The new market report, “Japan B2C E-Commerce Sales Forecasts: 2017 to 2021,” synthesizes projections from authoritative sources to reveal the direction of online commerce in Japan for the next few years. The publication points to B2C E-Commerce capturing a larger share of total retail in the Asian nation.
About half of the Internet connected population of Japan already shops online, making the nation the second largest E-Commerce market in Asia and fourth globally. While total annual retail sales figures in Japan have changed little in the last few years, the online portion of sales has grown at a double-digit rate. Because of this historical growth as well as future projections, the report cites sources pointing to online retail comprising around 10% of total retail in Japan by 2021.
There are several factors pushing online retail sales growth. Product availability and delivery logistics have improved; and social networks have facilitated the shopping experience. Going forward, recent survey cited in the report indicates that around one in three Japanese shoppers intend to increase their online spending. Another major growth factor in B2C E-Commerce in Japan is the rise of mobile shopping. Although Japan has been slower to move to M-Commerce than many of its Asian neighbors, recent growth and shopper surveys point to a significantly higher portion of online retail being done through a smartphone.
Questions Answered in this Report:
- How high is the B2C E-Commerce growth in Japan predicted to be in 2016-2021 compared to 2011-2016?
- What is Japan’s online retail market size in 2017 and the forecast until 2022?
- What is the projected increase in online share of total retail sales in Japan between 2016 and 2021?
- How does Japan rank among other B2C E-Commerce markets in Asia and worldwide?
- Who are the top 5 B2C E-Commerce companies in Japan by market share?
1. Management Summary
2. Market Overview and International Comparisons
B2C E-Commerce Market Overview and International Comparisons, November 2017
Japan’s Share of Global Retail E-Commerce Sales in Asia and Worldwide, in %, 2016 & 2021f
M-Commerce Sales, in JPY trillion, and Share of B2C E-Commerce Sales, in %, 2015 & 2016
B2C E-Commerce Sales by Types of Products, Services and Digital Content, in JPY billion, 2015 & 2016
Online Shopper Penetration, in % of Internet Users, 2016
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016
Top 5 Companies by B2C E-Commerce Market Share, in %, 2016
3. Overview of Sales and Shares Forecasts
B2C E-Commerce Sales, in JPY trillion, and Share of Total Retail Sales, in %, 2011-2016
B2C E-Commerce Sales, by Five Comparative Estimates, in USD billion and JPY trillion, 2016 - 2021f, and CAGR, in %, 2016 - 2021f
B2C E-Commerce Share of Total Retail Sales, in %, 2016 & 2021f
4. Sales Forecasts
B2C E-Commerce Sales, in JPY trillion, 2016 - 2022f
B2C E-Commerce Sales, in USD billion, 2016 & 2021f
B2C E-Commerce Sales, in USD billion, 2016 & 2021f
Retail E-Commerce Sales, in USD billion and in % of Total Retail Sales, 2017f
B2C E-Commerce Sales, in JPY trillion, 2016 & 2017f
B2C E-Commerce to Gain a Higher Share of Retail Sales in Japan by 2021
Japan’s B2C E-Commerce market is the fourth largest worldwide and second largest in Asia. The country is advanced in terms of online shopping penetration, with close to 50% of all Internet users above 6 years of age and around two-thirds of 20-39 year-olds buying goods and services online, according to statistics in the report. While the country’s total retail sales remained mostly flat over the past five years, B2C E-Commerce was expanding at a double-digit rate driven by attractive product pricing and the convenience of online shopping. Although the future B2C E-Commerce sales growth rate through 2021 is projected to moderate to high single digits, online commerce is still projected to outpace overall retail, surpassing the milestone of 10% of retail sales by the end of the forecast period.
The growth of B2C E-Commerce in Japan beyond 2017 is expected to be driven by an increase in online spending per shopper and the rise of mobile shopping, along with other factors such as reduced delivery times, popularization of shopping activities on social networking platforms and expansion of the product range. As of 2017, close to one-half of those who shop online said they spent less than 10% of their overall expenditure on E-Commerce sites, according to a survey cited in this report. When asked about the future, close to one-third of online shoppers expected their online spending to increase.
With regard to M-Commerce, Japan has been lagging behind the emerging Asian markets in terms of mobile shopping adoption. This situation is likely to change, as smartphones are becoming almost as important as computers for accessing the Internet in Japan. Although the majority of online shoppers still buy via PC, the share of those using smartphones to conduct a purchase tripled between 2015 and 2016, with M-Commerce getting close to one-third of online sales.