For the exporter the distribution channel is critical. It determines the presentation of products to the customer. It is often argued that the complexity of Japanese distribution channels is an important barrier to Western exporters. Whilst this is true, Japanese exporters faced an equal hurdle in exporting to the West. The key to overcoming this hurdle has been a strategy of significant investment by Japanese companies in distribution. This strategy is a central – although often unrecognised – factor in the success of Japanese exporters to the West. It is Japan's “hidden advan