Understanding Japanese Consumer Behavior and Trends

Japan is known for its unique culture, and this extends to how consumers interact with products and make purchasing decisions. Lets dive in and discover some interesting insights!

Japanese Consumer Behavior

When it comes to consumer behavior, the Japanese market stands out for its meticulous attention to detail, sense of quality, and strong brand loyalty. Japanese consumers are known for their extensive research before making a purchase. They carefully analyze product reviews, compare prices, and seek recommendations from friends and family.

Additionally, the concept of omotenashi, which roughly translates to hospitality, plays a significant role. Japanese consumers appreciate personalized customer service, customized packaging, and attention to detail in every aspect of the purchasing experience. This focus on exceptional customer service has set a benchmark for businesses all around the world.

Another noteworthy aspect of Japanese consumer behavior is the prevalence of cash transactions. While online payments and credit card usage are increasing, many individuals still prefer paying in cash. This preference for physical currency has implications for businesses, encouraging them to provide various payment options to accommodate everyone.

Japanese Consumer Trends (As of 2023 Nov)

Now lets explore some of the current consumer trends shaping the Japanese market:

1. Sustainable and Eco-Friendly Products

Japanese consumers are showing a growing interest in sustainable and eco-friendly products. They are actively seeking out items that have minimal environmental impact, such as reusable shopping bags, eco-friendly packaging, and energy-efficient appliances.

2. Health and Wellness

Health and wellness have become a significant focus for Japanese consumers. There is a rising demand for organic food, dietary supplements, fitness products, and wellness services. This trend is driven by an aging population that prioritizes maintaining a healthy and active lifestyle.

The latest booming product is Oura Ring. This manufacturer is partnering with Softbank, the telecom giant, to distribute its product all over Japan. According to Kakaku.com, the comparison website,Oura Ring ranks top 10. 

For health purpose, people play GPS games. This is also a growing trend in the Japanese market. You see people gathering a certain spot and playing GPS games. 

Pokemon Go is one of the most famous game for all generations. 

DQ Walk (dragon quest walk) is only available in Japan, but there are many core fans. 

In 2023, Monster Hunter Now is the new entrant in this market by CAPCOM. The main game is on PS5, but for this GPS game, it's free and far easier to play than PS5. 

3. Customization and Personalization

Japanese consumers appreciate products and services that can be customized to their specific needs. From personalized skincare routines to tailor-made clothing, customization is a key trend. Companies that offer ways to personalize products or services are gaining popularity in the Japanese market.

4. E-commerce and Mobile Shopping

E-commerce and mobile shopping have experienced significant growth in Japan. With the convenience of online shopping, more consumers are turning to digital platforms to make their purchases. Mobile apps and websites with user-friendly interfaces are thriving in this market.

Especially for younger generations, Amazon and Rakuten are yesterday. Low pricing online stores are thier go-to places. SHEIN, a Chinese company, is one. If you do not know about low pricing, you will get it when you see it. One hoodie costs $7.00. 

Qoo10, its parent company is eBay, was a good deal online store before SHEIN comes to Japan. Mainly for female customers, but now you can find nice looking beef here. 

5. Popularity of Limited Edition and Collaboration Products

Japanese consumers are highly influenced by limited edition and collaboration products. Whether its a special edition snack or a collaboration between a popular brand and a celebrity, these limited-edition items create a sense of exclusivity and drive consumer interest.

Collaboration is not limited to physical products, but also food as well. This collaboration is one of the most popular Takoyaki chain restaurant, Gindako with Oshi No Ko, currently skyrocketing its popularity in anime and manga format. 

Collabolation doesn't stop there. Vocaloid, which is more popular by the name of Hatsune Miku invented by Yamaha Corporation, is also collaborating with brands. This time, the new vocaloid producer named Yukopi created the song called Kyoufuu All Back, which recoreded 76 million views only in 9 months. Nissin, a food giant, works with that song with its flagship instant noodle brand, Cup Noodle. 

The result is 9.4 million views in 5 months. That is almost 10x bigger exposure than casting famous actors and actresses in thier commercial history. Vocaloid is that powerful. 

Collaboration marketing is not limited to physical products or foods. It also covers software function as well. The reason behind this is that Japanese commedians are shifting its presence from TV to social media, especially on Youtube. To name a few, following Youtubers are top ranked: (as of Dec 2023)

NAKATA UNIVERSITY - Nakata Atsuhiko (5.2 million subscribers)

EGA-CHANNEL - Egashira 2:50 (4.12 million subscribers)

KAJISAC - Kajihara Yuuta  (2.4 million subscribers)

Here's the software function promo example by Japanese comedian, also known as Geinin, called Chocolate Plant. In this funny video, LINE, a messgener app, brings a brand new AI functionality. The 90% of its conent is still funy and LINE promotion blends in perfectly. Even how Chocolate Plant uses this LINE's function is funny too. It's not too obvious collaboration, yet it sure is. 

6. Spicy food as an entertainment

Many Youtubers attract the views with this topic. It's entertaining at the same time, you can try this at home as well. 

• Peyoung Yakisoba Max by Fischer's: 10M views
• 100x hot Tsukemen by EGA-CHANNEL: 8M views
  
• 108x hot noodle by HikakinTV: 7.4M views
  

You can get those extra hot noodles at convinience stores in Japan. Also, you can find the ramen restaurant called Mouko Tanmen Nakamoto, where spicy-person's go-to spot. 

By understanding Japanese consumer behavior and keeping an eye on emerging trends, businesses can tailor their strategies to effectively cater to this unique market. Adapting to the preferences and values of Japanese consumers can lead to success and long-term customer loyalty.

Conclusion

Japanese consumer behavior combines a meticulous attention to detail, brand loyalty, and a preference for exceptional customer service. Sustainable products, health and wellness, customization, e-commerce, and limited edition items are among the key trends shaping the Japanese market. Stay tuned for more insights into the ever-evolving world of consumer behavior!