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Japan is home to the 5th largest eCommerce market, which is projected to grow by 55% in the next five years, thanks to increased internet and mobility access. Accelerated during the pandemic, online shopping among households in Japan has increased from 40% to 52%.
Despite this shift, Brick-and-mortar retail remains strong, as Japanese consumers still value in-store shopping experiences. To adapt and meet consumer demand, retailers have implemented omnichannel shopping—an integrated strategy that combines online and offline channels. The goal is to create a seamless experience across websites, social media, apps, and physical stores.
This article will explore the key trends in omnichannel shopping and provide practical strategies to help businesses meet the evolving expectations of Japanese consumers and remain competitive, including offering flexible payment options with platforms like KOMOJU to enhance the customer experience.
Understanding Omnichannel Shopping in Japan
To understand omnichannel shopping in Japan, let us first look at the country’s connectivity. It is based on the number of internet users and mobile device owners. Japan has an internet penetration rate of over 94% and an even higher mobile penetration rate of 130% due to some people owning multiple devices.
This connectivity supports Japan’s eCommerce sector, which has around 96.7 million users. Globally, 73% of consumers have been involved in some form of omnichannel shopping, and while exact numbers in Japan are unknown, Japanese citizens are known to be active participants.
This shopping trend has been strongly impacted by Japanese consumer behavior, with many shoppers preferring to research items online before purchasing them in-store, or vice versa. As a result, Japanese people expect their omnichannel shopping experience to be smooth, flexible, and seamless, integrating both digital and physical channels, with multiple payment options.
Key Drivers of Omnichannel Growth in Japan
The growth of omnichannel shopping in Japan is being driven by demographic shifts and changing consumer expectations, which include:
Tech-Savvy Consumer Base
Japanese clients are tech-savvy and early adopters, especially younger people aged 20 to 39. This demographic is eager to embrace new technologies, valuing ease, efficiency, and connectedness offered by modern innovations.
However, like the rest of Japanese society, these consumers still cherish traditional experiences and cultural values. Omnichannel shopping offers the convenience of online purchasing while maintaining the advantages of in-person shopping, such as analyzing things up close and experiencing Omotenashi—Japan’s distinct approach to excellent customer service.
Rise of Social Commerce
Social commerce is a type of eCommerce in which customers can shop directly from social media networks. These platforms are not only a source of inspiration and discovery for customers but are also becoming popular purchasing locations, with social commerce sales in Japan expected to exceed $40 billion by 2024.
It is estimated that around 96 million people —78.1% of the total population, use social media. According to Digital Japan`s 2024 Report, the top 5 platforms by user base are:
- LINE – 73.4 million users
- X (formerly Twitter) – 73.4 million users
- Instagram – 55.5 million users
- TIK TOK – 26.05 million users
- Facebook – 17.7 million users
These platforms improve the shopping experience by incorporating eCommerce capabilities that allow customers to research products, get recommendations, read reviews, and receive real-time updates on their favorite brands. Consumers can also explore products, add items to their carts, and complete transactions by checking out using the app.
Digital Transformation of Physical Stores
Brick-and-mortar stores are transforming by merging digital and physical elements as part of a comprehensive omnichannel retail strategy.
UNIQLO
UNIQLO, one of Japan’s leading apparel retailers, is a pioneer of in-store technology. Counters are touch-free and use RFID (Radio Frequency Identification) tags to automatically scan items at the same time, allowing shoppers a quick and smooth self-checkout process.
Customers can also download the UNIQLO App, to access discounts and promotional coupons, that they can use in-store at the time of purchase.
MUJI
MUJI, a giant home goods retailer, displays QR codes throughout its stores so that customers can access detailed product information. Shoppers can quickly research product availability at other stores and even order items that might be out of stock in that location.
7-Eleven Japan
7-Eleven Japan, one of the country’s leading chains of convenience stores, has begun introducing digital kiosks and mobile app integration. Customers can order and pay for products through the app and then pick up their orders at a local convenience store, allowing 7-Eleven to leverage its extensive network of physical locations as fulfillment hubs.
Demand for Seamless Shopping Journeys
Japanese consumers have come to expect a seamless integration between digital and physical shopping. This has resulted in the retail industry creating a unique omnichannel model that merges the convenience of online shopping with the tangible experience of physical stores.
A 2023 study by JapanConsuming found that nearly 75% of Japanese shoppers value consistent experiences across digital and physical channels, which includes a seamless transition between online and in-store shopping. Popular omnichannel strategies include click-and-collect services (BOPIS), where customers buy online and pickup in-store, and enhanced personalization options.
For example, CHARLES & KEITH, a fashion retailer, has in-store stylists who use styling apps to offer tailored outfit recommendations. Select stores also allow customers to personalize products with embroidery or hand-painting by artisans.
Japan is also a leader in providing cashless and contactless payment options. According to the Ministry of Economy, Trade, and Industry, an increasing number of Japanese consumers prefer digital payments, which aligns with the seamless, customer-centric experience that omnichannel strategies aim to provide.
Companies are working with payment gateways like KOMOJU, which supports local payment methods, enabling merchants to provide a seamless experience across both digital and physical shopping.
Benefits of an Omnichannel Strategy in Japan’s E-Commerce Market
Improved Customer Experience
An omnichannel strategy greatly enhances the customer experience by offering flexible payment methods, seamless fulfillment options, and consistent customer service across all channels.
Flexible Payment and Fulfillment Options
In Japan, consumers can choose from several payment methods, including credit cards, mobile wallets, and ID-based payments. Payment gateways like KOMOJU allow businesses to integrate multiple payment methods, making transactions seamless across digital and physical channels.
They can also choose from convenient delivery methods like home delivery, in-store pickup, or special storage lockers.
Consistent Customer Service Across All Channels
Omnichannel shopping strategies allow customers to interact with a brand in-store, on the brand’s website, or through a mobile app. This strategy provides a unified experience where customers receive consistent and high-quality customer support.
Real-Time Inventory and Availability Information
Customers can view up-to-date inventory, and if an item is not available in-store, they can check to see if it’s available online. This reduces wait times and allows them to complete their purchases quickly and efficiently.
Nitori
Nitori, one of Japan’s major interior retailers has a specific term for this omnichannel strategy, ‘empty-handed shopping’. Through the Nitori app, customers can scan the barcodes of the products displayed in their showrooms. They can then have the products delivered to them, which not only makes it convenient but also makes up for the low inventory found in urban stores.
Increased Brand Loyalty and Engagement
Omnichannel strategies help brands build stronger relationships with customers through personalized interactions.
Tsutaya
Tsutaya, a major Japanese retailer of books, music, and media, uses the Tsutaya app as the core focus of its omnichannel strategy. Customers can check store inventory, make payments, and receive personalized recommendations based on their purchase or rental history.
Expanded Data Collection and Insights
To better understand the customer, omnichannel shopping collects data from various sources such as:
- Online Transactions: Products purchased, payment methods, and order value.
- In-Store Purchases: Point-of-sale and loyalty program data on products purchased and payment methods.
- Website Visits: Pages, products viewed, and time spent on the website.
- Social Media Interactions: Likes, comments, shares, and mentions.
- Loyalty Programs: Transactions made with loyalty cards or apps, and reward redemptions.
Customer data is collected once across all touchpoints and stored in a central database. Through data analysis, retailers gain insights into customer behavior, enabling personalized experiences and optimized marketing.
Higher Sales and Conversion Rates
At 89%, Japan has one of the highest cart abandonment rates, significantly higher than the global average of 70%.
Integrating multiple channels helps reduce cart abandonment rates and boost overall sales.
Providing multiple payment and fulfillment options also ensures that customers can complete their purchases in the way that best suits their preferences.
For example, a shopper might start by browsing products on a mobile app and then visit a physical store to try them on. They then have the option to complete their purchase in-store or online, with the items already saved in their cart.
Popular Omnichannel Trends in Japan
Buy Online, Pickup In Store (BOPIS)
Buy Online Pickup In-Store (BOPIS), is a process that allows customers to buy products online, and pick them up in a physical store. Through this approach, the instant availability of in-store pickup, and the convenience of online shopping are combined.
Retailers experience the benefit of providing improved customer experience, having more efficient inventory management, and creating additional sales opportunities. Globally, BOPIS is rapidly becoming a key component of omnichannel strategies. In Japan, this service is being used by retailers like Yodobashi Camera, 7-Eleven, and UNIQLO.
UNIQLO
At UNIQLO stores, customers can order items online and then pick them up at the nearest store, enjoying the convenience of in-store pickup while taking advantage of being able to choose from a wide range of products available online.
In-store QR Codes and Digital Kiosks
Seven-Eleven and UNIQLO, like other retailers, are also using QR codes and kiosks to enhance the shopping experience.
In Seven-Eleven stores, QR codes are scanned for product details to process in-store payments and quickly inform customers about promotions and offers. With QR codes, shoppers can also get product information and checkout purchases without needing to interact with staff.
In UNIQLO stores, kiosks enable customers to browse a wider range of products and check availability. If an item is not in stock, customers can ask for the order to be delivered at home or arrange to pick it up from another store.
This integration and flexibility create a seamless, convenient, and personalized shopping- experience for customers.
Virtual Try-Ons and Augmented Reality (AR)
Through virtual try-ons, Japanese eCommerce platforms and retailers enhance the shopping experience by leveraging AR.
A recent Nielsen study found that over 50% of global consumers were eager to use AR and VR (Virtual Reality) to have access to more products and also have unique shopping experiences like:
- Virtual Try-Ons: With this AR, customers can virtually try on products like apparel, cosmetics, and eyewear.
- Home Decor Visualization: Shoppers use AR to visualize how furniture or home accessories will look in their space.
Retailers Using AR and VR
ZOZOTOWN
ZOZOTOWN: The largest online clothing store in Japan, uses AR technology through their ZOZOSUIT, an at-home measuring tool that takes shoppers precise body measurements, and helps them choose clothing that fits them perfectly.
ZOFF
ZOFF is a leading eyewear retailer in Japan that recently introduced the EASee Zoff Virtual Fitting service, a 3D web fitting feature developed with AR technology. The device’s camera allows customers to virtually try on eyewear before purchasing.
Loyalty Programs Across Channels
In Japan, Rakuten and T-Points are popular loyalty programs, where customers can collect and redeem points when shopping.
With the introduction of digital wallets, loyalty programs have become more united. Customers can earn prizes, discounts, and other incentives for online and offline transactions, and their points can be redeemed online or in-store.
This integration ensures that clients receive the same benefits whether they shop online from home or at a real store.
Integrated Social Media Shopping
Social commerce—selling directly through platforms like Instagram, Facebook, and LINE allows bands to reach customers directly on social media, turning these platforms into key shopping destinations.
In Japan, social commerce sales are projected to reach $40 billion in 2024. As many people spend their time on social media, the idea is to “sell to customers where you find them.”
For example, brands can use Instagram or Facebook Messenger to make product inquiries or add “buy now” buttons to their posts. This integration streamlines shopping, allowing users to make purchases without leaving the platform.
Instagram Shopping, Facebook Marketplace, and LINE Shopping are platforms that enable users to shop directly from their social media accounts:
- Instagram Shopping: Users can browse and purchase products directly through posts, stories, and ads without leaving the platform. Brands do this by posting photos and tagging products, which users then click on to learn more and make a purchase.
- Facebook Marketplace: This is a popular online marketplace that allows users to shop directly on the Facebook app. This is a popular online marketplace that allows individuals and businesses to list local products for sale.
- LINE Shopping: This feature within the LINE app allows users to shop for products from various retailers by integrating the app’s messaging and social features.
These platforms are part of the growing social commerce trend, where social media platforms double as shopping destinations.
How to Optimize for Omnichannel Success in Japan
A successful omnichannel strategy engages with customers across all touchpoints, digital and in-person, helping brands increase customer satisfaction, loyalty, and sales. In Japan 59% of shoppers prefer physical stores to examine or try products, therefore this merged approach is important. Here are some strategies for optimizing omnichannel success in Japan:
Ensure Consistent Branding Across Channels
1. Map and Improve the Customer Journey:
Start by outlining the customer journey. This allows you to identify the different touchpoints and use each as an opportunity to engage with the customer and reinforce your brand’s message.
2. Create a Consistent Brand Message & Visual Style
Create a unified brand message and visual style that can be used across all touchpoints.
3. Have a Seamless Customer Experience
Customers expect the same quality of experience regardless of the platform, and maintaining that consistency builds trust and loyalty. Delivering a smooth and consistent experience throughout the customer journey, from the first impression to post-purchase—ensures satisfaction and encourages repeat business.
Invest in Mobile-Optimized Experiences
Japan’s eCommerce growth has been accelerated by Mobile commerce (m-commerce). Mobile usage is expected to reach 95% by 2027, meaning mobile devices are central to online shopping. To achieve omnichannel success, businesses need to implement a mobile-first approach.
A mobile-first approach allows brands to create consistent experiences across mobile, desktop, and in-store, making it easier for customers to transition between channels. It also ensures an accessible and convenient shopping experience across devices.
Enhance Customer Support Options
To provide customer support across channels, brands should identify which channels customers use the most and focus on key touch points. Some common ones are:
Chatbots: Customers can receive instant support, 24/7 for common questions across websites and social media.
In-Store Staff: This involves training staff to answer questions about the products being sold online and helping customers transition between digital and physical experiences.
Social Media: Social media allows brands to engage and respond to customer inquiries in real-time.
Implement Real-Time Inventory Management
Efficient inventory management ensures products are available across channels, reducing costs and improving the customer experience. This can be achieved by having a:
Centralized System: To prevent overselling and stockouts, use a platform that updates stock across all channels.
Audit Checks: Regularly check inventory to ensure physical stock matches system records, catching errors early.
System Integration: Sync eCommerce and POS systems for consistency across online and offline sales.
Personalize the Omnichannel Experience
Omnichannel strategies collect customer data and insights across multiple platforms. This allows brands to analyze how customers engage with products online, in-store, and through mobile apps. With these findings, brands can refine their products and services, improve customer experiences, and adjust their marketing strategies based on consumer preferences.
Summary
Japan’s omnichannel shopping industry is thriving, fueled by a tech-savvy consumer base and innovative retail solutions that blend digital and brick-and-mortar strategies.
Key strategies for success include seamlessly integrating digital and physical channels by leveraging technology, personalizing the shopping experience, and incorporating social commerce and augmented reality.
In-store experiences are still valued, while online shopping continues to rise. As consumer expectations evolve, businesses in Japan are continuing to develop and implement solutions to adapt and stay competitive in the rapidly changing eCommerce environment.
Offering flexible payment options through gateways like KOMOJU and adopting omnichannel strategies will help retailers meet customer expectations, enhance engagement, boost loyalty, and drive sales growth in Japan’s dynamic eCommerce market.
FAQs
The most popular omnichannel strategies in Japan are:
- Buy Online, Pickup In Store (BOPIS),
- Loyalty Programs Across Channels
- In-store QR Codes and Digital Kiosks
- Virtual Try-Ons and Augmented Reality (AR)
- Social Commerce
In Japan, omnichannel shopping strengthens customer loyalty by providing a seamless experience across online and in-store channels. Personalized service, flexible payment options (facilitated by payment gateways like KOMOJU), and instant support lead to more satisfied customers, motivating them to return and build stronger connections with brands.
The challenges of implementing an omnichannel approach in Japan include integrating different systems, maintaining a consistent customer experience across all channels, managing logistics and inventory, understanding local consumer preferences, and dealing with the high costs of technology and training staff.
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