Hidden Opportunities in Japan

Japan has long been recognised for its technological innovation, strong infrastructure, and stable economy, making it an attractive market for international brands. Yet, beyond the obvious opportunities in high-tech industries and consumer goods, Japan offers a wealth of hidden expansion opportunities. These lesser-known trends are ripe for Western brands looking to tap into the region's evolving market landscape.

Men’s Beauty Market: Breaking the Stereotypes 

While Japan’s beauty industry has traditionally been dominated by women’s products, a quiet revolution is happening in the men’s beauty market. Generation Z men are embracing skincare and personal grooming, challenging conventional masculine ideals. Over 60% of Japanese men buy skincare products. Brands can capitalize on this trend by developing or introducing men’s grooming products, especially those that offer multifunctionality and simplicity—appealing to a demographic keen on convenience and quality.

Source: The cosmetics catalog issued by Isetan Shinjuku in Tokyo last year features men’s autumn makeup accompanied by the phrase: “It’s time for borderless beauty.” 

Younger consumers are driving a shift in the fashion and beauty industries, encouraging businesses to rethink their branding strategies. In response to the success of overseas brands, particularly from South Korea’s beauty market, domestic giants like Kosé have launched new "genderless" beauty care lines. While these brands continue to focus on direct online sales, the Japanese beauty industry is undergoing a transformation, fuelled by the growing demand from young adults.

The Rise of ‘Mounting’ and Home Aesthetics 

A relatively new social phenomenon in Japan, called “Mounting,” refers to showing off one’s status or possessions, which has unexpectedly influenced consumer behavior. During the COVID-19 pandemic, with the rise of remote work, this trend spilled over into home aesthetics, where individuals sought to display their home’s sophistication during video calls. This has given rise to demand for stylish, minimalist home decor—a trend often referred to as “Salt Style Home.” Brands that specialize in high-quality, visually appealing home goods can tap into this growing niche.

Source: Howvin Furniture

Solo Living Boom: Tailoring to the Time-Poor Consumer 

Japan’s demographic shifts are creating new consumer segments. By 2040, it’s estimated that 39% of the population will be living alone. This “solo living” trend has fuelled demand for products and services that cater to individuals with busy lifestyles, especially in sectors like ready-made meals, compact furniture, and personal care. Western brands can leverage this by offering products that prioritize convenience and efficiency, such as pre-prepared meals, single-serving household goods, and streamlined services for solo dwellers.

Additionally, the growing segment of time-poor consumers in Japan, driven by busy work schedules and demanding urban life, is driving a surge in e-commerce. For international businesses, offering fast, mobile-friendly online shopping experiences is crucial. Nearly 95% of the population will be smartphone users by 2027, with over half of all e-commerce transactions taking place on mobile devices.

Capitalizing on Japan’s Busy Retail Calendar 

Japan’s retail calendar offers hidden opportunities for brands that time their marketing and product releases strategically. While Western brands may already be familiar with Black Friday and Christmas sales, Japan’s unique retail peaks—such as the White Day sales in March and the surge in consumer spending following summer bonuses—can be prime times to introduce new products or run special promotions.

With events like these, brands can increase their visibility and tap into consumer demand at times when local competitors may not be as aggressive. Customizing campaigns to these specific retail peaks could significantly boost sales for brands expanding into Japan.

Source: JW Magazine

Smart Cities and Tech Innovation 

With Japan’s robust digital infrastructure, including widespread 5G coverage and advancements in AI and IoT, the country is at the forefront of smart city development. Western companies that specialize in tech-driven solutions—whether it’s AI, automation, or smart appliances—will find abundant opportunities in this space. Collaborating with local governments or investing in tech-friendly regions can provide access to lucrative projects that are shaping the future of urban living in Japan.

Japan’s leadership in technology, combined with its emphasis on innovation, positions it as an ideal market for brands offering cutting-edge solutions that improve daily life, enhance sustainability, or streamline operations. Whether it’s smart homes, healthcare tech, or sustainable city initiatives, the potential for collaboration and growth is immense.

Source: Statistica

Tapping into Japan’s Gateway to Asia 

While Japan’s domestic market is attractive in itself, its geographical position offers an even larger strategic advantage. Situated as a gateway to the wider Asia-Pacific region, Japan provides direct access to major economies like China and South Korea, as well as emerging markets in Southeast Asia. Western brands expanding into Japan can use it as a launchpad for broader regional growth, taking advantage of its well-developed logistics infrastructure, efficient ports, and reliable transportation networks.

Conclusion

While Japan’s economy may appear mature on the surface, beneath it lies a treasure trove of untapped opportunities for Western brands. By capitalizing on the country’s emerging consumer trends, such as men’s grooming, home aesthetics, solo living, and the rise of smart cities, brands can unlock significant growth potential. Moreover, Japan’s strategic position as a gateway to Asia and its special economic zones make it a highly attractive destination for long-term business expansion. For companies willing to adapt to local tastes and embrace these hidden trends, the rewards can be substantial. 

If your brand needs support entering the Japanese market, Borderless360 is here to help. With a shipping and fulfillment base in-country and Japanese-speaking support, we’re well-positioned to assist brands looking to expand into the region. Our expertise ensures a smooth, efficient setup so you can focus on growing your business in this dynamic market. Contact us today to find out more.