There has always been some reluctance on the part of Western retailers to sell on the Japanese market. However, according to its Ease of Doing Business Index, the World Bank ranks it as one of the best e-commerce startup locations in the world. Let’s explore why Japan could be an excellent choice for expanding your fashion e-commerce brand!

Some facts and figures

Japan’s e-commerce market is dominated by the fashion segment, which accounts for 17.8% of the country’s total e-commerce. Further growth is expected over the coming years, resulting in a projected Japanese fashion e-commerce market volume of US$23,558.1 million by 2028. Some economists say there has never been a better time to enter the Japanese fashion e-commerce segment.

Japan is by no means a small fish in the e-commerce pond. According to research, around 70% of Japanese shop online. Why then is there such a reluctance among Western traders to take the leap?

The online market in Japan poses a number of barriers for entry and a unique set of rules that most sellers are not used to playing by – but: huge numbers of shoppers buy online (Rakuten averages 100 million unique users per year). However, Japanese online shoppers are reluctant when it comes to cross-border shopping (only 10% buy goods from outside Japan).  The solution: registering a branch of your business in the country – alternatively, you might consider the following option to get a foot in the door:

Three Japanese fashion e-commerce giants

Over one-third of all online retail transactions in Japan happen on three local platforms: Rakuten, Amazon, and Yahoo! Shopping. Western sellers can set up a storefront, advertise product listings, and use coupons to sell products just like at home. A good idea if you take that route: the setup of an in-country warehouse will make more sense than mailing individual items halfway across the world, never mind the issues with returns!

Loyalty – a drawback and an asset

Japanese online shoppers are the careful kind. They want plenty of information before any purchase. Well-written, descriptive product texts are a must. That also means how your website or listings are displayed is very important. Japanese online shoppers are very loyal – meaning that a new website might have more difficulty succeeding than a new storefront on Rakuten or Amazon.jp. Establishing your brand in the market may therefore be initially difficult, but the right strategy will ensure that it pays off in the long run.

Language barrier

In addition to the Roman alphabet, the Japanese language has three writing systems. That means there are a number of ways keywords can be displayed. To operate well in the Japanese fashion e-commerce market, it’s important to work with native speakers. A deep understanding of the language is a must to ensure that the keywords you use are appropriate and tick all the right boxes.

A question of style

Japan has a massive, vibrant, interesting, and fiercely competitive fashion e-commerce market. As a result of decades of fashion culture, the Japanese have a high regard for quality, workmanship, technology, and design. Many Japanese designers incorporate traditional Japanese styles with modern Western ideas to create exciting new looks.

Bottom line

Breaking into the Japanese fashion e-commerce market will require ingenuity, perseverance, the right tools, and partners on the ground as well as at home. Japan is a country of well-established traditions and certain expectations that need to be considered. However, this huge market may be a great opportunity for new designers, niche products, or unique styles never seen before in the Land of the Rising Sun. It may be a bold move for your business or brand, but it may just be the breakthrough opportunity you have been waiting for.



Sources

 

autor_eurotext_100Author: Eurotext Editorial Team

We explain how internationalization works, provide tips for your translation projects and outline some of the technology and processes used. We also report on current e-commerce developments and cover a range of language-related topics.