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By comparing the situations in the UK and Japan, although they have a lot in common, there are also big differences. What causes the differences or similarities?

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UK MIddle market

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Japan middle market

Middle class purchasing power is declining in Japan. This is caused by a demographic difference, with population decreasing, and by economic differences, with persistent deflation. In particular, the size of the middle class is declining and getting poorer than it was before. This shrinking market is a difficult issue for retailers and producers.

A much more equal society has developed in Japan. It would seem that all consumers are becoming similar in Japan. The low-end category of shops, such as convenience store and 100yen shops, are flourishing, while high-end Department stores and middle-end General Merchandise Stores are stagnant.

Low-price oriented consumer. The recent characteristic of a Japanese consumer is of a low-price orientation. Every category of shop in Japan is struggling against the demanding consumers. Only cost-saving category shops such as convenience stores, 100-yen shops and online shops are flourishing. The situation is that consumers in the UK and Japan prefer low-price goods, but the background is so different in the two countries. The most important difference is the movement of the consumer price index, CPI. In the UK, there is an inflationary trend, while in Japan, there is a deflationary trend. Despite this, consumer behavior in both countries is similar.

Few immigrants are allowed into the Japanese society. There is a natural population reduction in Japan, with deaths being higher than births. One way to increase the population is to allow immigration, but how far Japan would accept immigrants in order to increase consumer demand, will be a crucial political issue.

What is the future for shopping streets in Japan? The biggest different in the urban landscape between the UK and Japan, is the appearance of their shopping streets. In Japan, there are many stagnant shopping streets, which are often called shutter-closed shopping streets. In the UK, generally streets are not stagnant. However, this might be because shopping streets are continually changing in the UK, and this change is quick with shops closing and others opening. Also, shopping centers in the UK have decreased in size over the last 30 years and many small local shops have closed. So maybe, shopping streets in the UK and Japan are at different phases of change.

A ppendix s yno ptica l ta ble st ruct ure

Consumer ↓ Classification Socio-economic class Occupation←Linkage→Income Household Consumption Total Consumption Classification Class Consumption [Average income × Household No] Low Class MarketMiddle class MarketHigh class Market Retail Low categoryMiddle categoryHigh category

Ch an g e

Fig 48 Change of Class ConsumptionDemographic Change Economic Change [Average income × Household No ] Disposable Income Low Class MarketMiddle class MarketHigh class Market GDP, size & growthClass proportion change per CapitaClass border level Labour cost ,wage [Downgrade or Upgrade] Tax, BenefitsClass Market Size CPI Inflation [Expansion or Reducement] Deflation Population Size Population Pyramid Lifecycle generation Social Movement 　　　　　　　　Immigrant 　　　　　　　　Retied Baby Boomer 　　　　　　　　Students getting job Type of household

57349, 3590

32881, 14200 20313, 9050 58943, 3564

35003, 14755 22455, 8886 31928, 033779, 00

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Hou se ho ld  nu mb er

Income level 

Co n ce p tu al  Di ag ra m  ( D e m o gr ap h ic Sh if t)

2013 2015 2013ave 2015ave

Consumer Change Low Class MarketMiddle class MarketHigh class Market Expenditure Pressure PressureEducationHousing cost 1.6Property ladder EssentialFood '=fixed proportion of total expenditure Consumer Price & Retail Prices Food Inflation and Exchange rate discretionary expenditure(elasticity >1) fluctuation Thrifty + Value-Oriented Low Class MarketMiddle class MarketHigh class Market Cost/Price consciousCost/price Value for MoneyValue conscious FactorLow incomeHousing cost burdenHigh income Education CostFamily support costWealthWealth Effect Lifecycle Lifecycle Hypotheses Generation YoungMiddle Old C/YHighLowHigh Class Movement→ Effects Upgrade to MiddleJob-acquired YoungDemonstration Effect Retired OldDowngrade to LowInertia Effect Immigrant Lower price, Higher quality Health Convenience Taste New category development TrendsOnline, Convenience, Charity, Sharing, Organic Price war CPI>RPI Retail Hierarchy Change Low Class MarketMiddle class MarketHigh class Market Online Discounter offendSuper MarketDepartment Store Pricingdiscountdiscount & premiumPremium Affordable price movement discretionary expenditure(elasticity >1) essential expenditure (elasticity ≒1) ‐200

0

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Consumptioncycle

them e incl ud ed it e m m ino r cl ass ific at io n po int Clas s st ru ct u re De m o gr ap hy po pulat io n tr en d o f p o pulat ion (in c re as e or d ecr ea se ) so cial m o vem ent bet wee n c las se s (yo u ng , m idd le, o ld ) c lass proportion e ac h c las s si ze (lo w , middl e , h ig h) popu la ti on py ra m id age co m posit io n o f p o pu lat io n (wo rkin g a ge, yo un g, o ld , imm igr an t) re ti re d, no n-r et ir ed differ enc e o f i nco m e a nd p ro pe rt y social cl ass so c io- e c on omic c la ss (o cc up atio ns, i nco m e , be havio u r, r eg io n, nat io nality) o ccup at io nal d ivisio n regu lar o r ir re gu lar em pl o ym ent , o rd inar y w or ke r or prof es sion al old yo un g di ffer enc e o f i nco m e a nd p ro pe rt y hig h :m id dl e, lo w di ffer en ce o f o c cup at io n, in c om e, ass et s fa mily t yp e numb e r of famil y, ex ist enc e of child Clas s p u rc ha sin g p o w er E co no m y disp osab le in co m e G DP per h ead , o rigi n al, gr o ss, d is po sab le in co m e econo m ic siz e G DP siz e, d is po sab le in co me siz e eco n o m ic gr o w th G DP gr o wt h ( n o m in al, rea l) P rices C P I,C or eCP I,C PI H ,Im po rt ,R et ail p rice, E xp ec te d ineq ua lit y di ffer enc e o f i nco m e a nd as set s be tw ee n t o p 20 and o the r 80 be nef it t ax so c ial b e ne fit s(nat io nal p ens io n, o ccup at io nal p e ns io n), tax (in c o m e, sal es) avera ge i nco m e aver age ( m ea n, m ed ia n ) i n c om e , dow n w ard or u pw ard aggr egat e cla ss p u rc has in g p o w er ag gr egat e pu rc h as in g p o w er of e ach c la ss( aver ag e in co me × cl ass popu la ti on ), i nc re as e or d ecrea se co ns u m er sp end in g to ta l am o unt , G D P vs co nsum e r sp end in g wag e wag e sy st e m ( se n iorit y, j ob -pa id , performance-paid), grow th ( w age vs GDP ), lab o ur d ist rib ut io n rat e , labour mark e t sup ply a nd d em an d o f lab ou rs ( unem pl o ym ent r at e, a ct ive op eni ng rat e), new j o bs, r eg ular o r ir re gu lar e m pl o ym ent exc h an ge r at e cu rr enc y d e pr ec iat io n o r ap pr ec ia ti o n H o u se h old s e c tor C on su m e r be h av iou r life c yc le h ypoth es es di ffer en ce o f h o u seho ld b eh avio u r due t o life st ag e (y ou ng , mi ddl e , ol d) clas s chara c te ri st ics link to life st ag e, in c ome lev e l, es sent ia l co st s, d is cret ion ar y c ost s, w o rki ng ag e or n ot, birth ag e e la sti c ity e xpen di tu re e la st ic it y ( △I/ △ E) , di sc re ti on ar y or e ss ent ia l e xp end it ur e debt cons u mer credi t e ffect of c on su m e r cr ed it fo r consum pt io n

debt effe ct de bt t o inco m e r at io, a ffe ct io n o f d ebt am o unt fo r ho us eh o ld b u dg et manag eme n t, i. e . cons um pt io n ho us eh o ld in co m e /e xp e n di tu re st ruct ur e re ve n ue a n d paym en t [(in co m e , exp end itur e), (b en efit s, t ax ), (l o an, r ep aym e n t) , (w it hd ra wal, de pos it)] wealt h eff ect affe ct io n o f net a ss et s fo r co ns u m pt io n ra tchet e ffe ct tend en cy for m aint ai ni ng l ivi n g st and ar d r egar dl es s o f i nco m e c h ang e de m o nst rat io n eff e c t effe ct s on t he b eh avio u r o f ind ivi duals c au se d by o bs er vat ion o f th e a c ti ons o f o the rs a n d the ir cons eq uen ce s ret ir e d no n-r et ir ed di ff e ren ce o f in c o m e , pe ns io n an d pr o p er ty ass et s r e ti re d; p en sion, wit hd raw al, a sset s no n-r et ir ed : wa ge in c o m e, s avi ng , ass e ts fo rm at io n co st old you ng opposit e sit uat io n ; ric h old (ad e qu at e pen si on , ex pen si ve h ou se o wner), poor yo u ng (inad e qu at e i n c o m e , no n- ho us e o w ner ) ho us ing co st s pr o per ty lad de r, ho use p ri c e/in co m e r at io , su pp ly a nd d em and prope rty ladde r re plac e m en t for more e xp en si ve prope rty pensio n n at io n al o ccup at io na l di ffer e nc e o f p en si o n b al an ce ac c o rd ing t o t he g e ne ra ti o n th ri ft y usi n g m oney and o th e r r es o u rc es c ar ef ully a nd not w ast e full y. p ri ce -s en sit ive, lo w-p ri ce p re fe ren ce valu e for mon e y af ford ab le p ri ce, bal an ce bet w e en val ue and pri ce charit y a sy st e m of g ivi n g money , fo o d, o r help fr ee t o t ho se who ar e i n ne ed b ec aus e t he y ar e ill pr o pensit y t o co n su m e , sa vi ng r at io depend en ce o n in co me, ge ner at io n , liv in g- st an da rd R e ta il s ect o r R et ailer lo w m id dl e hig h p ri ce c at ego ry in a ccor da n ce wit h low, mid dl e, h ig h in come c la ss cat egory sup e rm ar ket exi st e n ce o f hi e ra rc hy discou nt er N o frills, st ron g p rice c omp e tit iv e ne ss , de st ru ct ion o f pa st hi er ar chy o f su pe rm ar ke t m ar ket in g 4P × 4 C, em phasiz e d po int s m e rc ha nd iz in g num be r o f it e m s in sho p, e m ph asi zed p o int s pr icin g simp lica tio n of p ri ce l in e o n lin e po pu lar iz at io n o f o nlin e sho p i n every cat e go ry c o nv eni en ce st o re po pular iz ait io n a s a lo w p ric e ca te go ry u pgr ad e d o w n gr ad e re ta il c at e go ry whe e l o f r et ail up gr ad e of r et ail cat ego ry c au si ng t he r is k o f lo ss o f p ast m ar ke t

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In document Coneixements, temporalitat, etapes i contextos en el procés d'avaluació. (página 52-62)