Pricing for Japan – Charles & Keith.

Pricing for Japan – Charles & Keith

According to C&K jap website, the same sneaker in Singapore are priced relatively 20% lesser. Why is it so?

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High distribution cost

Studies has shown the distribution cost between Japan and US process of passing through a product to manufacturer > importer > wholesaler > retailer then to the consumer shows it is very cost-prohibitive. Products in the US are sold for USD 5 whereby japan can cost up to USD 25 with the mark-ups along the way.
Japan are known as the world second largest retail market which made up of 1,138,000 retailers. Stores in japan are small, inventory must be kept low due to space constraints. People in japan usually ride bicycles to the stores and not buying more than can be comfortably carried. As a result, wholesalers are made to frequent small-lot deliveries. (LAUREL DELANEY,2018)

LAUREL DELANEY. (2018). Japanese Economy and Distribution System. Retrieved from https://www.thebalancesmb.com/japanese-economy-and-distribution-system-1953374

Cost of living

With the current strength of the yen currency and global pricing due to the internet, consumers living in japan are growing weary of this systematic high-priced. (DAVID MARX.2010)

The high costs are for the most part an immediate result of government politic Protectionist taxes increment the expenses of imports yet keep household makers protected from contending on cost. Casual cartels are likewise at work in setting high costs.

Foreign brands position themselves as “premium” when they first enter the Japanese market which also implies the meaning of pricing products at a higher level than the Japanese price products For instance, a T-shirt brand named Vans are sold in the US can be set at the price of $30 while Japan could be priced at approximately $65

The rationale for this is simple: companies set prices as high as the market allows — and since the Japanese market sets prices higher than elsewhere, brands were able to indulge.