Consumer Attitudes & Online Retail Dynamics in Japan

Report Summary

The e-commerce trend in Japan began relatively late when compared with other developed nations such as the US, UK and France. The major reason for this delay was the economic crisis in Japan during the 1990s. The country’s slow growth, financial instability and weak political leadership were other aspects which explain Japan’s slow e-commerce growth. However, the future trend is changing with a growing acceptance of e-commerce in Japan due to the 2008 global financial crisis, which made shopping through online channels a more convenient procedure than using physical retail outlets.  Alongside this the emergence of mobile phones which can access the internet has also gained popularity among Japanese consumers.

Japan’s economy showed signs of returning to a recession as a result of the impact the tsunami and earthquake had on the country in March 2011. Following this, the retail industry declined by 3.5%. The impact on the retail sector was also considerable, as supply chains were disrupted, which led to some of the largest manufacturing factories suspending or closing their production. A positive growth has been recorded since June, indicating the country is getting back to normal since the disaster struck and growth is expected to continue in the coming months.

In Japan, every eight in ten people have used the internet on a regular basis.  During the period 2005–2010, the amount of Japanese internet users grew at a CAGR of 3.85%. Japan has an internet penetration rate of 80.81%. It remains the world's highest internet-based economy with nearly eight in ten people claiming to have used the internet, with an average time of 14 hours per week spent online. The internet has become a trustworthy and acceptable shopping avenue for Japanese consumers. Retailers are now increasingly developing the quality and efficiency of their sites by offering richer content, which in turn will facilitate a rise in their sale rates.

The report provides core insights into consumer behavior and highlights the latest online trends and their impact on online product sales. Core data sets give both historical contexts and a view into the future, allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel. By examining best practice from leading national large-scale online retailers, as well as reviewing innovative approaches from smaller players, the report also provides insights and ideas about how best to approach growing online sales for your business.  

Key Features

• Understand the consumer behavior and online trends in Japan; along with which products (of 25 different categories) will be the major winners and losers in the coming years.
• Improve market and strategic planning using highly granular, forward-looking market data.
• Learn from best practice approaches outlined in the case studies of leading online retailers.
• This report provides the magnitude, growth, share and dynamics of the online retail market.
• Core data sets give both historical contexts and a view into the future – providing data from 2005 through to 2015.
• By examining best practice from leading national online retailers, the report also provides insights and ideas about how best to approach growing online sales for your business.

Table of Contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The Triangulated Market Sizing Method
1.3.3 Quality Control and Standardized Processes

2 Consumer Insight: Online Shopping Attitudes and Behaviours
2.1 Japan Overview
2.1.1 In Japan, every eight in ten people have used internet on regular basis
2.1.2 Japan have one of the highest broadband speed across the globe
2.1.3 Mobile Phone Penetration
2.2 Consumer Attitudes and Behavior
2.2.1 High online shopping penetration rate
2.2.2 In Japan, the consumers plan their online shopping activities in advance
2.2.3 Online shopping sales causing ripples at specialist and convenience stores
2.2.4 Digital product category is the most popular product group
2.2.5 Number of mobile internet subscribers are on a rise in Japan
2.2.6 Japan has highest online share towards total retail in the Asia-Pacific region
2.2.7 Konbini payment methods are increasing in popularity among the Japanese
2.2.8 Influence of social media is gaining popularity on consumer’s preference
2.2.9 Low touch products to drive online sales

3 Online Channel Dynamics
3.1 Online Share of Total Retail Sales
3.1.1 Japan Online vs Offline Channel Forecasts
3.1.2 Online Penetration: Global and Regional Comparisons
3.2 Channel Dynamics
3.2.1 Japan Channel Group Dynamics - Future Performance
3.2.2 Channel Group Share Development
3.2.3 Individual Channel Performance
3.3 Category Dynamics
3.3.1 Online vs Offline Retail Sales Comparison by Product Category Group 2010
3.3.2 Online Retail Market Dynamics by Category Group
3.3.3 Online Retail Sales Share by Product Group
3.3.4 Online Retail Sales Growth by individual Product Categories
3.3.4.1 Food and Grocery Categories Market Size and Forecasts
3.3.4.2 Electrical and Electronics Categories Market Size and Forecasts
3.3.4.3 Music, video and entertainment software Group Market Size and Forecasts
3.3.4.4 Apparel, accessories and luxury group Market Size and Forecasts
3.3.4.5 Books, news and stationery group Market Size and Forecasts
3.3.4.6 Sports and Leisure Equipment Product Group Market Size and Forecasts
3.3.4.7 Furniture and Floor Coverings Product Group Market Size and Forecasts
3.3.4.8 Home and Garden Product Groups Market Size and Forecasts

4 Case Studies: Leading Online Retailers in Japan
4.1 Retailer 1: Rakuten Ichiba
4.1.1 Business Description
4.1.2 Site Experience
4.2 Retailer 2: Yesasia.com
4.2.1 Business Description
4.2.2 Site Experience
4.3 Other Innovative Retailers in Japan
4.3.1 Bidders.co.jp
4.3.2 Calamel
4.3.3 Puma

5 Appendix
5.1 Methodology
5.2 Contact us
5.3 About ICD Research
5.4 Disclaimer

List of Tables

Table 1: Japan Exchange Rate US$-JPY (Annual Average), 2005–2010
Table 2: ICD Research Retail Channel Definitions
Table 3: ICD Research Retail Category Definitions
Table 4: ICD Research Retail Country Coverage
Table 5: Japan Channel Retail Sales and Forecast (JPY billions) by Channel Group, 2005–2015
Table 6: Japan Channel Retail Sales and Forecast (US$ billions) by Channel Group, 2005–2015
Table 7: Japan Channel Retail Sales and Forecast (% Share), 2005–2015
Table 8: Japan Online Sales vs Global Average, 2005–2015
Table 9: Japan Online Sales vs Asia Pacific, 2005–2015
Table 10: Japan Overall Retail Segmentation (JPY billions) by Channel Group, 2005–2015
Table 11: Japan Channel Retail Sales and Forecast (JPY billions) by Channel Group, 2005–2015
Table 12: Japan Channel Retail Sales and Forecast (US$ billions) by Channel Group, 2005–2015
Table 13: Japan Channel Retail Sales and Forecast (% Share) by Channel Group, 2005–2015
Table 14: Japan Channel Retail Sales and Forecast (JPY billions) by Channel Group, 2005–2015
Table 15: Japan Channel Retail Sales and Forecast (US$ billions) by Channel Group, 2005–2015
Table 16: Japan Retail Sales Split (JPY billions), Online vs Offline, 2010
Table 17: Japan Retail Sales Split (US$ billions), Online vs Offline, 2010
Table 18: Japan Online Retailers Market Dynamics by Category Group, 2005–2015
Table 19: Japan Online Retail Sales and Forecast (JPY billions) by Category Group, 2005–2015
Table 20: Japan Online Retail Sales and Forecast (US$ billions) by Category Group, 2005–2015
Table 21: Japan Total and Online Retail Sales in Food and Grocery Product Categories (JPY billions), 2005–2015
Table 22: Japan Total and Online Retail Sales in Food and Grocery Product Categories (US$ billions), 2005–2015
Table 23: Japan Total and Online Retail Sales in Electrical and Electronics Categories (JPY billions), 2005-2015
Table 24: Japan Total and Online Retail Sales in Electrical and Electronics Categories (US$ billions), 2005–2015
Table 25: Japan Total and Online Retail Sales in Music, video and entertainment Categories (JPY billions), 2005–2015
Table 26: Japan Total and Online Retail Sales in Music, video and entertainment Categories (US$ billions), 2005–2015
Table 27: Japan Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (JPY billions), 2005–2015
Table 28: Japan Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (US$ billions), 2005–2015
Table 29: Japan Total and Online Retail Sales in Books, News and Stationery Categories (JPY billions), 2005–2015
Table 30: Japan Total and Online Retail Sales in Books, News and Stationery Categories (US$ billions), 2005–2015
Table 31: Japan Total and Online Retail Sales in Sports and Leisure Equipment (JPY billions), 2005–2015
Table 32: Japan Total and Online Retail Sales in Sports and Leisure Equipment (US$ billions), 2005–2015
Table 33: Japan Total and Online Retail Sales in Furniture and Floor Coverings Categories (JPY billions), 2005–2015
Table 34: Japan Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ billions), 2005–2015
Table 35: Japan Total and Online Retail Sales in Home and Garden Product Categories (JPY billions), 2005–2015
Table 36: Japan Total and Online Retail Sales in Home and Garden Product Categories (US$ billions), 2005–2015

List of Figures

Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users (millions), 2005–2010
Figure 3: Total Fixed Broadband Internet Subscribers (millions), 2005–2010
Figure 4: Mobile Phone Penetration, 2005–2010
Figure 5: Japan Online Consumers to total Internet Population, 2010
Figure 6: Japan Growth of Traditional Retailing vs Online Retailing,  2006–2010
Figure 7: Digital Product leading the category group, 2010
Figure 8: Mobile Internet users as a % of Total Mobile users, 2010
Figure 9: Japan Online Retail Sales Split (%), 2010
Figure 10: Japan Channel Retail Sales and Forecast (US$ billions) by Channel Group, 2005–2015
Figure 11: Japan Online Sales vs Global Average (% of Total Retail), 2005–2015
Figure 12: Japan Online Sales vs Asia Pacific Countries Average (% of Total Retail), 2005–2015
Figure 13: Japan Overall Retail Market Dynamics by Channel Group, 2005–2015
Figure 14: Japan Retail Sales and Forecast (JPY billions) by Channel Group, 2005–2015
Figure 15: Japan Retail Sales Split, Online vs Offline, 2010
Figure 16: Japan Online Retailers Market Dynamics by Category Group, 2005–2015
Figure 17: Japan Online Retail Sales and Forecast (US$ billions) by Category Group, 2005–2015
Figure 18: Rakuten - Web-store Overview
Figure 19: Rakuten - Product view
Figure 20: Rakuten - Comparison tool
Figure 21: Rakuten - Mobile Apps
Figure 22: Yesasia.com - Overview
Figure 23: Yesasia.com - Search Options
Figure 24: Bidders - Ranking System
Figure 25: Calamel - Mobile Apps
Figure 26: Puma - Product view
Figure 27: Puma - Style tool