July 25, 2024
Japan Fashion Ecommerce Market

The Japan Fashion Ecommerce Market is gaining traction amid rising demand for online shopping

The fashion ecommerce market in Japan enables customers to purchase various fashion items like apparel, footwear and accessories online from the comfort of their home. Key advantages of online fashion shopping include hassle-free purchases with a wide variety of options available at competitive prices anytime, anywhere along with features like reviews, size guides and interactive filters that help customers choose the right products easily. Due to busy lifestyle and increasing popularity of online shopping, more customers are opting for digital means to purchase fashion products which is driving growth of Japan’s fashion ecommerce industry.

Japan fashion ecommerce market  is valued at US$ 32.98 billion 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 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 growing working population and rising disposable income levels have increased spending on fashion and lifestyle products in Japan, fueling demand in the ecommerce fashion market. Furthermore, improving internet and smartphone penetration along with various online payment options and fast delivery services have encouraged more customers to shop fashion items online via their mobiles and desktops. In order to leverage the booming ecommerce industry, fashion brands and retailers are increasingly focusing onJapan by launching Japanese language websites and optimizing their mobile apps to offer localized shopping experiences.

Market Key Trends
Adoption of artificial intelligence and virtual try-on is one of the key trends being witnessed in Japan’s fashion ecommerce industry. Major players are investing in AI-powered virtual try-on and augmented reality technologies to provide an interactive personalized shopping experience to their customers online. This allows shoppers to try different looks virtually before purchasing fashion items like apparel, footwear and accessories. AI helps better understand customers’ preferences as well through their browsing and purchase history to offer more relevant and customized product recommendations. Such innovations are enhancing customer engagement and driving sales upwards for ecommerce fashion retailers in the competitive Japanese market.

Porter’s Analysis

Threat of new entrants: The growing demand for unique styles creates opportunities for new brands to emerge in the market. However, the presence of established brands makes it difficult for new entrants to gain market share.

Bargaining power of buyers: Buyers have significant bargaining power as they can easily switch between brands online. They can compare products and prices across different websites.

Bargaining power of suppliers: Established fashion brands possess more bargaining power over fabric suppliers and manufacturers due to their large scale of operations. However, new brands have less negotiating power.

Threat of new substitutes: Alternatives such as second-hand fashion sites pose a minor threat. However, consumers’ demand for latest trends and original designs keeps this threat low.

Competitive rivalry: The market is highly fragmented with no clear leader. However, competition is intense with brands focusing on niche styles, fast shipping, easy returns and frequent promotions to win customers.

Geographical Regions

The Japan fashion ecommerce market is concentrated in major cities such as Tokyo, Osaka, and Nagoya owing to higher internet penetration and high spending power of urban populations. Tokyo accounts for over 40% of the country’s total online fashion sales, driven by the presence of young working professionals and students with high purchasing power.

The southern region of Kyushu is projected to witness the fastest growth during the forecast period. Initiatives by the local governments to increase internet infrastructure in rural areas coupled with rising disposable incomes are expected to boost online shopping activities in the region. Emerging brands are especially targeting Kyushu to capture the growing demand for fashion at affordable prices.

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