Japanese small business cannot regulate prices
2023.01.20 09:30
Japanese small business cannot regulate prices
By Kristina Sobol
Budrigannews.com – Hiromichi Akiba, the proprietor of a bustling Japanese supermarket, claims that because of his close ties to his neighborhood, he is unable to implement price increases on his products that would enable him to raise wages for his employees.
Japan’s workers are feeling the pinch as years of low inflation or deflation give way to 4% inflation, the highest rate in 41 years.
Additionally, despite the government’s pressure on major corporations to provide raises, many small and medium-sized businesses that employ a large number of Japanese workers are unable to keep up.
However, the situation is particularly challenging for retail businesses like Akiba’s due to the fact that the cost increases are so widespread that virtually nothing remains undone, preventing pay increases.
The friendly 54-year-old, who takes great pride in the close relationships he has established with the people who live in his western Tokyo neighborhood over the past three decades, stated, “The fact is that we are barely making a profit.”
“We couldn’t look our customers in the eyes if we were able to pass on our costs by raising prices.”
Akiba’s business, which he started 31 years ago with a single supermarket and has since expanded into several, appears to be doing well to a casual observer.
It was jam-packed with customers on a recent weekday afternoon, including young mothers pushing prams and elderly women using canes. “Come in, come in!” workers yelled. while others rushed around with boxes of cabbages and sweet potatoes.
However, costs have increased for everything, including electricity, packaging, shipping, and the weak yen has pushed up the cost of imported meats, fruits, and vegetables. Due to the frequent importation of fertilizer and feed, even domestic goods became more expensive.
The general chill caused by inflation follows next.
Akiba stated, “We supermarkets are the leading edge of life.” Everyone reduces their spending when the economy is difficult. By buying cheaply, they are defending their lifestyle.”
He would love to raise wages for his 40 employees at his flagship store in the same way that larger establishments can. According to a Reuters survey, more than half of large businesses plan wage increases, including Uniqlo, a clothing giant.
“I believe that all of those places must charge significantly less. He stated, “That gave them enough leeway to pass that on to their employees.”
Employee Taro Yamada, a 19-year-old university student, stated that he would appreciate an increase in his hourly pay of 1,200 yen ($9.28), which would enable him to consume a diet that is more balanced and healthy.
He added, “But I guess there’s no help for the situation because I’m a part-timer.”
Yoko Yamada, a composer who is 52 years old and wears a shopping basket on her arm, said that she now buys meat in bulk and freezes it to save money. Her partner, who is the primary breadwinner, has yet to see a raise.
She stated, “The government must implement policies to maintain equilibrium.” Otherwise, Japan’s poverty will really rise.”
