Japan is a good market, but it is difficult to do and enter. Once you enter, you must be long-term. "A senior cross-border e-commerce person hit the nail on the head.

For a long time, the destinations of Chinese cross-border e-commerce merchants have undoubtedly been the European and American markets. In comparison, as the world's third largest Although Japan, a large economy, has all the characteristics of a mature e-commerce market, it has not been fully exploited by Chinese overseas merchants due to its particularity.

However, in recent years, the value of the Japanese market is increasing. On the one hand, Japan is the fourth largest e-commerce market in the world in terms of scale, but its e-commerce penetration rate is not high, which means there is still huge space to be developed; on the other hand, the outbreak of the epidemic has made Japan The development of e-commerce has experienced an inflection point acceleration - the "E-commerce Market Survey" report released by Japan's Ministry of Economy, Trade and Industry in July 2021 shows that in 2020, the scale of Japan's B2C e-commerce for goods sales increased by 21.71% year-on-year to 122,330 billion yen, and the e-commerce rate increased from 6.76% in 2019 to 8.08%.

According to the "2021 Global E-Commerce Statistics Report" released by the data statistics company Statista in June 2021, in 2021. , Japan’s total B2C e-commerce revenue is expected to be US$112 billion, and is expected to reach US$143 billion by 2025.

“Currently, Japan’s e-commerce penetration rate is expected to have reached about 12%. During the three years of the epidemic, Japanese consumers’ ideology and consumption habits have undergone significant changes. "Zhou Yang, head of Lotte Group's China business and general manager of Lotte Shenzhen, talked to Yibang Power.

He further explained that first of all, online purchasing and offline purchasing have become complementary patterns, for example, fresh food Offline purchases, non-urgent heavy goods that require detailed comparison of specifications, have become an irreversible trend. Secondly, due to the popularity of working from home and the reduction of going out, people have a greater demand for online purchases. It is also gradually increasing. There are also many people who want to maintain the living habits of big cities even if they work in remote places. At this time, online shopping ensures that they can meet a variety of needs.

In other words, The increase in e-commerce penetration, the expansion of e-commerce scale, and changes in consumer demand have given the Japanese market new vitality. On the basis of the improved adaptability of China's supply chain to the Japanese market, Rakuten is the representative. The gradual opening of Japan's leading e-commerce platform will undoubtedly provide new opportunities for Chinese overseas merchants

01

Japan - a potential market for cross-border e-commerce in the post-epidemic era< /p>

In the traditional view, Japan is a relatively "niche" cross-border e-commerce destination market. However, in Zhou Yang's view, the size of a market is determined not by its land area, but by its population base. . According to the National Bureau of Statistics of Japan, as of 2022, Japan’s total population is 125 million, ranking 11th in the world and 6th among Asian countries.

“Japan’s population is even more than several. The total number of European countries combined, and the population base determines the size of market demand. In addition, the e-commerce rate in Japan is not high yet. On the other hand, it is an opportunity. With such a large population base, when the e-commerce rate grows from 12% to 20% or 30%, the scale will be considerable. ” he said.

More importantly, Japan has a very high-quality e-commerce soil: according to the report data released by the Japanese Ministry of Economy, Trade and Industry in July 2021, Japan’s Internet penetration rate is close to 90%, and its per capita GDP is 44,585 US dollars, with strong purchasing power. At the same time, Japan’s e-commerce infrastructure is relatively complete. Taking logistics, the most important link in the e-commerce industry chain, as an example, Japan is one of the most developed countries in logistics, except for Hokkaido and Japan. Except for Okinawa and other islands, next-day delivery speeds can basically be achieved in other areas.

However, Japan has not been widely developed by Chinese cross-border merchants. According to the Japanese Ministry of Economy, Trade and Industry in July 2021. According to the released e-commerce market survey, the cross-border e-commerce trade volume between China, the United States, and Japan shows that the U.S. exports to Japan are 307.6 billion yen, and China’s exports to Japan are 34 billion yen, a difference of nearly 10 times. The distance means that for a manufacturing country like China, there is still a lot of room for improvement in developing cross-border e-commerce with Japan.

Zhou Yang pointed out that judging from the popular categories in the Japanese e-commerce market, according to the e-commerce market survey released by the Japanese Ministry of Economy, Trade and Industry in July 2021, in the past two or three years of the epidemic, home appliances, household groceries, and furniture have The rising trend of categories such as this is rapid, with an average year-on-year growth of more than 21%. This is also a category in which China’s supply chain has an advantage. I believe that Chinese sellers have opportunities to enter. In addition, in the current market, the best performing products of Chinese sellers are home appliances and 3C products. Secondly, shoes and clothing, and cosmetics and beauty products are also on the rise.

“In recent years, Chinese products have done a very good job in iterating and innovating, gradually weakening the past image of ‘copycat’ and ‘low-quality’. Japanese consumers are also changing, especially young consumers, who will not just Instead of looking at traditional big brands, he prefers new products and brands. After using them, he finds them to be quite good and meet his needs. No matter whether you are well-known or not, no matter where you come from, you will be accepted," Zhou Yang said. This is a good time for Chinese businesses to enter the Japanese market.

Another favorable factor is that Japan is a "feedback" market. According to Zhou Yang, Japanese consumers like to write product reviews and are accustomed to making sincere and detailed evaluations on all aspects. This allows merchants to see real market feedback in a timely manner and build trust through interaction with consumers.

So, how do merchants enter the Japanese e-commerce market? It is not an exaggeration to say that Rakuten is an unavoidable channel. According to Rakuten Group's financial report, Rakuten's e-commerce transaction volume in 2019 was approximately 3.9 trillion yen. In 2021, this number exceeded 5 trillion yen, with a two-year growth of nearly 30%, leading the Japanese e-commerce market.

02

Rakuten’s “Restraint” and “Attack”

As Japan’s largest e-commerce platform, Rakuten’s development history is earlier than Taobao Six years. This is why in the early years, some people in the e-commerce industry often said that "Taobao and Tmall have the shadow of Lotte in many places."

Founded in 1997, Lotte has built competition barriers with its continuously evolving business: In 2006, Lotte proposed the concept of "Lotte Economic Circle" to form a complete own business ecosystem within the group; in 2007, it provided Lotte’s secure shopping service; launched next-day delivery service in 2008 and started a “shopping marathon”; launched the first “Lotte SuperSale” in 2012; launched a super points multiplier project in 2016

You may I’m curious, as a mature company with a history of 25 years, why is Rakuten still called a “blue ocean” platform in the industry? This is inseparable from Lotte's consistent "restraint".

Rakuten is a typical third-party B2C platform model, focusing on the concept of "Boutique Mall". This positioning determines that it attaches great importance to the quality of merchants, which leads to strict investment strategies and strict control over the number of merchants. For example, Rakuten will carefully screen merchants from the three dimensions of the company's operational capabilities, product quality, and company entity qualifications. At the same time, it has very clear requirements for sellers in terms of compliance and customer service capabilities.

“But it is precisely because of the high investment threshold that it ensures the entry of high-quality merchants, reduces vicious competition, and at the same time ensures the profits of merchants.” Zhou Yang added.

As one merchant said, among the leading e-commerce platforms in Japan, Rakuten is the most difficult to open a store and operate. Correspondingly, the entire ecological environment is also the best. "Merchants who can get Rakuten's 'admission ticket' have certain strength. In turn, Rakuten is also the best channel for merchants to enter the Japanese market."

Although there are various " "Restrained", but Lotte is "aggressive" in other aspects.

It is understood that Rakuten started as an online shopping platform "Rakuten Market" and has since gradually expanded to electronic money, credit cards, banking, insurance, securities, communications, travel, portals and other Internet services, Internet finance and other businesses field. Currently, Rakuten Group provides more than 70 types of services in Japan, penetrating into many industries, and many services occupy an important position in this industry.

“After years of development, Rakuten is no longer just a Japanese company. We have a high reputation in the United States, Europe, and Taiwan, China, and continue to expand our brand reputation through external promotion, with sales in 30 countries around the world. and regions covering more than 1.6 billion users," Zhou Yang said.

It is worth mentioning that Rakuten began to implement the concept of "Lotte Economic Circle" as early as 2006. Each piece of business uses a unified ID and uses the underlying database.

The "Rakuten Points" earned by users through shopping or using other Rakuten services can be freely used in Rakuten's various businesses and continuously circulated, forming a virtuous cycle. Rakuten relies on the analysis of member data to integrate the group's various businesses, allowing each business to promote each other.

03

In addition to selling goods, how can Chinese merchants use Lotte to complete their brand overseas?

“Comparing Amazon and Rakuten, you will find that Amazon is like a hypermarket, with almost no traces of merchant stores, and is suitable for selling single products; while Rakuten is a ShoppingMall, store-oriented, and suitable for brand series promotion. ." Some merchants commented like this.

There is no doubt that Rakuten’s business model provides a more suitable survival foundation for the brand, and Rakuten’s more than 20 years of deep cultivation in Japan has also cultivated high-quality soil for platform merchants to build brands.

It is understood that Rakuten’s points system organically connects all ecological businesses, and consumers can enjoy 14 times the points discount, which can even reach 42 times during major sales. This makes Rakuten users very sticky, with high return visit and repurchase rates. In addition, Lotte has always maintained a strict screening system for sellers and "selects the best of the best" on the basis of controlling quantity. Therefore, it also provides a healthy competitive environment for sellers, which can breed products with higher unit price per customer.

In other words, Rakuten’s high-quality user base helps merchants better reach target user groups and obtain premium space, while Rakuten’s high requirements for merchant management provide consumers with a lot of opportunities. A good shopping experience ensures the overall positive rating of the platform store.

Another unique advantage is the multi-dimensional online and offline consumer reach brought by Lotte Group’s diversified businesses.

According to Zhou Yang, there is room for imagination in terms of brand exposure between Rakuten’s other businesses and Rakuten Market. For example, Rakuten cooperates with well-known offline supermarkets such as Seiyu and BicCamera, which is a very good resource for Rakuten Market merchants to expand offline channels. For another example, Rakuten is currently developing its RakutenStay hotel service business, and the best-selling products in the Rakuten market will also have the opportunity to be displayed in hotels through this channel.

“There are many brands that started from Rakuten Market and gradually developed into national brands.” Zhou Yang told Ebrun Power, “Rakuten is willing to be the first stop for Chinese businesses to come to Japan. Merchants build their reputation here, and then expand their stores offline, eventually forming an omni-channel layout. This is a particularly reasonable and labor-saving way."

It is reported that Lotte has officially launched China investment promotion in 2019 to strengthen its branding. The overall business environment has attracted many well-known domestic brands such as Insta360, Jimi Technology, OPPO, BenQ, Tianke, Zhenghao EcoFlow, etc., which not only brings them sales growth, but also provides a way to increase their brand reputation. At present, its investment targets are mainly vertical category and brand sellers who have certain experience and performance in Japanese e-commerce and refined operations.

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