Market Analysis and Strategy: Broccoli to Japan Market ... · Market segments Market Analysis and...
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There are three key market segments using and selling fresh and frozen broccoli; they include retailers, food service providers and food processing manufacturers. Although some retailers import directly, such as AEON, most imported broccoli is distributed by importers. Four key importers dominate the distribution of imported fresh broccoli namely; Union Corporation, IPM Nishimoto, Itochu Corporation and MVM Shoji Corporation. Importers and distributors Importers reported most of the United States’ broccoli is sold to the retail sector with some sold to the food service sector. Broccoli from Mexico is sold to these sectors as well, however Chinese product is mainly sold to the food processing and food service sector. Importers handle both local and imported broccoli. Certain importers and wholesalers target particular centres. Japan’s wholesale markets in Tokyo, Osaka and Kyoto are also major trading hubs for broccoli. According to importers, price is the key determining factor when purchasing imported broccoli. Interest in sourcing product from Australia will depend on the supply situation from the United States. Waxed cartons of imported broccoli are placed in Styrofoam cartons by importers then re-iced if necessary and sent to retail or foodservice customers (Figure 1). Market segments Market Analysis and Strategy: Broccoli to Japan Figure 1: US wax cartons slot into custom made Styrofoam crates for wholesale and distribution (September, 2014) Figure 2: US broccoli in an importer’s warehouse in Japan (September, 2014)
Transcript of Market Analysis and Strategy: Broccoli to Japan Market ... · Market segments Market Analysis and...
There are three key market segments using and selling fresh and frozen broccoli; they include retailers, food service providers and food processing manufacturers. Although some retailers import directly, such as AEON, most imported broccoli is distributed by importers. Four key importers dominate the distribution of imported fresh broccoli namely; Union Corporation, IPM Nishimoto, Itochu Corporation and MVM Shoji Corporation.
Importers and distributors
Importers reported most of the United States’ broccoli is sold to the retail sector with some sold to the food service sector. Broccoli from Mexico is sold to these sectors as well, however Chinese product is mainly sold to the food processing and food service sector. Importers handle both local and imported broccoli.
Certain importers and wholesalers target particular centres. Japan’s wholesale markets in Tokyo, Osaka and Kyoto are also major trading hubs for broccoli. According to importers, price is the key determining factor when purchasing imported broccoli. Interest in sourcing product from Australia will depend on the supply situation from the United States. Waxed cartons of imported broccoli are placed in Styrofoam cartons by importers then re-iced if necessary and sent to retail or foodservice customers (Figure 1).
Market segmentsMarket Analysis and Strategy: Broccoli to Japan
Figure 1: US wax cartons slot into custom made Styrofoam crates for wholesale and distribution (September, 2014)
Figure 2: US broccoli in an importer’s warehouse in Japan (September, 2014)
Retailers
Most imported broccoli is sold through Japan’s supermarket sector. Broccoli is also sold through department stores, independent grocers and some convenience stores. AEON and Ito Yokado account for 40% of all supermarket sales, while Uny, Daiei, and Life Corp hold a collective 20% market share. Broccoli is predominantly sold loose by the crown, with some upper tier supermarkets selling pre-wrapped broccoli (which is done at store level). Broccoli is either displayed in aisle shelves or in refrigerated cabinets. Country of origin labelling is prominent. Domestic broccoli is further differentiated from imported broccoli (Figure 4) as the petioles and leaves are left attached (Figure 3), whereas (similar to Australian broccoli) US broccoli petioles are trimmed.
Food service providers
Restaurants and hotels are the main buyers and users of broccoli in the food service sector. The United States, China and Mexico are the key suppliers of broccoli to this segment. The United States tends to target the upper tier segment and this is where there may be opportunities for Australia to supply fresh broccoli. Broccoli was not found to be readily available in restaurants and is more commonly consumed in households. Food service businesses incorporate broccoli in a range of food styles, including fresh salads and cooked meals, such as soups and vegetable stir-fry dishes.
Food processing and manufacturers
The frozen broccoli market in Japan is price sensitive. The purchasing decisions of buyers are based primarily on ‘price’ rather than ‘product quality, taste or appearance’. China and Ecuador are leading suppliers of broccoli for processing and dominate this segment of the market (Figure 6). Australia is less cost competitive in this segment of the market compared with retail and food service channels.
This project has been funded by HIA using vegetable levy and matching funds from the Australian Government.
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Figure 3: Japanese broccoli is differentiated from imported product by the presence of untrimmed stems. Stem tags are attached to US broccoli to differentiate it and the petioles trimmed (September, 2014).
Figure 4: Japanese broccoli (left) and US broccoli (right) in a supermarket, Tokyo (September, 2014).
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Figure 5: Broccoli cream soup (September, 2014)
Figure 6: 250g frozen broccoli packs (broccoli florets) retailing at JPY 348. Broccoli was supplied from Ecuador (September, 2014)
