July 22, 2024
Japan Fashion Ecommerce Market

Japan Fashion Ecommerce Market is estimated to witness growth owing to Rising Millennial Population

The Japan Fashion Ecommerce Market is estimated to be valued at US$ 56.03 Bn in 2023 and is expected to exhibit a CAGR of 12.5% over the forecast period 2023 – 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The Japan fashion ecommerce market consists of various products, including apparels, footwear, cosmetics, jewelry and accessories that are sold online. The market players offer a large variety of products with attractive discounts and fast delivery, gaining popularity among the consumers.

Market key trends:
One of the major trends fueling the growth of Japan fashion ecommerce market is the rising millennial population in the country. According to the statistics, millennials accounted for around 35% of the Japan’s total population as of 2023. The millennial consumers are technology-savvy, prefer online shopping due to convenience and are highly influenced by social media. They are the major customers for fashion ecommerce retailers. The market players are focusing on attracting millennials through social media marketing campaigns and by offering latest trends at discounted prices. they are further launching mobile-friendly websites and apps to improve customer engagement. This rising millennial population is estimated to contribute significantly to the market growth over the forecast period.

Porter’s Analysis
Threat of new entrants: The Japan Fashion Ecommerce Market Size  is moderately threatened by new entrants due to high capital requirements and dominance of key established players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and price comparison across platforms.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of many buyers and brands in the market.
Threat of new substitutes: Threat from new substitutes is high with growing popularity of online shopping over traditional retail channels.
Competitive rivalry: Intense.

SWOT Analysis
Strengths: Dominance of key players like Amazon Japan, Zozotown and Rakuten with strong brand presence and loyal customer base. Wide range of product offerings from small sellers to big brands.
Weaknesses: High logistics and warehousing costs. Lack of personalized shopping experience compared to physical stores.
Opportunities: Growing young population and their increased preference for online shopping. Large untapped rural market opportunities.
Threats: Stiff competition from local and global ecommerce companies. Data privacy and security concerns.

Key Takeaways
The Japan fashion ecommerce market is expected to witness a high growth of 12.5% over the forecast period of 2023-2030 to reach a value of US$ 56.03 Bn in 2023. The growth is attributed to growing young population in Japan and their increasing preference for online channel over traditional retail stores due to its convenience.

Regionally, Eastern Japan is expected to dominate the market owing to concentration of major cities like Tokyo and high internet penetration in the region. Western Japan is also an important market aided by growing ecommerce adoption in major cities of Osaka and Kyoto.

Key players operating in the Japan Fashion Ecommerce market are Amazon Japan, Zozotown, Rakuten, JAPANNET Shopping, Happy Mail, LOHACO, SHOPLIST, iStyle by Cosme.net, DMM.com, WEGO, Felissimo, Amazon Japan, Zozotown, Yahoo! Shopping, @cosme, Winc, TRADEMARK JAPAN, CaSa, SHOP JAPAN, Felisiya, dot-st, LOFT. The players are adopting both organic and inorganic strategies like new product launches, partnerships and acquisitions to strengthen their market presence and gain competitive edge.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it