According to the press release, Japan is one of the most developed ecommerce markets globally and ranks second in Asia, only behind China. The market has registered sustainable growth over the last five years supported by high mobile and online penetration and increasing consumer confidence in online transactions.
An analysis of GlobalData’s E-Commerce Analytics reveals that ecommerce sales in Japan are estimated to grow by 10.1% in 2020 to reach USD 197.1 billion, compared to earlier pre-COVID-19 estimate of 7.2%. Ecommerce sales are expected to rise at a compound annual growth rate (CAGR) of 7.5% between 2020 and 2024, to reach USD 263.5 billion in 2024.
Moreover, according to the ‘Household Consumption Survey (May 2020)’ conducted by the Ministry of Internal Affairs and Communications, Japan, the percentage of households using online shopping reached 50.5% in May 2020, a 8.2 percentage points rise from same period in 2019.Furthermore, as Japanese consumers continue to embrace online shopping, the use of electronic payments will rise as consumers are moving away from cash-based payments due to fear of getting infected.
As per GlobalData’s 2020 Banking and Payments Survey* for online purchases, payment cards are the most preferred payment method for ecommerce purchases in Japan, accounting for 71.6% share, while alternative payment solutions accounted for 18.4% share.
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