Japan’s e-commerce market is, reportedly, expected to report a growth of 6.9 per cent in 2022 to clock US $ 194.3 billion.
That’s not surprising considering the pace at which consumers have been increasingly shifting from offline purchasing to online purchasing.
Confirming the same, GlobalData – a leading data and analytic firm – said that online sales in Japan rose at a compound annual growth rate (CAGR) of 5.2 per cent between 2018 and 2021 to reach US $ 181.7 billion in 2021.
In a survey conducted by Japan’s Ministry of Internal Affairs and Communications, more than 50 per cent of households (with two or more members) ordered goods and services over Internet in July 2022.
Additionally, the average monthly expenditure on online shopping per household rose by 17.2 per cent in July compared to monthly average of 2021.
Nearly 70 per cent of the Japanese consumers reported having shopped online in the past month, while only 8 per cent indicated that they never shopped online.
While mega shopping events like Black Friday, White Day and Cyber Monday have supported e-commerce growth in Japan, simplicity, speed, security, and reward and benefits are some other key factors driving the online shopping in Japan.
Substantiating further, Ravi Sharma, Banking and Payments Lead Analyst at GlobalData, said “The pandemic has brought in a permanent shift in consumer buying behaviour pushing them towards online, a trend that is expected to continue.”
He added “Consequently, e-commerce sales will increase at a CAGR of 5.2 per cent between 2022 and 2026 to reach US $ 237.8 billion in 2026.”
