Reference News website reported on May 11 according to a report from the Financial Times website on May 7. Japan has long been called the graveyard of the retail industry, where global giants like Tesco, Walmart, and Carrefour have all failed. The rise of Chinese platforms marks a fundamental transformation in one of the most closed consumer markets in the world.
Historically, Japan's retail and e-commerce industries have been characterized by isolation. Due to complex supply chains, loyal customer bases, and supportive regulatory environments, local groups such as AEON, UNIQLO, and Rakuten Marketplace have long dominated. Cultural factors, such as the longstanding preference for domestic products, and geopolitical tensions that particularly affect older generations, have added another layer of difficulty for outsiders.
However, in recent years, reality has undergone an astonishing reversal. Chinese companies under Pinduoduo Holdings, such as Temu and Shein, have broken through barriers once thought insurmountable, offering products at prices 90% lower than those of local retailers. TikTok, owned by Chinese entities, is preparing to enter Japan's online shopping market within months, signaling further deepening of Chinese retail in the Japanese market.
Their value proposition is clear: reshaping local consumption habits amid rising living costs putting pressure on households. Ultra-low prices are more persuasive than traditional brand loyalty. A broader shift in consumer psychology is also at play. Younger shoppers, less attached to national brands and more immersed in global digital platforms, are more willing to try new things. Meanwhile, the quality gap that once influenced perceptions of Chinese products has narrowed, with many goods now meeting the expectations of increasingly price-conscious buyers.
This shift is extending into Japan's e-commerce sector, which has proven no easier to enter than physical retail. Local giant Rakuten controls nearly one-third of online sales, limiting the growth potential of outsiders. Even globally recognized platforms like Amazon Japan and Yahoo Shopping have spent decades adapting to the local market. Over 20 years ago, Amazon entered Japan, investing heavily in logistics, customer service, and cultural localization. Although nominally a foreign company, Yahoo Shopping is now fully operated by Z Holdings, part of SoftBank Group.
What American and local enterprises took decades to build, Chinese platforms achieved in months. Despite still lagging far behind in market share and having relatively narrow product coverage, this shift indicates that even the most cautious markets are vulnerable to digital disruption, especially when economic pressures collide with generational shifts. (Translated by Qiu Fang)
Original article: https://www.toutiao.com/article/7503123300470604351/
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