Kakaku Hakai (jap. dt. price destruction) is a phenomenon, which began in Japan in the year 1992 on the fall of the Bubble Economy following.

Several factors had led to the fact that the prices in Japan, both for real estates and for consumer goods, until in the astronomical had been up to to end of the 80's and partly the fivefold of comparable prices in the USA and Europe amounted to.

The first factor was the isolation of the Japanese market opposite imported goods, which served in the fifties to develop in a protected zone the Japanese economy. Center of the eighties was however competitive on broad front internationally the Japanese economy, and superelevated prices on the homeland market served to subsidize exports. By the vertical structure of the Japanese economy the producers practiced direct influence on the chains belonging to their company exercise, and the prices held for price-fixing arrangments between the individual conglomerates (keiretsu) on a same, high level. In almost all ranges the market between three or four large offerers, with some products, like orange juice, was divided had only one offerer the monopoly.

The revaluation of the Yen agreed upon in the Plaza agreement 1978 intensified the situation additionally, since now solid capital flowed into the Japanese real estates and stock market and drove the prices upward. The using spiral carried upward more and more.

Already in the hot phase bubble economy there were reactions: on the one hand Japanese companies paged their production out to Southeast Asia to supply in order to escape the wage spiral in Japan, on the other hand formed for chains for Reimporte, the Japanese goods, in particular electronics and household appliances, abroad bought up around them to Japan to the final consumer at prices, which were the far under in Japan usual.

After the collapse bubble economy at the beginning of the 90's broke Kraft and the will of the consumers away to carry the high prices further. Discount chains were first, country-wide from this new trend profited. By direct imported goods from other asiatic countries and the evasion of the past Japanese commercial structures they could undercut the past prices far. The using trend at discounts and low prices got the designation kakaku hakai. Traditional Japanese chains tried to keep up, by offering goods in own Discount own brands.

1995 were to be left the trend so far progressed that the government before the question stood, either the past commercial structures to the purge or deregulieren to erwehren itself in order to give to the established chains the possibility, the new competition. Actually it did not have other choice, than withdrawing themselves from the economy further and to leave the price adjustment the mechanisms of the market.

Articles in category "Kakaku Hakai"

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