We have investiged price impact from the the customers’ behavior to shift to substitutional vegetables when some are very expensive in Learning from actual Price behavior(Part3).Here , we will see the another price impact from the one to shift to imported vagetables.
Cabbage : Market price impact from imported vegetables
The supply quantity of leafy vagetables decreased in late 2017. We have compared the import cabbage with the one in Tokyo Ohta market. As you can see in the chat below, Japan imported 15,000 ton cabbage in Jan-2018 but cabbage market price kept going up , even more sharply.This seems the same price behavior as the ons in May-2015,Nov-2016.We also calculated teh correlation between monthly price change ratio of Tokyo Ohta prices and the one of importitng ones to find 0.10 which is quite low. So, we could say vegetable market price is decided independently from import market.One of the reasons might be that consumers stick to cabbage produced in Japan.
Cabbage : exporters’ differentiation strategy
We looked at the historical for imported cabbage, but this price is weighted average price.We break down the price countery by country.China is the biggest exporter by far and the rest export very little with no-export sometimes.If you go to the price comparison chart, you will find the different price setting strategy(?) country by country, though four countries in the right chart do not always export.
Both China and Korea look they are competing with low-price aiming to price-sensitive customers, in the other hand , France focuses on high-quality oriented customers where they may figure out where WTP of those are.
You will see Willingness to Pay in Demand-Supply curve and Willingness to Pay(WTP) for more details.
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