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| Japan Fashion Ecommerce Market Growth |
The Japan fashion ecommerce market has emerged as a lucrative avenue for apparel
retailers and brands due to rising smartphone and internet penetration in the
country. Fashion ecommerce platforms offer a wide variety of clothing,
footwear, fashion accessories and beauty products from top labels and indie
designers to suit diverse customer preferences. The growing popularity of fast
fashion and trend-led streetwear among Gen Z and millennial consumers in Japan
has further accelerated online sales.
The Global Japan Fashion Ecommerce Market is estimated
to be valued at US$ 32.98 BN in 2024
and is expected to exhibit a CAGR of
14.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Japan
Fashion Ecommerce Market Growth are Nestlé S.A., The Coca-Cola
Company, PepsiCo Inc., Cargill Inc., Evolva Holding S.A., PureCircle Ltd.,
Stevia Corp., Ingredion Inc., GLG Life Tech Corp., and Tate & Lyle Plc. The
dominance of domestic fashion retailers like Uniqlo, GU and Zara in Japan's
retail sector is shifting towards online channels. Rapid growth of ecommerce
giants Rakuten, Amazon and Zozotown along with independent fashion webstores
has boosted the market size. Growing health consciousness among consumers is
also fueling demand for organic, eco-friendly and sustainable apparel
collections available online.
Rising internet penetration of over 90% in the country has created
opportunities for global fashion brands and retailers to enter Japan's
ecommerce market through online stores, mobile apps and social commerce
platforms. International players like ASOS and Boohoo have witnessed increased
sales traction in recent years by catering to the rising demand for western
fashion trends in Japan. With nearly 65 million smartphone users, the mobile
fashion shopping market holds immense potential for future growth.
Market Key Trends
Livestream shopping is gaining traction in Japan as an emerging trend in the
fashion ecommerce industry. Influencers and celebrities regularly host live
video streams on social media platforms like Instagram to showcase and sell
outfits, accessories and beauty products to their followers. The fun,
interactive format has successfully engaged younger audiences and boosted sales
for brands. Live commerce is expected to become a more mainstream shopping
channel and drive further market expansion through personalized virtual
shopping experiences over the next decade.
Threat of new entrants: The Japan fashion ecommerce market has moderate barriers to entry due to capital requirements and established brands.
Bargaining power of buyers: Buyers in the Japan fashion ecommerce market have high bargaining power due to the availability of substitutes and ease of switching between online retailers.
Bargaining power of suppliers: Fashion brands and manufacturers that supply to online retailers in Japan have moderate bargaining power due to low switching costs for retailers to find new suppliers.
Threat of new substitutes: The threat of new substitutes is high in the Japan fashion ecommerce market as consumers can easily shift to new online-only fashion brands.
Competitive rivalry: The competitive rivalry in the Japan fashion ecommerce market is high due to many etailers vying for market share.
Geographical Regions
The Japan fashion ecommerce market is dominated in terms of value by the Kanto region, which includes the capital city of Tokyo and accounts for over 35% of the country's online apparel sales.
The Tohoku region in northern Japan has been the fastest growing geographical region for the fashion ecommerce sector over the past 5 years. Cities like Sendai and Morioka have seen year-on-year growth of over 20% as more local consumers adopt online shopping habits.