Abstract

The case addresses the entry and the more recent expansion strategy of the French-based retailer Picard in the Japanese market. Picard, who has been operating premium frozen food specialty supermarkets exclusively in Europe during most of its existence, entered Japan in 2014 through corner stores in nine Aeon supermarkets. But last November, based on the great success of its first move in the country, it decided to expand further its partnership with the Japanese retail giant by opening three stores in upscale areas of Tokyo. By launching the first frozen food supermarket in Japan, Picard and Aeon together have the ambition to take frozen foods to a whole new level in the country. However, considering that French food is synonymous to freshness and meticulous preparation for many Japanese people, this strategic move raises some skepticism about Picard’s potential for success. Moreover, most foreign retailers who previously tried to enter Japan failed, with only a few exceptions, demonstrating that the Japanese business environment is hard to conquer. Can Picard successfully convince the world’s most demanding customers to adhere to this brand-new concept, and thrive in the complex Japanese retail market? The case starts by discussing Picard’s successful business model and value proposition in France and other European markets. It introduces then the first entry strategy of the retailer in Japan, and its second phase of development started recently to expand in the country. By replicating its concept of specialty frozen food stores, Picard can aim at reaching a first mover advantage in Japan. The case presents how the retailer has decided to adapt its value proposition for the Japanese market to attract Japanese consumers and differentiate with the local offerings. The specificities of the Japanese retail environment and challenges foreign companies are facing there are also approached in the case.

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