Online Marketing: Displaced Dichotomies

Japanese convenience stores are set to assume a crucial role in the advancement of e-commerce in Japan. Located near consumer homes and work places, they enjoy a high reputation with manufacturers and consumers alike for introducing new technologies and products, and seem to be the ideal vehicle to overcome the many hurdles standing in the way of greater acceptance of this new mode of buying and selling in Japan. This chapter categorizes and analyses business models developed by different convenience store operators. It also identifies the alliances formed between corporate actors in the process. While traditional networks in many other areas of Japanese business seem to be crumbling, new networks and alliances are actively being formed in the area of e-commerce. Until very recently, e-commerce was seen as a major threat to the established distribution system. This was especially true for Japan, where e-commerce seemed to provide the opportunity of reaching consumers directly without having to go through the complex channels normally associated with Japanese distribution. This chapter, however, suggests that the reality is different. While minor players in Japan were the first to recognize the opportunities of the Internet as a marketplace, large established companies assumed strong positions relatively quickly in this area, too. The latter seem to be at an advantage in overcoming some of the hurdles blocking e-commerce acceptance in Japan, such as handling payments or delivering merchandise to consumers. The hitherto successful business model of convenience stores evolving into e-commerce outposts, in particular, offers compelling potential for the future development of e-commerce in Japan.