Even though the integration of technology has been opening new direct marketing channels for manufacturers and distributors in recent decades, the tightly woven business relations between manufacturers and wholesalers remain predominant in the domestic supply chain.
Wholesale markets
Wholesale markets are essential logistic hubs for the distribution of food products in Japan. The country counts over one thousand terminal markets, with local markets representing a distribution channel for a large number of wholesalers, including smaller sole proprietorships. In contrast, the more strictly regulated central wholesale markets approved by the Ministry of Agriculture, Forestry and Fisheries (MAFF) are predominantly located in the capital cities of the 47 Japanese prefectures, with a smaller number of registered large-scale distributors. The most prominent central market is the Toyosu Market in Tokyo, which replaced the Tsukiji Market as the largest wholesale fish market. It annually garners media attention through its first auctions of the year for Pacific bluefin tunas, which generally fetches record bidding prices.However, the number of wholesale markets has been on a decline in the last decade as transactions are increasingly finalized outside of marketplaces. Additionally, food companies are not only processors of agricultural produce but have explored the integration of farming into their internal processes as well, reducing the impact of the markets as a point of distribution.
Wholesalers in Japan
The trade sector is among the largest in the tertiary sector in Japan, with durable goods standing at the center of transactions. Facilitated by the country's size and the developed road network, freight transportation via trucks is preferred to ensure the quick and timely distribution of raw materials and other products to customers. Sea routes are predominantly employed by larger businesses that are also trading commodities in overseas markets.Wholesalers in Japan are differentiated into specialized businesses that are limited to a small range of goods and general trading companies, so-called sôgô shôsha, which handle a variety of product types. The sector is characterized by a large number of small and medium-sized businesses trading within one product group, while a small number of large general trading companies are leading the market. General traders represent a peculiarity of the Japanese wholesale trade sector and present an extensive product portfolio ranging from food wholesale to engineering projects.