Direct in Japan.
Procter & Gamble's recent announcement that this month it will start delivering foods directly to some Japanese retailers could revolutionize the country's complex distribution system, in which nearly all retail goods pass through a network of primary and secondary wholesalers. P&G will refuse to fulfill orders lower than 100 cases, up from the previous 20 cases. The move is likely to hit secondary wholesalers severely, since they rarely handle that much volume. P&G already has signed a deal with the Jusco supermarket chain to supply goods worth an estimated $87 million (Y 10 billion). The arrangement should enable Jusco to cut 10% to 12% off the delivery price of P&G goods.