Japan Cross-border E-commerce Market Analysis Report By Platform, By Application, By Region And Segment Forecasts From 2020 To 2030

Industry Insights

The Japan cross-border e-commerce market generated a revenue of USD 2.59 billion in 2019. It is also estimated to register a 7.5% CAGR from 2020 to 2030. Rising influence among the millennial population over usage of products having branded and imported product portfolio and increasing usage of the internet for online shopping is expected to drive the market growth.

This type of trade is carried out when the seller sells his product to the consumer located in any other country. This trade has started gaining traction in the last few years due to the difference in product pricing, quality, payment methods, and shipping options. The Japanese market for international online trade is expected to propel in the upcoming years due to the increasing availability of various payment methods and prevention measures undertaken for reducing online frauds.

Several external factors like increasing the urban population, shifting shopping trends, and surging usage of the internet and smartphone have contributed majorly to the market growth. As the trend of adopting imported products is increasing at a rapid pace across Japan, several e-commerce companies have started leveraging this fact to expand their business, which is projected to propel market growth.

The large enterprises and well-established players have started the sale of their products through online mode on account of less expenditure involved in developing storage, communication, and infrastructure facilities. Moreover, e-commerce companies are also approaching these organizations to sell their products through e-commerce channels. Also, the rising influence of online branding and marketing tools like Facebook and Google ads are expected to trigger upmarket growth across Japan.

Platform Insights

The B2C (Business to Consumer) platform segment held the dominant share of around 53.85% across the Japan cross-border e-commerce market in 2019. The rising influence of social media and the surging middle-class population have contributed majorly towards the growth of this segment. Further, usage of the internet for the sale and purchase of goods and services has also fueled up market growth. Thus, several banks and financial institutions have started developing secured and safe online payment gateways and platforms.

The C2C (Customer to Customer) platform segment held a share of around 10.0% across the market in 2019. It is expected to register the highest growth with more than 8.0% CAGR from 2020 to 2030. Several companies have started offering various platforms where individual sellers located in one country can sell their products in other countries. Such an initiative allows the buyer to directly contact the seller and thus can eliminate the need for complex distribution channels and middlemen.

Application Insights

The furniture and appliances application segment held the largest share of around 25.33% across the market in 2019. The increasing presence of companies that offer home appliances and furniture across this region has contributed majorly towards this market demand. Moreover, huge investments being undertaken by governing bodies for infrastructure development are expected to propel the market growth for this segment.

The segment of electronics and media also accounted for considerable market share across the market in 2019. It is also expected to retain its share in the upcoming years. The rising popularity of devices like smartphones, tablets, and laptops among the Japanese population is the major factor contributing to its market share. For example, iPhones by Apple Inc. are widely popular across Japan. The personal care application segment is also expected to account for significant CAGR in the upcoming years due to the rising popularity of imported cosmetic products.

Country Insights

The Japan cross-border eCommerce market is expected to gain momentum in the upcoming years due to the rising inclination towards the adoption of imported products prevailing among the millennial population of Japan. Also, the unavailability of many products in the home country, brand loyalty, and pricing benefits are some of the factors taken into consideration by the individuals. Moreover, the emergence of e-commerce portals, enhanced usage of smartphones, and the internet are also projected to fuel up the market growth across Japan.

Around 80.0% of the overall population across Japan makes use of the internet, and 70.0% of adults prefer online shopping. Further, 54.0% of the population makes use of smartphones, and around 14.0% of the online sales are carried out through smartphones. Thus, the key players operating in this region have started leveraging these factors to widen the product sales through their channels.

COVID-19 Impact Analysis

The cross-border e-commerce market across Japan has been positively impacted due to the COVID-19 pandemic. The imposition of lockdown and travel restrictions has reduced the percentage of the offline sale of products. Thus, the e-commerce service providers have started leveraging this situation by providing hassle-free, doorstep, and contactless delivery. Further, the need for electronic gadgets and personal care products has increased due to emerging work from home policy, online education system, and an increasing need for maintaining hygiene and social distance. Moreover, the rise in the usage of the internet at home is expected to augment the market growth across Japan in the post-pandemic period.

Japan Cross-border E-commerce Market Share Insights

The key players operating in the market are Kakaku.com, Inc., Amazon.com, Inc., Apple Inc., DMM.com, Ltd., Yahoo! Japan Corporation, and YODOBASHI CAMERA CO., LTD. These players are witnessing stiff competition and thus have started several partnership programs.

Strategies like collaborations, mergers, and acquisitions are being undertaken by these players to widen their geographical reach. For example, Rakuten, Inc. had collaborated with Walmart, Inc. in 2018 to open the first e-commerce store of Walmart in Japan. It has enabled Rakuten, Inc. to gain a cutting edge as the Japanese end users can access U.S. brand products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country levels and provides an analysis of the latest industry trends from 2015 to 2030 in each of the sub segments. For this study, Million Insights has segmented the Japan cross-border e-commerce market based on platform, application and country:

• Platform Outlook (Revenue, USD Million, 2015 - 2030)
    • B2B
    • B2C
    • C2C

• Application Outlook (Revenue, USD Million, 2015 - 2030)
    • Food & Beverage
    • Personal Care
    • Furniture & Appliances
    • Toys, hobby & DIY
    • Electronics & Media
    • Fashion