Tokyo-backed venture to set up in Hong Kong supermarkets
The Cool Japan Fund's partnership with Tokyo-listed produce distributor Nousouken starts in Hong Kong, with 100 supermarkets to set up in-store stalls for Japanese-grown fruits and vegetables such as tomatoes, cucumbers, lettuce and spinach.
Though Japanese produce often commands high prices at Asia's shopping malls and department stores, the venture will aim for a lower price range to draw in the larger population of middle-class shoppers.
Wakayama-based Nousouken will buy the produce from farms throughout Japan, then ship it to Asian markets by sea instead of air to reduce transport costs. The partners hope to gain an edge over competing agricultural exports from the U.S., Europe or Asian producers like Taiwan by appealing to shoppers interested in quality and traceability, which tracks the product's journey from farm to store.
The fund will allocate around 400 million yen ($3.58 million) for investments and loans to a Nousouken subsidiary, with nearly 100 million yen in capital to be paid out as early as June. This marks the first investment in Japan's agricultural sector by the fund, which is better known for promoting Japanese cultural exports.
If the business takes off, producers eventually may be able to set their own prices based on real-time sales data that they can monitor online. The team hopes to involve 1,000 farms in the program over the next five years, with the aim of expanding the business to Singapore, Taiwan, Malaysia and Thailand, using Hong Kong as a foothold.
Source: http://asia.nikkei.coms
