Amendment of the wholesale market system for the management of wholesalers' problems
2006
Kikuchi, T.(Tokyo Univ. of Agriculture (Japan))
With the amendment of the Wholesale Market Law in 2004, a change from strict regulation to deregulation has been observed. This amendment can be described as a dramatic conversion of the Japanese wholesale market system from the conventional 'administrative responsibility system' with strong administrative interventions, to a 'distributor responsibility system' in which the introduction of European market mechanisms has shifted responsibility to distributors. The flexibility (liberalization) of the wholesale commissions is the most significant indicator of this change. Management of wholesalers is becoming increasingly difficult due to the decrease in the number of transactions. Therefore, the reorganization of the wholesale market was inevitable. In order to improve their functioning as the center of the wholesale market distribution, wholesalers are expected to become a management body with appropriate business skills (management infrastructure and management capacity) and advanced marketing functions. In order to achieve these goals, the expansion of business scale and the improvement of the corporate foundation are important issues.
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