to the shyosha) -> Sogo Shyosha (issues Bill B to the seller and pays the bill to the bank) -> Seller (obtains immediate cash for this transaction at a bank) |
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| By intermediating the transaction, thus, the shosha elimnates the need for the seller to extend credit to some tiny firm it has never heard of. | |||
| Similarly, the buyer is in debt not to the supplier but to a large , well-connected trading company which can manage the risk much bettter than the seller. | |||
| This gives rise to the repeated "middleman" transactions between the mfctr-seller and the buyer handled by the shosya (and thus, a much higher ratio of wholesale to retail transactions in Japan than in the U.S.) | |||
| Procure raw materials and sell finished products throughout the world. | |||
| Provide their clients with global market information and analysis. | |||
| Invest overseas, particularly in the fields that promise a steady supply of critical raw materials and in large-scale industrial projects. | |||
| etc. | |||
| Department Stores (Large Retailers) | Mitukoshi | Mitui Keiretu | |
| Takashimaya | Sanwa Keiretu | ||
| Seibu Hyakkaten | Ikkan Keiretu |