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Along with the growing prominence of China in corporate strategy and decision-taking, Japanese firms are increasingly aligning their activities to accommodate the shift towards a customer-led market environment and the advent of a major consumer market on Japan's doorstep. This study shows how Japanese firms adjust their marketing to changes in Chinese consumption patterns and address the impact of geographical and socioeconomic variables on innovation diffusion. By taking a fresh look at the marketing challenges amidst latent consumer ethnocentrism and cosmopolitanism, this study generates fresh insights into the reconfiguration of Japanese marketing and retailing activities in this emergent market.