IBS Assessment 3

MARKET IN JAPAN
LABA VIỆT COMPANY
Team A
 Table Of Content
01. 03. 05.
Introduction Market Evaluation Conclusion

02.
Background
04.
Strategic Planning
06.
References
Introduction
STRATEGY
(1) BECOME A SUPPLIER OF FOREGIN COMPANY - AEON
(2) PRIVATE LABEL STRATEGY
LABA Việt
Quốc Vương Co. LTD
TARGET CUSTOMER
(1) Final consumer: Japanese consumer
(2) Business-level customer: supermarket chain

MAJOR BARRIER
Qualified standard to reach: VietGAP and Global GAP
AEON
Strict entry regulations and requirement from AEON and Supermarket Chain
Japanese Government
 Background Domestic experience
LABA Việt - Quốc Vương Co. LTD Existing for 10 years
Collaborative models with farmers
Product Continuous infrastructures upgrade & investment
Support from local authorities and the Vietnam
Laba banana: recognized as global-level product.
government.
Laba banana: *
Many nutrients and minerals, fragrant beans, true
Size of fresh banana industry in
sweet taste with strict production procedure.
Higher price compared other banana in Vietnam
Vietnam
According to Japan Customs Office, Vietnam is the 7th
largest banana supplier for Japan in the first 3 months
of 2022, reaching 1.5 thousand tons, up 38.5% in quantity
and 30.2% in value over the same period of 2021 (Trang,
S., 2022).
 Market
Evaluation
General factors Has not exploited the full potential of exports
to Japanese market. (Phượng, C. 2023)

The level of meeting increasingly high import

standards: quality & sustainable model (Minh,
M., 2023)

Strong enforcement in distribution

chain connection and high demand on banana
imports from Vietnam (Trang, S., 2022)
Social Factors
Customs, traditions, manners, and
habits
Values seasonality and freshness
Premium Vietnam Laba bananas are
planted in the rainy season's beginning

Fruits hold spiritual significance in

Shinto and Buddhist practices

Gifting etiquette of fruits

Core values, norms, and attitudes

Strict quality control

Satisfy quarantine and food safety standards
Follow Plant Protection Department codes
Adhere to safety rules in production
Health-conscious society values fruit nutrition
Social
institutions
Family preferences dominate consumption
choices
-> Target families by highlighting health benefits,
flavor, and availability, positioning fruits like
bananas as ideal for gatherings

Flexible class system, and socioeconomics

still influences consumption
Aesthetics
Product quality and visual appeal are vital
Visually striking fruits hold high value in
Japanese culture
Fruits have their own symbolism that
enhances market appeal and demand
Business customs
Giving fruits as gifts in "chugen" and
"seibo"
Foster lasting connections and achieve
mutually beneficial outcomes
Nurturing enduring relationships
Economic Factors
 Demand

Growth potential
Market share is viable
AEON imports high-quality
Vietnamese bananas

Source: WTO Center

 Income

An increase in income results in an

increase in demand
Elevated income also fuels
willingness to pay premiums goods
Japanese consumers have greater
purchasing power for discretionary
goods
Source: CEIC Data
 Infrastructure

Source: Technology World

Trade freedom and restrictions under the
RCEP

Restriction
Freedom
Requirements for SPS
Tariff reduction
measures
Make goods more
More difficult for fruits to
affordable in Japan
be imported into Japan
Legal and Political
Factors
Political factors
Stability, transparency, and a strong
regulatory framework - protect
consumers' interests and maintain fair
competition
Business-friendly atmosphere, ensuring
security for foreign investors and trading
partners
Legal factors
Technical Barriers to Trade (TBT) - RCEP
Strict Japanese regulations on agricultural
products: safety, label, package.
Tariff reduction commitments
enforcement (eliminate 90% of import
tariffs) and Rules of Origin - RCEP
Robust protection for intellectual property
rights - RCEP
Strategic
Planning
Industry Analysis
Threat of new entrants
Regulations: imposed stringent regulations for countries
that wanted to access the Japan market.

Brand Loyalty: established brands have strong customer

loyalty, making it difficult for new entrants to gain market
share.

High
Bargaining power of suppliers
Limited number of suppliers -> they can exert more control over pricing and terms

Low to moderate

Bargaining power of buyers

Out of border collaboration with international
supermarket chains (Don Quijote, AEON,...): serve
the "fixed" target customer of partners.
Consumer Price Sensitivity: Japanese people
are close to their cultural belief . Demanding high
quality -> pay more

Moderate
 Threat of Substitutes
Processed Foods: Fruit juices, jams, healthy snacks, dried fruits
Tropical fruit supplier: preferable sustainable production model,
qualified product quality and competitive price of Vietnamese
supplier (Việt Nam News, 2023).

Moderate
Competitive rivalry

Competition with other fruit exporters to Japan:

Philippines (37.7%), US (16.8%), New Zealand (14.4%),
Mexico (12.6%)

Moderate
Market Entry Stringent quality expectations
Issues Competitive Japanese banana market,
sustained success relies on consistent supply
and exceptional quality
Considering their price sensitivity
Balancing between competitive pricing and
covering production and logistical expenses
Navigating import regulations and
agricultural requirements
Aligning marketing, packaging, and
distribution with Japanese norms
Target Market and Positioning
TARGET Households, shoppers in Japan.
MARKET AEON partners in Japan: manufacturers, convenience store

Final consumer (Japanese consumer): Offering premium,

nutrition-rich, visually appealing bananas, competitive
POSITIONING pricing
Business-level customer (supermarket chain: AEON):
LABA VIỆT
Qualified standard, Promisingly meeting required and
global agricultural product export standards (GlobalGAP).
INTERNATIONALIZATION
STRATEGY
Internationalization
Strategy

Domestic Foreign firm

Home
supplier located in
SUPPLY EXPORT country
Vietnam
 Requirements

VietGAP GlobalGAP MAFF import permits

MRL Phytosanitary certificate

 Strategies
Laba Viet meets this requirement


Commercial and Quality Document Approval requirements: technical standards,
regulations, and customer expectations
Licenses, quality certification, contamination control planning and robust traceability
systems

Laba Viet is on their way to obtain this higher standard

AEON can help the company to achieve this certificate
MARKET ENTRY STRATEGY
 Market Entry Strategy
Producer Packing Factory LABA Viet's Warehouse

Contractual relationship Transport to packing Cold chain in transportation to Ask for commercial and
with local farmers - factory LABA Viet's warehouse quality document approval
VietGap standards Water washing Cold storage from Aeon Group
Grow at LABA Viet's farm Sorting => Preserve freshness & quality Aeon arrange for inspections
Harvest Size measuring => Cooperation Acceptance
Packing

Supermarket Aeon Distribution System (Japan) Aeon RDC (HCM City)

Japanese
Consumer Convenience Transport to Aeon's Warehouse in Transport to Aeon Regional
Japan Distribution Center (HCM City)
Store Aeon helps achieve:
(Ministop) GlobalGap standards
Export customs clearance (VIOIT)
Phytosanitary certificates (NPPO)
Import customs clearance (MAFF)
INTERNATIONAL BUSINESS
FUNCTION STRATEGY
 INTERNATIONAL BUSINESS
FUNCTION STRATEGIES

Marketing strategy:
major responsibility
Aligning its standards to cater specifically to
Aeon's target customers
Aeon will assume the primary responsibility -
LABA Viet remains engaged.
Focus on main clients: businesses
Highlighting our core strengths and competitive
advantages
Promote traceability main clients: businesses
 Major Inputs Production Steps PRODUCTION PLAN

Growing Density Planting

Trees
distances

Growing
Humidity

Water

Harvest
Fertiliser

Soil

Storage
Climate
Inspector of AEON in VietNam
 Production Steps
PRODUCTION PLAN
Major Inputs

Processing Washing & Cutting

Water
Sorting & Weighting

Banana Boxes
Packaging

Storage
inspector of AEON in VietNam
 Supply chain strategy

1. Cold chain infrastructure

2. Total areas for planting bananas
of contractual relationship with
farmers
3. Regional Distribution System of
AEON
4. Transportation partner of AEON
 References
AEON Vietnam. (2017). Supplier Management – AEON Vietnam Corporate. AEON Vietnam. [Link]
AEON Vietnam Co., Ltd. (2011). Supplier Management – AEON Vietnam Corporate. AEON. [Link]
CEIC Data. (2000). Japan Household Income per Capita. [Link]; [Link]. [Link]
per-capita
CENTER FOR WTO AND INTERNATIONAL TRADE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY. (2023). TTWTO VCCI - (News) Positive outlook for fresh
banana exports to Japan. [Link]. [Link]
Classy, T. (2020, December 4). A Look Inside Japan’s World of Luxury Fruits. Truly Classy. [Link]
Cold Storage Japan Ltd. (2018). Cold Storage Japan Ltd. Cold Storage Japan Ltd. [Link]
ConnectAmerica. (n.d.). Sanitary and phytosanitary requirements for exporting to Japan | ConnectAmericas. [Link]. Retrieved August 13, 2023,
from [Link]
Cruise Mapper. (2017). Yokohama (Tokyo, Japan Kanagawa) cruise port schedule. CruiseMapper. [Link]
Dao, P. M. (2022). Hợp tác xã Laba Banana Đạ K’Nàng: Đưa chuố i “tiế n vua” ra “biển lớn.” Báo Dân Tộc và Phát Triển. [Link]
[Link]
Dinh Thi. (2022). Phát triển chuố i laba đặc sản xứ Lâm Đồ ng. Https://[Link]. [Link]
[Link]
ElmarSpices. (2022, October 29). VIETNAMESE BANANAS ACCELERATE INTO JAPAN. ElmarSpices Company. [Link]
accelerate-into-japan/
European Parliament. (2020). Japan’s Parliament and other political institutions | Think Tank | European Parliament. [Link].
[Link]
FAO. (2017). Good Agricultural Practices for Bananas | FAO. [Link]. [Link]
FAO. (2023). REQUIREMENTS FOR PHYTOSANITARY CERTIFICATES. [Link]. [Link]
FAS Japan. (2021). THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS
OF OFFICIAL U.S. GOVERNMENT POLICY Report Name: Food and Agricultural Import Regulations and Standards Country Report Country: Japan Post: Tokyo
Report Category: FAIRS Annual Country Report.
[Link]
fileName=Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20Country%20Report_Tokyo_Japan_09-30-2021
 References
Food and Agriculture Organization of the United Nations. (2022). BANANA Market Review Preliminary results 2022.
[Link]
Foreign Agricultural Service. (2018, November 7). Japan: Japanese Fresh Fruit Market Overview 2018. USDA Foreign Agricultural Service.
[Link]
GourmetPro. (2023, March 2). What Are Japan’s Food Import Regulations And Procedure? [Link]. [Link]
japan-food-import-regulations
Haghirian, P. (2021, November 29). Japan’s New Consumer Groups Explained - Tokyoesque. Tokyoesque. [Link]
explained/
Harris, D. (2021, February 8). Exporting and Selling through Distribution: A Foreign Country Entry Strategy for SMEs. Harris Bricken.
[Link]
Helmold, M., Dathe, T., & Chan, A. (2020). Negotiations in Japan, China and Asia-Pacific. Successful International Negotiations, 297–314.
[Link]
Ikedo, K. (2023, May 10). Fruits in Japan: Why Do People Treasure Them? - Sakuraco. [Link]
do-people-treasure-them/&sa=D&source=docs&ust=1691609362165898&usg=AOvVaw3gcCKRoRAsJvBEWmrre0iP
ISN Magazine. (2023, May 7). Japan Food retailers – International Supermarket News. ISN Magazine. [Link]
retailers/
Itoh, H. (2013, July). Market Area Analysis of Ports in Japan. HAL Science; THE IAME2013 ANNUAL CONFERENCE. [Link]
JAPAN Education Travel. (n.d.). Japanese food. JAPAN Educational Travel. [Link]
Khôi -, C. (2023, August 2). Xuấ t khẩu nông lâm thủy sản tăng trưởng khả quan: Ấ n tượng rau quả và gạo. Nhịp Số ng Kinh Tế Việt Nam & Thế Giới.
[Link]
Kyriacou, A. P., Muinelo-Gallo, L., & Roca-Sagalés, O. (2019). The efficiency of transport infrastructure investment and the role of government quality: An
empirical analysis. Transport Policy, 74, 93–102. [Link]
Laura. (2019). Japanese Luxury Fruit Culture Explained. DiGJAPAN! [Link]
Marino, M. A. (2020). Gift Giving Etiquette in the Confucian-Asia cluster: the luxury fruit culture | Breaking down barriers, building up profits. Mudita
Consultancy. [Link]
Minh -, M. (2023, April 19). Xuấ t khẩu của Việt Nam sang Hàn Quố c và Nhật Bản còn rấ t khiêm tố n. Nhịp Số ng Kinh Tế Việt Nam & Thế Giới.
[Link]
 References
Musa, R., Hassan, F., Mohd Yusof, J., & Mohd Daud, N. (2010). Examining market accessibility of Malaysia’s Harumanis mango in Japan: challenges and potentials.
Business Strategy Series, 11(1), 3–12. [Link]
Nhi -, A. (2023, June 26). Kỳ vọng sức bật mới từ thương mại và đầ u tư Hàn Quố c. Nhịp Số ng Kinh Tế Việt Nam & Thế Giới. [Link]
[Link]
NipponExpress. (2020, November 6). The Global Supply Chain of Bananas - from farms to your table. NIPPON EXPRESS.
[Link]
OEC. (2021). Bananas in Japan | OEC. OEC - the Observatory of Economic Complexity. [Link]
redirect=true
Okubo, M. (2019, December 13). TropicalFruit Export: Connections through quality. The Japan Times. [Link]
report/2019/12/13/global-media-post/ecuador-report-2019/tropicalfruit-export-connections-quality/
Phượng -, C. (2023). Giải pháp cầ n linh hoạt, phù hợp: Khơi thông xuấ t khẩu nông sản. Nhịp Số ng Kinh Tế Việt Nam & Thế Giới. [Link]
[Link]
QUARCER. (2013, September 23). GOOD AGRICULTURE PRACTICE - VietGAP standard. [Link]. [Link]
practice.nd185/[Link]
Rybicka, I., Kiewlicz, J., Lukasz Kowalczewski, P., & Gliszczynska-Swiglo, A. (2021, October). Selected dried fruits as a source of nutrients. Research Gate.
[Link]
Sasada, H. (2021, March 12). Challenges in boosting Japan’s agricultural exports. East Asia Forum. [Link]
boosting-japans-agricultural-exports/
Statista. (2023). Fresh Fruits - Japan | Statista Market Forecast. Statista. [Link]
Technavio. (2023). Banana Market to grow by USD 1,145.74 million from 2022 to 2027; Market driven by the increasing adoption of banana flour in the baking
industry - Technavio. [Link]. [Link]
[Link]
Thanh, N., & Trang, H. (Eds.). (2018, February 22). How to promote fruit and vegetable export to Japan? Customs News.
[Link]
 References
Thuvienphapluat. (2019). RCEP - CHAPTER 5: SANITARY AND PHYTOSANITARY MEASURES. [Link]. [Link]
luat-moi/vn/hiep-dinh-RCEP/32477/rcep-chapter-5-sanitary-and-phytosanitary-measures
Tin Khoi Nghiep. (2021). Công Ty TNHH Chuố i Laba Đà Lạt Quố c Vương – Cung Cấ p Đặc Sản Tây Nguyên – Chuố i LaBa Uy Tín Chấ t Lượng Vì Sức Khỏe Người Tiêu
Dùng – [Link]. Tin Khoi Nghiep. [Link]
[Link]
Trang, S. (2022). Vietnam’s bananas import into Japan rose sharply despite high price. [Link].
[Link]
UNCTAD Investment Policy Hub. (2020). REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT.
[Link]
United States Department of Agriculture. (2018). THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT
NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report -public distribution GAIN Report Number: JA8113 Japan Food and
Agricultural Import Regulations and Standards Report 2018 FAIRS Annual Country Report.
[Link]
filename=Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20Report_Tokyo_Japan_2-[Link]
Viet Nam National Trade Repository. (2021). REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT (RCEP) - Main commitments. [Link].
[Link]
VietnamPlus. (2016, May 2). Vietnamese bananas on Japan’s supermarket shelves | Business | Vietnam+ (VietnamPlus). VietnamPlus.
[Link]
WTO Center. (2023, March 3). TTWTO VCCI - (News) Positive outlook for fresh banana exports to Japan. [Link]. [Link]
positive-outlook-for-fresh-banana-exports-to-japan
Yang, R., Takashino, N., & Fuyuki, K. (2021). Japanese Consumers’ Willingness to Pay for Environmentally Friendly Farming Produce Based on Consumer
Trustfulness. Journal of Agricultural & Food Industrial Organization, 0(0). [Link]
THANK YOU
Team A