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vol.7@@yUSAzChelsea Japan Co., Ltd.
Last update: June 28, 2010

Chelsea Japan Co., Ltd.
Established: 1999
Address: 3-2-3 Marunouchi, Chiyoda-ku, Tokyo
Line of business: Development, ownership and operation of Premium Outlet Centers.

@   President  Mr.Toshihide Yoshimura
 
 Chelsea Japan Co., Ltd., currently operating Chelsea Premium Outlet Centers throughout Japan, was founded in 1999 as a joint venture among an US outlet developer, Chelsea Property Group (CPG), Mitsubishi Estate Co., Ltd., and Nissho Iwai Corporation (currently Sojitz Corporation). At present, a total of eight Chelsea Premium Outlet Centers (including Kansai) have been set up in Japan as a new-style outlet shopping centers. A major characteristic of the Premium Outlet Centers, which accommodate a variety of top-brand stores at home and abroad, is that visitors can fully enjoy shopping all day in exotic, out-of-the-ordinary surroundings featuring a reproduction an American street.
The following are excerpts from an interview with Mr. Toshihide Yoshimura, President of Chelsea Japan Co., Ltd.


Major determining factors of entering the Japanese market:
Naturally, the outlet business cannot exist without markets. A major reason why we decided to expand our business into Japan is that Japan has a very huge market, especially in four major economic zones: Tokyo, Osaka, Nagoya and Kyushu. We set these areas as the targets of our business activities. Since it is necessary for us to form a business partnership with Japanese companies well-versed in local situations, The CPG established Chelsea Japan in 1999 as a joint company with Mitsubishi Estate Co., Ltd. and Nissho Iwai Corporation (currently Sojitz Corporation). (The present capital investors are CPG (40%) and Mitsubishi Estate (60%).)
In July 2000, Japanfs first Chelsea Premium Outlet Center in Japan opened in Gotemba, followed by Rinku Premium Outlets in November in the same year. In July 2007, we opened our sixth outlet center Kobe-Sanda Premium Outlets.
 
 Business activities in Kansai:
 There are two chief conditions for the location of outlet centers: 1) they should be in suburban areas to prevent competition with authorized brand shops in urban central areas, and 2) they should have convenient access from the exits of major express highways. A key determining factor for opening our outlet centers in Kansai is that the region is Japanfs second largest market with a population of more than 20 million. We chose Rinku Town as the location of our first outlet center in Kansai, since it is reasonably distant from urban central areas in Osaka, offers easy access from express highways, and is close to an international airport. A major feature of Rinku Premium Outlets is that about 10% of its customers are tourists from China and South Korea due to its proximity to Kansai International Airport. Kobe-Sanda Premium Outlets, our second outlet center in Kansai, has easy access from an expressway, as with our other outlet centers, but its major feature is that it is located near the large city of Kobe and targets customers from Kobe, Kyoto and Shikoku, eliminating overlapping of target markets with Rinku Premium Outlets. Kobe-Sanda Premium Outlets is scheduled to be expanded in December 2009, making it comparable in size to that in Rinku.
 
Business Partnership:
In Kobe-Sanda Premium Outlets, we worked with a neighboring shopping center to build a bridge between the two facilities so that visitors can move around easily for shopping. Since many people visit outlet centers to have extraordinary experiences, the frequency of visit is not so high compared to that of supermarket visits. However, collaboration with facilities to which people visit on a daily basis, such as a supermarket, allows us to attract more visitors to our outlet centers more frequently. Such facilities are also expected to attract people visiting the outlet center. Thus, forming a business partnership, rather than operating an outlet center independently, can produce synergistic effects. Our other attempts include partnership with tourist facilities. In some tourist facilities, visitors can receive the discount by showing a Premium Outlet credit card.
 
Future business activities:
In addition to Kansai, we own and operate outlet centers in Gotemba City (Shizuoka), Sano City (Tochigi), Tosu City (Saga), Toki City (Gifu), Sendai City (Miyagi), and Inashikigun-Ami Town (Ibaraki). We believe that outlet centers contribute to the revitalization of local communities and job creation, playing a role in boosting the economic development of individual areas. As part of such efforts to promote local industries, we hold exhibitions of local agricultural and traditional products in our outlet centers. In Toki Premium Outlets, Gifu, for example, we held an event to exhibit and sell Mino ware, a representative local industry of Gifu Prefecture. We will continue to make efforts to expand the existing facilities in a phased manner and develop our business, while contributing to the development of local communities.

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@@@@@yContact Informationz
Ministry of Economy, Trade and Industry, Kansai Bureau
International Investment Promotion Division
Address: 1-5-44 Otemae, Chuo-ku, Osaka, 540-8535
TEL: {81-6-6966-6031 (domestic call :06-6966-6031)    FAX:  {81-6-6966-6087 (domestic call :06-6966-6087)
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