Japan E-Commerce Market Size, Share, and COVID-19 Impact Analysis, By Model Type (Business to Business (B2B), Business to Customer (B2C), Customer to Business (C2B), and Customer to Customer (C2C)), By Payment Mode (Card Payment, Bank Transfer, Digital Wallet, Others), By Offering (Travel, Consumer Electronics, Beauty & Fashion, Household, Pharmaceuticals, Food & Beverages, Sports, Agriculture, Automotive, Others) and Japan E-Commerce Market Insights Forecasts to 2030

Industry: Information & Technology

RELEASE DATE Feb 2023

REPORT ID SI1507

PAGES 200

REPORT FORMAT

The Japan E-Commerce Market is expected to grow at a CAGR of 10.6% between 2022 and 2030, from USD 165.8 billion in 2021 to USD 325.9 billion by 2030. The growing importance of faster browsing has led to the development of connectivity, resulting in the development of 4G and 5G technology. As a result, customer technological awareness is expected to positively impact the growth of the Japanese e-commerce market.

Japan E-Commerce Market

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Market Overview

In terms of technology, Japanese e-commerce companies are at the forefront of the industry. As a result, Japan has come to be associated with technological progress. Japan has been regarded as a global leader in the manufacture of high-quality electronic goods for many years, creating a populace of tech-savvy individuals who yearn for innovation. As a result of this, it's no surprise that Japan is the world's fourth-largest e-commerce market, trailing only China, the United States, and the United Kingdom. Additionally, the country's distribution network is well-developed and interconnected, and Japan's small size facilitates faster and more convenient shipping and delivery, which is also boosting the country's e-commerce market.

Unique trends among Japanese consumers are uncommon elsewhere. Travel, consumer electronics, furniture, and home goods are the four most popular online retail categories worldwide. One of the most popular product categories is fashion, and a lot of international label businesses have had success appealing to Japanese consumers. The Japanese food and beverage industry is also extremely competitive, and Japanese customers are willing to spend more for goods that are excellent in quality, convenient, useful, and healthful.

The Rakuten Ichiba platform currently performs better than every other e-commerce platform in the region. In the ranking of the top Japanese e-commerce enterprises, Rakuten is followed by international tech giants like Amazon Japan, and Yahoo!

Report Coverage

This research report categorizes the market for Japan's E-Commerce Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan E-Commerce Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan E-Commerce Market.

Driving Factors

The Japan E-Commerce Market is expected to be worth USD 325.9 billion by 2030, growing at a CAGR of 10.6% between 2022 and 2030. Over 50% of households placed online orders for goods and services in July 2022, according to Japan's Ministry of Internal Affairs and Communications "Survey of Household Economy." In addition, the average monthly spending per household on online shopping increased in that month compared to the monthly average of 2021 by 17.2%. Many Japanese consumers use their cell phones to conduct online research, purchase, and pay for goods and services, resulting in a mobile penetration rate of more than 136%.

The country's E-commerce business is being further driven by digital advertising in the area. Major E-commerce companies typically use product feeds and shopping ads along with search and display ads, which are primarily used by brands and advertising agencies. The growth of social commerce is also hastening the expansion of Japan's e-commerce market. Despite having access to international social media sites such as Twitter and Facebook, Japan's most popular social media network is Line, a multi-featured programme similar to WhatsApp.

Restraining Factors

Many factors, such as lower delivery capability, an imperfect credit system, and mid-aged internet users, are restricting the development of e-commerce in traditional retail trade. The growing concern about data breaches on online shopping websites is limiting Japan's market growth during the forecast period. Even if the application of technology is beneficial to the expansion of e-commerce, the consumer runs the risk of suffering a financial and personal loss if they misuse it. There is a chance that market growth will be hampered by an increase in the prevalence of cybercrime, digital fraud, and unclear return policies over the period.

COVID 19 Impacts

Since the COVID-19 pandemic began in 2020, demand for e-commerce has increased in both Japan and the rest of the world, as people prefer online shopping to in-person purchases. This increase in e-commerce demand caused by COVID-19 has had a significant impact on logistics in Japan, posing numerous challenges. Staffs in distribution centers, for example, are at risk of becoming infected if they come to work, but demand for logistics increased significantly in 2020 due to home seclusion. As a result, the number of cases of delayed deliveries increased dramatically during the pandemic.

Market Segment

In 2022, the Business to Business (B2B) segment is witnessing a higher growth rate over the forecast period.

Based on the model type, the Japan E-Commerce Market is segmented into Business to Business (B2B), Business to Customer (B2C), Customer to Business (C2B), and Customer to Customer (C2C). Among these, the Business to Business (B2B) segment is expected to grow at a faster rate over the forecast period due to companies increasing preference for online selling and purchasing of goods and services. Businesses that prefer B2B e-commerce platforms conduct their operations using either the marketplace model or the direct model.

In 2022, the card payment segment is witnessing significant CAGR growth over the forecast period.

On the basis of payment mode, the Japan E-Commerce market is segmented into card payment, bank transfer, digital wallet, and others. Among these, the card payment segment is witnessing significant CAGR growth over the forecast period. Among these, the card payment segment is witnessing significant CAGR growth over the forecast period. The increasing penetration of credit, debit, and pre-paid cards, which provide users with convenience and security, has resulted in the card payment segment capturing the largest share of the e-commerce market.

In 2022, the consumer electronics segment is dominating the market with the largest market share of 35% over the forecast period.

Based on offering, the Japan E-Commerce market is segmented into travel, consumer electronics, beauty & fashion, household, pharmaceuticals, food & beverages, sports, agriculture, automotive, and others. The consumer electronics segment dominates the market with a 35% market share over the forecast period, owing to the improved digital landscape in Japan, the ease of convenience offered by online sales in terms of review and return policies and the expansion of their digital services.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan E-Commerce Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

Rakuten
Amazon Japan
Kakaku Inc.
Mercari
Taobao
DoCoMo
Zozo Town
Yahoo Japan
Dpoint
Yahoo! Auctions
Rakuma
DMN.Com Ltd.
Yahoo!
Point Town
Buyma
Kinokuniya
Takashimaya
Qoo10 Japan
EC Navi Inc.
Wowma
MonotaRO Co., Ltd.

Key Target Audience

Market Players
Investors
End-users
Government Authorities
Consulting and Research Firm
Venture capitalists
Value-Added Resellers (VARs)

Recent Developments

In April 2022, Uniqlo, a Japanese clothing company, announced the launch of a new feature for its e-commerce website that will allow customers to have a donation made by the company to a charity on their behalf. For sustainably produced items like Uniqlo's BlueCycle Jeans, the Buy with Purpose feature, which will be present on the retailer's app and online website, will be available.

In February 2022, Rakuten, a significant supplier to the Japanese e-commerce industry, launched its own NFT platform for the purchase and exchange of virtual goods, as a way to participate in the cryptocurrency market. According to the business, its platform allows IP owners to create their websites that facilitate the issuance and trading of NFTs.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Spherical Insights has segmented the Japan E-Commerce Market based on the below-mentioned segments:

E-Commerce Market, By Model Type