Aside from the language differences, e-commerce in Japan can result in a lot of varying ideas and assumptions. Namely, there are a lot of old people and old people don’t understand technology. We have a few tips that will help with your e-commerce journey in Japan, checkout our e-commerce checklist too!
Consider a C2C approach
Since the Japanese retail scene dominates over 50% of E-Commerce using a C2C approach could provide a unique way into the market. メルカリ (Meurkari) is an app that C2C focused. If you are a boutique store then capturing that hand made goods market could be a great opportunity. Yahoo! Auctions is another popular platform in Japan
Do not sleep on the Instagram Shop
If you are already building an audience around your brand and not leveraging your social channels to drive sales, then it’s highly recommended you start. Instagram added shopping to their homepage tabs in November of 2020, clearly stating what the company wants its users to focus on.
While you may not view your social channels as a main component of your sales funnel, it is certainly worth thinking about. If you already have a dedicated fan base, why not show them what they want? Instagram shopping is easy to set up and provide yet another opportunity for your e-commerce products.
Seniors have the real buying power
The older generations in Japan are pretty overlooked when it comes to any sort of e-commerce or technology based strategies and it’s all stemming from stereotypes. The average amount of monthly expenditures is about $2,700 per month for those in their 50’s.
With 27% of the society being 65 years or older, you really should not overlook this demographic in Japan. Most senior citizens have a lot of time on their hands and really dive into new hobbies, maybe your brand can be their new thing.
You Need To Bring BIG Value
There is a big shift in spending habits for millennials. Having been raised in many turbulent global events, millennials have grown accustomed and embraced the art of saving. For many young Japanese, thrift has become a virtue. As stated in the link, head to toe brand names is no longer cool. This point goes a bit deeper though as fashion is tied to a strong sense of individuality and the second hand market has always been strong in Japan.
Needless to say, your products need to bring big value to the Japanese millennial consumer or risk being lost in the noise.
Validate Your Product
While you will definitely win over some customers purely from having the better deal or being in the right place at the right time but what about everything in between? There’s no better way to validate your product that have a strong word of mouth reputation. We recommend utilizing UGC or user generated content. Literally let your existing customers do your marketing for you. Not only does this provide social proof, but it also builds trust. In a market where value and more importantly cost performance can be a difference maker, having user generated content that shows your customers loving your product can really set you apart.