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Internet grocery business in Japan: current business models and future trends

Article Information:

Title:

Internet grocery business in Japan: current business models and future trends

Author(s):

Sachiko Ogawara, Jason C.H. Chen, Quan Zhang

Journal:

Industrial Management & Data Systems

Year:

2003

Volume:

103

Issue:

9

Page:

727 - 735


ISSN:

0263-5577


DOI:

10.1108/02635570310506142

Publisher:

MCB UP Ltd

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Abstract:

The launch of a wave of Internet grocery retailers over the last six years presents a serious challenge to the traditional supermarket business model. The Internet grocery landscape changed radically in July 2001 when the top Internet grocer, Webvan, filed for bankruptcy. With the bankruptcy of Webvan, almost all the major stand-alone online grocers in the USA have disappeared. Indeed, traditional supermarkets such as Albertsons and Safeway have recently been expanding into the online arena. In Japan, major traditional supermarkets have been seriously working on establishing online services in the metropolitan area with a “brick-and-click” model. Examines strategic reasons for today’s Japanese supermarkets to try establishing online grocery businesses. Also addresses critical success factors and current limitations based on socioeconomic conditions, Japanese culture, and expected future trends.

Keywords:

Food products, Internet, Japan, Marketing


Article Type:

Viewpoint


Article URL:

http://www.emeraldinsight.com/10.1108/02635570310506142

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