3 things you should know about Japan’s Luxury Market

Japan’s luxury market presents a lucrative opportunity for foreign companies. Driven by quality-conscious consumers, the market thrives on premium cosmetics, and omnichannel approaches. Read 3 things you should know regarding the industry below:

1. Japan’s luxury market is the third largest globally

After America and China, Japan leads the luxury industry. It is valued around $30 billion and is projected to grow. Luxury cosmetics and perfumes emerged as the largest segment.

2. During the pandemic, Japan has remained a strong market for many luxury brands

During the Covid-19 pandemic, Japan’s economy saw a resurgence in the second quarter, with the gross domestic product returning to pre-pandemic levels, largely attributed to a significant increase in luxury goods sales. They remained a strong market while sales in key APAC regions like China slowed down.

Personal consumption, particularly the purchase of luxury items, played a pivotal role in driving this robust growth. For instance, sales of expensive watches and jewellery exceeded pre-pandemic levels for several consecutive months, reflecting a strong demand for luxury products

3. Brick-and-mortar stores remain the primary sales channel

Japan’s luxury market primary channel is through offline purchases. Over 75% of purchases generated were through brick-and-mortar stores as compared to e-commerce purchases. Offline customer care and the in-store experience are highly valued in Japan.

Online channels serve as a complement to the in-store experience. Japanese consumers often research, evaluate, and purchase luxury products online, but they place significant importance on the offline experience and the relationship with sales associates.

Conclusion

In conclusion, the Japan luxury market presents a viable opportunity for foreign companies due to its projected growth, unique consumer trends, and the resilience it has demonstrated in recovering from economic challenges. Understanding and catering to the preferences of Japanese luxury consumers, as well as establishing a direct relationship with them, can position foreign brands for success in this lucrative market.

 

Want to find out your potential in Japan’s luxury market? Contact GLOBAL ANGLE today to enquire more.