The Impact of Fair Trade Chocolates on
Retail Business in Japan:
A Comparative Study on Fair Trade
Markets between Japan and EU
(Case Studies Focused on Fair Trade Chocolate in Japan)
September 17, 2012
Jiro Usugami, Ph.D.
Aoyama Gakuin University
Tokyo, Japan
CONTENTS
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Introduction
Literature Reviews
Chocolate Market in Japan
Research Framework
Case Study Results
Conclusions
Comparative Study on Fair Trade Markets
(Japan, Korea and Taiwan)
Research Questions
• The first question asked whether any gaps were observed
between Japan and the EU as regards the fair trade
movement, and what factors contributed to the gaps.
• The second question investigated whether commercial
stance or goodwill stance was given priority by managers
and executives of fair trade-related organizations from the
perspective of corporate performance.
• The third question explored what goal was assumed as the
desired situation of the fair trade movement and what
factors were recognized as the barriers and facilitators in
achieving the goal.
Literature Reviews
• There are numerous previous studies on fair
trade-related issues in the EU and the United
States. The relevant research items in this
paper are categorized into the following three
areas: firms’ viewpoint analyses, consumers’
viewpoint analyses, and international
comparative analyses.
Literature Reviews
Firms’ viewpoint
Consumers’ viewpoint
The purpose of studies is to examine
the effectiveness of major
factors(strategy, supply chains,
business model)
The purpose of studies is to examine the
major factors influencing the intentions in
chocolate buying behaviors & consumer
attitudes
Case Studies
Interviews, Literature reviews
Questionnaire surveys
Experiment, Literature reviews
Qualitative analysis
Quantitative analysis
Small samples
Large samples
Literature Reviews
Comparative studies
EU and , Canada, USA
Comparative studies
EU and Asian countries
The purpose of studies to examine the The purpose of studies is to examine the
similarities and differences among EU similarities and differences between EU and
Asian countries
Case Studies
Questionnaire surveys
Interviews
Case Studies
Questionnaire surveys
Qualitative analysis
Quantitative analysis
Qualitative analysis
Quantitative analysis
Small &large samples
Small &large samples
Chocolate consumption(2009）
Source ： ICA(International Confectionery Association)
/CAOBISCO
2009
Consumption
P.Head
Kg.
Belgium
53,780 5.0Kg.
Switzerland
80,750 10.4Kg.
U.K.
678,385 10.9Kg.
U.S.A
1,596,732 5.2Kg.
Japan
272,215 2.1Kg.
Market of Fair Trade Certified (FTC)
Products（2011) ｂｙ2012 Fairtrade Label Japan
UK
Japan
Figure 1: Conceptual Model A
Figure 1:A conceptual model A Any gaps?
Media
Company actions&
Strategy
Media
Consumer
Attitudes FT
Products
NPO actions
Government
supports
Market share
Performance
Figure 2: A conceptual model B
(Force-Field analysis)
Figure 2: A conceptual model B(Force-Field analysis)
Desired
situation
Facilitators
Facilitators
Organizational factors
EnvironmentalBarriers
factors
CC
Current
situation
+
Current
Situation
Ideal
situation
Barriers
Organizational factors
Environmental factors
Research Framework
• Case studies
Face to face interview surveys for managers or
executives of the organizations that are closely
involved in fair trade chocolate.
Survey Dates: July and August, 2012
Case A
• Case A is a famous convenience store established
as a wholly-owned subsidiary of Japan’s largest
retail group in 1980.
• They have more than 2,100 branches as of 2012.
• They started the fair trade movement in 2006,
and have been encouraging its development
since 2007. They also established a laboratory for
fair trade foods including chocolate, coffee,
bananas, etc. in 2011.
Case A
Case B
• Case B is an NPO whose aims are human- and
earth- friendly sustainable economic growth
and social development. They are supporting
cacao producing and fair-trading in West
Africa.
• They are also engaged in development of
chocolate products made from human- and
earth- friendly cacao marketing projects, and
fair trade chocolate sales.
Case C
• Case C is engaged in development, import and
retail of various fair trade products such as
foods clothes and accessories, etc.
• Foods contribute to about 30% of the full sales.
Chocolate is a popular product in spite of
decrease in consumption during summer
season. They contract chocolate
manufacturing to a firm in Switzerland.
Q1:What factors contributed to the
gaps between Japan and EU.
• All the case studies indicated distinct gaps, i.e.
the fair trade movement in Japan significantly
lags behind the leading EU countries.
• The interviewees mentioned that the size of
fair trade markets was extremely small and
the consumer awareness of fair trade
products was at a very low level.
• One of the factors contributing to this gap is
the difference in historical backgrounds
between Japan and the EU as regards their
engagement in developing product areas such
as chocolate.
• As for the other reasons why the fair trade
movement in Japan remains behind the EU,
our case studies pointed out to
poor sustainability-related education, limited
media coverage, lack of support from
central/local authorities, weak impact of
NPOs/NGOs
• They also reported the tendency in Japan to
delay diffusing fair trade chocolate; the
consumption of chocolate only reached large
volumes in the peak season of winter; the
complicated supply chain system raised the
costs; and the consumers were lacking in
organized power (No major boycotte
movement)
Q2:Commercial stance or goodwill
stance
• With regard to the second question, all the
case studies revealed that they were involved
in fair trade chocolate as a business.
• Our case studies showed that good sales
contributed to the progress of fair trade
markets, the diffusion of fair trade chocolate,
increasing consumer awareness of fair trade
products, and supporting the fair trade
movement.
• In two of our case studies, it was expected
that fair trade products will be diffused to a
level at which consumers include them in their
daily lives without specific awareness. The
remaining case study presented an ideal
situation of the fair trade movement as
creating ‘win-win’ relationships among all the
stakeholders and eradication of poverty.
Q3:Barriers
• The organizational factors of the barriers
include the lack of understanding and
knowledge about fair trade products, costs of
coordinating fair trade vs. non fair trade
sections.
Q3:Barriers
• As the external environmental barriers, our
case studies indicated factors such as the
supply chain system being so complex that it
makes monitoring very difficult and raises the
costs.
• It also causes difficulties as regards
coordination with external stakeholders.
Q3:facilitators
• On the other hand, the organizational factors
in facilitators of progress of the fair trade
markets include top management
commitment and leadership, utilization of SNS,
close alliance with fair trade-related
organizations and local authorities.
Q3:facilitators
• The external environmental factors demand
understanding and cooperation with respect
to support from central/local authorities.
Figure 2: A conceptual model B(Force-Field analysis)
Facilitators
Desired
situation
Facilitators
Barriers
CC
Organizational factors(top
management
Current
Situationleadership,SNS)
commitment and
Environmental factors
(Government supports)
Current
situation
Barriers
Organizational factors(lack of understanding and knowledge,
costs of coordinating fair trade vs. non fair trade sections.
Environmental factors
(Supply chain system)
Ideal
situation
• Comparative Study on Fair Trade
Markets among three regions
Have you heard of the fair trade
concept before?
100
80
No
60
Yes2
40
YES
20
0
Japan
Korea
Taiwan
I have never
heard of the
fair trade
What types of products do you Know?
Japan
N=1000
Korea
N=1000
Taiwan
N=1000
Coffee
23.1%
73.0%**
55.2%**
Chocolates
19.6
45.8
26.1
Sugar
4.1
34.1
23.1
Cocoa
7.7
37.3
33.3
Have you ever bought any fair trade
products?
Japan
N=360
Korea
N=815
Taiwan
N=679
Coffee
20.6%
42.8%**
45.2%**
Chocolates
20.3
21.3
19.9
Sugar
2.8
7.1
7.8
Cocoa
3.1
6.0
12.1
References
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References
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