Marketing in Japan can be quite a challenge because Japanese consumers are known to have the strictest product selection in the world but this does not stop attracting western companies for its massive commercial potential. So what are the factors that Japanese consumers look into?
Things You Must Know About Japanese Consumers
In this article, we will discuss 5 things you need to know about Japanese consumers so you will better understand what you’re about to do as an inbound business bringing your product in Japan.
1. Western Brands Doesn’t Mean Better
Historically, Japan is heavily influenced by its neighboring countries such as Korea and China and is exposed to the Western and American cultural ideals. The wonderfully adapted to technologies and products with the influences of different countries but Japan remains strong in their identity so rather embracing a foreign concept or product, Japanese adapt and make a Japanese version with the inspiration from the foreign product. Japanese consumers are more picky and selective for foreign brands they accept.
2. Selective and Limiting Purchases
Japanese consumers are said to be very strict and selective in their purchasing decisions.
And one of the key factors of limited purchasing is due to the lack of space in Japan.
Urban cities like Tokyo, have limited space and unused storage in Japan is uncommon. That’s why, Japanese consumers are hesitant to waste money and space and are hesitant to buy non-essential items. They are more likely to focus on few high-value items rather than on multiple inexpensive items.
3. Avoid Risk
Unlike the western countries, Japanese consumers are more likely risk aversive in unknown or less popular brands where quality and details are not assured. To put it simply, they are more likely to spend more in famous brands where they are familiar with its quality rather than buying a less known, cheaper counterpart that the product claims has the same effects on the expensive ones. Gaining long-term trust and consistency in its quality is an essential thing to keep consumers loyal, especially Japanese consumers.
4. Distrust in Companies
In Japan, trust in organizations and companies is vital or else it will not last long in the marketing industry. Due to Japanese opting to well-known brands, Japan ranks in one of the lowest in the Elderman Trust Barometer with the average of 37% meaning, brands and companies will find it difficult to build trust to new consumers.
That’s where reviews, word of mouth came in. When trust in an institution is low, consumers will ask for reviews or testimonials about the product or the word of mouth. Being recommended by friends and family and getting a fairly good review will gain consumers trust gradually.
5. Education and Information
If in some Western and American countries, technical information is a bore, however, Japanese consumers enjoy knowing the details and are keen to know the information of your product. So rather than simplifying your product and explaining the overall benefits, it would be more effective to convey information such as how it is made, how it works and how reliable it is. That way, they may be more likely to make a purchase.
Conclusion
What do you think about Japanese consumers? Do you know any ideas to make Japanese buy more to foreign brands? Let us know in the comments what may help foreign brands succeed in the Japanese market industry.
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