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If you look at how Toyota's dealership network operates in Japan (Toyopet, Netz, etc.), you'll see that Toyota is capable of vertically integrating the entire d
by nihonde 9y ago
If you look at how Toyota's dealership network operates in Japan (Toyopet, Netz, etc.), you'll see that Toyota is capable of vertically integrating the entire distribution chain very well. My own experience of buying (in my case a Suzuki kei model) a domestic car in Japan was quite eye-opening: my dealer came to my house and had tea with us, found us the best, least-expensive configuration of the car, dropped it off at the house some weeks later, and then stayed in touch like a member of our extended family, checking in every few months to let us know he was available. When I accidentally left the dome light on overnight night, he drove an hour each way to deliver and install a new battery, at 10PM, in the rain. And we had to beg him to invoice us. Sure enough, when I sold the car about a year later, I offered it to him first. He took the Shinkansen from Nagoya to Kyoto to pick it up, had tea with us, handed us an envelope with about 70% of the original purchase price in cash, and drove it home without even so much as an inspection. (By the way, the purchase price was $13K for a 2017 model that got around 80mpg.)
The inefficient dealership network is not something that emanates from Japan, but is Japan Auto adapting to local customs, legal requirements, and standards.
- hector_ka 9y agoI am fascinated about this . Do you know where we can get more info about the way businesses treat their customers in Japan?
- nihonde 9y agoIt’s basically impossible to learn about Japanese culture by reading things in English. For some reason, Japan brings out the worst kinds of cynics and misanthropes, all of whom feel the need to dispel anything positive that’s said about the place. In my experience, many businesses in Japan go beyond customer service and provide what I would characterize as hospitality or the kind of consideration that could only be repaid with goodwill and familial loyalty. Not to say that they are infallible: I bought a knife from one of the oldest blacksmiths in Kyoto and he flat-out forgot my order until we bothered him a month later. Damn good knife, though.
- hector_ka 9y agoI am just surprised why the western companies don't copy this model more.That would be an advantage. Zappos is doing that from what I heard.
- nihonde 9y agoI kept this loosely-translated list of business principles from an NHK doc about thousand-plus-year-old companies in Kyoto. - Honesty is a matter of course - Make no sacrifice - Examine quality - Draw customers without words - Do not allow your products to be defiled - Purify yourself - Do not overcharge - Sell authentic items at suitable prices I know this list may sound silly and melodramatic to some ears, but I think people should try harder to listen to lessons from the past—even if the provenance is slightly dubious. Also, related: https://www.tofugu.com/japan/oldest-businesses-in-japan/ https://www.tofugu.com/japan/oldest-businesses-in-japan/