          
          
          The key to your success in Japan is the commitment of your 
          resources -- including your time, money, and personnel -- 
          to develop a market for the long term.  If you prepare 
          well, exercise patience, and demonstrate commitment, then 
          you will likely reap substantial benefits from your 
          efforts.  There are six key points that every American firm 
          wishing to do well in Japan must know, understand, and 
          remember before entering the market:
          
          Product:  The acceptance of your product in the Japanese 
          market is based primarily on its quality and after-sales 
          service, not its price (although this is still an important 
          consideration).  Your product may sell well in the United 
          States and other countries, but that does not mean it will 
          be well received in Japan.  The Japanese are the most 
          discriminating shoppers in the world.  The Japanese are 
          very quality-conscious.  Strict delivery dates must be met.  
          Customer-oriented service is a decisive factor.  The 
          Japanese consumer looks for innovation in technology, 
          design, style, and fashion.  Both your product and 
          corporate image are critically important.
          
          Preparation:  Substantial preparatory homework is required.  
          You must make an effort to know the market for your product 
          and your potential competition in that market.  You must 
          carefully monitor the activities of Japanese competitors 
          and Japanese Government regulations and development 
          programs.  Furthermore, you must be ready and willing to 
          modify your product to meet local marketing requirements.  
          This modification would include metrification of products, 
          manuals, and sales literature.  These steps may be 
          necessary in order to meet some regulatory condition or 
          simply to conform to the personal preferences of the 
          Japanese consumer or end-user.  Your firm would do no less 
          when selling in the United States.  You should have all 
          relevant product literature translated into Japanese.  This 
          may prove expensive, but it is necessary.
          
          Presence:  In almost every case, you MUST have a presence 
          in the Japanese market if your firm is to succeed.  This 
          can be in the form of a representative -- an individual or 
          organization that serves as a middleman representing you 
          and your product, or an actual physical presence by your 
          firm -- a liaison or branch office, subsidiary, or joint 
          venture.  Whichever option you choose, a presence is 
          absolutely essential.  Your firm needs someone in Japan to 
          advertise your product, take orders, resolve potential 
          delivery problems or bottlenecks on the Japanese side, work 
          with distributors, replace defective or broken goods, and 
          implement after-sales service.  You need someone to 
          physically import the product, to arrange payment, and to 
          keep you informed of what is happening. This last point is 
          often neglected by exporters.  Products come and go in 
          Japan.  What is an advanced product or in fashion today can 
          be outmoded and unfashionable tomorrow.  Your firm must be 
          continuously kept aware of market trends and product 
          developments in Japan to remain competitive.
          
          Culture:  An understanding of the Japanese business 
          mentality and a willingness to accommodate Japanese 
          consumer preferences are extremely important.  Simply put, 
          learn about Japan -- about its culture, history, and 
          business practices.  One of the most common mistakes 
          American firms make in Japan is that they do not listen to 
          their people in Japan.  It is wise to listen to your 
          Japanese representative when he or she makes a suggestion.  
          Your representative is in the best position to know what is 
          going on in Japan, and therefore, to recommend the best 
          course of action. Demonstrate prudence, but do not 
          disregard the comments or suggestions made by your 
          representative in Japan.  A lack of responsiveness by you 
          may result in an arriving shipment not being cleared 
          through customs or poor sales.
          
          Education:  Many products from the United States fit into a 
          cultural or an industrial environment that may not 
          currently exist in Japan.  This uniqueness is what often 
          gives U.S. products the edge. However, you often must 
          educate your customers about the product's purpose, use, 
          and quality.
          
          Patience:  Entering the Japanese market requires a 
          long-term approach; negotiations are likely to be lengthy, 
          initial costs are high, and returns may be slow in reaching 
          profitable levels.  Do not expect immediate results.  Only 
          by exercising patience will you succeed.  A number of firms 
          have failed in Japan only because they lacked a sustained 
          commitment and prematurely withdrew from the market.
          
              Distribution and Sales Channels
          
          The Japanese distribution system is very different from our 
          own; it is as inefficient as it is complex. There are two 
          basic methods of distribution for potential exporters to 
          Japan.  One is to use the existing distribution channels of 
          a trading company, manufacturer, or wholesaler.  The other 
          is to set up your own distribution system -- which could be 
          very expensive initially, but more efficient over the long 
          term.  The decision as to which approach to follow must be 
          based on an assessment of product characteristics, the 
          potential market size, the structure of the market (buyer 
          universe), the degree of complexity of the existing 
          distribution channels, and your firm's resources, as well 
          as your willingness and ability to commit them to the 
          development of the Japanese market.
          
          If the market is one in which there is a large number of 
          smaller end-users located throughout the country, it may be 
          necessary to rely on a network of wholesalers.  Where the 
          buyer universe is relatively concentrated among a limited 
          number of large firms, marketing may be direct or through a 
          single intermediary.  A key factor for you is to answer the 
          question, "Who has control over the channels of 
          distribution which provide access to my market?"  Your firm 
          must understand existing distribution channels in order to 
          utilize them or develop an innovative approach.  To reach 
          your potential customers, you may have to rely on a trading 
          company or wholesaler who controls related distribution 
          channels for your product.
          
          Japanese distribution practices are often markedly 
          different from those in the United States. Multiple layers 
          of middlemen may be involved in a system of highly 
          institutionalized marketing channels linking producers, 
          retailers, and end-users.  Wholesalers and retailers in 
          Japan significantly outnumber their counterparts in the 
          United States.  Many elements of the distribution system 
          have fewer than ten employees, cannot provide their own 
          credit or maintain large inventories, and often have 
          financial, ownership, or exclusive arrangements with major 
          Japanese manufacturers, industrial groups, or trading 
          companies.  Distribution channels in Japan vary 
          considerably from industry to industry and product to 
          product with particular differences between consumer and 
          industrial goods.
          
          In some capital goods sectors, Japan has a number of small 
          firms which function as subcontractors for larger 
          manufacturers.  Small and medium-sized firms, employing 
          fewer than 300 persons, supply the majority of 
          manufacturing industries with most of their products.  To 
          sell to these firms, it is often necessary to follow a 
          multilayered distribution system.  You need to determine 
          the identity, locations, and needs of your customers before 
          choosing the distribution channel.  Your representative can 
          be of tremendous aid in identifying and accessing the 
          proper distribution channel.
          
              Introducing Your Product to the Japanese Market
          
          The first move your company must make before entering the 
          Japanese market is to determine whether or not there is in 
          fact a market for your product.  Second, you must have a 
          market strategy. The Japanese customer is the most 
          demanding in the world.  Poor quality, inferior packaging, 
          and second-rate customer service will not be tolerated.  In 
          addition, when doing business in Japan, what is considered 
          unnecessary fluff in most countries is vital for the 
          success of your company.  You are trying to sell more than 
          your product to the Japanese.  Your company's image, 
          reputation, and reliability are critically important.  The 
          Japanese insist on knowing your company's history, goals, 
          and vision for success.  Perception and image are 
          everything in Japan.  The more information they know about 
          you and your company, the more comfortable they will be in 
          dealing with you.  Communication is vital.  Your potential 
          Japanese agent/distributor/representative must be reassured 
          that you are making a permanent commitment to the Japanese 
          market.  If you have not convinced him or her of your 
          seriousness, your product will receive minimal 
          consideration.
          
          You should designate a manager who is responsible for Japan 
          operations.  Ideally, the Japan portfolio should be the 
          manager's sole responsibility; and if not resident in 
          Japan, he or she should visit Japan at least four times a 
          year.  In addition, when selling the product, a company 
          representative who knows the product should be in Japan to 
          answer specific technical questions or hold seminars and 
          conferences.  Too often, when a potential Japanese customer 
          asks a technical question about a U.S. product, the 
          American company's marketing representative cannot answer 
          the question.  Providing an informational brochure in 
          Japanese is a good beginning, but quite often it is not 
          enough.  The inability of your sales representative in 
          Japan to answer technical questions about the product 
          indicates to your potential customers a lack of pride in 
          your product.  They will take their business elsewhere.
          
          The Japanese often praise the innovative design, 
          technology, and creativity of American products. However, 
          many times they are critical of the low quality of the 
          product or the reluctance of American companies to alter 
          their product to meet Japanese consumer tastes.  Japanese 
          consumers will carefully examine the stitching of clothing 
          and will notice if the color fades when washed.  If they 
          detect a flaw, they are unlikely to purchase the product.  
          American companies cannot stand pat in the Japanese market 
          either.  Too often, an American company will have a good 
          product that captures Japanese interest, but the company 
          does not continue to develop or modify the product to meet 
          the specific needs of the Japanese consumer.  Meanwhile, 
          Japanese and Asian competitors will take the product, copy 
          it, and improve it -- offering it at a cheaper price.
          
          The type of product that you are interested in exporting to 
          Japan will largely dictate the direction you will take.  
          Listed below are a few suggestions on how to expose your 
          product to the Japanese market.  Please note, and this is 
          of the utmost importance to succeed in Japan, that your 
          goal here is to introduce yourself to your potential 
          Japanese counterpart -- your partner, if you will.  This 
          partner is the organization, company, or person with whom 
          you, the exporter, will work.  Your partner's role in this 
          arrangement is to introduce and sell your merchandise to 
          the Japanese consumer or end-user. However, your 
          cooperation, attention to detail, and involvement are the 
          primary conditions for their success, and yours.
          
          The Agent/Distributor Service:  The U.S. Department of 
          Commerce offers the Agent/Distributor Service (ADS) which 
          is an overseas search to identify potential representatives 
          for your product in the Japanese market.  U.S.  commercial 
          officers in Japan prepare a list identifying up to six 
          Japanese prospects who have expressed an interest in 
          representing you in the market.  Since the processing time 
          at the U.S. Embassy ranges from 30 to 45 days, you should 
          allow for sufficient lead time.  An additional benefit from 
          this service is that the U.S. Government is introducing 
          your firm to a potential Japanese partner.  Proper 
          introductions by third parties are an integral part of 
          doing business in Japan, and many Japanese firms are 
          reluctant to do business without an appropriate 
          introduction.  When filing for the ADS, you should give as 
          much information as possible about what is unique or 
          different about your product.  Information on your 
          company's function, history, and goals is equally 
          important.  The ADS does not include a search for a 
          licensee or joint venture partner.  Contact your local U.S. 
          Department of Commerce district office for more information 
          on the ADS.
          
          The Comparison Shopping Service and Market Research:  The 
          Comparison Shopping Service (CSS) is a more comprehensive 
          service for those companies which are prepared to make a 
          more serious initial commitment to the Japanese market.  
          The CSS is a custom market research service designed to 
          help firms such as yours get the precise information you 
          need to assess a given export market.  The CSS can provide 
          key marketing facts about your specific product which 
          cannot be found in broader industry surveys.
          
          The CSS provides answers to nine key marketing questions 
          about your product in Japan:  (1) Does the product have 
          sales potential in the market? (2) Who is supplying a 
          comparable product locally? (3) What is the usual sales 
          channel for getting this type of product into the market? 
          (4) What is the going price for a comparable product in 
          this market? (5) Are purchasers of such products primarily 
          influenced by price or other competitive factors, such as 
          credit, quality, delivery, service, promotion, brand, etc.? 
          (6) What is the best way to get sales exposure in the 
          market for this type of product? (7) Are there any 
          impediments to selling this type of product in this market, 
          such as quotas, duties, or local regulations that might 
          impede sales? (8) Who might be interested and qualified to 
          represent or purchase this company's product in the market? 
          and (9) If a licensing or joint venture strategy seems 
          desirable for this market, who might be an interested and 
          qualified partner for the U.S. company?
          
          Answers to these questions are obtained from on-the-spot, 
          personal interviews conducted by private sector market 
          research firms in Japan.  The researchers conduct a CSS 
          survey by interviewing knowledgeable local sources, such as 
          importers, distributors, end-users, or local producers of 
          comparable products.  The final CSS survey will be 
          completed and sent to you in approximately 60 days.  For 
          further information, contact your nearest U.S. Department 
          of Commerce district office.
          
          There are many industry subsector analysis reports that 
          have been written by the U.S. and Foreign Commercial 
          Service of the U.S. Department of Commerce and Japan 
          External Trade Organization (JETRO).  For a list of market 
          research reports available, contact the Japan Export 
          Information Center (JEIC) at (202) 377-2425.  In addition, 
          if your firm wishes to contract for more detailed market 
          research, contact the JEIC to obtain a list of market 
          research and business consulting firms in Japan.
          
          Trade Shows/Missions:  These events offer excellent 
          opportunities to introduce your product to the market, 
          expose your company and products to a large number of 
          potential customers, enhance and build your company's 
          image, educate the market about your products, learn about 
          the needs and expectations of the customer, and learn about 
          the competition.  The U.S.  Department of Commerce 
          regularly schedules showings of American products and 
          invites interested Japanese buyers to attend. For more 
          information, contact your local U.S. Department of Commerce 
          district office or the U.S.  Department of Commerce's Japan 
          Export Information Center (JEIC).  The various types of 
          trade shows include the following:
          
          Trade Events:  Overseas promotions that are organized and 
          recruited by the U.S. Department of Commerce.  The shows 
          are industry specific and are of usually two types.  Solo 
          Exhibits are shows which are initiated and staged by the 
          Commerce Department and which feature only U.S. exhibitors 
          and their products.  International Trade Fairs are shows in 
          which the Commerce Department establishes a U.S. section or 
          pavilion, featuring U.S. products and exhibitors.  Cost of 
          participation in trade shows vary, but for companies that 
          have the resources, trade missions can be one of the most 
          cost effective ways of developing an export market.  For 
          more information, contact the Office of International 
          Operations at (202) 377-8422.
          
          Matchmaker Trade Delegations:  Overseas sales promotion 
          trips arranged and recruited by the Commerce Department.  
          Matchmakers are week-long, industry specific trade 
          delegations.  They are often planned in conjunction with a 
          recognized international trade fair.  Commercial 
          specialists at the U.S.  Embassy in Japan match American 
          suppliers in one-on-one in interviews with potential 
          agents, distributors, and/or joint venture or licensee 
          partners -- depending on the market penetration strategy of 
          the U.S. firm.  Mission members are responsible for their 
          own expenses and a contribution to defray general mission 
          expenses.  For more information, contact the Office of 
          Marketing Programs at (202) 377-4231.
          
          Foreign Buyer Program:  Trade missions of Japanese buyers 
          who visit U.S.  domestic sales promotion events arranged 
          and recruited by the Commerce Department.  Foreign Buyer 
          Shows present a broad range of products and services with 
          good prospects for increased international sales. For more 
          information, contact Export Promotion Services at (202) 
          377-0871.
          
          State Representative Offices in Japan:  Thirty-eight U.S. 
          states have their own representative office in Japan.  
          These offices are designed to promote exports from and 
          encourage investment in their respective states.  You 
          should contact your state government in order to determine 
          what assistance it can provide you.  For a list of state 
          representative offices in Japan, contact the Japan Export 
          Information Center at (202) 377-2425.
          
          Industry Trade Associations:  You should contact your trade 
          association for information on exporting to Japan.  U.S. 
          trade associations often have international departments or 
          affiliations which can provide information on marketing; 
          testing, standards, and certification; and intellectual 
          property protection.  Members of the association serve as 
          excellent sources of information and may be able to 
          introduce your company to a potential partner in Japan.  
          Also, your association may have a good working relationship 
          with a counterpart association or office in Japan.  Some 
          U.S. industry associations with offices in Japan include 
          the American Electronics Association, the Motion Picture 
          Association of America, Inc., the Pharmaceutical 
          Manufacturers Association, the U.S. Semiconductor Industry 
          Association, the U.S. Electronics Industry, and the U.S. 
          Automotive Parts Industry.
          
          Export Trading/Management Companies:  Trading and 
          management companies are trade intermediaries or middlemen 
          that provide clients with a variety of export trade 
          services.  Each trading company is unique in the 
          combination of services it offers and the products it 
          handles.  Some trade intermediaries deal in a wide range of 
          trade facilitation services while others specialize in a 
          few. Such services can include, for example, advertising 
          and promotion; consolidation of the shipments of a number 
          of suppliers to lower freight rates; supplying freight 
          forwarding and international documentation; finding 
          suitable distributors and interested overseas buyers; 
          providing credit checks on overseas traders and buyers; 
          market research; translation; and taking title of the 
          goods.  Available through U.S. Department of Commerce 
          district offices is a publication titled Export Yellow 
          Pages that lists contact information on 1,000 U.S. export 
          trading companies.  The choice between using a Japanese or 
          an American sales agent/distributor should be based on 
          informed knowledge of the market.
          
          Japan has more than 6,000 trading companies.  Japanese 
          trading companies include many small, specialized firms 
          "senmon shosha" that represent the primary Japanese 
          equivalent to U.S. trade intermediaries.  Japanese trading 
          companies also include general trading companies, "sogo 
          shosha," that represent the vanguard of the Japanese 
          economy.  The sogo shosha account for 50 percent of Japan's 
          exports and 60 percent of imports.  The nine largest 
          Japanese sogo shosha have a combined annual sales volume of 
          about $700 billion.  For the year ending March 1989, the 
          Mitsui sogo shosha alone had $126 billion in trade 
          transactions.
          
          Sogo shosha are organized along industry lines, not along 
          geographical lines.  Each sogo shosha is part of a large 
          industrial conglomerate ("keiretsu") centered around a 
          major bank.  Most have manufacturing subsidiaries or 
          affiliates and serve as conduits for technology transfer 
          through licensing agreements negotiated for their 
          manufacturing subsidiaries.  Sogo shosha deal with a 
          multitude of products -- Mitsui, for example, handles as 
          many as 20,000 different items.
          
          Sogo shosha act as trade intermediaries between buyers and 
          sellers at all stages of product and trade flow -- from 
          upstream raw material extraction, through production, to 
          downstream distribution to the end-user.  The sogo shosha 
          search for volume growth in value-added, bulk commodity 
          products.  They are willing to play whatever role is 
          necessary to make the project or transaction work -- trade 
          catalyst, joint partner, consortia organizer, and support 
          of major project management.  Sogo shosha have vast 
          communication networks and have an extensive presence in 
          foreign markets.  For example, one sogo shosha has 190 
          offices worldwide with 20 in the United States alone.
          
          It is not unusual that 60-70 percent of a sogo shosha's 
          assets are committed to financing suppliers and customers.  
          Sogo shosha derive financial strength from their keiretsu's 
          bank (often a major stockholder).  Bank loans are used to 
          acquire or establish firms to obtain a production base or 
          enter resource development.  The sogo shosha also reloan 
          funds to clients.  In 1987, the sogo shosha provided over 
          $26 billion in trade credits and $47 billion in long-term 
          loans and credit guarantees.
          
          Sogo shosha tend to handle bulk items such as agricultural 
          products, industrial materials, and textiles. In the case 
          of a product other than a bulk commodity or raw material, 
          the use of a specialized trading company or senmon shosha 
          should be considered.  These smaller firms limit themselves 
          to a narrow range of products and handle most phases of the 
          product's journey through customs to the end-user.  They 
          often can provide greater assistance for products which 
          require after-sales service such as electronic instruments 
          and medical equipment.
          
          The third distinctive type of trading company is the 
          "captive" type, which is owned by manufacturers or 
          merchandisers.  It performs foreign trade functions for 
          particular manufacturers and is primarily of interest to 
          firms that wish to export to their parent companies.
          
          Japan's general trading companies have established an 
          Export Promotion Office for U.S. Manufactured Goods to 
          advise American companies interested in trading with Japan 
          and other foreign countries.  The companies' trade experts 
          are located at 105 offices in 19 U.S. cities.  These 
          offices are linked individually by a computer system that 
          can give manufacturers and exporters information on 
          markets, financing, laws, regulations, exchange rates, and 
          other factors with a bearing on trading decisions.  For a 
          list of these offices in the United States, contact the 
          Japan Export Information Center (JEIC) of the U.S. 
          Department of Commerce at (202) 377-2425.
          
          Japan Chamber of Commerce and Industry:  The Japan Chamber 
          of Commerce and Industry (JCCI) offers manufacturing 
          directories, phone numbers, contacts, and lists to help a 
          U.S. company find the most appropriate partner in Japan for 
          a joint venture or product distribution.  In addition, many 
          of the regional chambers of commerce and industry in Japan 
          publish trade opportunities or bulletins with foreign 
          products and companies listed.  Since 1984, the JCCI has 
          had an office in Kansas City, Missouri which can advise 
          your company about opportunities in the Japanese market and 
          provide information on Japanese companies interested in 
          possibly doing business with your firm. The Osaka Chamber 
          of Commerce and Industry (OCCI) and several municipal and 
          business groups sponsor the annual Global Opportunities 
          Convention (G-BOC), which is held in Osaka, Japan. G-BOC 
          provides an excellent opportunity for your company to be 
          introduced to potential Japanese business partners.  
          American companies can contact the JCCI for additional 
          information on G-BOC. JCCI contact points are located at:
          
          JCCI                               JCCI
          Commerce Tower Suite 2323          2-2 Marunouchi 3-chome
          911 Main Street                    Chiyoda-ku, Tokyo 100
          Kansas City, MO 64105              Japan
          Phone:  (816) 221-6140             Phone:  011-81-3-3283-7660
          Fax:    (816) 471-6523             Fax:    011-81-3-3216-6497
          
              OCCI
              2-8 Hommachibashi
              Chuo-ku, Osaka 540
              Japan
              Phone:  011-81-6-944-6403
              Fax:    011-81-6 944-6409
          
          Japanese Department/Chain Stores:  In the consumer sector, 
          an important feature of buying patterns has been low 
          consumer mobility combined with high population density.  
          Surveys indicate that most Japanese consumer purchases 
          occur within a closely defined neighborhood, with the 
          result that a large number of Japan's retail outlets are 
          neighborhood stores accounting for roughly half of all 
          retail sales.  Most of these are served by three or more 
          wholesalers, resulting in "pyramid pricing." The emergence 
          and growth of self-service discount stores and 
          "superstores" are helping to reduce the amount of layering 
          and price markups.  In addition, department and specialty 
          stores are increasing their volume purchases from abroad.  
          Department stores in Japan typically carry 500,000 items 
          and make 80-90 percent of purchases from as many as 1,500 
          wholesalers, many of which supply goods on consignment.  
          Some stores are establishing central purchasing offices, 
          and many of the large superstore and department store 
          chains now have direct buying offices in the United States:
          
           Daiei, Inc.                        Daimaru, Inc.
           Suite 215                          1114 Avenue of the Americas
           1025 West 190th Street             New York, NY 10036
           Gardena, CA 90248                  Phone:  (212) 730-7138
           Phone:  (310) 515-0141             Fax:  (212) 840-7645
           Fax:  (310) 515-1086
          
           Daimaru California, Inc.           Hankyu, Inc.
           19401 South Vermont Ave., A-204    2951 28th St., Suite 3010
           Torrance, CA  90502                Santa Monica, CA  90405
           Phone:  (310) 516-9716             Phone:  (310) 396-8710
           Fax:  (310) 516-9578               Fax:  (310) 396-3026
          
           Isetan Co., Ltd.                   Matsuzakaya America, Inc.
           666 5th Avenue, 12th Floor         460 East 3rd Street
           New York, NY  10103                Los Angeles, CA  90013
           Phone:  (212) 767-0300             Phone:  (213) 626-0133
           Fax:  (212) 767-0307               Fax:  (213) 626-7936
          
           Mitsukoshi, Inc.                   Seibu Corp. of America
           465 Park Avenue                    55 East 59th Street
           New York, NY  10019                New York, NY  10022
           Phone:  (212) 753-5580             Phone:  (212) 826-1144
           Fax:  (212) 355-7161               Fax:  (212) 826-1148
          
           Taka-Q Co., Ltd.                   Takashimaya, Inc.
           115 West 57th St., 3rd Floor       1290 Ave. of the Americas
           New York, NY  10019                Room 1731
           Phone:  (212) 489-4720             New York, NY 10104
           Fax:  (212) 664-0138               Phone:  (212) 265-2577
                                                 Fax:  (212) 265-1539
          
           Tokyu Department Store Co., Ltd.
           24712 Madison Street
           Torrance, CA  90505
           Phone:  (310) 530-8207
           Fax:  (310) 530-4173
          
          The retail market is in the process of change.  Significant 
          alterations in Japan's Large Scale Retail Store Law have 
          eased restrictions on opening new stores.  There has been a 
          substantial increase in the number of applications to open 
          new retail stores since the reforms have been announced. 
          Import clearance procedures at airports and seaports have 
          been simplified, and plans are in place to improve and 
          expand facilities in these areas.
          
          Faced with deregulation and changing patterns of 
          consumption, many Japanese companies are modifying 
          marketing and sales strategies to take advantage of these 
          developments.  Imports are already benefiting from these 
          trends as seen in increased sales by Japanese department 
          stores and other mass merchandisers and by a variety of new 
          retailing ventures that match changing Japanese lifestyles.  
          There are also indications that some distributors are 
          modernizing and consolidating operations.
          
          
