I'm in Tokyo right now for a week-long business trip. I work for a Japanese company, and one of my employees is Japanese, and also a bass player. I noticed that the former website had a notice posted on it. I asked him to translated for me, and it described that Kanda Shokai was no longer distributing Fender guitars after April 1st. It went on to list models and parts that were already out of production.
I went to the Ochonomizu guitar shopping district on Saturday. It's a place with about 10 guitar shops in a 3 block span. I had just been here in January, and all looked fine then. This time there was noticeably less Fender Japan stock. Everyone that I could find working at a shop who spoke English said Fender Japan is done. They all said that they had all of the Fender Japan stock they were ever getting, and it will probably all sell through in 2 or 3 months.
I got into some detail with one guy who spoke English very well. I asked why this was happening. He said that fender USA was selling directly now.
Now, recently there have been a few interesting things happening here. The Japanese Yen is super low compared to the dollar. It's lost about 16% of its value in the last year and a half. This caused the Fender Mexico offerings here to be almost on top of the Fender Japan offerings. They were redundant.
The distributor model they had in place probably added 15% to the price of anything imported to Japan, and Fender probably didn't make that much royalty on the guitars manufactured in Japan. Getting rid of the Japanese Fenders , and replacing them with Mexican Fenders would get them better scale on their Mexican production, and make those guitars cheaper to make, and cheaper to get to Japan. They could pocket that difference, pass it on to the consumers, or split the difference, making everyone happy.
Most businesses use a distributor model only until the business reaches the critical mass to justify going direct.
I understand this all, but still mourn the passing of Fender Japan...