Paper short abstract:

How have small retail shops (family businesses) survived in Japan? I acted as a long-term participant observer of merchants and customers at four small retail shops. In order for the shops to continue in business, both families and customers are important.

Paper long abstract:

In Japan, many small stores are family businesses. How have these small retail shops endured? Family labour is important for their survival. However, investigations of family businesses were seldom undertaken until 1996. Furthermore, there are few ethnographic studies of Japanese these organizations.

Using participant observation fieldwork, I conducted precisely this sort of investigation of Japanese family businesses. My research question was 'What kind of customer relations are they building'? I conducted my study in Itami City, Hyogo from August 1997 to August 2005 (excluding January 1999-March 2001). I studied four types of stores: those that sold handicrafts, tofu, glasses, and crafts.

For the continuation of retail shops, families and employees as well as customers are important. Small shops have systems to build relationships with customers. The merchant, his wife, child, and employees are connected with their customers in the community. Sometimes, families of the same community are customers of each other's stores.

It is important to build relations with regular customers. A particularly earnest customer, called 'the fan', plays an important role in the small family shop. Fans are people who have long-term, continuous relations with a merchant. He or she comes to the store not only to shop but also to talk with the merchant. The fan gives the merchant presents, such as handmade goods. Visiting the store and talking with the merchant are an essential part of a fan's life.