Japan is a country with the third-largest GDP in the world after the United States and China. Its huge markets mean that they have a large number of people buying products online every year. In 2016, there were over 87 million internet users in Japan, which was 15% higher than the 2013 official figures.
Japanese market being so valuable means that hundreds of eCommerce businesses are trying to gain a share of this market by attracting potential customers with their attractive offers and discounts. In 2012, Rakuten had more than 77% of all e-commerce sales in Japan, making it one of the most successful eCommerce companies ever.
Based on forecasts from Euromonitor International, we have estimated top selling products in Japan for 2022.
Table of Contents
1. Baby Food
Japan has one of the highest fertility rates in the world, but since 2003, even this population has been decreasing. There are fewer babies born every year and people are having children at a later age. The huge drop in Japan’s population is because young people are delaying starting a family to focus on their careers or socializing. This also means there is less demand for baby products including food, diapers, etc. So top-selling baby food should decrease over the next few years as well
2. Smartphone
Japan is one of the most advanced countries in terms of technology, which is why it is number 2 in smartphone sales per capita. The country has over 80 million smartphone users with mobile internet penetration of around 90%. It’s estimated that more than 50% of Japanese people use smartphones to access their social media accounts.
3. Office Supplies
Even though Japan is very technologically advanced, there are still many businesses that prefer printed materials including pamphlets and leaflets for marketing purposes. Printed advertising often works better than digital ads because they stay longer on the scene and provide information about products or services that cannot be captured by digital means.
4. Houseware Electronics Appliances
Household appliances like fridges, ovens, etc are popular among the income-rich population in Japan. Even though these appliances are expensive, they last for a very long time and save money on weekly grocery shopping. Household appliance companies like Panasonic and Sharp have been very successful in selling their products online as well as offline through top eCommerce websites.
5. Skin Care Products
Skincare is one of the fastest-growing industries in Japan with an estimated value of $3 billion by 2018 end. According to research, women spend nearly double as men when it comes to skincare, which explains why most customers who buy beauty products online are female.
6. Chocolate & Biscuits
Japan has a sweet tooth and is the second-largest consumer of chocolate behind the US only, making it a perfect place for confectionery brands including Nestle and Hershey to sell their products online. Japan is a land of Kit Kat, Pocky, and Pretz, so it’s no surprise that chocolate makes the list of top-selling products in Japan in 2022.
7. Cosmetics
As mentioned earlier, Japanese women tend to be very conscious about their looks which explains why cosmetics are a big business in Japan where beauty rituals have been around for centuries. Cosmetics brands from all over the world including Maybelline from US and SK-II from Singapore have been doing extremely well with their online stores in Japan.
8. Lingerie
The lingerie market in Japan is expected to grow over 15% by 2020 with an estimated value of $5 billion. Online lingerie sales in Japan have been on the rise because it’s easy and convenient for customers to shop from home with just a click of the mouse.
9. Watches
Japan is home to Seiko, one of the most successful watch brands in the world. According to estimates by Euromonitor International, watches are expected to have a value of $6 billion by 2020 which will grow even further if online shopping gains momentum.
10. Maternity Wear
Maternity wear is a growing business with an estimated value of over $2 billion in 2022 thanks to more and more young women delaying pregnancy for their careers. Companies like Uniqlo have been aiming at millennials by introducing new clothing lines for expectant mothers ensuring they stay on-trend throughout their pregnancies.
11. Coffee
Japan is one of the most important markets for coffee, where young people are at the forefront of this trend. According to Euromonitor International, coffee value sales in Japan are expected to grow by over 8% by 2020 which makes it the perfect time for coffee brands like Starbucks and Lavazza to invest in startup eCommerce stores in Japan. The popularity of coffee boosts the sales of coffee shops and widens the coffee shop marketing industry.
12. Alcoholic Drinks
Alcohol including beer, whiskey, and sake has been around in Japan since the 16th century so it’s no surprise that alcoholic drinks make up $2 billion markets today with growing demand among millennials who prefer cocktails over traditional shots. Asahi Breweries, Kirin Beer and Yoshinoya Foods Co Ltd are leading producers of alcoholic drinks all of which operate top eCommerce websites catering to Japan’s growing appetite for alcoholic drinks
13. Organic Food
Organic food is one of the fastest-growing industries in Japan with lucrative deals for eCommerce companies like Amazon and Alibaba. According to the organic food center, the organic food industry in Japan was worth $2 billion by 2015 which is expected to grow further due to the rising number of health-conscious consumers.
14. Snacks
Snacks are not just popular among children but also adults who prefer snacking on healthy treats while watching their favorite TV series on streaming sites like Netflix. Snacks market in Japan is expected to grow by over 6% by 2020 making it the perfect time for snack manufacturers like Calbee Inc and Ezaki Glico Co Ltd- the owner of Pocky brand – to launch new eCommerce stores selling DIY kits so more people can mix and match their favorite flavors.
Conclusion:
Japan is one of the most advanced and developed eCommerce markets in Asia with few brands already selling their products online. While Japan’s traditional brick-and-mortar stores will never die, new startups like Amazon will continue to sign wholesale deals with Japanese sellers looking for more opportunities beyond their home market. The eCommerce industry in Japan might be still relatively small but it has great potential if we consider how many successful eCommerce companies operate in neighboring countries like China and South Korea.
Although it might be difficult for global brands to enter this market due to regulatory issues and language barriers, digital entrepreneurship can open up lots of opportunities for foreign entrepreneurs who speak at least some Japanese and understand the cultural aspects of doing business in Japan. The same goes if you are thinking about launching your own eCommerce store in Japan, you might want to consider shipping some products thereby using USPS Global Shipping Program offered by the American postal service. Sellers can choose between domestic and international shipping services while getting access to an online tracking system allowing them to provide accurate delivery timeframes for their Japanese customers.
