As the phenomenon of “explosive buying” by visitors to Japan in physical stores gradually diminishes, the trend of “post-return consumption” of Japanese goods through e-commerce platforms is expanding. The proportion of e-commerce transactions in China has reached about 40%, far exceeding Japan’s less than 10%. So, how have the sales of Japanese brands changed in this massive Chinese e-commerce market?
According to data collected by Nint, a company engaged in data analysis, from Alibaba Group’s “Tmall” and “Taobao” platforms, as well as JD Group’s data, the sales of Japanese brands are showing differentiation.
On one hand, sales of high-functionality Japanese stationery and gaming products remain strong, while on the other hand, sales of baby-related products such as Japanese diapers, which were previously targets of “explosive buying,” have declined.
Specifically, from January to October 2023, sales of Japanese watches and jewelry increased by 39 percentage points year-on-year, and household appliances and stationery increased by 28 percentage points, both higher than the overall level.
In the stationery sector, Japanese pens hold about a 20% market share, with brands like Pilot, Zebra, Mitsubishi Pencil, and Pentel leading the way. The advanced technology of Japanese pens, including their tip structure, provides advantages such as no smudging, smooth writing, and vibrant colors, making them popular among consumers.
In the gaming sector, Nintendo, Sony Group, and Bandai Namco are the top three, with Japanese companies maintaining around a 25% market share. The “Nintendo Switch,” for which Nintendo signed an agency agreement with Tencent Holdings in China, has performed strongly, attracting numerous gaming enthusiasts.
However, not all Japanese brands succeed on Chinese e-commerce platforms. Baby-related products like Japanese diapers face tough competition. In 2018, Japanese diapers had a 24% market share, but by 2023, it dropped below 10%. Brands like Kao and Daio Paper also saw significant declines in their rankings.
One reason is that Chinese companies with improved technological capabilities have introduced moderately priced products, gaining favor among consumers. Another reason is that Japanese companies focus on thicker products emphasizing leak-proof comfort, while there is a tendency in China towards thinner products being more popular, creating a deviation from local demand. Kao ended production of “Merries” in China in August 2023, opting to export from Japan, reflecting the challenges Japanese brands face in the Chinese market.