Toru Yonemura
米村 徹

The Collapse of MythologyAccrued from Deregulation
Triggered by the Globalizationof Economy 


The deregulation in terms of “ Globalization” proposed by world leading economies, is considered a challenge Japan, as an economic giant, has to cope with, regardless what might be the reason, throughout its entire fields of industry in order to conform to the international standard( Global Standard ). As one of the forerunners of the tertiary industries, the retail industry could help provide an up-to-date prescription to tide over this unquenchable trend before us.

Key words: price, cost , loyalty


 In retail industry, the conventional advantage of the fast flow of merchandise has now  been ill-affected by the much-touted “Fair, Free, Global” slogan which has been , in essence, advocated by the world leading economies in terms of“ Globalization” movement.1)
 That conventional advantage has recently lost genuine power in every field of our industries due mainly to unexpected repercussions from unforeseeable side-effects.
 Manufacturers as well as the distributors and retailers have found themselves helpless to apply positive applications of equation theory. This means that the deregulation which as has been welcomed by the majority of consumers as an unmatched opportunity to seek lower-priced, quality merchandise without hindrance has utterly proved to bring about negative results. Through apparent “ deregulation”, the mythology of swollen quantities of merchandise has caused a spread of huge general merchandise stores ( large- scale retail outlets) to such an extent that there are often more than 10 stores within a 20-minute-access trading boundary. This trend reveals the fact that the trading area consequently has been diminished with the abruptly mushrooming numbers of similar retail operations throughout all prospective trading areas where opportunity seems to exist. 
 Restrictive laws or ordinances have actually prevented well-calculated, well-prepared retail operations from penetrating into chaotic competition in which theoretically no stores can survive , since only price is of vital importance , decisive, and final, making them unable to maintain the break-even-point on a regular basis.
 The reason general merchandise stores and similar discount stores have continued enjoying rewarding profits lies in their isolation from outside world, in other words “ trade isolation ”  , limiting free pricing within the framework basis of either tariff barrier or non-tariff barrier. Now ,however, the time of enjoying such vested rights is over in the face of colossal outside pressure. 
 In this paper, the author tries to describe a blueprint of a possible way out for possible better development based upon the world-wide standard.

 Recognizing Reality

 The successive expansion of sales area proved valid and effective before deregulation. However, this method does not function well enough as a guiding strategy. The reason is quite simple, for effective, past equation theory neither works, nor is applicable now that basic competitive tactics have greatly changed. Sticking to the old-fashioned strategy, found anywhere, more often than not, means either stoppage of retail operations or leads to total collapse of the stores by the force of  “price destruction”, which continues without appropriate notice of the gradual change of consumers’ buying habits. The merit of the scale works in the pattern only before the deregulation stage , when rapid expansion of  floor space or opening up of number of stores was possible  only if permitted as applicable. The problem is that the existence of categorically different stores has its own distinctive meaning, in that items that one store carries have an apparently supplemental function, and do not interfere with the sales of another , however, similar stores in the same category do interfere with one another, thereby, diminishing the trading market and losing the chance to make profit out of the same market. To overcome this, a mixture of operationally different types of stores or a combination of different lines of business is necessarily required to vitalize the purchasing power within the boundary of a market. Such tactics might be found in the United States ,and could serve as a good example if need be. The situation, however, has greatly changed due mainly to deregulation and the appreciation of the Japanese Yen as economic trends have shown, revealing the easier way of dealing such stateless commodities as gold silver, copper, and grain as international goods or commodities repeatedly reported in the vernacular newspapers of our country.米村徹
 Worldwide market price.
 The author clarifies the status of daily commodities common to all as bona fide international merchandise, for stateless merchandise consists of consumer goods and these must be global, universal and international by all means.
 In essence, the price of the stateless goods or international merchandise is to be decided in the world market. Accordingly , single market price should be applied to any consumer goods at the international level ,thus  making it possible to market any item or service at a single price wherever it might be carried.
 The distribution revolution could eventually be interpreted as making the price of stateless merchandise conform to the international market price which is common to all. That means that should fair competition exist, a single applicable price would  be adopted and those who managed to quote the comparatively lowest price might finally be accepted by consumers in general as winners.2)
 To participate in the competition in the international market place might not require a participant to be gigantic enough to hold sway throughout the world. Nor might be  necessary to protect an enormous amount of capital to be a predominant retailer capable of going up against anyone else in the world. Rather what may make the difference is whether or not the pricing of the participant conforms to the international market price. The point is only if the participant (or store) carries those stateless commodities that hit the heart of the consumers in general worldwide, which means the store boasts competitive, rewarding, unmatched prices for quality and quantity whichever. The store, thus successful, could be regarded as an international retailer and enjoy a certain share of the world market with potential for further growth. One thing that must be borne in mind, however, is that the distinction between mass sales with thinner profit by manufacturers and that of wholesalers and retailers must not be mixed up, for selling at a cheaper price eventually requires quantity volume sales to cover up the shortage.
 Contrary to volume sales by retailers, manufacturers’ mass sales show a totally different aspect. To protect thinner profit, manufacturers try to curtail  manufacturing costs to the minimum. By doing so, manufacturers can afford to earn the same profit through volume mass discount sales since their merchandise sells  well enough to make up for the decreased non-discount profit. In the usual case, they have sold well and  earned well to such a degree that they have decreased the percentage of margin. Accordingly, mass selling or volume selling by reducing considerable profit does not necessarily mean less earnings in the case of manufacturers. The situation for retailers ,on the other hand, differs greatly . For example , should retailers try to sell 15% less out of 30% commission, they have to sell 3 times more volume to make up for the decreased earnings. Furthermore, even if they could hit the corresponding volume, they are not in a position to reduce their buying cost as they might hope, nor by their own will. This means that to sell at cheaper price at the expense of would-be-profit, improving the sales volumes as the only way left for them. Too. promotional expenses must be spent to attain the goal of 3 times more sales. On top of that, through this effort, they cannot expect remarkable volume sales, nor can reduce the cost as expected.

 Price Destruction

 Logically speaking, this does not mean “ Price destruction” has spread all of a  sudden. Rather, abrupt spread has  , against the will of retailers, been 
brought about by the destruction of price, not vice versa to be exact. As things go, if a certain store sells the same merchandise at a cheaper price, then the other cannot help but do the same in order to survive or to protect their revenue. This simple method does not imply real competition. On the contrary, it is full of self-contradiction. 3)
 Another example would something to do with this, at a neighboring liquor shop, if the shop made quantity sales of bottles of liquor at lower prices than other shops in the neighborhood, consumers would certainly go to this shop for quantity buying ,frequently until they find  new stores have done the same  nearer to their homes. They would never go to an older store merely for convenience. Thus , this type of price cutting war may start anywhere, at anytime. At this stage, it could safely be said that the lower price they have advocated around the neighborhood would not be called the lower or cheaper price, rather it would be interpreted as the market price at this juncture. 
 Consequently the stores mentioned above cannot afford to sell at all times at the expense of margin they earn .“Price destruction” shown above disappears all of a sudden at this stage. This is a simple, common phenomena envisaged in any retail business even at present, and has nothing to do with strategy or tactics. 
 To overcome this vicious circle, another type of operation must necessarily come about for absolute survival.

 The Discount Store

 The new concept of operation lies in a different category which must be taken into account at all times, and this might be called “ discount stores.”  In terms of profit protection, they never lose their profit. Even if they sell at lower prices. they never lose their modest margin out of total suggested profits. 4)
 The concept of the discount store has proven totally effective, since they sell merchandise at the discount basis beforehand with less profit, earning less but never facing loss. They have created a new mechanism, never to be the old-type-price-cutting shop experienced in the past .
 On the basic ground of the discount store, there has existed unaltered logic throughout the years: a quest for revolutionary distribution strategy , maintenance of chain operation by means of expansion of outlets, and seeking corresponding expansion of business scale. This implies the trinity of the concept .
 By definition, the necessary daily commodity is determined neither by frequent -buying habits, nor by quick consumption. Rather it has its own traits wherein should the price of the commodity rise by double digits, or even become twice as high as other 
items, consumers cannot help but purchase them out of necessity , being unable to reduce consumption proportion to combat the higher price. This, then, is daily necessity, the consumption volume of which is, to a certain degree, limited unless the  number of consumers fluctuate.
 The time has come when number of customers has been decreasing year after year without fail, which means we are faced with either zero-sum or minus -sum market dimensions, since a dwindling market is foreseeable in the immediate future.
 This diminishing trend reveals the absolute necessity to usurp the  sphere of others to sustain oneユs  own territory which otherwise would be usurped by those others unconsciously. Deeming such dreadful market conditions inescapable, less expensive merchandise compared with other outlets is , as a matter of course, of paramount need and retailers are always ready to come up with whatever is required to meet the requirements of consumers in general. In other words, the competition would never cease until the price of a given store reaches the workable international market price in pursuit of a final goal.5)
 Taking this into account, the discount store makes every feasible effort in every detail of its operation to realize the genuine cost down possible with less expensive merchandise, thereby beating conventional stores. This effort, however, is not enough to ensure that one is a winner in the limited, dwarfing market, for the era of  cost-down possibility in the buying sector as well as other fields is almost over , and unpredictable down-costing will eventually be of urgent need.
 That low-cost-operation is viable in recent years, none can deny.

 Low-cost Operation 

 The problem is whether or not management has ever tried low-cost operation in exchange for cost-down operation, the meaning of which is, in essence, totally different .The author stresses the low-cost-operation in addition to cost-down-operation, however, both are of grave concern for management in that they involve the element of cost which decides the price. 
 The methods usually adopted are found among significant examples having been practiced in the United States. From them, a real model can be drawn, that is in order  to achieve low-cost operation, it is imperative that  present and future management be conducted in the same manner as in the past, but at less cost. That is the essential  point, and less cost operation stands for replacement of paid- manpower in order to reduce fixed expense. To give a concrete example, to go from 20 regular employees plus 30 part-timers to 10 regular employees plus 50 part-timers would reduce fixed expense to a certain degree but it impossible to go to extreme, that is zero.
 The final measure remaining is to reduce management itself to the extent, figuratively speaking, of cost-low management, being a single manager plus a staff of all part-timers. In such a case, most of the part-timers would be either foreigners or elderly persons, and would include not only those might be categorized in the unskilled bracket, but also those that might be categorized in the illiterate bracket, being incapable of making judgements , ignorant of the native tongue, very young, very old, and so forth; to be exact, ill-paid part-time labor.
 There is the limit, even if management provides such labor with complete operation manuals. This trend implies that the management ignores unreasonable and inappropriate methods of the low- paid part-timers should they be unable to function in accordance with concrete operation manuals, for they would bother other workers and customers as well, leading to loss of prospective customers. Thus, if management is forced to adopt such final measures for low-cost operation, they must drop the idea of maintaining a viable section, better leaving it vacant in order to avoid ill- treating the customers. 
 In the event a certain store has adopted low-cost-operation, its policy must vary in reaction to outside pressures, for if one store reduces price, the other must do the same.  This is simple theory and such methods will never cease to continue until each collapses.
 Low-cost structure is only applicable to the wholesaler, not the retailer. Warehouse discount store gives a good lesson for survival since last-ditch effort for less expense has been achieved, and has borne fruit recently throughout the world.
 The author touched upon further details of this in the previous issue of the Proceedings.6)

 New Capital Productivity 

 From expansion to enrichment, from consumer to customer, from shopping-prone type  of operation to life style theme assortment, one of the changing essentials of the aforementioned sequence advocated by Mr.Yosuke Shimada, Japan’s leading consultant, has shown the necessity of the creation of a new capital productivity structure. To exemplify the idea, the innovation of racing, from foot to auto-vehicle, would help one to better understand the effect of new capital productivity structure. In considering the remarkable differences among racing on foot, by bicycle, and by automobile, the distinctive difference can be noted not in the speed or velocity, but rather in the sort of devices into which condensed energy has been poured to attain unpredictable forward leaps and bounds. In the exact meaning of Shimada’s figurative expression, even a professional runner cannot win in a race against an ordinary novice driver if he or she uses a device such as an auto-vehicle. This simple fact shows the monumental leap forward, in contrast to the steady, conventional process of advancement.
 This remarkable innovation discards the old capital productivity structure. Moving away from the past, it creates a totally new structure as has been revealed in the realm of distribution channels.
 Furthermore, there are two types of opposing capital productivity structures, between which anyone can note the clear difference: the newer , called “technological productivity”, and the other, which is said to be“ labor productivity.” To illustrate, let’s say that a cerain company considers it essential to employ a brand new system and technique by the introduction of category-management for vivid enrichment, enhancing technological productivity. Another company sticks to traditional company expansion, performing productivity management as in the past by cost-down methods.  The methods adopted by the two opposing companies could be recognized as follows: in the latter’ s case, the well-touted structure, type of business and type of operation deems the man or individual, as“ manpower.” the life-style-assortment structure, on the other hand, might be interpreted as “technical power.” The latterユs  productivity or labor productivity enjoyed earnings by legal restrictive measures ,being successful as the method boasts the merit of obtaining greater quantity, as has been actually exemplified. While the former method, or life-enriching technique, may be logically valid, it might be impossible to imitate, for the method only help meet a certain customerユs  needs. The author has revealed rather abstract examples.
 For better understanding, please refer to the aforementioned previous issue of the Proceedings in which the author discusses “ Format”  The author would better try another aspect of the theme hereto, since to meet the challenge of pressure from outside world, both consumers in general and retailers as well urgently need to have accurate knowledge of the world trends in order  to catch the direction of prevailing winds.

 Value of a Single Item

 In the formula V=Q/P, which is widely accepted throughout the world, V( value) is equal to the sum divided by the price, which means , the higher the quality one wants, the more one must pay, should one choose to stick to higher quality. That is universal formula, none can deny; however, this can be applicable only to the practical daily commodities.
 The problem is that most people never realize this fact, or never inquire into why the formula holds good only for daily commodities. The author points out that  manufacturers’ brand  is still vivid and alive in the heart of consumers in general, and once prices are fixed at a certain stage, similar private-brand commodities, in order to cope, come out with volume sales to protect considerable profit defying the greater sales contribution done only for the manufacturers, with relatively less profit as a matter of course. In this case, daily goods are applicable only to maximize V, for consumers can afford to secure daily commodities at cheaper prices, enhancing V with less P, however, never question the Q, whatsoever, may the commodities are, national brand or private brand, since unsold national brand items or leftover commodities are on the selves for clearance sales after a certain lapse of time. Thus. consumers are accustomed to the contents and qualities of merchandises through experiences that quality makes no difference in the case of daily commodities, seeking no-frill goods, which means that functionally unnecessary portions or attachments may be omitted to achieve better buys. Clearance sales is very common in all countries and the basic idea on this is totally clear in that leftover merchandises must be sold within limited terms in order to maintain set time limits, with the exception of perishables such as produce, meat, and so forth. The value of the merchandise is determined by individual item; in other words, worthiness of items varies item by item. If V is decided by the balance of Q and P, then, if only Q and P are to be decided, V is automatically determined.Consequently, there is no need to think of V. In this fashion, Q and P may be determined by the merchandise itself. The essence of this formula lies in the fact that the value of merchandise is determined by an item itself, which means an item itself makes the value, making an item complete the value. One noticeable point Japanese must bear in mind is that the difference between Japan and the U.S is that while Japanese consumers recognize a single value, American consumers are able to decide each diffferent value in accordance with the variety of application, being able to make any combination of V.

 Survival of the Fittest  

 In the realm of retail industry, the battle for survival has been pitched since the slight deregulation has started, opening up the narrow door a little wider to foreign investors. However, now that the door presently has been opened far wider, the opportunity of foreign investors is promising if they intend to cultivate Japanユs  market.
 At this juncture, real price competition would surely seem to be ready to begin at any moment. The genuine meaning of this struggle for survival is not 
mere mathematical discount of the merchandise the retailers try to challenge, however. It will not be  astonishingly huge reduction rates by 30% or 50%, that determine the fate of the company in general, but rather a negligible rate difference of only 5% of the   commonly acceptable market price with which each retailer must overcome any competition whenever necessary. to be a winner. As the real distribution revolution has not penetrated into the depth of the industry, each dealer is feeling at ease, expecting that the tide of recession of economy will sooner or later, return to a favorable level. However ,actual situation is quite the contrary, in the real sense of the word. For example, it might be easily imaginable that if there is food enough for only 2 persons, but 5 must survive, there are only two possible choices. Firstly, the food might be divided equally among the 5, allowing them to survive for a limited period of time, but eventually dooming them to starve to death. Secondly, the dominant 2 persons in the group take the food by force, allowing only them to live and dooming the other 3 to starve to death. this sheer and stark instance evidently shows how the pitched-battle is fought among others for survival.
 It is wrong to define American consumers are voluminous consumers, replacing  items in volume every time they come to the stores, and consequently the merchandise life cycle is short-lived in comparison with their Japanese counterparts. 
 Quite the contrary, Japanese are prone to buy frequently, spending much, and replacing old items with new items to keep pace with trends. Furthermore they must continue to be fast buyers in order to content themselves.
 The old marketing method is still effective, for the genuine pitched battle has not yet been fought, and manufacturers as well as wholesalers and retailers find themselves even safer to run their businesses in the way as they have done in the past. They have no sense of the stateless price of merchandise without searching for clues to beat others. They look only to neighboring opponents, never foreseeing the future investors from outside Japan, and expecting only a “chain of new product” which might, otherwise, terminate the present coveted newly rising demand. Happily enough this trend works well for the time being. However, it is the idea that a single-item value is worthy of behemoth demand as has been shown by American consumers who have a sense of variety of value assessment, to which both manufacturers and retailers have to find the clue.  Still, the corporations destined to survive could be found in any sector should a certain means be deployed through certain strategic and tactics .
 The life-style-prone Products
 To materialize the trend-setting measures, the author looks to the intrinsic behavior of consumers that springs from the depths of their hearts. A clear phenomenon is apparent in the daily activities of consumers that exceeds the regular boundary of consumption. They pay a considerable sum of money at fixed, or suggested price that providers propose, never expecting lower prices when they buy daily necessary goods or commodities. They purchase well-known brand products, or luxurious cars, and enjoy movies at fixed prices without expecting reduction unless proposed by either retailers or providers.
 This instance of consumer behavior is self-explanatory. The consumers need the “ totally exciting, easy to be self-satisfied ” personal elements none can deny, others than persons in the opposite frame of mind. To attain to this favorable framework of consumers’ aspiring demands, proposals to give them diversified value in proportion to their changing life style for smoother marketing, in other words, life-style-prone-marketing should be worked out to comply with this clear, evident needs, creating  emotional or moving elements in their stagnant daily lives, for this “measure-storming” or brain-storming method, whichever it might be, is of urgent need. These proposals should be given emphasized priority for the fulfillment of the consumer’s coveted frame of mind, exceeding the equation theory of V=Q/P which worked well in the past, but no longer, although that depends on circumstances. The easiest approach to this is to look to old products which have been used as daily commodities or necessity goods, 
for there is more room to  find again new functions or new uses through which those old products can contribute to life immeasurably. For this immediate purpose, the author gives a good example found in the United States , the predecessor. To simply explain, the word ”coordination” might best express the functionality of old lamp, curtains, carpets, or whatever that in combination would take on a new, vivid life. For instance, in quest of an in-depth life style, consumers come to recognize the significance of the way of life. Thus, the same old desk lamp they used in the past for brightening of a room takes on another meaning now in that dim light it provides generates a relaxing and contemplative mood. In contrast to modern desk lamps that provide functionally effective, but rather glaring light, like florescent lamp, the old desk lamps, has both a mood-generating effect and a natural decorative effect that the better contributes to the atmosphere of the room in which consumer lives. In the United States, desk lamps are used as a sort of decorative fashion in the home , depicting how enjoyable life is in their way of life. While they use florescent lighting in their garage, or at where the washing 
machine or drier is located, in the bedroom, dinning room, or living room they intentionally adopt the conventional desk lamp so that they can enjoy the 
atmospheric shadow that has its function in each room: in the bedroom, reciprocating the whispered conversation of the couple; in the dinning room, contributing to the enjoyment of dinner; and in the living room, contributing to the relaxed chatting of family members. On the other hand, in our country, a “bedroom” is just a place where the bedding is place for sleeping, and is not a bedroom in the true sense of the word. Similarly, a dining room is defined as merely a place to dine, and nothing more.
 The value of a room is determined not by the vastness of space but rather by the content of the life and enjoyment it affords the family that uses it 7)
 Daily Entertainment
 The author recognizes the shortage of daily entertainment or, in other words, the lack of selective variety in terms of living entertainment here in comparison with that available in the giant economy, the United States. In the true sense, Japan as the second largest economy is far behind in this field. While the American family folks enjoy themselves together at vivid , lively entertainment facilities such as Disney Land, Universal Studio, Sea World and so forth, Japanese regrettably enough,  are obliged to be engrossed in more practical, nearer to life divisions such as, pin-ball games, karaoke (singing to a recorded accompaniment), or game centers. 
 This shows evidently that Japanese have no other choice but to screen their limited selection of daily entertainment. It does not , however ,  mean our country is in short of such facilities as Americans have, nor does it mean that we lack in the ability to build them, of course. We do, as matter of fact, have them right now. The problem is that we have no habits just to enjoy, as American do, just the author mentioned in speaking of the life-style-prone product combinations in their every day life.   
 To be more exact, the American entertainment facilities mentioned are not included in their daily activities. Rather, the facilities they visit are unordinary sectors, which means the visits by the family usually exceeds their every day entertainment, since they can afford to enjoy the mixture of the life-style-prone items which embrace their every day life. In other words, American consumers have an alternative way to enjoy and entertain themselves by voluntary selection of life-style-prone items of their own, hopping around the stores to satisfy their desires, the young, the old whoever...
 Now , the author has come to touch upon the need of a basic idea of how to make consumers in general here, in Japan , viable; dwelling upon the good examples of consumers in the United States in favor of a prospective concept of futuristic store for which a promising future is, to some extent, guaranteed.
 Gearing to the Assortment
 To be a good store, and survive, the idea of assortment is extremely essential, for only assortment might be feasible to realize the life-style-prone merchandising, which rightly can be said to be the store which would guarantee the consumption of the future. To further make the store more promising, store management needs to make a distinctive difference between the type of business or type of operation with which the market been pre-occupied , and the category-killer which can provide the value of life-style proposed by the store . The reason one-stop shopping has always been acceptable to consumers is because it minimizes the time necessary for them to buy their mundane daily necessities. The principle of the category-killer, on the contrary, depends mainly on the theme of life-style or that of the specialized assortment of items, ultimately put them together.
 Here we come to the word “consolidation ,” which means “ bringing together components” to realize a theme irrelevant to past classification such as item, line,  and department, to realize a specific life-style theme. In this fashion, Home Depot in the State, does not imply the enlarged operation that still remains a Home Center, but rather means it has categorically killed the principle of merchandising intrinsic in a Home Center facility.
 The Home Center operation of the past existed as the means to save some amount of money through DIY( do-it-yourself)home repair.
 Quite the contrary, Home Depot, changing the means to the objectives, has revealed a totally different concept of DIY :the creation of everyday pleasure. For this purpose, the Home Depot DIY store provides the opportunity for each consumer to put together necessary parts to create a better looking home at relatively low price, offering them a satisfying sense of attainment for labor efforts such as carpentry , but not necessarily meeting their expectations as to the amount of energy they may have to pour into the job. Now , the author tries to show the good lesson to be drawn from the details mentioned before. 8)

 Transforming the Market

 To make consumers loyal to a store, that store must first overcome a few obstacles, the hardest of which is to create the consumers’ joy of producing life-style of their own free will.
 In this context, four joys can be expected as the pre-conditional element, escaping from the framework of the equation theory ,V=Q/P, and being imperatively essential to foster the consumers’ self-made life-style technique.
 The first of the four joys, is the joy of shopping at the store, enjoying the selection of   items available 
to achieve a better combination. Second, the joy of the arranging process, selecting such items as desk lamp, carpet, and so forth. The third is the joy of satisfaction resulting from the combination of those items selected, obtaining appropriate items to attain the desired overall room atmosphere. In addition to furnishings and decoration, this might also include clothing as well, as it might help them acquire the subsequent overall effect. Fourth is the joy of gradually acquiring DIY skill in the process of fulfilling the desirable result.9)
 In this connection, the reason quality brand items have not been selling well might be interpreted as a consequence of a sort of illusion the consumers have: they may  feel that plain or simply designed materials give them free chance to fill out vacant spaces by adding another value of their own. Thus, no brand item might be matched to the same value as a professional designer, or even an unskilled self-coordination effort, seeking to harmonize each part with nature.
 The fact the no quality brand items have sold well has proved the existence and importance of individual characteristics, or personality as revealed in that additional value the consumers have displayed: their own sense of philosophy and beauty.
 To succeed in life-style marketing, it would be of absolute necessity to maintain the consumers as excellent buyers as if they were not rank amateurs, but rather nearer to the level of semi-professionals. Here lies the essence of the fourth joy, fostering DIY  skills in their lives. They will be inclined not to throw away used items but replace them, feeling the urge to buy additional items to achieve even more desirable ends.
 By additional buying of life-style merchandise, they can afford to add another value on top of the items they bought previously, enhancing the value of items bought recently on to that of items they bought previously. This leads to the habit of deepening the life-style-setting technique through additional buying and collecting of required items,  driving them to fulfill their immediate goal and having a sort of multiplying effect in the end. The life-style, then, ,assortment produces the loyalty of the store or that of customer.
 In this regard, it might be necessary to tell the difference between consumers and customers. Distinctive difference can be seen between them, for the scale of the quantity is quite different when the consumers in general are to be taken into account; whereas, it might be easier to tell the customers since the scale is , to a certain degree, limited.
 The term ” public” was once used to refer to general consumers, and the greater  portion of consumption was deemed as general public. which in terms of By additional buying of life-style merchandise, they can afford to add another value on top of the items they bought previously, enhancing the value of items bought recently on to that of items they bought previously. This leads to the habit of deepening the life-style-setting technique through additional buying and collecting of required items,  driving them to fulfill their immediate goal and having a sort of multiplying effect in the end. The life-style, then, assortment produces the loyalty of the store or that of customer.
 In this regard, it might be necessary to tell the difference between consumers and customers. Distinctive difference can be seen between them, for the scale of the quantity is quite different when the consumers in general are to be taken into account; whereas, it might be easier to tell the customers since the scale is , to a certain degree, limited.
 The term “public” was once used to refer to general consumers, and the greater  portion of consumption was deemed as general public. which in terms of commerce or economy meant the consumer in general. The author will deal with discrimination of“general public”and“partial public”,which, more often than not, comes to the fore whenever discussion is made on the consumers  in general and customers in general.while the meanings overlap, “general public”is nearer to consumers, while“partial public”might better refer to customers, for the meaning is based on the unmbers of people. Thus. it might be concluded that larger numbers might safely be said to be general consumers, whereas, the smaller nmbers of the public might be considered customers, the meaning of which is to be further discussed here.  
 Consumers Turns to Customers
 It might , however, logically meaningless if this discrimination is based only on the numbers of people, since general public is the accumulation of the partial public and partial public does not imply the genuine meaning of customers as a whole.
 The author is eager here to define consumers and customers for marketing in the immediate future, since , in the process of marketing it is necessary to precisely define the public from the marketing point of view. 
 It might be said that the main reason the public is divided into two categories is that the general public, when considered as marketing concept varies in accordance with  subtle difference such as consumption by males and females , young and old, rich and poor, and so forth. Whichever concept is applied, there are subtle differences within the same scope of general public, which serve as the target that each store struggles to hit.To be concrete, it might rightly be said that the generation gap, for example, divides the public into partial publics to the extent to which each generation belongs, when something new or different appears, although the accumulated entity turns to the general public.
 Since customers are always created by means of strategy or tactics, enhancing the scope of marketing items, with consequent unlimited creation of market would be possible if a partial public, for whatever reason, becomes loyal to a particular store and frequents that store voluntarily. At this stage, it may be essentially conceivable that opportunity is unlimited in regard to customers, since it represents and brackets every level of variety to which a partial public cast its focus in quest of the particular life style each prefers while continuing to be embraced by the abstract general public,  rather than persistently keeping to its own existence and detaching from the mass. Rather than having a  restricted existence, the partial public forms a layer of variation, under the name of “ own status.” In this sense, when the concept of marketing is introduced to the customers it must have unlimited boundaries wherein countless tastes, countless ways of life must be taken in account, and be immeasurably deep and wide in its interpretation.

 Quest for Loyalty 

 That the quest for loyalty is paramount, for whatever reason, is exemplified a book written by Frederik F. Reichleld. The content of Reicheld’s book, giving precise details dealing with the problem of business leaders who face a slowdown of business performance, help readers, to understand, integrate, and manage the various dimensions of loyalty in their own companies, offer creative ideas on how to provide  powerful perspectives, and along the way, dwells upon way to create enormous financial success by targeting the right customers and delivering extraordinary levels of service by investing in both their employees and merchandises.10)
 The battle among leading enterprises is being fought day and night in every corner of the world. Management in general has to have keener concern to on- going operations, and success or failure may depend on the adoption of effective methods generated by both learned scholars and general business circles. Since the cycle of past-effective ways has proved to be inappropriate in its application, although it lingers and persists in practice, methods and means that defy the past must be considered.
 The author has mainly dwelt on the retailing aspects for persuasion, although, these instances are extremely flexible, to try to provide a variety of different applications to suit individual managers’ needs and circumstances to help them overcome the difficulties they face after deregulation, and to reveal the sort of requisites for sustaining both everlasting success and prosperity. 11)


 The author has tried to propose strategic and tactical way of retail operation after deregulation, coupled with globalization; has suggested tools for taking charge, shaping strategy, competing in the global market, and managing technology for store operation; has tried to anticipate and offer practical insights for innovation streams and evolutionary and revolutionary change in the operation of life-prone single items geared to the times; and, finally, has tried to find an unlimited future for the creation of new customers with hands-on information  
 At the heart of every successful store there must be a vision of winning, and an unquenchable desire to  keep on winning, creating an attitude identifying its purpose so that it can achieve its goal. A store must distinguish itself from its competitors as the standard of the world market and prices thereof vary from time to time in accordance with natural phenomena and political change.12)  The distribution revolution will continue relentlessly to a level at which manufacturers as a whole  give in the races among themselves, strictly sensing the ambience of the times.


1)  Klaus Schwab and Claude Smadja: “ Harvard Business Review ” Power and Policy: The New Economic World Order,(pp)40-44, Harvard Business 
Review Volume 72, Number 6. Harvard Business School Publishing Corporation, November-December 1994
2)  島田 陽介:これから流通に、何が起きるか,(pp)32-46,ダイアモンド社,1997
3)  服部 吉伸:流通業 破壊の構図,(pp)80-83,日本実業出版社,1996 
4)  森  龍雄:ウオルマートの成長戦略,(pp) 152-178,商業界,1997
5)  内田 武之:日米・小売新勢力のコンセプト&デザイン,(pp)15-27,産能大学出版部,1995
6)  米村 徹:”The Newly Developed U.S. Retailer Defies beaten  Track”.(pp)40-41, 東海大学短期大学紀要第32号,1998
7)  島田 陽介:ライフスタイル戦略の新潮流,(pp)20-21,ダイアモンド社,1995
8)  N.H. Comish: “Marketing manufactured Goods”,(pp)11-15,Stratford Co.,Revised Edition ,1991
9)  William Lazer and Priscilla LaBarbera:
“ Business and Self-Regulation in Public Policy Issue in Marketing”, (pp)105-125,O.C.Ferrel an Raymond LaGarce(eds,) D.C. Health and Co., Revised, 1996
10)  Frederick F.Reichheld :“Quest for loyalty Creating Value through Partnership”,(pp)295-296, Harvard Business School Publishing Corporation,1996
11)  David Mercer: “ The Essence of Marketing ”Third edition (pp)10-15, Blackwell Business 1997
12)  Robert P. Bauman,Peter Jackson, and Joanne T. Lawrence: “The Five Requisites for Sutaining Successful Change”(pp)25-26,Harvard Business School Publishing Corporation 1998