Japan Market Introduction
Japan has a population of 126 million in 2015 and GDP growth of 0.7%. Japan ranked 5th in export destination and import origin for Canada. As an important international trade partner for Canada, Japan imported more than 30% agriculture products from Canada.
Despite the general decline of outbound travel, arrivals from Japan bounced back in 2014, increasing by 14.9% to 258,500 visitors. Japanese travelers spent an estimated $430 million in Canada in 2014, with an average spend per trip of $1,836 for an average duration of 15 nights. Just under half (44.3%) of Japanese visitors to Canada travelled for pleasure and 28.3% to visit friends and relatives (VFR).
Source: Destination Canada
Japan, who possesses the most advanced economy in the region, is an indicator of future consumption pattern as the Japanese market has become saturated. Unlike Europeans and Americans, Japanese consumers avoid low-priced goods, preferring high-end department stores and pricier regional supermarkets. They are brand loyal and willing to pay high prices for quality products. In fact, Japanese consumers’ love of brands has initialized the mass-luxury market, creating an aspiration that to possess expensive and exclusive product is essential.
Japan owns of the world’s highest broadband penetration rates, however, Japanese consumers are not as likely as North Americans to shop online. According to market research, reluctance can be translated as their appreciation for physical shopping experience, the variety of retail establishment makes online shopping less convenient, and credit card penetration is low.
Source : McKinsey & Company