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Three Key Points towards the Future |
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Point 1
Which Sogo Shosha Will Survive? |
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The consolidation of sogo shosha divisions will most likely continue to progress. Business integrations started with materials-related fields, such as steel and metals, as well as in information related areas. However, from now on, there will probably be an increase in active integration in retail and services related fields. Which trading company, then, will be able to survive to the end under such circumstances? It is no surprise that the interest of those related to the industry is being focused on this point. |
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At the current time, Mitsubishi Corporation and Mitsui & Co. are in a class of their own. Itochu has already integrated its steel products business with Marubeni, and Itochu also has an alliance with Sumitomo Corporation for a distribution system of fresh produce. Itochu is also highly motivated in its retail strategy. By acquiring FamilyMart, it has made a strategic move towards downstream industries, and as for former Saison Group-related companies, Itochu has also invested capital in beef-bowl restaurant chain Yoshinoya D&C Co. Ltd. and The Seibu Department Stores, Ltd. Itochu is making an all-out effort to survive as a sogo shosha by capturing a position as number three in the category. Its strategy will most likely become a centerpiece of the industry's reorganization. |
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