Japan’s wholesale and retail market is known for its refined service and logistics efficiency. However, as SMEs shift toward digital procurement and frequent small-batch orders, traditional cash-and-carry formats are under pressure. In high-density cities like Tokyo, large-format wholesale stores face rising costs, labor shortages, and customer convenience challenges. Additionally, local businesses’ preference for domestic supply chains and trusted relationships makes it difficult for foreign players to build long-term loyalty. Post-pandemic demand for instant delivery and online ordering has further narrowed growth opportunities for physical wholesale models.
Why We Selected This Case
In 2021, German wholesale giant METRO AG exited the Japanese market by closing all 10 of its Tokyo-area stores. Although METRO is a dominant player in Europe’s wholesale sector and had aggressively pursued global expansion, its withdrawal from Japan underscores a key lesson: even large-scale, trusted international brands must localize their operational models to succeed in Japan. This case highlights the strategic importance of local adaptation and customer behavior insights. Through ADGo’s Market Intelligence Sweep, Extreme Creative Brainstorm, and Marketing Concept Visuals, we reimagine how METRO—or any foreign brand—can successfully re-enter or establish a foothold in Japan.
Market and Strategic Insights
01Market Intelligence Sweep
METRO AG faces dual pressure in Japan’s wholesale market—from aggressive global players expanding with bulk logistics, to local wholesalers with deep-rooted ties to premium clients like hotels and department stores. Japan’s foodservice SMEs, METRO’s core audience, value freshness, flexibility, and trust-based local suppliers—making standardized, self-service formats less effective.
As B2B buyers shift toward small-lot, high-frequency, digital procurement, METRO must reposition around three pillars: local trust, real-time delivery, and digital enablement to stay relevant in Japan’s evolving SME ecosystem.
06Extreme Creative Brainstorm→ 08Marketing Concept Visuals
Through the 06Extreme Creative Brainstorm, METRO AG explores new ways to localize its value proposition in Japan by deepening regional supply chain ties, integrating digital tools, and offering small-batch just-in-time delivery. The goal is to rebrand METRO as a trusted, culturally aligned partner—differentiated from the typical foreign wholesaler experience. Here are three concept outputs:
- “Fresh Direct” Program – Source-local, deliver-smart Launch a local sourcing initiative featuring exclusive zones for regional agricultural and fishery products. Paired with AI-powered smart ordering, flexible fulfillment, and services like origin labeling, voice assistants, group buying, live chef streams, and custom recipe kits to build local service warmth.
- “Chef Circle” – Loyalty meets co-creation Establish a digital membership ecosystem for restaurant and hospitality professionals. Features include purchase-based loyalty tracking, community events, product co-development, and tasting sessions—creating deeper bonds and revitalizing trust with SME customers.
- “Metro Now” – Small-batch, high-frequency delivery Partner with last-mile logistics startups to launch a LINE/APP-based “Metro Now” service: 3-hour delivery within a 5km radius, tailored for urgent restocks by urban food businesses. Designed to win back digital-native B2B users with immediacy and convenience.
Following this, 08Marketing Concept Visuals will bring the ideas to life through a wide dual-pane layout that emphasizes the relationship between people, ingredients, and trust:
- Left Panel: Featured Fresh Goods from local producers and artisans, with rich supplier and origin context.
- Right Panel: Member Hub for managing accounts, tracking orders, and accessing interactive workshops—designed with icon-based navigation for intuitive user experience.
ADGo Execution Process
From building local business trust to implementing smart procurement and real-time delivery, and designing an intuitive interface, this project leveraged ADGo to craft a localized roadmap for METRO AG tailored to the Japanese market. It also highlights ADGo’s potential as a strategic enabler for foreign companies accelerating localization in Japan’s traditionally hard-to-penetrate market.