Japanese Market News

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.