Exploring the challenges in international buyer-supplier relationships in the Japanese tea industry

Abstract

The abroad market for Japanese tea has opportunities but also many challenges. This paper focuses on exploring the challenges small to medium Japanese tea producers and tea retailers outside of Japan experience in their buyer-supplier relationships with each other. The goal of the research is to analyse the challenges and their impact on the two parties. The challenges in the buyer-supplier relationship are explored through interviews that bring out the perspectives of both parties.

This research finds that the most significant challenges are the cost and complexity of shipping and regulations, the language barrier, and finding a level of pricing that makes the relationship viable for both parties. As a result of these challenges, it is concluded that organisations that deem themselves well-equipped to handle these challenges can benefit from entering these international buyer-supplier relationships. However, for organisations not equipped to face the challenges, these buyer-supplier relationships are likely to pose too high of a risk.