Strategies of Japanese Supermarkets in Hong Kong

Argues that, by the early 1990s, an estimated half of all non‐restaurant food sales in Hong Kong went through supermarkets. Local independents and small local chains cater to the lower end of the market. Two large local chains focus on Hong Kong′s broad middle class and control over half of packaged food sales. Some Japanese supermarkets also target the local Chinese middle class. They define the two major local chains as their main competition, and make little attempt to maintain their Japanese identities. Other Japanese supermarkets are niche marketers. They maintain their Japanese identities more strongly, and give more weight to Japanese products. These stores are located in major shopping districts rather than in the main residential districts. They target expatriates, who may account for 30 to 40 per cent of customers. Finally, one Japanese store has positioned itself as the top quality supplier for the upper end of the market, and presents an international, ot Japanese, image.