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Japan: E-commerce

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Overview
Mobile E-commerce
Business to Consumer (B2C) E-commerce
Business to Business (B2B) E-commerce

Overview

Overview

	Although Japan opened its door to the Internet much after its introduction in the mid 80s, internet usage has been growing in Japan at a phenomenal rate. E-commerce, a subset of the Internet, has considerably influenced Japan's business outlook and marketing. The potential for E-commerce in Japan is believed to be huge, particularly with respect to monetary savings yielded on the cost of conducting and initiating business. Japanese entrepreneurs and companies have impressively used E-commerce to grow their businesses. However, despite a high growth rate, cultural, legal and financial factors closely impact E-commerce in Japan, often posing hindrances to business development. Observers and researchers are starting to believe that Internet and E-commerce in Japan have the ability to act as catalysts that can spur a much-needed change in the Japanese culture. For starters, several Japenese people are quitting their full-time jobs to work over the Internet. Data taken from JP Morgan's 2009 Internet Report (as seen on the left) also shows that an overwhelming large proportion of Japanese now engage in E-commerce. The Japanese are well above the global average and only fall behind South Korea. Source: E-commerce in Japan

Although Japan opened its door to the Internet much after its introduction in the mid 80s, internet usage has been growing in Japan at a phenomenal rate. E-commerce, a subset of the Internet, has considerably influenced Japan's business outlook and marketing. The potential for E-commerce in Japan is believed to be huge, particularly with respect to monetary savings yielded on the cost of conducting and initiating business.

Japanese entrepreneurs and companies have impressively used E-commerce to grow their businesses. However, despite a high growth rate, cultural, legal and financial factors closely impact E-commerce in Japan, often posing hindrances to business development.

Observers and researchers are starting to believe that Internet and E-commerce in Japan have the ability to act as catalysts that can spur a much-needed change in the Japanese culture. For starters, several Japenese people are quitting their full-time jobs to work over the Internet.

Data taken from JP Morgan's 2009 Internet Report (as seen on the left) also shows that an overwhelming large proportion of Japanese now engage in E-commerce. The Japanese are well above the global average and only fall behind South Korea.

Source: E-commerce in Japan

Japan: E-commerce - DIGITAL MEDIA ACROSS ASIA

Mobile E-commerce
With mobile web users increasing dramatically, the Japanese have naturally also taken to mobile E-commerce. Data from Japan's leading E-commerce company Rakuten as seen in the graph depicted below left, shows a slow but steeady increase in mobile E-commerce. Another report on the bottom right also shows the steadily growing figures of the mobile E-commerce market. Companies are increasingly turning to mobile E-commerce to tap on the large number of Japanese mobile web users. An example is Tokyo Girls Collection, a semiannual fashion festival where audience can buy the garments worn by models via mobile phones.

Business to Consumer (B2C) E-commerce

Business to Consumer (B2C) E-commerce

Japanese B2C E-commerce initiatives suggest that Japanese corporations employ innovative strategies to exploit traditional aspects of Japanese business and consumer retailing, specifically with respect to customer preference. According to a survey by the Electronic Commerce Promotion Council of Japan, the Japanese Business to Consumer E-commerce market has surpassed predictions in terms of growth (USD 768 billion in 2004, approximately 12 times that of 1998). The largest slices of the B2C E-commerce market in Japan are taken by online real estate and automobile sales, while personal computers and peripherals follow closely. According to Paul A. Greenberg of the E-Commerce Times, the success of this market can be attributed to the introduction of a system which allows customers to order goods online, but pay for them in cash at brick-and-mortar convenience stores. These stores, known as "konbini," are a traditional part of the Japanese culture, sell a huge variety of items, and are located inconspicuously at almost every corner of the country. Reportedly, the Japanese, like people in other Asian countries, are resistant to online credit card usage, owing to insecurity of account numbers, and hacking and identity theft cases.

Japanese B2C E-commerce initiatives suggest that Japanese corporations employ innovative strategies to exploit traditional aspects of Japanese business and consumer retailing, specifically with respect to customer preference.

According to a survey by the Electronic Commerce Promotion Council of Japan, the Japanese Business to Consumer E-commerce market has surpassed predictions in terms of growth (USD 768 billion in 2004, approximately 12 times that of 1998). The largest slices of the B2C E-commerce market in Japan are taken by online real estate and automobile sales, while personal computers and peripherals follow closely.

According to Paul A. Greenberg of the E-Commerce Times, the success of this market can be attributed to the introduction of a system which allows customers to order goods online, but pay for them in cash at brick-and-mortar convenience stores. These stores, known as "konbini," are a traditional part of the Japanese culture, sell a huge variety of items, and are located inconspicuously at almost every corner of the country. Reportedly, the Japanese, like people in other Asian countries, are resistant to online credit card usage, owing to insecurity of account numbers, and hacking and identity theft cases.

According to Jeffrey Grau, eMarketer Senior Analyst, B2C E-commerce sales for Asia Pacific's 5 major markets totaled $59.1 billion in 2006, of which, Japan accounted for a staggering 62.3% share of the total online sales. However, it is predicted that by 2011, the region's mature markets of Japan and South Korea, will lose their share to growing online markets like India and China.

Despite Japan's supeior mobile penetration, the market size of E-commerce in Japan (USD 46 billion in 2004) was found to be much bigger than that for mobile commerce (USD 7.99 billion in 2004). The growing mobile culture in Japan, however, has spurred the development of sophisticated technologies which are helping to improve the mobile marketing landscape in the country.

Source:
Asian B2C E-commerce awakens
Japanese experiences with B2C E-commerce
Starting up Japan E-commerce

Business to Business (B2B) E-commerce

Business to Business (B2B) E-commerce

Japan's B2B market was predicted to grow fivefold over five years, to US$955 billion in 2005, according to a survey, conducted by Accenture, the Japan Ministry of Economy, Trade and Industry (METI), and the Electronic Commerce Promotion Council of Japan (ECOM), covering nearly 400 e-commerce sites. Strong development of Japan's domestic B2C e-commerce market is expected to continue, fueled by rapid growth of mobile Internet services and the nascent proliferation of broadband networks. Similar to its mature market counterparts like Germany and the US, Japan's B2B E-commerce market is largely privatized with minimal regulation and government oversight. As with all business in Japan, the culture exerts considerable influence on the B2B E-commerce landscape in Japan. On the one hand, wireless is fast replacing PCs and laptops. Many businessmen have adopted cellphones as their primary means of communicating and accessing the Internet. On the other hand, however, not everyone in the Japanese business world is modern and risk-friendly. Patrick Toolis, the CEO of a B2B start-up, describes these conservative businessmen as the "hanko stampers", the older, non-tech-savvy senior managers who must approve any new B2B initiative. Source: Japan's B2B Universe B2B Japan Consumers in the online marketplace Japan B2B market forecast	B2B E-commerce in Japan, classified by type of business process Source: Recent trends of B2B EC in Japan

Japan's B2B market was predicted to grow fivefold over five years, to US$955 billion in 2005, according to a survey, conducted by Accenture, the Japan Ministry of Economy, Trade and Industry (METI), and the Electronic Commerce Promotion Council of Japan (ECOM), covering nearly 400 e-commerce sites. Strong development of Japan's domestic B2C e-commerce market is expected to continue, fueled by rapid growth of mobile Internet services and the nascent proliferation of broadband networks. Similar to its mature market counterparts like Germany and the US, Japan's B2B E-commerce market is largely privatized with minimal regulation and government oversight.

As with all business in Japan, the culture exerts considerable influence on the B2B E-commerce landscape in Japan. On the one hand, wireless is fast replacing PCs and laptops. Many businessmen have adopted cellphones as their primary means of communicating and accessing the Internet. On the other hand, however, not everyone in the Japanese business world is modern and risk-friendly. Patrick Toolis, the CEO of a B2B start-up, describes these conservative businessmen as the "hanko stampers", the older, non-tech-savvy senior managers who must approve any new B2B initiative.

Source:
Japan's B2B Universe
B2B Japan
Consumers in the online marketplace
Japan B2B market forecast

B2B E-commerce in Japan, classified by type of business process

Source: Recent trends of B2B EC in Japan

Check out the following pages:

Demographics	Mobile Landscape	Internet Landscape

Read more about Social media in Japan:

joshua.sum	Latest page update: made by joshua.sum , Nov 12 2009, 8:11 AM EST (about this update About This Update Edited by joshua.sum view changes - complete history)
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