Japan Online Retail Forecast 2023-28

Online Retail in Japan is Expected to Grow at CAGR 7.5% from 2023-2028 to Reach $223.2 Billion

Japanese online retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.5% from 2023 to 2028. Increased adoption of mobile commerce and the growth in online grocery is driving the growth of online retail. The analyst expects online retail to account for 21.9% of total retail sales in Japan by 2028.

Online Buyers to Cross 100 Million by 2026

The number of online buyers will cross 100 million by 2026 in Japan accounting for 82.7% of total population. Aging population in China makes online commerce a convenient form of buying goods for Japanese customers. Spending per online buyer in Japan is also on a higher side with $1,617.9 spent by online buyers in 2023.

Grocery Largest Online Retail Category

Online grocery is the largest online retail category in 2023 with sales of $31 billion followed by homeware & furniture and consumer electronics. Online grocery sales are expected to reach $9.5 billion by 2028 accounting for 7.3% of total grocery sales.

Rakuten Largest Online Retailer

With a market share of 25.2%, Rakuten is the largest player closely followed by Amazon at 23.2% in 2023. Amazon Japan and Yahoo Shopping are still struggling with slowdown in sales in the Japanese market in the post pandemic market.

Report Coverage

Japan Online Retail Forecast offers comprehensive view of online retail market in Japan.

The forecast details online and offline growth for 11 product categories in Japan along with sizing of mobile commerce market.

The report provides historic and forecast data from 2009-23 for 11 categories in retail and online retail to understand the retail market in Japan.

The retail market in Japan is expected to grow at a CAGR of 3.4% between 2023-28 to reach $1.01 trillion in 2028 from $860.7 billion in 2023. Online retail grew 6.9% to reach $155.5 billion in 2023 accounting for 18.1% of total retail sales.

Scope of the Report

• Total population - Historic and forecast data from 2009-23
• Online population - Historic and forecast data from 2009-23
• Online buyers - Historic and forecast data from 2009-23
  • Online buyer for 11 categories
• Categories covered
  • Computer hardware and software
  • Consumer electronics
  • Personal Care
  • Books
  • Music, Video and Games
  • Clothing
  • Footwear, Luggage and Accessories
  • Homeware and furniture
  • Toys
  • Grocery
  • Appliances (personal and home)
• Total retail sales - Breakdown by 11 categories
• Online retail sales - Breakdown by 11 categories
• Online retail sales via mobile
  • Category wise breakdown of retail sales via mobile
• Online retail sales - B2C vs C2C
• Online retail market share
• eCommerce sales for key online retailers

Deliverables

• Executive summary report of key findings (46 Slides)
• Excel sheet with historic and forecast data
• Unlimited queries with analyst
• Analyst presentation customized for your team

Key Definitions

• Retail Sales. Retail involves selling consumer goods, excluding travel, cars, prescription drugs, restaurant sales, and gasoline sales.
• Online Retail Sales. Online retail refers to the process of purchasing goods and services through the Internet, where customers make financial commitments, typically via credit cards or other digital payment methods. This definition includes transactions made on mobile devices, web-enabled kiosks, and point-of-sale systems, with delivery options either at home or in-store. In-store pickup, where the purchase and payment are completed online, is also considered an online sale within the context of online retail.
• Online Buyers. Online buyers are defined as people who have completed at least one online purchase within the past 12 months.
• Online Retail Sales Via Mobile. Online retail sales by mobile refer to purchases made through mobile devices, such as smartphones and tablets, where customers browse, select, and pay for products or services via mobile applications or mobile-optimized websites.

Category Definitions

• Computer Hardware and Software.
  • Computer Hardware. includes desktop computers, laptops, netbooks, and tablet PCs, but also a wide variety of peripheral devices such as keyboards, monitors, printers, cartridges, computer cables, and parts.
  • Software. Includes software packages such as operating systems, anti-virus software, languages, video game software. Includes digital downloads
• Consumer Electronics
  • Mobile. Smartphones and featurephones
  • Video. including TVs, home entertainment systems, DVD players, and recorders, game consoles, static audio (such as hi-fi systems, CD players, and turntables), portable audio, car audio, and home communications equipment (such as telephones and other terminal equipment).
  • Wearables. AR VR devices, smart glasses, smart rings etc.
• Personal Care
  • Includes toiletries such as shaving cream, razors, oral care products, bath and shower gel, deodorants, baby and childcare products, depilatories, and sanitary products. This category also encompasses Haircare products like shampoo, colorants, mousses, etc., as well as Fragrances such as perfumes, aftershave, and scented oils. Color Cosmetics like lip- and eyeliners, powders, foundations, nail polish, mascaras, and lipstick are also included in this segment.
• Music, Video and Games
  • Books. Hardback and paperback books, audiobooks, eBooks, and magazines.
  • Stationary
  • CDs, digital downloads, streaming services, VHS, and DVDs. Includes digital downloads.
  • Video games
• Clothing
  • All clothing, including men's, women's, kids', and teens'. Includes sportswear
• Footwear, Luggage, Jewellery and Accessories
  • Footwear. Includes athletic, leather, non-rubber. Includes men's, women's, kids', and teens'.
  • Jewellery. Fine jewelry, imitation jewelry, watches.
  • Luggage
• Appliances (personal and home)
  • Small Appliances. Kitchen electrical (blenders, toasters, and food processors), home environment (humidifiers, dehumidifiers, air purifiers), floor care (vacuums), dinnerware, beverageware, cookware, bakeware, cutlery, flatware, linens, draperies, and window dressings
  • Big household appliances (or white goods) such as refrigerators, ovens, and vacuum cleaners, television
  • Personal appliances. Includes hair care appliances, body shavers, electric facial cleansers, oral care appliances and other personal care appliances.
• Homeware and furniture
  • Household furniture and décor such as textiles such as curtains, carpets, and cushions.
  • Homeware. Plasticware; glassware; dinnerware, ceramics; porcelain; cutlery; metalware; and woodware.
  • Outdoor. BBQ's, garden sheds and outdoor furniture
• Lighting sources and light fixtures
  • Toys
• Traditional toys, not including video games.
  • Grocery
• Food and beverage sales, including canned goods, produce, etc. Does not include restaurant sales.
  • Others
• Online pharma, sports and entertainment goods, Over-the-counter drugs, event tickets, movie tickets and others