Japan has one of the largest, most sophisticated eCommerce markets in the world. Thanks to the country’s tech-forward nature, particularly in the realm of online payments, internet shopping in Japan presents a major opportunity for overseas brands hoping to break through in the Asian market.
In This Article
There’s much work to do to ensure success, however. Don’t expect to launch a simple translated website thinking it’ll be enough. You have to consider search behaviors and customer expectations, which differ greatly from Western markets.
Understanding these key elements of the Japanese customer journey are only the first step toward building a successful strategy.
The Scale of Internet Shopping in Japan
The Japanese online retail market is among the largest globally, thanks in part to a combination of high internet penetration and the country’s evolution into a mobile-first society. No matter the age group, consumers make online purchases regularly, including both luxury and everyday goods.
In contrast to other markets that are dominated by a single platforms, Japan’s eCommerce landscape is spread across three main marketplaces; Amazon Japan, Rakuten, and Yahoo! Shopping. Each offers its own unique advantage for buyers, but all serve multiple functions, pulling double duty as discovery engines and retail destinations.
Customers can research products, compare prices, and read reviews before making a final purchasing decision. That’s all key touchpoints on the customer journey happening within the same ecosystem. This makes these online marketplaces attractive, powerful growth drivers, but localization and strategy are the keys to seeing real results.
You can learn more about how Amazon and Rakuten advertising functions in Japan in our write-up on Japanese eCommerce here.
How Can Japanese Consumers Discover Your Products Online?
While we’ve explained the appeal of marketplaces as growth accelerators, they’re still only a piece of the puzzle.
Search
Japan is notorious for painfully long conversion cycles, since customers typically undergo a rigorous pre-purchase research routine. Outside of marketplaces, there are many other stops along the path, with one constant being search via Google and Yahoo! Japan. Search is the primary entry point for product research, leading users to product pages and brand websites.
Social
Social media also exerts a significant influence on purchasing decisions in Japan. With LINE as Japan’s reigning all-in-one social/messaging platform, potential customers can engage with you directly via your official account.
Since discovery happens across multiple channels, you need a coordinated, well-planned strategy involving many touchpoints, as opposed to relying on a single platform.
Roadblocks Foreign Brands Face with Internet Shopping in Japan
There is a complexity to Japanese eCommerce that many outside companies underestimate. The effect of this miscalculation is failed attempts to replicate proven Western strategies that don’t translate directly to the Japanese market.
And we mean ‘translate’ in a multi-faceted sense. It goes beyond simple language. In Japan, customers don’t just want to understand you, they need to trust you. American consumers seek out deals, while Japanese buyers seek out reassurance. This is what makes the conversion cycle here such a slog, but the upside is loyalty. If you can deliver a quality buying experience, you’ve essentially got a repeat customer.
What can you do to ensure a positive result?
- Utilize native-quality localization for brand sites
- Detailed product/service information
- Establish high customer service standards
- Diversify presence between Amazon and domestic competitors (Rakuten, Yahoo! Shopping)
- Offer payment options Japanese consumers are comfortable with (this is crucial: learn more here).
These points all provide trust signals to Japanese shoppers, showing them that you understand and are invested in the market for the long term. Thinking you can simply march into Japan with a rehashed global strategy is the quickest way to being ushered right back out.
Get It Right the FIRST Time
Internet shopping in Japan continues to grow as consumers increasingly rely on digital channels for product research and purchasing. As a brand, reaching them is easier than ever, but making a meaningful connection still requires time and effort. Just listing products online won’t cut it.
Investing in a thoughtful digital strategy can be the difference between limited visibility and significant growth. The best way to optimize your investment is by partnering with a native agency that has working knowledge of Japanese consumer behavior, and understands how to leverage that knowledge to the point of conversion.
iCJ has been leading brands to success in Japan for 20 years. We’ve achieved this by always staying on pace with consumer buying trends, while also adapting to emerging technolgies that streamline the online shopping experience. Let us put this knowledge to use on your behalf.
