Online Shopping Soars in Japan
Online shopping in Japan is expected to become a $56 billion industry by 2015, this is according to a research done by global management consulting firm Mckinsey & Company. Virtual shopping is currently a $30 billion market representing five percent of total retail sales.
The significant shift from conventional shopping is attributed to the unlimited power of the Internet, and consumer cost-cutting during the 2009 recession. Instead of “hanging out,” consumers found it more economical to stay home, where the Internet became their key to the outside world. Worldpopulationreview.com pegged the population of Japan to be 130 million with 90 million Internet users.
Online shopping proved to be cheaper than to going to a retail store. Known for their discipline and diligent saving practices, Japanese buyers use online shopping to compare prices, product reviews and discussion forums. Price wars in electronics and apparel have also been sweeping virtual stores.
Innovative Selling
Thus, the astounding shift in consumer mindset is enough to convince retailers to get online and be part of the virtual shopping frenzy. To keep up with their dynamic market they have been developing various innovations.
For instance, a mobile gadget like Kindle keeps users glued to Amazon’s shopping catalog while simplifying the book purchasing process. There’s Zappos.com, the largest online shoe retailer – and even has a return policy. Japanese food products use Cookpad.com to market their latest promotions. The cooking and recipe site has over eight million users.
Another significant factor related to online retail success is efficient delivery. Japan is known to have the most reliable and reasonably-priced logistics network in the world. Japanese golfers commonly send their golf clubs to the course ahead of time – a key Amazon market.
Amazon Japan is the only outlet that can bravely offer “same-day delivery.” The efficient service began in 2009, with orders made at midnight delivered the following morning. Japanese buyers can even choose to pick up their orders at any of the 50,000 convenience stores over the country. For an extra fee fresh food like newly-caught crab from Hokkaido or Okinawa pineapple can be delivered to the buyer’s doorstep on the same day.
Love for Luxury Brands
Among the most visited shopping sites are Rakuten, Amazon Japan and Yahoo Japan. Rakuten is the number one shopping site. It carries everything from fashion, electronics, home, garden, health and beauty, car accessories, sports, food and drinks. It is one of the top Internet companies in the world along with Google, eBay, Yahoo and Amazon reporting revenue at US$4.7 billion in 2011. Founded in 1997, Rakuten currently has 10,000 employees worldwide.
The number one brand on Rakuten’s search list is Louis Vuitton. The luxury label has consistently been dominating the Japanese retail arena. According to an article in the New York Times the international luxury industry relies on the Japanese market for at least 13 percent of their total profit.
With the upper class as their primary market, brands like Louis Vuitton, Coach, Hermes and Tiffany also have significant presence among the middle class. These consumers penny pinch by skipping vacations or avoiding expensive restaurants so they can afford designer clothes, bags and shoes.
The obsession for stylish labels has migrated to the Internet. Other popular brands that are consistently at the top of Rakuten’s search list are Coach, Gucci, Hermes, and Nike.
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About the Guest Author:
Rodolfo Lentejas, Jr. is a fulltime freelance writer based in Toronto. He is the founder of the PostSckrippt, a growing online writing business dedicated to producing top quality, original and fresh content. To know more about him, please visit www.postsckrippt.ca. Like him on Facebook or follow him on Twitter, Google+ and Pinterest.