Ready to take your eCommerce business to Japan? Japan is the world’s fourth largest eCommerce market – trailing only China, the United States, and the UK – and is projected to exceed $200 billion in 2026.

For UK exporters and Japanese businesses shipping home, the opportunity is massive – particularly for fashion and high-end luxury goods retailers – but the ‘how’ is everything.

Here, and in our next blog post, we look at:

• Why Japan is the market to aim for, if you want to grow your international eCommerce retail business.
• What goods appeal to the Japanese market.
• Tips for successful trading with Japan.
• Why at OCS Worldwide we’re the experts in shipping and delivery to Japan – it’s in our DNA!

Why target Japan for your eCommerce expansion?

The Japanese market has a long-standing love affair with British heritage – the demand for UK labels is consistent, high-value, and growing. High-end fashion, in particular, does well.

But it’s not just about brand sentiment, it makes economic sense for UK retailers too. Here’s why:

• Significant spending power: the average single working adult in Japan has an estimated annual disposable income of ¥3.5M – ¥3.8M (approx. £18,000 – £20,000), so they have funds and an appetite for quality British goods.
• Frictionless borders: Japan offers a generous 60,000 JPY (around £280) de minimis for B2C imports.
• The UK-Japan Trade Agreement: thanks to the current trade deal, goods of UK origin enjoy 0% duty.

If you are a UK retailer with a story to tell, the Japanese eCommerce landscape is primed for your arrival. Low barriers to entry, plus high consumer demand, equals a major growth opportunity.

What goods appeal to the Japanese market?

Japanese shoppers have a massive appetite for British style. Annual spend on UK fashion ordered directly from our shores is now estimated at between £120m and £180m.

As the top-performing cross-border category, fashion accounts for nearly four out of every ten international eCommerce transactions in Japan, with the biggest sales going to the US and China, and UK coming in third or fourth.

That means there is huge scope for UK companies.

Remember:

• Japanese shoppers aren’t looking for fast fashion from the UK; they want luxury and heritage. While they might buy fewer items overall compared to imports from other regions, they spend significantly more per item.
• Mobile is king – over 60% of fashion purchases in Japan happen on a smartphone.

If you export a high-end brand, especially if you’re in fashion, then Japan is the market to aim for.

In our next blog post, we’ll bring you advice on how to make the most of the Japanese market. Plus, we take a look at our heritage – we were made in Japan!

If you’d like to talk to us about eCommerce shipping, delivery and returns in Japan, please get in touch on +44(0)20 7640 3800, or send us an e-mail, talk2us@ocsworldwide.co.uk.