January 2025 Issue

FOCUS

2024-2025: Japan Consumer Markets in Review

We’ve taken a slightly different approach to summing up Japan’s consumer market in 2024 by providing a statistical snapshot of where we are right now. On the surface, Japan is burdened with an ageing, declining population and a consumer economy where inflation is the only important topic of conversation, but this belies the fact that the shops are full and retailers are, on the whole, more profitable than ever. There are problems to solve, but households remain wealthy with growing stocks of savings. 2025 will be all about unlocking this money and providing some much needed relief from the pressures or work and worries about what’s happening in other countries.

Korean brand rush as Zozo signs with Musinsa

A raft of new investments in and by Korean brands emphasise just how much appetite there is among Japanese consumers right now for all things Korean, a trend which has led mainstream leaders in the fashion sector to set up collaborations. We have covered the likes of J Front’s Parco and Beams partnering with Korean firms but the latest is Zozo which has set up a joint venture with leading Korean fashionfirm, Musinsa. Major and minor Korean companies are also now investing directly in the market across fashion, cafes and variety.

Editorial: Polarising disconnects

Takashimaya to close Sakai store, Meitetsu Nagoya future in doubt

Despite the tourist boom, sales to locals remain less consistent so more department stores will close this year as owners review aging buildings and weigh whether costs will exceed profit potential longer-term. Even in central Nagoya, plans for major redevelopment of the station area mean Meitetsu Department Store is likely to close.

Price pressure reducing spending

Households are increasingly worried about inflation. While the BoJ is considering further interest hikes as it confirms evidence of wage increases, customers have already begun to cut back on spending significantly. With further international turmoil, inflation caused by a weak Yen and high import costs it may not be going away soon.

Lawson: new ideas for growth 

Lawson is the third largest convenience store chain nowadays, but a recent poll revealed it to be the second most popular – and it is gaining on leader Seven Eleven. The company has released a slew of new developments in the past couple of months, some of which point to the future of retailing here.

Baths: not so iconic

The Japanese bath is part of the culture and every house and apartment has one. Right? Well, not quite, it seems. Baths are rapidly giving way to showers, and there are even a growing number of apartments that forego kitchens too. If any trend shows that no form of Japanese consumer behaviour is set in stone, it is this.

Q-commerce becoming mainstream

Japan’s busy and largely urban population is a perfect target for q-commerce. Amazon Fresh prioritises rapid delivery as its key sales point and there are a host of q-commerce providers such as Uber and OniGo. Last month, Ito-Yokado said it would introduce pick-pack-pay services run by OniGo at 93 Tokyo stores and Uber Eats confirmed it is offering the same service from 1,000 Aeon My Basket supermarkets.

60% of staff blog viewers visit stores

Blogs generated by store staff continue to grow in popularity, driving both store visits and online sales of everything from clothing and accessories to food and wine. The latest survey by the leader in the field suggests more than half of viewers of staff blog content then visit a store and 75% want to.

Winter bonuses rise for 3rd year

Many companies raised winter bonuses yet again in December 2024 thanks to strong growth outside the manufacturing sector. While some said they need to support staff facing higher prices, others were more open in saying they needed to pay more to keep staff from taking jobs elsewhere as the labour shortage worsens. Retailers will be hoping that a higher proportion of these bonuses get spent in stores in the final quarter.

Muji growing fast but not to ¥3 trillion by 2030

Ryohin Keikaku made a big splash in 2021 when it announced a sales target of ¥3 trillion by 2030, more than a six-fold increase. Following a reshuffling of management, targets have been slashed but growth rates still remain impressive and compelling plans for expansion in food, household and clothing suggest a near doubling of sales by 2030.

Seven & I sell off could see retail powerhouse emerge

Seven & I is currently reviewing bids for its York Holdings group. Some of the bidders already own supermarkets, of which the most interesting are KKR and Sumitomo. The merger of the latter’s Summit or KKR’s Seiyu chain with Ito-Yokado and York Benimaru would create a new powerhouse to rival Aeon and Life.

J Front gets into used luxury

After a successful trial in Daimaru Kobe, J Front Retailing and Komehyo have announced a new joint venture company which will seek to purchase unwanted luxury items from department store customers for resale.

Retail Data: Malls up 7.1%, department stores 3.4%

IN BRIEF

Eddie Bauer plans 5 stores a year

Studio do: Taiwanese brand expands in Japan

Mitsui to launch two major malls this year

Maruhiro: a local department store

43 large store applications for October

Lawson & Seven Eleven introduce AI for staff

York Benimaru reopens former Ito-Yokado

Fancl jumps on social media skincare bandwagon

LINE acquires Beenos to expand e-commerce

OK Super confirms five stores in Kansai in 2025

Nitori opens in India

Secondhand is ok for gifts

IKEA launches new pickup services in Kyushu

Shopping mall definition to change

Beams founder to retire

Daily sales of ¥10 million for V.A.

Nike opens Shibuya flagship

More redevelopment in Marunouchi/Nihonbashi

Bigger Familymart stores, one container at a time

Grounds sneakers growing fast

Ainz & Tulpe deepens collaboration with FrancFranc

Laforet Harajuku No.1 for popup stores

Ultra Fast Fashion: we shouldn’t buy it but we do

Tokyo Tatemono launches new mall brand Minanoba

Brands and Companies in this Issue

Adidas, 1
Aeon, 7, 9, 13
Ain Pharmacies, 12
Akachan Honpo, 6
Amazon, 9
Amu Plaza, 22
Ann Chen, 4
Atmos Tokyo, 3
Authentic Brands, 3
Bain Capital, 13
Bathtope, 8
Beenos, 6–7
Billabong, 3
Bontemps, 3
Buyee, 6
Chompy, 9
Cloudpick, 7
Colette Mare, 12
Comfort Market, 9
Coop Kobe, 7
Cordography, 1
Cosmos Initia, 8
Cosmos Yakuhin, 5
Counter Works, 12
Daimaru, 1, 4, 13
Daimaru Matsuzakaya, 13
Daiso, 6
Daiwa House, 8
Dentsu, 9
Don Qujiote, 14
Drawfit, 1
Dreamworks, 3
Eddie Bauer, 3
Fake Busters, 7–8
Familymart, 3, 6, 9–10
Fanbassador, 10
Fancl, 6
Fast Retailing, 11
First Down, 3
Fortress Investment, 13
FrancFranc, 12
Genky Drugstore, 1
Ghatkopar, 7
Groobee, 7
Hankyu, 1
Hanshin Umeda, 12
HiVie, 4
HYP2K, 3
IKEA, 8
Isetan, 1, 4
Itochu Shoji, 3
Izumi, 12
Joinus, 22
Kaldi Coffee, 3
Kansai Supermarket, 7
KDDI, 5–7
Kintetsu, 4
Komehyo, 13
Kongo, 12
Lacoste, 3
Lala Terrace, 3
Lalaport, 3
Lawson, 1, 5–9
Lixil, 8
Loft, 6
Lopia, 14
Lotte, 3
Lucua Osaka, 22
Lululemon, 9
Lumine Est, 22
Madness Market, 12
Margarine Fingers, 3
Martin Kim, 1, 3
Maruei, 4
Maruhiro, 4
Matsukiyo, 5
Matsuya, 1, 4
Matsuzakaya, 1, 4, 13
MediQuarters, 3
Meitetsu, 4–5
Mercari, 13
Minanoba, 13
Mitsubishi Estate, 10
Mitsubishi Shoji, 12
Mitsui Fudosan, 3
Mitsukoshi, 1, 4
Mizujin, 3
Mosaic Mall, 3
Muji, 1, 11–12
Musinsa, 1, 3
My Basket, 9
Nafco, 5
Nankai Railway, 4
Nextage, 5
Nike, 1, 9
Nitori, 1, 7, 12
Nojima, 3
Nugu, 3
Odakyu, 4
Odd Studio, 1, 3
OniGo, 9
Onward Crosset, 3
Opening Project, 1, 3
Parco, 1, 13
PUDO, 6
Qol, 6
Rakuten, 5
Recipe Group, 3
Ronron, 3
Ryohin Keikaku, 11–12
Seijo Ishii, 3
Seiyu, 3, 13
Seria, 10, 13
Seven Eleven, 5–6, 9
ShopCounter, 13
Staff Start, 9–10
Studio Do, 4
Takashimaya, 1, 4–5
Tobu, 4
Tokyo Tatemono, 10, 13
Tokyu, 4, 7
Total Brain, 3
Uber Eats, 9
Uniqlo, 1, 6, 12
Vanish Standard, 9
Wiggle Wiggle, 1, 3
Wolt, 9
Workman, 1, 10
Xexymix, 3
Yahoo, 6
Yamada Denki, 5
York Benimaru, 5–6, 13
York Holdings, 13
Youhee, 3
Zozo, 1, 3, 5