Japan — a market that has long been “bypassed.”
On the map of cross-border sellers, Japan is often a blurred presence. The market is large — 120 million people, an Internet penetration rate of 86.2%, and the world’s fourth-largest e-commerce market. Its purchasing power is strong — a per capita GDP of around USD 34,000 and an average order value several times higher than Southeast Asia. Yet in the minds of many Chinese sellers, Japan still comes after Indonesia, Saudi Arabia, the United States, and other destinations.
The reason is simple: it’s hard. Language, culture, aesthetics, and retail channels all become barriers. “Japanese consumers set exceptionally high standards, move slowly, and require a long return cycle.” These factors cause many sellers to hesitate. Even international giants such as Carrefour and Walmart have faced repeated setbacks in Japan.
However, as Japan’s e-commerce adoption accelerates, its middle class continues to shrink, and Chinese brands grow increasingly confident about going global, more and more Chinese sellers have begun turning their attention to Japan — and many are achieving impressive results.
SHEIN entered Japan in 2021 and now has over 8.04 million users, surpassing domestic giant Uniqlo’s 6.48 million. Temu launched in Japan in 2023, and within one year reached 31.06 million monthly unique visits, becoming the country’s fourth-largest e-commerce platform. TikTok Shop entered Japan in June 2025, surpassing 3 billion yen (approximately USD 19.64 million) in sales in just three months.
So how can Chinese sellers capture this 120-million-person high-consumption market? Are Japanese consumers really that demanding? What new shifts are happening in Japan’s e-commerce landscape this year? For companies planning to enter Japan in 2026, what are the practical recommendations?
With these questions in mind, we interviewed Ryo Matsumura, Executive Officer of Rakuten Group, Inc. and President of Rakuten’s E-commerce & Marketing Company — one of Japan’s largest e-commerce platforms. Through first-hand insights, we attempt to cut through the perception of a “high-barrier” market and offer real, actionable advice for those looking to expand into Japan.
Below are the key takeaways from the conversation:
01
EqualOcean: Based on your observations, what new characteristics do you see among Chinese sellers entering the Japanese market?
Ryo Matsumura: First, we have clearly felt a significant rise in Chinese sellers’ interest in Japan. Since we opened our onboarding channels to Chinese sellers in 2019, not only has the number of sellers grown rapidly, but I have also noticed an important trend: the appeal and overall quality of Chinese products have improved substantially. “Chinese products today have become very attractive.”
However, if we look at the current market landscape, overall sales by Chinese sellers in Japan are still not particularly high, which means there is considerable room and potential for growth. Therefore, we aim to further support Chinese sellers and help them improve their performance. At the moment, we are focusing on three main areas:
First, we hope to expand our localized service network. For example, this time we came to Hangzhou, and in the future we will also visit cities such as Shenzhen and Shanghai to engage directly with sellers’ decision-makers. Through face-to-face communication, we can better understand their needs.
Second, we have found that many promising Chinese sellers have not yet joined our platform. For these potential sellers, we plan to offer targeted support programs to help them grow more effectively.
Third, Rakuten has accumulated a wealth of success cases and operational know-how within Japan. We aim to leverage these successful experiences to empower Chinese sellers and help them achieve stronger growth in the Japanese market.
According to Ministry of Economy, Trade and Industry of Japan, the 2021 cross-border e-commerce market among China, the U.S., and Japan exhibited stable growth across all major trade flows. China recorded the largest total outbound e-commerce purchases at JPY 5.7769 trillion (+7.2%). Both China and the U.S. purchased more via e-commerce from Japan (e-commerce exports) than Japan purchased from them (e-commerce imports). Critically, the JPY 46.6 billion in cross-border e-commerce value from China to Japan represented only 3% of Japan's overall e-commerce market, which was JPY 15.2194 trillion.
02
EqualOcean: What suggestions do you have for Chinese sellers who want to build brands and increase consumer trust in Japan?
Ryo Matsumura: From my observation, serving Japanese consumers is not easy. They tend to have extremely high expectations not only for product quality itself, but also for after-sales service. For example, when a product has an issue, Japanese consumers care deeply about how convenient the repair process is and how responsive customer service can be. We recommend that capable sellers establish a 24-hour after-sales support team.
Take product manuals as an example: simply translating them with AI or similar tools is not acceptable. The key is whether the instructions are clear, accurate, and aligned with Japanese consumers’ reading habits, so that users can operate the product smoothly. (Previously, during our conversation with a Chinese home appliance brand expanding to Japan, they mentioned that their Japanese manuals are three times thicker than the Chinese version — “some consumers even paste the manual on the wall.”)
In addition, spending heavily on traffic does not necessarily work. If a product gains exposure but fails on quality, Japanese consumers may never buy it again after a single disappointing experience. Even if the product sells, it cannot build brand loyalty. True branding success lies in establishing trust with consumers — once they trust your brand, even if you later reduce your marketing spend, they will continue to choose your products. That is the real sign of successful brand building.
In Japan, businesses avoid one-off transactions — sustainable, long-term profitability is a core commercial habit. This aligns with our philosophy as well. Our goal is not to win through price competition. On the contrary, we aim to help sellers achieve mid- to long-term success in Japan through brand building, our unique ecosystem, and one-stop services.
03
EqualOcean: What key consumption trends will shape Japan’s e-commerce market over the next one to two years? For Chinese brands entering or expanding in Japan, what new growth opportunities should they pay attention to?
Ryo Matsumura: In addition to marketing peaks such as winter heating & dryness-control (October–December), New Year lucky bags and Valentine’s Day (January–March), and the season for new lifestyles and cherry-blossom outings (April–June), I would like to share some observations about medium- to long-term trends.
First, consumer behavior in Japan is changing. Many consumers feel that prices are rising. In the past, Japan had a large middle class that acted as the main spending force — they purchased both premium goods and affordable products.
Today, the situation is different. Japan’s consumption structure is becoming increasingly “European–American” in style, meaning polarization is growing more obvious: we may see more high-income consumers, and also more consumers who pursue low-priced products, while the size of the middle segment continues to shrink.
However, this shift also creates new opportunities. For Chinese sellers, this means they can choose different customer groups based on their positioning:
For high-end consumers: offer premium products with higher perceived value and added functions.
For price-sensitive consumers: offer reasonably priced but high-quality products. Here, “high cost-performance” does not mean simply being cheap — it means affordable, reliable, and well-made.
As Japan’s population continues to age, the elderly will also become an increasingly important consumer group worth focusing on and serving.
Secondly, it is worth noting that consumers around the age of 60 in Japan still actively shop online. At the same time, those between 50 and 60 represent another important e-commerce demographic, and many of them are accustomed to shopping on platforms like Rakuten. Their purchasing power remains significant. As Japan’s aging population continues to expand, the consumption patterns and behavioral changes of this group will become an important area to watch in the coming years.
Lastly, as mentioned earlier, Chinese products today generally offer high quality and strong potential. We have observed that once Japanese consumers actually try these products, they tend to recognize their quality and value-for-money. However, if a product is not yet mature or has limited brand awareness in Japan, entering offline retail channels can be challenging. Therefore, how to effectively reach end consumers will be a crucial task for Chinese sellers in the Japanese market.
Conclusion
Going overseas is not just about selling “high cost-performance” or “low-priced” products — it is about building and communicating a brand on a higher level. In an era that prioritizes speed, efficiency, and traffic, sometimes “moving slow” is the faster path forward.
Since 2018, EqualOcean has been dedicated to tracking and analyzing the global expansion of Chinese enterprises. We welcome contributions from industry professionals to share your expertise and insights. Companies seeking international growth, media exposure, or discussions on overseas strategies are also encouraged to contact us directly.
You can reach us via WeChat at xyrnina or by email at xingyiran@iyiou.com.