Japan and eCommerce – what’s the story?
If you’re considering expanding into the eCommerce market in Japan then you’ll be pleased to hear that according to the US export.gov organisation, Japan boasts the third largest eCommerce market in the world. It’s also one of the fastest growing on the planet, meaning that plenty of opportunities abound for those keen to offer their products to Japanese consumers online. Read on to find out more about the current state of the eCommerce market in Japan.
1. Consumers are accustomed to shopping online
Japanese consumers are now accustomed to shopping and buying goods online. In fact, statistics show that eCommerce penetration is 77.1% - and this number is forecasted to ascend as high as 75.9% in the next four years.
2. eCommerce penetration covers most major industries
No matter your industry or niche, it’s probably that there is already a receptive audience awaiting you online in Japan. Japanese consumers are known to shop for a wide range of goods and services online, including personal care items, electronics, fashion, food, appliances and toys.
3. Service-based sales also do well online in Japan
If you don’t retail physical goods, there is still an opportunity to launch your eCommerce offering in Japan as the service sector also does well online. Japanese consumers are comfortable shopping for travel services for example online. 2017 figures have service eCommerce accounting for 35.4% of total eCommerce expenditure.
4. Online spending peaks at certain times
In Europe and the USA, summer retail spending levels tend not to be the biggest or best of the year due to travel. In Japan however it’s a different story, with the summer months often recording some of the best eCommerce sales figures for the year. The reason for this is that many larger Japanese corporations pay their staff bonuses during the summer months, which has a knock on effect in eCommerce spending. At this time of year, more luxury-level items tend to be sold online with travel also a popular recipient of the bonus cash.
How can your business tap into the booming Japanese eCommerce market?
As with any new market launch, there are plenty of things to consider before you can open your virtual doors. As a new eCommerce retailer you’ll need to have an appropriate payment gateway and payment processor in place for Japanese currency, you’ll need a Japanese website, designed for a Japanese audience, you’ll need a local shipping partner and returns policy not to mention Japanese marketing collateral.
If you’re ready for the challenge and are keen to launch into the Japanese market, contact our Japanese market specialists to find out how we can help.