My fields of expertise are distribution and commerce, distribution systems, and distribution policies. Like social security systems and social infrastructure such as electricity, gas, and water, distribution systems are social mechanisms that support people's daily lives and rich experiences. As consumers, we consume a wide range of products and services every day, from so-called FMCG (frequently purchased non-durable consumer goods) to home appliances, automobiles, and even service goods. In order for these consumption activities to be carried out smoothly, the role of distribution is essential. In addition, as disasters have become more severe in recent years across Japan, the importance of distribution has also increased in terms of quickly and reliably supplying relief supplies to people in need in disaster-stricken areas.
Furthermore, in Japan, where geographical conditions and climates are diverse and the country is experiencing a rapid decline in the birthrate and an aging population, it is not uncommon for people to have difficulty accessing prescription drugs, which require a stable supply, or to be unable to buy food, beverages, and household goods that are essential for daily life. To deal with such situations, various manufacturers, wholesalers, and retailers are trying their best to come up with creative solutions, but in some areas the problems have become so severe that they cannot be overcome by market mechanisms alone. In such situations, it is necessary to accurately grasp the current state of the problem and the path that led to it, and to engage in policy intervention to lead the situation to a desirable state. This is where distribution policy comes into play.
I study distribution systems, which are essential in both daily life and emergencies, primarily from a macro perspective. Distribution, as a huge system that connects production and consumption, begins with the demand of consumers and the ingenuity of producers, and is closely linked to the culture, history, society, and economy of each region. For this reason, the distribution structure, which is the general character of the distribution system, is often unique to each country and region.
In my joint research between the UK and Japan, I have found that while there are commonalities between the distribution phenomena seen in both countries, there are also noticeable differences. For example, Japanese retail has a structural characteristic of small-scale density. The number of small and medium-sized retailers that make up the shopping districts you see in your neighborhood has decreased significantly since the mid-1980s, but in these circumstances, a shining store appears, or a long-established store that has further refined its traditions stands out, and this can bring vitality to the entire town. A small business is one with 20 employees or less, or five employees or less in the commercial (wholesale and retail) and service industries.
There is no doubt that distribution services provided by efficient mass distribution make our daily lives more convenient and enriching. At the same time, we also feel a unique attraction to small and medium-sized retailers that reflect the characteristics colored by the culture, history, and society of each region. In this sense, an attractive distribution system is one that has undergone a mosaic-like development, weaving together new and old strata. The term "modernization of distribution" is often used, and one ideal form of modernization of the Japanese distribution system would be one in which quantitative variety, such as new and old, large and small, coexists with qualitative variety, as shown by the diversity of distribution services provided to consumers. However, in order to achieve this, we must challenge the harsh reality that many difficult hurdles await us.
Speaking of regional diversity, there are many examples like the one below, even in this small country of Japan. For example, in Hyogo Prefecture, where I was previously posted as a teacher, differences were observed in the product lineups at supermarkets in the neighboring cities of Kakogawa and Akashi. Even within regions that are thought to be in the same cultural sphere from the outside, small differences continue to be passed down, such as the fact that "katsumeshi" kits, a Kakogawa specialty, are not widely sold in neighboring Akashi.
From the perspective of America, Western Europe, and Northern Europe, it is often discussed why Japan has such small, low-productivity regional supermarkets. Of course, there are large supermarkets, but if you look at the distribution of supermarkets, you will see that they are distributed in a so-called "power law" pattern, and there are countless relatively small regional supermarkets. This is exactly related to the regionality of Japanese food. One theory is that one of the reasons why Japan is rich in regional diversity is the influence of the Edo period's feudal domain system, which lasted for about 260 years. It is thought that under the feudal domain system, each domain developed its own specialty products to raise funds, and that this diversity has been passed down to the present day. It may be said that we are able to enjoy a rich diet thanks to the careful cultivation and protection of local specialty products. Let's take an example. Green tea cultivation and green tea culture were originally introduced to Japan from China via Buddhist monks. Even today, green tea producing areas are spreading throughout Japan, fostering unique regional cultures, but in China, where green tea originated, green tea culture was unable to survive throughout history. Currently, Chinese tea industry experts are visiting Japan to reevaluate green tea. This is also an interesting story that somehow feels Japanese.
Power law distribution of supermarkets (Source: Azuma, Mimura, Kenda, Kim, and Yokoyama, 2022)
Regional diversity can be seen not only in Japan but also in the UK. As the UK is known as the "United Kingdom" and is made up of four regions, England, Scotland, Wales, and Northern Ireland, the social and cultural backgrounds vary greatly from region to region, and there are subtle differences in the characteristics of distribution, as well as in the ways of production and consumption that have a major impact on distribution. In this way, culture and history are strongly reflected in distribution.
Edinburgh, with its charming cobblestone streets, used to be overflowing with cars, but now, with restrictions on private cars and the construction of trams, the city has become more visible as a "city of people." However, especially since the COVID-19 pandemic, retail businesses in the city center have lost their former vitality due to the spread of online shopping and rising prices.
