Market analytics of the rice wine market in Japan: an exploratory study

Martin Kunc

doi:10.1108/ijwbr-09-2018-0046

Abstract

Purpose The purpose of this paper is to analyse consumer buying behaviour in the Japanese rice wine, also known as sake market. Design/methodology/approach The study applies a novel qualitative and quantitative analytical methodology to an off-license channel in Japan. The methodology involves the use of anchoring-and-adjustment theory and simulation to a large set of point of sale data. The selection of the brands used for the study are more than 230 brands and more than 150 sake breweries. Findings Age and gender are important factors determining recurrent patterns of purchasing behaviour. Small size packaging, e.g. one cup, has the highest volume in sales, for example, convenience shopping, but it depends on exogenous factors, e.g. summer season or festive events. Research limitations/implications Limitations are related with the lack of specific personal data from consumers that impedes to test behavioural attitudes driving loyalty to brands. Anchoring-and-adjustment theory can be a valid approach to evaluate large longitudinal data sets of purchasing behaviour. Practical implications Results indicate that fragmented markets tend to over-expand the assortment affecting volume stability. However, this dynamics is difficult to avoid when all participants are engaged in this behaviour and the market is strongly segmented by age and gender. Originality/value The paper contributes to the body of knowledge of buyer behaviour in relation to purchasing and consumption for other types of wine. It is the first application in alcoholic beverages of anchor-and-adjustment theory.

Highlights

Wine is a global and highly fragmented industry with multiple producers and product-styles.Wine making and drinking has a rich tradition in many cultures
While Asian countries have been embracing wine made of grapes in recent years, Asian countries consume wine made out of fermented rice: rice wine known as sake in Japan
There is a general description of the market based on established concepts in the wine consumption literature

Summary

Introduction

Wine is a global and highly fragmented industry with multiple producers and product-styles. Wine making and drinking has a rich tradition in many cultures. For Europe and the Western world, wine is made of grapes. While Asian countries have been embracing wine made of grapes in recent years, Asian countries consume wine made out of fermented rice: rice wine known as sake in Japan. Sake is considered a spirit from some perspectives (Camillo, 2012) but sake is part of the wine category in China, Japan and Korea (Anderson, Nelgen and Pinilla, 2017). While the production of sake has been declining over many years, from 513

Objectives

Results

Discussion

Conclusion