Japan’s Cocokara Fine enters Thailand
Intense competition and market saturation are seeing Japan\'s drugstore chains explore opportunities outside the country
Growth prospects in Japan are diminishing for the country’s drugstore chains. Intense competition and market saturation give little room to manoeuvre. Consequently the chains are hoping new ventures in Asian markets will bring them the new customers and growth opportunities they can no longer find at home.
Japan’s third largest drugstore operator, Cocokara Fine Inc., is to start supplying cosmetics and other consumer goods to Thailand’s Berli Jucker Public Company Limited (BJC). BJC is a diversified Thai conglomerate involved in the manufacturing, healthcare, and distribution industries. BJC, in turn, is part of the Thai Charoen Corporation Group (TCC Group), one of Thailand's largest conglomerates, which also has operations in SE Asia.
Cocokara’s new venture differs sharply from those of Japanese rivals who have also ventured into Asia. Rather than working with Asian partners to open new drugstores based on models that have succeeded in Japan, Cocokara plans to use its own supply chain to become a wholesale supplier, through BJC, for retailers in Thailand and SE Asia.
The new relationship should expand Cocokara’s market to SE Asia without incurring the risks of bricks and mortar investment in new retail outlets in other countries.
