Sogo shosha
Encyclopedia
means general trading companies, a business entity unique to Japan
trading a wide range of products and materials. In addition to trading, they have historically acted as investment banks
and private equities. Sōgō shōsha may be better described as a business philosophy than with a visual model. See Yoshino and Lifson for an introductory history and discussion.
The seven largest sōgō shōsha are Mitsubishi Corporation
, Mitsui & Co.
, ITOCHU
, Sumitomo Corporation
, Marubeni
, Toyota Tsusho
and Sojitz
. Combined, they maintain approximately 1,110 offices in over 200 cities around the world and employ more than 20,000 highly-trained specialists, (individuals with an average of over fifteen years' experience).
Sōgō shōsha deal in general commerce. On one end, they supply large volumes of raw materials goods from large manufacturers or wholesalers to smaller distributors and retailers. On the other end, they act as an international sales force for medium- and small-sized companies without the ability to market and maintain distribution channels overseas. They also often act as the linchpin of large consortium contracts ranging from the building of shopping malls to railway and other property projects, coordinating the activities of banks, construction, and logistics companies.
What makes sōgō shōsha unique is their size, scope, information-gathering capabilities, and functional diversity. A sōgō shōsha is an economic organization whose functions consist of distributing the risk of large, complex transactions; reducing transaction costs through economies of scale; and making efficient use of capital. Sōgō shōsha traders are at the center of Japan's global economic efforts, handling half of the country's exports and two-thirds of its imports.
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
trading a wide range of products and materials. In addition to trading, they have historically acted as investment banks
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
and private equities. Sōgō shōsha may be better described as a business philosophy than with a visual model. See Yoshino and Lifson for an introductory history and discussion.
The seven largest sōgō shōsha are Mitsubishi Corporation
Mitsubishi Corporation
is Japan's largest trading company , a member of the Mitsubishi keiretsu. Mitsubishi Corporation employs over 50,000 people and has seven business segments including finance, banking, energy, machinery, chemicals, food and more....
, Mitsui & Co.
Mitsui & Co.
Mitsui & Co., also known as Mitsui Bussan, is one of the largest sogo shosha in Japan, and also part of the Mitsui Group. Its business area covers energy, machinery, chemicals, food, textile, logistics, finance, and more.- History :...
, ITOCHU
ITOCHU
, until 1992 "C. Itoh" in English, is a Japanese general trading concern based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo. It has a common origin with Marubeni Corporation. Itochu is a Fortune 500 company.-History:...
, Sumitomo Corporation
Sumitomo Corporation
Sumitomo Corporation is one of the largest worldwide trading company , and is a diversified corporation. Sumitomo is headquartered in the Harumi Island Triton Square Office Tower Y in Chūō, Tokyo, Japan...
, Marubeni
Marubeni
is a Japanese trading company, one of the largest general trading companies in Japan.-Offices:*Head Office - 4-2, Otemachi 1-chome, Chiyoda, Tokyo, Japan*Head Office -20-6, Shiba 5-chome, Minato, Tokyo, Japan...
, Toyota Tsusho
Toyota Tsusho
Toyota Tsusho Corporation , , based in Nagoya and Tokyo, is a sōgō shōsha , a member of the Toyota Group. It is one of the largest trading companies in Japan, and the 6th largest in the world...
and Sojitz
Sojitz
is a trading corporation based in Tokyo, Japan. It operates in many industries, including construction, forestry, plastics, chemicals, mining, petroleum, textiles, and international trade. Sojitz also participates in joint ventures with foreign companies in Japan....
. Combined, they maintain approximately 1,110 offices in over 200 cities around the world and employ more than 20,000 highly-trained specialists, (individuals with an average of over fifteen years' experience).
Sōgō shōsha deal in general commerce. On one end, they supply large volumes of raw materials goods from large manufacturers or wholesalers to smaller distributors and retailers. On the other end, they act as an international sales force for medium- and small-sized companies without the ability to market and maintain distribution channels overseas. They also often act as the linchpin of large consortium contracts ranging from the building of shopping malls to railway and other property projects, coordinating the activities of banks, construction, and logistics companies.
What makes sōgō shōsha unique is their size, scope, information-gathering capabilities, and functional diversity. A sōgō shōsha is an economic organization whose functions consist of distributing the risk of large, complex transactions; reducing transaction costs through economies of scale; and making efficient use of capital. Sōgō shōsha traders are at the center of Japan's global economic efforts, handling half of the country's exports and two-thirds of its imports.