(Continued from the previous post)
In Hong Kong, it’s common to find very limited size options for products like beer or hair styling gel. But why is that?
A Retailer-Driven Market
One major reason lies in the strong influence of retailers.
In Hong Kong, the distribution network is quite concentrated, with major chains like 7-Eleven and Mannings dominating the market. As a result, competition among manufacturers to get their products on store shelves is intense, and securing shelf space is even more difficult than in Japan.
In contrast to Japan—where convenience stores, drugstores, and supermarkets offer a wide variety of retail channels—Hong Kong’s retail landscape requires manufacturers to maximize turnover within a much more limited space. This often leads to a preference for larger-sized products with higher unit prices, rather than stocking multiple smaller sizes.
In other words, while Japan emphasizes “responding to detailed consumer needs,” Hong Kong’s retail strategy tends to focus on “selecting products that are likely to sell efficiently and generate the most revenue.”
Without understanding this difference, companies that try to enter the market using the same strategies they use in Japan may struggle to see results.
The Role of Consumer Mindsets
Of course, this isn’t the only reason.
It’s also possible that Hong Kong consumers simply don’t expect a wide range of size options for products like beer or hair wax.
If people have spent years in a market where limited sizing is the norm, they may not perceive it as inconvenient. In fact, some may even think, “bigger is better value.”
While Japanese consumers often prioritize “choosing a size that fits the occasion or usage,” shoppers in Hong Kong may place more emphasis on cost-effectiveness and reducing the frequency of purchases.
This suggests that beyond market structure, consumer attitudes and buying behaviors also play a significant role in shaping product assortment.
A Perspective for Businesses Eyeing Overseas Markets
In recent years, more and more Japanese businesses have been looking to expand beyond the domestic market and into Asia and other international markets.
But entering overseas markets isn’t just about “selling abroad”—it requires a deep understanding of each market’s specific characteristics and crafting strategies accordingly.
In a retailer-driven market like Hong Kong, it’s critical for manufacturers to focus on building strong relationships with retail partners, rather than trying to approach consumers directly.
Securing shelf space, knowing which products to prioritize, and determining optimal placement are all part of a well-considered tactical plan.
It’s also essential to understand consumer preferences and purchasing habits.
In Hong Kong, the emphasis tends to be on cost performance and convenience, rather than offering a wide variety of sizes.
Applying Japanese logic without adjustment can easily result in mismatches and missed opportunities.
For any business aiming to succeed in overseas markets, these perspectives are vital.
I encourage companies to analyze each market from multiple angles and develop strategies that truly align with local conditions. (End)