What is Wholesale?

This section explains the social significance and role of the wholesale industry, which is indispensable to our "natural way of life.

Toothbrushes, shampoo, detergent, cold remedies, and other daily necessities that we take for granted in our daily lives.
Why are these products always available in stores in abundance and at stable prices?

The existence of the wholesale industry has a great deal to do with this.

Difference between "a society without wholesale business" and "a society with wholesale business"

• Wholesalers do not exist

  

  Each manufacturer delivers to each store

  • High transaction frequency, but difficult to do large volume transactions
  • Efficiency is low and distribution costs are high
  • Inability to offer a wide range of products and higher retail prices

• Wholesalers exist

  

  Wholesaler purchases in bulk and delivers to each store

  • Fewer transactions, large volume transactions possible
  • High efficiency and low distribution costs
  • A wide range of products can be stocked, and store prices are stable

The wholesaler's presence enables efficient distribution.

In a society where wholesaling does not exist, products are less efficient in reaching stores, and storefront prices rise in line with higher distribution costs.
In addition, products may not reach stores and out-of-stocks may occur more easily.
In contrast, the five functions of the wholesale industry support efficient distribution, thereby building a society in which the products you want are always available to you, at any time, and at a stable price.

Five Functions of Wholesaling

Collection and distribution

We purchase products from multiple manufacturers in bulk and distribute them separately to each store. By reducing the number of deliveries and receiving operations, overall distribution costs can be reduced, thus preventing storefront prices from rising.

Inventory function

By stocking the right amount of products in the middle, we are able to deliver the quantity needed at the store when it is needed. Since there is no need to provide space for a large amount of inventory in the store, a wide variety of products can be placed on the store shelves. This also helps prevent out-of-stocks in stores.

Financial Function

By consolidating transactions in the middle of distribution, it reduces the burden of settlement operations for manufacturers and retailers. It also reduces the risk of uncollected payments for manufacturers, making it easier for them to make new investments in product development and production.

Information Provision Function

We provide manufacturers and retailers with a wide variety of information that can be gathered only through our intermediary role in distribution. For manufacturers, we provide information that leads to the creation of new products, such as information on consumer needs and sales trends. For retailers, we provide information that leads to the creation of attractive stores, such as information on the latest trends and new products.

Merchandising Function

In addition to purchasing products that meet the needs and trends of consumers from a variety of manufacturers in Japan and overseas, we also provide support to retailers to ensure that products are placed on store shelves in appropriate quantities, at the right time, and at the right price. This function is indispensable to ensure that the "products you want now, whenever you want them" are always available in stores.