Implementing Monoprix in Japan

Résumé du document

This business plan is used to deal with the development plan for entering into the Japanese retail market. Based on the company's long-term need for world expansion and brand identity development, we choose Japan as the test land for Asian market penetration. The objective is to be present in major cities in Japan and introduce the concept of Citymarche with a French flavor. Monoprix is a French retailer setting up in all the big towns and is the undeniable n° 1 in town centre food stores in France. Aimed at a city market approach, it attracts mostly women, single people and active customers with above-average purchasing power. Established in city-centre for more than 70 years, the brand develops its stores based on concepts combining innovation, quality and pleasure. Monoprix was created in Rouen more than 70 years ago as a one-price outlet. Now it is a 50/50 joint venture of Groupe Galeries Lafayette and Groupe Casino. They are all AAA companies with strong turnover and good reputation. Monoprix will provide fresh, balanced, authentic and pleasant food products in the Japanese market. Original western flavor and French-style packaging will be kept and serve as one feature of Monoprix Japan.

Extraits

[...] Therefore, the monthly cost of marketing plus the monthly salary for the senior manager is totally estimated around 150,000 euros Logistics cost According to our logistics strategy, we could estimate the logistics spending and cost of storage as followed: Total Logistics Cost will be 70,320 euros per month and 843,840 euros per year Leasing cost In stead of signing a leasing contract with Mitsukoshi about leasing the basements of Mitsukoshi's three departments in Tokyo, we would like to negotiate a partnership with Mitsukoshi by selling its products in Monoprix France in exchange since Mitsukoshi is also operating in France and we will pay Mitsukoshi a percentage of our monthly profit instead of the leasing fee. We do this because firstly, we believe a partnership is much securer than simply a leasing contract of one year or two. It prevents us from bearing the risk of Mitsukoshi's refusal of renting us its basements in the next few years. [...]

[...] Long term: Spread to other main cities (Osaka, Yokohama, Nagasaki ) Once our first try in Tokyo succeeds, we will quickly spread our business into other main cities in Japan including Osaka, Yokohama, and Nagasaki with our established reputation and networks. Marketing strategy Running small-size supermarket is a very popular business in Japan. We can even say that supermarket is a very important place of Japanese people's daily life. There are a lot of different chains existing already and most of them stick to Japanese culture very much. [...]

[...] More than the absence of real political risks, French and Japan are maintaining a friendship relation which is a facilitation of Monoprix's implementation in Japan. Corporate Income Tax: According to the Japanese law; “Domestic corporation: Subsidiaries, joint ventures, etc. established under the Japanese law have this status, and are liable for the taxes on their entire income.” The corporate income tax is about 30% of its benefit in both countries, and stable. We will probably not face the risk of lobbying or burdensome process since we will have a strategic partner on the scene Foreign Exchange risk (Convertibility and transferability) As a French exporter of French products to Japan, part of Monoprix's expenses will be made and accounted in French currency, i.e. [...]

[...] The group is also engaged in real estate management business. The operations are carried out through the following divisions: Departmental stores, Real estate management, and other. The departmental stores deal with sale of clothing, personal goods, household goods, sundry goods, and foodstuffs. The other division deal with wholesaling, food manufacturing, cloth manufacturing and other services.[5] As an all-around store Mitsukoshi offers its basement as a leisure venue which can provide convenient supermarket, coffee shops or characteristic restaurants. Key Stats & Ratios[6] The contract will be signed for 3years for the first period. [...]

[...] Aimed at a city market approach, it attracts mostly women and single, active customers with above-average purchasing power. Established in city-centre for more than 70 years, the brand develops its stores based on concepts combining innovation, quality and pleasure Company Ownership Monoprix is created in Rouen more than 70 years ago as one-price outlet. Now it is a 50/50 joint venture of Groupe Galeries Lafayette and Groupe Casino. They are all AAA companies with strong turnover and good reputation Products Monoprix will provide fresh, balanced, authentic and pleasant food products in the Japanese market. [...]