On-line shopping and
web marketing in Japan


The Internet is a great tool to support global businesses. The Internet allows us to communicate with and sell directly to our target market. If you are planning to sell your products to Japanese customers on the net, this information will help you to develop your web marketing strategies.

Japanese Internet users and the possibility of on-line shopping

The number of host computers in Japan is about 1.17 million, and Internet users number about 10 million, according to a research by Network Wizards (InfoCom NL). IBC Report explains a similarity of online shopping and catalogue shopping, which has boomed in Japan. The main target market for catalogue shopping is house wives, and the percentage of house wife Internet users is increasing, which indicates future opportunities for online shopping. JETRO also discuss a new trend of foreign mail order shopping and personal mporting(Chapter 1). The online shopping market in Japan is expected to be US$7.2 million(750 million yen) in 1998, and especially travel industry will increase it's business sales on the Internet, such as the reservation of hotel rooms and airplane seats(IBC Report).

Browsers, modem speed and resolution

Research conducted in January 1998 indicates that Internet Explorer users are 55.7% and Netscape users are 43.3% market shares as the number of Japanese users increases. It is expected that both Explore and Netscape 4.x will increase. Yahoo! Japan's survey of modem speeds breaks down as follows:
  • 28.8kbps - 23.8%
  • 33.6bps - 21.0%,
  • 64kbsp - 18.2%
The resolution for the browser used are:
  • 800x600 or more - 36%,
  • 1024x768 - 35.3%
  • 640x480 -11.7%

Japanese search engines and directories

When Japanese Internet users look for Websites, about 92% of them use Japanese search engines or directories. Also they often find home pages through "web link" sites which introduce other Websites, magazine articles, magazine ads, email news, newspaper articles, and newspaper ads. Usually, like American Internet users, the Japanese users also, switch to other search engines in order to find exactly what they are looking for. Most Japanese Internet users use only Japanese search engines and directories. According to Nikkei Multimedia, the top 13 search engines and directories in Japan are:
  1. Yahoo! JAPAN
  2. Goo
  3. Infoseek Japan
  4. NTT DIRECTRY
  5. AltaVista
  6. Acara NAVI
  7. CSJ Index
  8. Hole-in-ONE
  9. NetPlaza
  10. InfoNavigator
  11. OpenText Japan
  12. Excite Search
  13. Lycos

Japanese people wnat to shop online

Nikkei Multimedia's survey in December 1997 indicates that 40.71% have experienced online shopping and want to try again, and 34.95% have not tried yet but want to try online shopping. Popular on-line products
Internet Service (mail magazine and/ or home pages) 24.9%
Online software (to download) 20.8%
Food 20.8%
Packaged software (to be mailed) 20.5%
Other PC equipment 20.1%
Book, Magazines 18.8%
Clothes 14.0%
Child Clothes and toys 11.9%
Daily necessities (Sundries) 8.5%
Gift 8.2%


Popular products for males and female are different. According to "WWW Research (6)", the top five popular products among Japanese females are:
  • Sundries, flowers, stationery
  • Ticket, gift card
  • Cosmetics, flagrances
  • Fashion, Accessories
  • Book, CD, Video
The top 5 popular products among Japanese males are:
  • Book, CD, Video
  • Computer software, games
  • Computer hardware
  • Sundries, flowers, stationery
  • Ticket, gift card
IBC report indicates that especially travel industry will increase it's business sales on the Internet, such a the reservation of hotel rooms and airplane seats.

Conditions to become a popular Website among Japanse Internet users

According to "Dai 2 kai Monitor Annke-to", Japanese users' home page priorities are:
Home Page gets updated often 78.8%
There is useful information 70.6%
There is interesting information 53.8%
The site offers sweepstakes or prizes 36.4%
It does not take long time to download 32.6%
It has clear design so that the users can find information quickly 31.0%
The site responds quickly by email 12.3%


"Tukaiyasui Online Shopping no joukenn" teaches us how we should conduct online shopping business to Japanese market. The following are the characteristics of good online shops:
  • The site can be downloaded quickly.
  • There are many products.
  • There are several ways to make payment.
  • Products are cheaper than those at off line shops in the "real world".
  • The site does not contain information which is not related to the site.
  • There are less 'Not Found' links and pages under construction.
  • There is contact information on the site.
  • It offers a good security system for payment.
  • Instructions on how to order products is easy to follow and understand.
  • It has a system by which customers can keep a record of what they order.
  • There is a quick response after ordering products.
  • It offers a simpler order form for returning customers.
  • It delivers products quickly.
  • It offers a page where customers can see thumbnail image of all products and a page which shows a magnified image of each item.
  • There is detailed product information such as size, color, and materials.

Online Marketing Strategies

One marketing strategy in the Japanese market is to offer sweepstakes. 'Toku Toku Page' which introduces numbers of sweepstakes and prizes held by many web sites in the world is one of the most heavily accessed Websites in Japan. . 'Toku Toku Page' was more popular than Yahoo! JAPAN in the survey. Offering a sweepstakes can lead Japanese people to visit your site. Giving out gift is a common marketing strategy in the "real world" and it also works on the Internet world.
Another good marketing strategy to promote home page is to promote one's URL to magazines. Many Japanese magazines contain a section which introduces good URLs, and the readers are potential customers. If the product we want to sell is clothes for women, we can concentrate on the magazines for women and fashion. Focusing on one's specific market saves time and money and gets greater returns. There are also magazines whose sole focus is listing home page URLs. "Internet Home Page Best Book Mark 2000", published by Nikkei Net Navi, allows us to reach people who really like to surf the Internet and want to find something interesting and useful. For example, there is a section of traveling to Hawaii in the book, introducing nine Websites, such as Aloha Air, Wiki Wiki Com, and Kokeo HAWAI'I. The Japanese readers visit those sites before they travel to Hawaii, and through these sites, they can reserve various tour activities or airplane tickets to the other islands. They also choose products they buy in Hawaii on line. Since the vacation period is very short for Japanese people, they often decide where they go and what they buy before they land in Hawaii. There are many great products in Hawaii Japanese people love. They not only buy the products for themselves but they also ask their friends and/or relatives who go to Hawaii to buy those items for them. If you have an on-line shop, you can reach those royal customers.

Last comments for you to target Japanese online shoppers

Japanese people have difficulty in communicating in English, thus it is very important that you communicate with them in Japanese. Even if you have the great products, Japanese people flip past your English website, and go to another Japanese language Website. Having Japanese Website is probably the most important marketing strategy to target Japanese Online shoppers.


References

Chapter 1: Attitude Changes of Japanese Consumers."
Closer to the Big Bang
Dai 2 kai Moniro Anke-to to Kakushu Kekka 1.
"Dai 2 kai Monita- Annket-to-Kakushu Kekka
"Dai11 kai Annke-to Kekka (Internet Riyou Joukyou).
"IBC Report : Nihonn no Internet Shopping Sijou."
"InfoCom NL - Trend Jouhou - Data"
Internet Home Page Best Book Mark 2000. 1997 Tokyo: Nikkei BP
Introduction
Kaiteki Doru Kurashi." Josei Jishin 1997: 229-232 Japan
Nikkei Multimedia
Nikkei Multimedia
"Tukaiyasui Online Shopping no Jouken."
WWW Research
"Yahoo! JAPAN Dai 4 kai Annke-to Kekka Happyou."
"Yahoo! JAPAN Dai 4 kai Annke-to Kekka Happyou."
"Yahoo! JAPAN Dai 4 kai Annke-to Kekka Happyou."
http://www.nikkeibp.co.jp/NMM/NEWS/9804/9804061.html






Subscribe to our free Japan market report



From Japanese translation to web marketing

LinkUp Services
933A 16thAve. Honolulu, Hawaii 96816 U.S.A
TEL: 1(808)732-4106 E-mail:info@linkupservices.com
Home Page: http://www.linkupservices.com


Copyrightc2001. 2002 LinkUp Services
All rights reserved

Last updated 05/23/2002