#Japan #Tokyo #Shopee #Shopee Japan #越境EC

E-commerce Growth Challenges in Japan

A recent survey conducted by Shopee Japan, involving 110 e-commerce managers operating within Japan, has revealed significant insights into current market trends and challenges faced by domestic businesses. The survey, designed to gauge the sentiment towards international expansion and growth prospects, highlights a landscape of apprehension and ambition.

Declining Sales Growth

Over 40% of respondents indicated a decline in sales growth over the past year, signaling concerns about long-term viability. A staggering 90% of participants expressed feelings of limitation when it comes to growth within the current domestic e-commerce market. As competition intensifies and consumer preferences shift, businesses are confronted with a pressing need to innovate and diversify.

Amongst the many challenges outlined, a primary barrier to expansion remains. Notably, 81.8% of managers aspire to explore international markets, yet complex 'international shipping procedures' were cited by over half as a significant obstacle. The struggle with language barriers and logistical challenges continues to hinder entry into foreign markets, despite the growing interest in cross-border e-commerce (越境EC).

Insights from the Survey

The survey provided compelling data on the categories that dominate the e-commerce landscape in Japan. The most popular products sold include:

• - Snacks and Food: 32.7%
• - Health Products and Supplements: 31.8%

While these categories show promise, they alone do not assure growth. A further analysis revealed that price competition among similar businesses is seen as a primary reason for the stagnation in sales growth, with nearly 30% indicating it as a challenge.

Moreover, insights from the open-ended responses indicate deeper issues such as socio-economic factors, including a declining population and rising living costs, which compound the hurdles faced by e-commerce businesses.

Preparing for International Expansion

Despite these challenges, there are avenues for growth through international expansion. Surveyed managers highlighted the importance of support systems to aid in global market entry. Over 42% sought 'beginner-friendly seminars' aimed at helping businesses navigate the complexities of international e-commerce.

Secondly, advice on product pricing strategies and shipping cost minimization figured prominently in desired support services. Participants were clear that assistance with the practicalities of international business—including customer service in local languages—would facilitate smoother transitions into foreign markets.

Shopee’s Role in Supporting E-commerce Businesses

Shopee Japan is committed to reducing barriers for businesses eyeing international opportunities. They provide robust support structures designed to help e-commerce operators understand and adapt to the challenges of global markets. With comprehensive solutions ranging from logistics to marketing strategies, Shopee equips businesses with the tools needed to succeed abroad.

Key Support Services Include:

• - Comprehensive Support: Guidance through complex storefront setups and promotional strategies that resonate in foreign markets.
• - Logistics Solutions: Shopee's logistics service eases the burden of international shipping and inventory management.
• - Data-Driven Strategies: Analytical insights help managers make informed decisions about operations, enhancing potential profitability.

As Japanese businesses navigate these economic landscapes, the potential for success in overseas markets remains profound. However, resolving the intricacies of language, logistics, and strategic pricing will be essential.

Conclusion

In summary, this survey illustrates a critical need for Japanese e-commerce businesses to adapt. While there is a strong desire for international expansion, the challenges must be addressed with effective support and innovative solutions. With platforms like Shopee paving the way for smoother crossings into global waters, the future of 越境EC holds exciting possibilities for those ready to tackle the odds and seize the opportunity for growth.