Japan has emerged as a prominent player in the global e-commerce arena as Japan ranks 3rd as the largest eCommerce markets in the world. Over 90% of the Japanese consumers have internet access making Japan a rapidly evolving digital landscape with a tech-savvy population, the Japanese e-commerce market presents lucrative opportunities for businesses looking to expand their online presence. In this article, we will delve into the key trends, challenges, and opportunities shaping the e-commerce landscape in Japan.

Overview of the Japanese E-commerce Market

The Japanese e-commerce market is the 3rd largest in the world, valued at $117.76 billion. Characterized by a robust infrastructure, high internet penetration, and a culture of convenience, Japan’s e-commerce sector continues to experience steady growth, with a projected annual increase of 10%. From household goods to luxury items, booking for vacations, Japanese consumers are increasingly turning to online platforms to fulfill their shopping needs.

Key Trends Driving Growth

Several trends are driving the growth of e-commerce in Japan. Firstly, the rise of mobile commerce (m-commerce) is reshaping the way Japanese consumers shop online. With over 91% of the population having access to mobile internet, smartphones have become the preferred device for browsing and purchasing goods and services. As a result, businesses are optimizing their platforms for mobile devices to enhance the user experience and capitalize on this trend.

Secondly, the popularity of cross-border e-commerce is on the rise, enabling Japanese consumers to access a wider range of products from international sellers. This trend is driven by factors such as globalization, increased demand for niche products, and the ease of purchasing goods from overseas. To succeed in the cross-border e-commerce market, businesses must focus on localization, efficient logistics, and easy and diverse payment options.

Challenges and Opportunities

While the Japanese e-commerce market presents significant opportunities, it also comes with its own set of challenges. One of the primary challenges is the competitive nature of the market, with both domestic and international players competing for market share. To stand out in this crowded landscape, businesses must differentiate themselves through innovative marketing strategies, personalized customer experiences, and high-quality products.

Additionally, Japanese consumers place high value on trust, resulting in a strong need for clear and open customer service and presenting any reviews for your products online. When products lack clarity or information, Japanese consumers would shy away from making their purchases. Effective localization strategies, including translating content into Japanese, adapting to local preferences, and understanding cultural nuances, brands can build a greater presence in the Japanese market. 
At Tokyoesque we operate by first identifying where a client is on their Japan market entry journey. Depending on this, their needs might revolve around market research and feasibility testing, partner and sales opportunities or simple localisation / translation support. Using a combination of these tools, it is possible to test a client’s product or service in the Japan market effectively to gauge market demand, user behaviour and the optimal way to proceed. This means that rarely, if ever, do we recommend heavy investment into the market for a digital or e-commerce company from the very beginning: rather, activities should be ramped up, as demand is proven in the Japan market.

Take a look at our latest projects and research in this industry below.

Projects we’ve worked on in Software & E-Commerce Sector in Japan

Market Expansion for Software & E-Commerce Sector in Japan