Hello, this is Frank.

Today’s topic is titled “What Is a Sōgō Shōsha?”, so let’s begin by clarifying what we mean by general trading companies.

The term Sōgō Shōsha actually came into use around 1955 in Japan, and it’s used in contrast to specialized trading firms that focus on specific sectors such as steel or textiles.

According to Wikipedia, up until the early 1970s, the term “Sōgō Shōsha” typically referred to ten companies: Mitsubishi Corporation, Mitsui & Co., Sumitomo Corporation, Itochu Corporation, Marubeni, Nissho Iwai, Tomen, Nichimen, Kanematsu-Gosho, and Ataka Sangyo. These were widely known as the “Top 10 Trading Companies.”

Today, the term “Sōgō Shōsha” usually refers to the top seven general trading firms: Mitsubishi Corporation, Mitsui & Co., Itochu Corporation, Sumitomo Corporation, Marubeni, Toyota Tsusho, and Sojitz. When referring to the top five only, it’s often called the “Big Five,” and when including all seven, the term “Big Seven” is used.

Personally, during my business trips to regions like Latin America and Africa, I often had the opportunity to share meals and exchange insights with representatives from these top-tier trading houses.

However, when it comes to agility and speed in building business, the mid-sized general trading companies often outperform the giants. Their ability to pivot quickly is unmatched.

If your goal is to “create something out of nothing,” then working with or in a mid-sized Sōgō Shōsha might just be the exciting career path you’re looking for.

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If you’re a beginner or just getting started, I highly recommend my daughter O-Hana Fantasia’s chat-based lessons. Check them out via the links below.

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Thank you for reading today.

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