Visit with Chuck Grafft, Foreign Buyers Club

The Hitchhiker’s Guide to Business in Japan

In Chuck’s own words, his growth strategy has been: “Take what you’ve got , take good care of it, and run with it”. Chuck, founded FBC about 10 years ago, while he was on an assignment for Time Magazine. He noticed that American expatriates in Japan were craving American products that Japanese stores usually would not carry, and that Customs and the Japanese Dept. of Agriculture allowed imports of groceries for private consumption. FBC aggregates individuals’ purchases of anything from peanut butter to books; it buys in bulk in Los Angeles, and ships container loads to Japan once a week. FBC’s competitive advantage is the relationship and system it has developed over the years with the Japanese authorities - something that other retailers, be it Costco, or the local Japanese competitor, would be unable to replicate.

Chuck Grafft, never intended this business to grow to its current 5 million in sales, and it was interesting to see how his approach to growth, strategy, and competitiveness ran contrary to jut about everything you learn in B-School. Running a successful and living a satisfying life are closely entwined, and in Chuck's world, the same value propositions that govern your personal life apply for business relations as well. His strategy in both aspects is that of a Hitchhiker: just hit the road, let fate guide you, turn back when you've hit a dead-end, but run and explore the possibilities that are out there.

We had a hunch that our next visit on the same day, at Procter&Gamble, would present a stark contrast...