Toys R Us Japan

Authors: Spar, Debora L.; MacKenzie, Jacqueline; Bures, Laura
Source: Harvard Business School
Year: 1999
Company Name: Toys R Us
Number of pages: 20

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Abstract:

Documents the American retailer's process of entry into the Japanese toy market. Discusses the history of Toys "R" Us in the United States as well as the history of the Japanese toy market, distribution, wholesaling, and retailing systems. Eager to enter the world's second largest toy market, Toys "R" Us executives begin in the late 1980s to formulate strategies for opening large discount toy stores in Japan. The American company faces a series of setbacks due to Japanese store-size regulation, application procedures, and a long-standing multi-layered distribution system. Continued effort and the acceptance of a Japanese partner enable the company to prepare for the opening of a Toys "R" Us outlet in 1991. Faced with a lack of direct distribution deals and high land and labor costs, executives of Toys "R" Us Japan worry about the ultimate success of their new venture. Teaching Purpose: Examines differences between U.S. and Japanese retailing systems, and what these differences imply for U.S. firms hoping to enter the lucrative Japanese market.