As new market entrants soon discover, the competitive response in Japan is incredibly fast.
Krispy Kreme opened its first shop in Japan in mid-December of last year.
Just four months later, Duskin, which owns the Mister Donut franchise, is responding with the launch of a new donut shop brand called "and on and." The first one opened on Koen Doori in Shibuya just a few days ago.
Conceptually, the brand is more high-end than Mister Donut and is targeted at "adults" in their 20's, 30's and 40's. The shop interior has a modern, hip feel and the menu features environmentally-friendly coffee that's received the seal of approval from the Rain Forest Alliance, an international non-profit dedicated to the preservation of tropical forests and sustainable farming. Besides donuts, and on and is offering sandwich-style pies and vegetable stick breads, presumably to attract the lunch crowd. Donuts and breads go for 180-250 yen while pies are priced at 300 yen.
Whether and on and is going after the same consumers as Krispy Kreme isn't yet clear (to me, this concept feels only half thought out). What is probable, however, is that the new brand was launched to draw consumer attention back to Duskin assets following the hoopla surrounding Krispy Kreme's opening. This kind of defensive launch is often seen in Japan.
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