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North South University: "New Jewelry Store in Japan - HANA"

The document is a group project report submitted by four students to their professor for an international marketing course. It outlines a proposal to open a new jewelry store called HANA in Japan. Key details include: - HANA will sell unique stone jewelry in Kyoto, targeting wealthy Japanese customers. - A marketing strategy is proposed utilizing a celebrity brand ambassador, television advertising, social media, fashion shows, and print media. - An analysis of Japan's culture, market, and competitors is provided to understand the business environment. - Logistics, production, and conclusion/recommendations sections wrap up the report.

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0% found this document useful (0 votes)
217 views23 pages

North South University: "New Jewelry Store in Japan - HANA"

The document is a group project report submitted by four students to their professor for an international marketing course. It outlines a proposal to open a new jewelry store called HANA in Japan. Key details include: - HANA will sell unique stone jewelry in Kyoto, targeting wealthy Japanese customers. - A marketing strategy is proposed utilizing a celebrity brand ambassador, television advertising, social media, fashion shows, and print media. - An analysis of Japan's culture, market, and competitors is provided to understand the business environment. - Logistics, production, and conclusion/recommendations sections wrap up the report.

Uploaded by

FaiyazKhanTurzo
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NORTH SOUTH UNIVERSITY

Mkt-382
International Marketing
Sec: 02

“New Jewelry store in Japan - HANA“

Submitted to:

Mr. Syed Kamrul Islam


Lecturer
School of Business & Economics (SBE)
North South University

Submitted By:
Group: 02
Zakia Anzum Hridi ID# 142 0955 030
Farzana Mehnaz ID# 142 0718 030
Tanziha Chowdhury ID# 133 0246 030
Arnob Das ID# 142 0482 030

Date of Submission: 10th December, 2017


10th December, 2017
To,
Mr. Syed Kamrul Islam
Faculty Member,
School of Business & Economics,
North South University.

Subject: Submission of Project Report.

Dear Sir:
We have completed our group project for MKT 382 course on introducing a brand in foreign
market. We have found immense pleasure doing this project. You have given us the chance to
explore our potentiality and seek knowledge by doing this project. We have tried our best to
prepare the project as per your requirement. We hope that you will forgive our limitations.

We are, therefore, submitting the report with the hope that it will fill up your satisfaction. We
will be glad to know your thoughts and views regarding the report.

Sincerely,

Zakia Anzum Hridi _________________________

Farzana Mehnaz _________________________

Tanziha Chowdhury _________________________

Arnob Das _________________________

2|Page
Acknowledgement
First of all we would like to thank the Almighty for giving us the strength and the ability to
complete this term project on time.
We would also like to thank our course instructor Mr. Syed Kamrul Islam, not only for giving us
the opportunity to prepare the project but also for providing important suggestions and guidelines
whenever we required.

We would like to thank our group members without whose determination and hard work this
report would not have been possible to complete. Furthermore, the strong understanding between
us gave us the motivation to carry out this project with care.

3|Page
Executive Summary
This term project is about established a business for unique stone in Japan. Following an interest
in the topic, we tried to research about it and found that nowadays in this modern world,
collecting rare stone, modifying it and send it to customer in an amazing way to go ahead and
start a business. We found out that there is a very lucrative and potential in Japan. Most of the
Japanese people are very push and they usually not care with the price if brand can give them
quality of product. . Stone has a huge demand in sense of exclusive collection and shows the
heritage of each stone with its shape and cut. The Brand will be marketed by using different
methods like introducing Fumi Nikaibo as brand ambassador, TVC on national television, social
media marketing, using billboard and print media, hosting Fashion show in a strategic alliance
with clothing brand. HANA‟s outlet will be in Kyoto city of japan. Japanese are ethnocentric so
in case of design they prefer their traditional and handmade jewelry. PESTEL and SWOT
analysis will help to know more about the Japanese market. Production of jewelry will in japan
by Japanese and Bangladesh craftsman and the product will be sold through our own outlet.

4|Page
Table of Contents:
HANA 花 06

Marketing Strategy 07

History and Culture of Japan 10

Product Market 12

PESTEL Analysis 13

SWOT Analysis 14

Competitors 16

International Logistics 17

Conclusion 19

Recommendations 19

5|Page
HANA 花:
Hana is a Japanese word which means blossom. Japanese are ethnocentric; they love their culture
and heritage. So, we will change our brand name when we launch our shop in Japan. Our new
brand name will be “HANA; Betsu no fun'iki”. In Bangladesh our brand name is “Memoir”.
Memoir is not only a jewelry shop; it is a gallery where art is done by the craftsman on the
stones. Our goal and philosophy is to show the heritage of each stone with its different cut. A
single cut can change the look of the stone and the jewelry so we cherish every cut. Memoir is a
premium jewelry brand in Bangladesh which is famous for its unique design, authentic and vast
collection of stones and different outlook of the showroom. In Bangladesh Pearl and Diamond is
famous to the customers. On request we try to manage rare stones for our customers. However,
this offer is not available for everyone.

Like Memoir, HANA will also be a premium brand in japan. In Japan we will offer Pearl and
diamond initially. For the base we will offer platinum, White gold, silver and gold plated. HANA
will be premium basically for stones. According to customer wish the based jewelry will be
customized. Keeping our brand name we have to introduce floral design first in Japan. Japanese
people also like this type designs. In japan, firstly HANA will have a shop in Kyoto city. More
specifically the shop will be in AEON Mall Kyoto which is near to JR Kyoto Station.

6|Page
Marketing Strategy:
HANA is new in Japan market and japan jewelry market is really competitive. Currently Japan‟s
Jewelry market is worth around US$ 9 billion which is 3rd largest. So this market is lucrative but
not that easy to grab the market share. Therefore we need a good marketing strategy to make
Japanese people aware of us.

Here is our 4ps given:

Product: Pearl and diamond jewelry based on platinum, white gold, silver or gold plate.

Price: HANA‟s target customer is rich people of Japan. However, HANA is first in japan so for
market penetration we will also target higher middle class who want authentic stones for them
the bases can be silver or gold plate. So stone price will be the international price and the overall
product price will vary. However, we will charge premium price to maintain our brand value.

Place: HANA‟s first showroom will be in the AEON Mall Kyoto. Kyoto is famous for the
classical Buddhist temples, imperial palaces, Shinto shrines and traditional wooden houses,
craftsmanship. So, Kyoto attracts the attention of local and international tourist.

Promotion: For promotion we will follow different medium so that people can be aware of
HANA.

 Using Brand Ambassador:


 TVC on national television
 Social media marketing
 Use billboard and print media
 Hosting Fashion show in a strategic alliance with clothing brand.

At the last, HANA's brand ambassador will be Fumi Nikaido, who is one of the most popular
actresses of Japan. We will use her in our TVC, billboards and in our print advertisements.

7|Page
Billboards will be set up in JR Kyoto station, around the shopping malls like JR Kyoto Isetan,
Aeon Mall Kyoto, Cocon Karasuma, Nishiki Market of Kyoto where we will ensure maximum
exposure to the target market. Our advertisements will also be in „Kyoto Shimbun‟ which is local
newspaper of Kyoto and also „Asahi‟ newspaper which is recognized all over japan. PRODISM
is a famous magazine of japan which is recognized for advertising of premium brands.
Moreover, we will give ad in Sweet which is best-selling magazine in japan for girls.

Our TVC will be broadcasted on Fuji TV, TV Tokyo, NHK World (English)

For social media marketing we will have a fan page on Facebook, Tweeter and Instagram based
in Japan and in that all the social activities will be displayed. Also product news and new arrivals
will be featured too. We will also promote HANA through Line and YouTube. Line is most
famous social media then others in Japan and Instagram is getting popular among Japanese after
line.

In Japan, fashion shows are organized quite frequently. Kyoto is known for the traditional site of
japan. In Kyoto, Nishijin Textile Center organizes kimono fashion show. So, we have to go on a
agreement with them that we will be their jewelry partner. The kimono fashion show attracts
many foreigner and local tourist of japan also. So it will create a everlasting memory with our
brand and give us a good coverage. In far future, we have plan that we want to be a partner with
Tokyo Fashion Week.

Story Board of TVC

For promoting our brand HANA we will use our Brand ambassador Fumi for a TVC project.
This TVC will help us to get a maximum Brand exposure in the Japan market.

8|Page
Scene: 1

In our first scene, we will show a house and sound of piano is floating around the house. The
main door will be open, Fumi Nikaido will be seen from the back and she will be playing piano.
She will be engrossed in playing it.

Scène: 2

In next scene, Fumi Nikaido‟s boyfriend will come near to her without making any noise. Then
he will take her to the garden and under open sky he will give a diamond ring to Fumi Nikaido.
Then he will say „That‟s precisely why we should construct definite dream of a happy future
before it‟s too late, isn‟t it?‟ then Fumi Nikaido will say „of future……you mean…..‟

Scene: 3

Then the music will be soft and Fumi Nikaido will blush and praise the cut and design of the ring
her boyfriend has chosen.

Scene: 4

Fumi Nikaido‟s boyfriend will say „I have seen the cutting and the heritage of this diamond as it
is especially for you‟.

Scene: 5

A flashback of making cutting the diamond by craftsman will be shown in this part with a
different sound track.

Scene: 6

At the last scene Fumi Nikaido will say „The ring gives a different vibe, I will treasure it my
whole life‟.

9|Page
History and Culture of Japan:
Japan is island nation of 145,834 square kilo meters in East Asia. Japan is surrounded with
Pacific Ocean, the Philippine and East China seas, and the East Sea (Sea of Japan) but it has no
long river. Neighboring country of Japan is China, Korea, and the Russian Federation.

Four major island of Japan are Honshu, Hokkaido, Kyushu, Shikoku and Tokyo the capital and
largest city. Kyoto was capital of Japan for more than 100 years. It is the center of religion and
traditional art.

Japanese culture is a nice mixture of traditional Japanese values and modern western ideology.
Most of the Japanese are Shinto and Buddhist. There are very few christens, 1%. Nearly two
third of the Japanese are city dwellers and the number is increasing day by day.

Language: Japanese. Written from of Japanese is devised two syllabic alphabets: hiragana and
katakana and kanji are used as based. Generally people have knowledge of 3000-4000 from of
kanji.

Education: Japanese people give a lot of priority to education. Their literacy rate is 99%. Six
years of primary education and three years of middle schooling is compulsory in Japan. There
are more than 450 university and college in japan.

Tea is the favorite beverage of the people of japan. They have tea ceremony and they believe that
it has spiritual meaning. Along with it Japanese people celebrate „Hanami‟ (Cherry Blossom
Viewing) in April. They exchange gifts in white day, marriage ceremony, Christmas; girls give
chocolates to boys in Valentine‟s Day

Japanese are sports minded people. Their favorites are baseball, ski, tennis, golf. One of their
traditional sports is Sumo and their national sport is baseball.

Japanese has different polite phrases for different situation people are really careful about it.
Bowing is common practice in japan like before eating, welcoming guests, seeing of some one.

History: Japan has long history since 13000 BC the Jomon Period. Japan has different periods
like early japan, Nara and Heian Periods, Kamakura Periods, Muromachi Period, Azuchi-

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Momoyama Period, Edo Period, Meiji Period, Taisho and Early Showa Period, Postwar Period.
In 6th and 9th century, Buddhism and Confucianism came to japan

Beliefs and Values: Japanese are really ethnocentric so they belief that it is important to be
Japanese. Family bond is strong in japan. It is not only with the extended family but also with
generation of ancestors.

Demographic Profile of Japan:

Population: 126,702,133

Sex Ratio: 0.94 male(s)/female

Age structure: 0-14 years: 12.97% ; 15-24 years: 9.67% ; 25-54 years: 37.68%; 55-64 years:
12.4%; 65 years and over: 27.28%

Occupation: teacher, engineer, fisherman, manga writer, chef, yukaza, model,

Income: per capita income is USD 28641 a year

Socio economic status:

GDP: 4939.38 USD

GDP per capita PPP: 47607.70 USD

11 | P a g e
Product Market

Product lifecycle:

Japanese people‟s life styles are diversified but quite simple and everyone wishes to pursue a
beautiful pleasant and worthy life. Such a desire naturally inspires an increased demand for high
quality jewelry. Our products are now in the Maturity stage in Bangladesh market as Bangladesh
is developing country and few can afford to buy authentic and premium jewelry. However, Japan
is a very rich and also developed country. In world ranking, Japan is the 4th richest country,
5.405 trillion dollar market. It is upped by 3.3% from 2016.

Product Market Worth:

The market worth of jewelry has very huge significance in Japan. The jewelry market grew at a
compound rate of 9.3% per yen from 2008 to 2013. In recent years the market has been variable
and declined by 4.2% in 2014, grew by 18.0% in 2015 and by 5.2% in 2016. In 2016, the retail
value of jewelry and luxury product in japan was 941.3 billion in Japanese Yen. It is also
forecasted that it may increase up to 1019.5 billion Japanese Yen by 2020.

Product Market Feasibility:

The market feasibility of our jewelry products is enormous in Japan. Tokyo has a highly
successful range of creative industries--Including publishing, music, theatre, film, television and
designer fashion industry. There are clear links between fashion, art, design and music; and more
broadly, between fashion and different aspects of pop culture in general. Sub-cultures feed each
other with creative ideas and innovations.

People‟s lifestyle in Japan is very developed and their socio economic condition is very sound,
which gives us a good market for our products. Our target consumer is firstly female and who
value the authority of stones. Females of japan are very much fashion conscious. We can attract
them by our unique design. Japanese female prefer diamond most. Among the 55% are married
women and 22% are single women.

12 | P a g e
PESTLE:

Political: Japan is a constitutional monarchy. The Emperor has limited power and is restricted
mainly to ceremonial duties, though he acts as the head of state on diplomatic occasions. The
government is settled by the regular procedure with an Executive Branch, a Legislative Branch
and a Judicial Branch. And all have separate powers between them. Executive power is conferred
in the Cabinet, led by the Prime Minister as head of government. The Prime Minister is Shinzō
Abe who has been in power since 2012. The Legislative power is vested in the National Diet. It
is a bicameral parliament, consisting of a House of Representatives (Lower House) with 480
seats, elected by popular vote every 4 years or when dissolved, and a House of Councilors
(Upper House) of 242 seats, whose popularly elected members serve 6-year terms.

Economic: Japan is the top 5th largest economy Japan in the world with the 3rd largest in the
world of GDP. Also Japan is on the 4th position of the world purchasing power parity (PPP).
According to the World Bank in 2016, Japan's GDP per capita is 38,894.47 USD. GNI (Gross
National Income) per capita is 43,870 PPP dollars and GDP growth rate is 1% yearly. Japan's
unemployment rate has risen by 5% which is an alarming indication for the country.

Social: Japanese people are socially very polite, shy as well as diplomatic. The social structure
is at risk in the country. Because of the workaholic nature people are moving out of the family
bonding and affection. The place for family is being taken over by excessive uses of technology.
People are so into the regular technical support that this technical stuff is becoming an extreme
part of their lives. Another social factor is women do not get enough support from their family
and the society to balance work life and family. They are expected to get married by their 30s
and fully manage family and household chores. This is why women are also refusing to start
family.

Technology: Japan has one of the best and most advanced telecommunication systems
especially with their mobile devices. Japan is at the peak of Wi-Fi users. They have made it
possible connecting everything virtually from anywhere. Japan also has highly developed VoIP

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(Voice over internet protocol). In fact many places in Japan such as hospitals, airports, and
mostly the sushi bars use automation system. They have the stronger robotic development lately.

Legal: Japan mostly uses the European law system. The labor and corporate laws are based on
the European law. In every organization there is a fixed employment contract regarding the
wage, monthly salary and working hours.

Environmental: Japan, the country of sunshine is the most susceptible to natural calamity. It
is seen that the capital of the country is the most populated among the other cities. This is
because most of the parts are overrun by mountain and forest also those areas are prone to earth
quake and tsunami. Since surrounded by water the country is always at the risk to colossal
damage by natural disasters.

SWOT Analysis:

Strength:

Since Japan is the third largest jewelry market in the world demand f jewelry in the country is
pretty high. In Japan jewelry In Japan jewelry has such a high demand that people can easily buy
those from shopping centers to departmental stores as well. Also there is a trend of special store
in the country like an exhibition. People can find all variety of jewelry in every category and
quality, design and materials.

Japan is a country of diverse choice in jewelry. Starting from age 10 till 50s females have
different varieties of choice. Girls around 10 like silver base jewelry where the 20s prefer some
silver and orthodox jewelry. These young people prefer more silver jewelry due to the affordable
price and simple look. These categories of customers are the largest group in the market. Since
our base for most of the jewelries is silver this is one of our potential strength. Because of the
diversity in the market in Japan chance of international companies in the market is very high.
Even there are so many international brands across the world have entered and concentrated in
Japan.

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Weakness:

Japanese jewelry industry has a very unique and complicated distribution process specifically for
international business. Since we are starting our very first store in the country and initially the
distribution process is the biggest weakness of ours. Also we are starting the business all by
ourselves without any help of any local company. Our distribution process is way simpler than
those of usual local system. Since at the initial stage we do not have any strong support in the
distribution process this is the biggest weakness for our business.

Threat:

The country is under threat of workaholic people and decreasing number of marriage. Family
bond and affection is being invaded in Japan for last one decade. Because of the extreme
development of technology Japanese people are becoming more dependent on technical support

15 | P a g e
in every aspect of their regular life. Due to this reason, people are losing affection for family and
relationships. So the traditional norm of exchanging gifts is also vanquishing. This is immensely
affecting the overall jewelry industry. If this situation goes on technology starts enslaving people
the relationship affection will be diminished.

Also the Japanese women have no consent for marriage these days. These situations can hardly
be related with the jewelry industry but people becoming extremely nuclear and individualistic is
one of the biggest threats for us starting a new jewelry shop where need and demand for jewelry
may be demolished in the long run.

Opportunity:

The average unit price has been increased in Japanese jewelry market. From the regular use
jewelry to the bridal jewelry people are buying the mid-range jewelries. A typical engagement
ring can cost almost thrice of a regular Japanese person's salary.

Competitors:
The major competitors in the jewelry market in Japan are K. Mikimoto & Co., Ltd. and
TASAKI. These 2 are the leading jewelry stores in Japan that has been originally a Japanese
store since birth.

1. K. Mikimoto & Co., Ltd. manufactures and retails jewelry worldwide. Situated in Tokyo
the company offers necklaces, pendants, brooches, and earrings made of pearl and other
stones. The company was founded in 1893 and is based in Tokyo, Japan. Now it has
several stores in Asia, Europe, and the Americas. Mikimoto is the 2nd largest jewelry
store in Japan having a yearly sale up to 27,152M Yen (in 2015).
2. TASAKI is basically a pearl based jewelry shop in Japan started during the period of free
trading after the war in order to contribute to the development of the pearl industry.
TASAKI established its own research facility and spent night and day researching the
pearl. According to a rank Tasaki is the 5th leading company in Japan earning 19,036M
Yen in 2015.

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International Logistics:
According to tor product category, Jewelry, if we make the jewelry in Bangladesh and then sell it
Japan then our cost will be really high. It will become an obstacle for us. Therefore, we will
produce our product in Japan. We will directly Import diamond and pearl in Japan. On diamond
and pearl there is no import tax, only 8% of consumption tax. However, gold, silver and platinum
have 5.4%-5.2% import tax and 8% consumption tax.

For making jewelry, we will have 50-50 ratio Japanese and Bangladeshi craftsman. The whole
administrative work will be done from Bangladesh.

In case of importing platinum in Japan, we prefer South Africa and Japan. According to the data
of 2016 these two countries are in top three. Japan has two gold mines and pearl cultivation firms
so we will use Japanese gold and pearl. For silver we will use japan as source also. Diamond will
be imported from USA and India.

There is no such restriction on importing stones and gold, platinum or silver. Japan Jewelry
Association, Japan Precious/Yano Research Institute, Platinum Guild International (PGI) plays
good role in Jewelry business. Normally, only invoice is required to import.

Non-tariff barriers may create obstacle for us as a foreign brand. Non-tariff Barriers are like-

Japanese official regulations favor local products and discriminate against foreign products;
Interconnection of business interests among Japanese companies will be a disadvantage for
business outside the traditional business group; cultural importance of personal relationships in
Japan and that to break or modify their business relationships. To overcome these non-tariff
barriers will hire a local consultant who will deal with these problems. Moreover, we will send a
team from Bangladesh to stay in Japan for 3-6 months and understand the surrounding.

Jewelry distribution structure in Japan is really complicated and more difficult for foreign brands
like us. There are several layers of distribution. So we will distribute our product be our self and
it is going with our core idea of the shop. The whole distribution process is given below:

17 | P a g e
Japanese mining company
Dealer in foreign market
Tokyo Industry Exchange

Trading co. or ground metal importer

Manufacturer Materials

Manufacturer (Product)

Retail outlet

Consumer

18 | P a g e
Conclusion
After all the research and findings, we can say that Japan is a very lucrative market for “Jewelry
business”. The nation is eager to adapt to the new wonders of the world and they would welcome
a brand like “HANA”. It would be really beneficial for both the company and Bangladesh to
launch the brand in Japan. Though there are a large number of competitors already existing in the
Japan market, but we think that along with our innovative ideas, concepts and designs, we can
easily win the hearts of millions of girls around Japan. By entering the Japan market, we are
hopeful that we would be able to make the name of Bangladesh shine even brighter in the
international business and marketing arena.

Recommendations:
If our business goes well we are planning to expand our business in Osaka. Also we will be
targeting the higher income people as well as the mid-range customers. However, if the whole
business plan does not work out well or we fail to succeed then we are planning for 2-3 backup
plans, those are:

Our first contingency plan is, we will change our target market. From the mid-range upper class
customer we will target a lower price range customers. We will concentrate on University
students who are basically studying and earning side by side.

Our 2nd plan which is our most valuable backup plan will be Joint Venture. If we fail to sustain
in the Japanese jewelry industry we will be conducting a Joint Venture with one of the renowned
jewelry store, Niwaka. The reason we are opting for Niwaka is, the store is situated in Kyoto
city. And the company has only one store that is rooted in Kyoto. We have already a friendly
relationship with the owner and executive body of the store. The company has helped us
through-out the entire time while we were facing trouble with setting up our business. We will be
providing the authentic and semi-precious stones and Niwaka will be providing us the base such
as Silver, Platinum, and Gold. And there will two stores and we will the sharing both the stores,
by the name of Niwaka and Hana. Co.

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Once we have determined our marketing plan and total annual budget, we will be aligning our
budget with our marketing goals. Our goals are to achieve the minimum sale. At least we want to
generate revenue at the initial stage. The most important thing was to keep in mind as we
prioritize your expenses. We‟ve already mentioned the marketing and finance plan that may be
included in our marketing budget, from digital marketing to personnel costs. These categories are
chosen based on our marketing campaigns and tactical plans for reaching our goals. Assign a
budget amount to each category, and be thorough. We don‟t want to miss hidden costs and then
have to make up for it later. We are marketing such a product that simply cannot plan our budget
around promotional costs. We also considered the costs of any competitive analysis and
consumer testing that might be required to ensure that our product launch and marketing efforts
are successful.

Figure: A hypothetical marketing budget of HANA


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