An Opportunity for Japanese Companies? The cross-border EC market is expanding!

Have you ever heard of cross-border EC?

Selling Japanese products to overseas consumers via the Internet is known as cross-border EC, and the market for cross-border EC is currently expanding rapidly. Due in part to the spread of the new coronavirus, the number of tourists coming to Japan to see the sights has plummeted, and inbound consumption has also declined at the same time.

On the other hand, cross-border e-commerce is growing rapidly, and the market is expected to continue to expand rapidly in the future. Overseas consumers are using cross-border EC to shop for the high-quality products that Japan prides itself on.

So what exactly can Japanese companies gain from using cross-border EC?

What kinds of products are popular and what should we pay attention to when using cross-border EC?

In this issue, for those who have such questions, we will introduce in detail what cross-border EC is, the advantages and points to note when Japanese companies use cross-border EC, and what kind of Japanese products are popular overseas.

If you are thinking of opening a store overseas using cross-border EC, please check it out.

Basic Knowledge of Cross-border EC

Bright Idea Concept

First of all, let us introduce what kind of service cross-border EC is.

As lightly introduced above, cross-border EC refers to a business method of selling Japanese products to overseas consumers via the Internet.

A concrete example that is easy for everyone to imagine is “Amazon.

Amazon, which is headquartered in the U.S., makes it easy to buy products manufactured by U.S. companies in Japan, right?

Cross-border EC is a very convenient service that allows overseas consumers to purchase products manufactured in Japan or by Japanese manufacturers through a platform called an EC site.

This very convenient cross-border e-commerce market has been expanding rapidly over the past few years.

According to the ” 2020 Industrial Economy Research Commissioned Project (Market Research on Electronic Commerce) Report ” published by the Ministry of Economy, Trade and Industry in 2021, the market size will be US$780 billion by 2019, or 85 trillion yen in terms of Japanese yen.

This alone is a very large figure, but by 2026, it is estimated to grow six times that amount to US$4.82 trillion, or 530 trillion yen in Japanese yen.

This is thought to be due to a variety of factors, but also because the number of people shopping online itself is increasing, including the widespread use of smartphones and the comfort of the Internet environment.

Cross-border e-commerce is now popular in many countries around the world, and Japanese companies are increasing their numbers, mainly by opening stores in China and the United States.

Advantages of Cross-border EC for Japanese Companies

Japanese green matcha tea powder

Next, we will introduce the advantages of cross-border EC for Japanese companies.

We will introduce in detail the points where Japanese companies should use cross-border EC, so if you are considering using cross-border EC, please check it out.

MADE IN JAPAN” is popular anyway.

One of the advantages of using cross-border EC for Japanese companies is that “made in Japan” products are popular anyway.

Japanese products are known for their high quality and “safe and secure” products are very popular overseas.

In the case of cross-border e-commerce, since Japanese companies directly open stores, it is easy to judge genuine products from fake products, and it is also easy to gain trust simply by saying “Made in Japan.

Favorable reputation for fast ordering and shipping.

One of the advantages of using cross-border EC for Japanese companies is that Japanese companies are well received overseas for their fast turnaround time from order to shipment.

For example, an e-commerce site in China called Jingdong Shancheng has a partnership with the Yamato Group in Japan, and can complete the process from order to shipment in as little as four days.

The “diligence” of Japanese companies is another reason why Japanese companies’ products are popular in cross-border e-commerce.

Low initial cost

One of the advantages of using cross-border EC for Japanese companies is that initial costs are low.

This is not limited to cases where Japan is the only country opening a store. When opening a store overseas, there are costs for land and interior construction.

In comparison, cross-border EC does not require any land or construction costs, and labor costs can be kept to a minimum. Therefore, cross-border EC is recommended for Japanese companies that are considering opening an overseas branch but want to keep initial costs as low as possible.

Not cross-border EC, but also expected to increase store sales

One of the advantages of using cross-border EC for Japanese companies is that they can expect to increase their store sales as well as cross-border EC.

Although the number of foreign tourists visiting Japan has been decreasing due to the impact of the new coronavirus, it is conceivable that they will learn about the products of Japanese companies through cross-border e-commerce and purchase products at stores when they actually visit Japan as a result of word-of-mouth spread.

Therefore, cross-border e-commerce is also a recommended service for those who want to increase their actual store sales.

Points to keep in mind when using cross-border EC for Japanese companies

top view of attention lettering made of multicolored blocks on gray background

While the above discussion has introduced some of the advantages of cross-border EC for Japanese companies, there are actually several points that must be kept in mind.

Please check this page for information on precautions for Japanese companies using cross-border EC.

Targets need to be clarified.

One point to note when Japanese companies use cross-border EC is the need to clarify the target market.

What this means is that “just because something sells well in Japan does not mean it will sell equally well overseas.

It will be quite difficult to get customers to buy a product unless it is tailored to their needs in the target country or region, as well as their age group and standard of living.

Note that no matter how high the quality of the Japanese product, if the price is too high, a certain customer segment may not be able to afford it, and sales may not be as high as expected.

There will be tariffs.

One point to note when Japanese companies use cross-border EC is that they are subject to customs duties. Unlike domestic EC, cross-border EC is subject to customs duties. The handling of customs duties differs depending on the country in which the store is located, and of course the amount varies as well.

Even if the customer is satisfied with the price and quality of the product, it is quite possible that the customer will not buy it because the tariffs are too high, so it is necessary to research the tariffs of the country in which the store is to be opened in advance.

Export costs are high.

One point to note when Japanese companies use cross-border EC is the cost of exporting. Since products are shipped from Japan to overseas, export costs are naturally incurred.

It is important to note that, as well as the tariffs mentioned above, the cost of exporting must also be taken into account when setting the price.

Difficult to support due to different languages

One point to note for Japanese companies using cross-border EC is that it is difficult to provide support because of the different languages. Since products are sold overseas, it is naturally necessary to provide product names and descriptions in the language of the country where the store is to be opened, rather than Japanese.

If that is all, you will still need to respond to ‘inquiries’ as well. It is important to note that it is necessary to hire people who speak the language of the country and have them work as support staff.

Products of Japanese companies popular in cross-border EC

side view of smiling woman in shirt using microwave in kitchen

Finally, we will introduce some popular Japanese products for cross-border EC. If you are considering opening an overseas store using cross-border EC, please check them out.

Toys & Games

Toys and games are among the most popular Japanese products in cross-border EC.

Foreign countries like Nintendo and other world-class Japanese games and toys.

In addition, toys also sell well in China because of the tendency for child-rearing products to sell well and the desire for safe Japanese toys to be used.

fashion

Fashion is one of the most popular Japanese products in cross-border e-commerce.

Clothing made in Japan is highly popular among foreigners because it is all of high quality and yet relatively inexpensive.

Underwear and underwear from UNIQLO, the pride of Japan, are popular among people of all ages.

Accessory

Accessories are one of the most popular Japanese products in cross-border e-commerce.

One of the most common images of Japanese products overseas is “few fakes.

The advantage of cross-border EC is that you can purchase products manufactured by Japanese companies directly from Japanese stores.

electric(al) appliances

One of the most popular Japanese products in cross-border e-commerce is electrical appliances. Japan is home to many world-class electronics companies.

Famously, it is said that every tourist who comes to Japan brings back a Japanese-made bidet toilet seat.People living abroad who are currently unable to come to Japan often use cross-border EC to purchase Japanese hot-wash toilet seats and other products.

automobile

One of the most popular products in cross-border e-commerce is automobiles.

New automobiles manufactured by Japanese companies as well as used cars maintained by Japanese companies have also become very popular overseas. SUVs such as Land Cruisers sell at high prices because of this high demand overseas.

summary

We hope you found this article helpful in understanding what cross-border EC is, the advantages and cautions for Japanese companies using cross-border EC, and what kinds of Japanese products are popular overseas.

Products manufactured by Japanese companies, as well as the responsiveness of Japanese people, are very highly regarded by people overseas.

We suggest using cross-border e-commerce to take advantage of Japan’s unique characteristics, such as high quality, safety, security, and gentleness.

If you are considering using cross-border EC in the future, please refer to this article.

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