Japanese Market News

Renting DVDs via the Internet from computers or cell phones is gradually becoming popular in Japan. Memberships at two of the four leading online DVD rental stores, Rentrak of Culture Convenience Club (known for their entertainment rental stores throughout Japan) and Posren (a subsidiary of the major Internet portal site Livedoor), have doubled within this year.

Interestingly, different trends occur at online DVD rental stores in contrast to traditional brick and mortar rental stores. While new releases, which make up two percent of what is in stock at brick and mortar stores, bring in 80 percent of store sales, at online rental stores it is not unusual for older releases to gain similar popularity due to user reviews on the online store site.

Online DVD rental services are just an example of the numerous businesses that are moving online to respond to the changing lifestyles of those living in Japan, mainly those between their 20s and 40s who seek culture with convenience. Similar trends are occurring with television via Internet sites that provide shows on demand with commercials to keep the service free.

Posted by Alisa at 11:12 AM | Permalink

This year was another year of new products, services, and trends in Japan. Though there are trends that overlap those in other countries such as Apple's iPod products, Skype, and Mixi (a social network service similar to Friendster or MySpace), Japan still has its own distinct market trends that perhaps should be reviewed for inspiration or reference for those entering the Japanese market.

First, 2005 was a year targeting those seeking products and services with class. This included services targeting the wealthy that required exclusive memberships, a trend that was thought to have completely died out with the burst of the bubble economy. There were also services that specifically targeted wealthy retirees, such as upscale resort-like retirement homes. In contrast, a new market targeting those seeking to simulate a celebrity-like luxurious lifestyle through more affordable means emerged this year. Some major examples of what became popular within this market are stylish bars where customers drink while standing, high quality chocolates, and affordable luxury handbags and denim. Convenience has also gained new meaning this year, with the increase in number of convenience stores selling fresh groceries in smaller portions for just 100 yen. The popularity of these stores is due to changing lifestyles in Japan where consumers prefer smaller portions because of the increase in number of persons living alone and smaller sized families.

This year, perhaps partially influenced by the increase in health conscious consumers due to the heavily media fueled LOHAS-style living, there is a growing number of health conscious products that are being released or have regained popularity, such as soy or other traditional Japanese flavored ice creams and non-alcoholic beer. Furthermore, the instant popularity of paper shredders this year was a response to the Japanese Personal Information Protection Law. This last example illustrates how it can be helpful to keep track of events such as this where any old average product can instantly turn into a hit with the right timing.

Posted by Alisa at 09:30 AM | Permalink

Because the demand for health foods is always very high among consumers in Japan, companies are continuously on the run to develop the next sensational health product.

Kewpie Co. recently announced Dife, a condiment that looks and tastes like mayonnaise that is not only low in calories but lowers cholesterol. This new miracle worker took an approximately five and a half year struggle to develop. The secret is in the use of plant sterol found in soybeans and rapeseed which displaces cholesterol in the micelle, a liquid particle. Since cholesterol cannot be absorbed by the small intestine without the ability to become part of the micelle, it does not reach the bloodstream. Though Kewpie Co. dominates with 70 percent of market share, there is no time to rest since the health food battle continues with Ajinomoto, Kewpie Co.’s competitor which is currently in the process of developing a similar product.

Posted by Alisa at 09:03 AM | Permalink

Labeling places of origin on groceries has been a standard practice in supermarkets but recently restaurants have caught on the trend for the same reasons: to gain trust among their customers. This is not only a practice incorporated by those trying to bring back customers to eat their meat dishes who have lost trust due to the various recent health safety issues surrounding beef and chicken imports, but also for vegetables to emphasize their quality with more background information.

To those who own restaurants, labeling at first may not seem like a favorable trend since there is a need to invest time and money to reexamine distribution channels that will be trustworthy enough to expose to their customers. However, seeing that 79 percent of Japanese consumers consider knowing places of origin labels a necessity according to a recent poll, it is not unlikely that customers will soon or later choose restaurants based on these labels.

Posted by Alisa at 09:52 AM | Permalink