Japan Cross-Border E-Commerce Market is Projected to Reach $3.40 Billion by 2025 | Hexa Research

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Research Report on China Japan Cross-Border E-Commerce Market Size, Share, Growth, Trends, Application Analysis, Competitive Market Strategies and Forecasts, 2019 to 2025

21 February 2019, Japan cross-border e-commerce market is expected to reach USD 3.40 billion by 2025, growing at a CAGR of 4.7% from 2017 to 2025. The emergence of e-commerce portals as a key selling medium on account of improved internet connectivity along with the presence of multiple applications in Android and iOS platforms is expected to remain one of the favorable factors over the next eight years.

In Japan, over 80% of the population is using the internet while 70% of adults in Japan shop online. Around 54% of the population in the country uses smartphones and about 14% of online sales are made through mobile phones. The country has a market of 76 million online shoppers where 10.2% of consumers shop from overseas websites. Localization is considered as a key element to success as the population patronizes portals which are easy to comprehend and use the Japanese language.

While cross-border e-commerce gas considerable presence in the country, hesitance in buying products from overseas among consumers tend to affect the B2C cross-border e-commerce market. B2C e-commerce dominates the cross-border e-commerce space, as consumers get to buy extensive brands from other countries such as the U.S. and China.

Presence of safe and secure online platforms to conduct transactions coupled with the prevailing infrastructure and advanced logistics systems to support the time-efficient movement of merchandise has added to the growth in B2C domain.

The C2C segment, on the other hand, is projected to foresee revenue growth at a CAGR of more than 5.5% from 2017 to 2025. The segment commanded around 10.0% of the market in 2017 and is expected to grow over the coming years. The transaction sizes in the segment and the transaction frequency is relatively on the lower side as compared to its other counterparts, especially B2C segment.

Furniture and office need products are a key segment in the B2B segment, which is marked by the presence of established companies such as Amazon Business. Cross-border e-commerce allows companies to access a broad selection of office equipment and supplies.

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In the B2C segment, personal care products and fashion categories tend to dominate the market. In the cross-border e-commerce market personal care and fashion segments together accounted for a share of more than 25.0% in 2017. In the fashion segment, Japanese consumers search for high-quality products as social status plays a key role among Japanese consumers. To this end, products from the U.S. and Europe are usually considered upmarket. Fashion segment is expected to grow at a CAGR of 5.2% from 2017 to 2025.

Besides, the fashion segment, toys, hobby, and DIY is a key segment in the market. The segment is expected to be the fastest growing segment with a CAGR of more than 5.5% from 2017 to 2025. Rising demand for educational toys, including toys that facilitate collaboration among kids is among the most sought-after toys in the country.

The cross-border e-commerce Market is competitive with the presence of companies such as Amazon, Rakuten, and Kakaku. Over the coming years, companies are expected to focus on providing quality products from well-known brands from the U.S. and Europe in categories such as personal care and fashion. Some of the key players in the market include Amazon, Rakuten, Kakaku, Apple, DMM.com. Product availability partnerships with distributors in Japan are expected to remain a key strategy among key vendors in the coming years.

Hexa Research has segmented the Japan cross-border e-commerce market report based on platform and application:-

Segmentation by Platform

    • B2B

    • B2C

    • C2C

Segmentation by Application

    • Food & Beverage

    • Personal Care

    • Furniture & Appliances

    • Toys, Hobby & DIY

    • Electronics & Media

    • Fashion

Key Players Analyzed

    • Amazon

    • Rakuten

    • Kakaku

    • Yahoo Japan Auctions

    • Yahoo Shopping

    • DMM.com

    • Apple

    • DMM Online Shopping

    • DMM PC Software

    • Yodobashi Camera

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