Japan’s Labor Crunch Will Force Retailers to Rethink Operation Models, Says Ey-Parthenon’s Kobayashi

The video discusses the contrast between domestic and overseas retail earnings in Japan, highlighting challenges such as labor shortages and wage pressures. It examines the potential impact of a sales tax hike and the government's measures to mitigate it. The video also explores the need for retail modernization through digitization and the implications of upcoming labor reforms, suggesting potential growth opportunities for retailers.

What are some of the domestic challenges faced by Japanese retailers?

• High unemployment rates

• Minimum wage increase and labor crunch

• Excessive foreign competition

• Lack of technological advancement

How is the Japanese government planning to offset the negative impact of the sales tax hike?

• By introducing new incentives for cashless transactions

• By increasing import tariffs

• By providing subsidies to retailers

• By reducing the tax rate

What is a major focus for companies like Fast Retailing in Japan?

• Expanding physical store locations

• Digitizing and modernizing retail operations

• Increasing traditional advertising

• Reducing product prices

What is a potential positive outcome of stricter overtime restrictions in Japan?

• Higher unemployment rates

• Decreased retail sales

• More time-rich consumers

• Increased consumer spending

How can retailers potentially benefit from consumers having more free time?

• By offering more online shopping options

• By creating in-store experiences like grocery and restaurant combinations

• By increasing product prices

• By reducing store hours