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Understanding Japanese Consumer Behaviour

Last updated on June 3, 2024

Understanding Japanese Behaviour

Are you thinking about expanding your brand into the Japanese market? Understanding the local consumer mindset isn’t just an advantage — it’s essential. Japan’s unique blend of cultural and economic intricacies offers a landscape quite unlike any other.

Embracing the intricacies of Japanese marketing is not just about translating content into Japanese or launching localised advertising campaigns. It’s about diving deep into the cultural nuances that drive consumer behaviour in Japan.

In this guide, we will walk you through 3 core mindsets that define the Japanese consumer psyche, providing you with a strategic framework to customise your brand’s approach for maximum impact in Japan.

1. A Tradition of Saving

The image of Japan as a nation of savers isn’t just a cliché — it’s a cultural cornerstone that has stood the test of time. This penchant for saving is anchored in decades of economic stability with minimal inflation and the lingering effects of the 1990 financial bubble burst. Add an ageing demographic and looming social security concerns into the mix, and you’ll understand why a BIGLOBE survey found over 80% of respondents leaning towards saving rather than spending. In 2023, Japanese households’ financial prowess reached 2.115 quadrillion yen (about US$14.3 trillion), with cash and deposits forming the lion’s share. This isn’t simply a reflection of economic policies or current market trends — it’s a vivid portrayal of a culture that values savings, a tradition that has been handed down through generations.

Understanding Japanese Behaviour - Saving Money
#節約 ("economising") is a popular hashtag on Instagram in Japan

This saving spirit permeates every facet of Japanese life, from popular TV shows to social media. Here, tips and tricks for economising (known in Japanese as 節約術, setsuyaku jutsu) are shared and celebrated, morphing into a lifestyle embraced by many.

For businesses aiming to make a mark in the Japanese market, navigating this landscape presents a nuanced challenge, yet it harbours a golden opportunity. Success lies not in challenging this deep-seated mentality but rather in embracing it.

Products that stand out in this market are often those that echo the values of multipurpose functionality — particularly in beauty, personal care, and household products. These items win the hearts of Japanese consumers by championing the values of time-saving, space efficiency, and cost-effectiveness.

Ultimately, products and services that mirror this cultural inclination towards value and longevity stand a much better chance of winning over discerning Japanese shoppers.

2. Respect for Material Possessions

The international success of Marie Kondo’s decluttering philosophy opens a window into the broader Japanese principle that sees value and spirit in the everyday items that fill our lives.

At the core of this philosophy is the Shinto belief system, which encourages a harmonious relationship between humans and objects. Shinto teaches us to cherish and care for our belongings, not simply as inanimate objects, but as holders of kami, or spirit. This perspective transforms how we interact with the material world around us, urging us to think twice before we discard.

Central to this mindset is the concept of mottainai (もったいない), a Japanese word that doesn’t have a direct English counterpart but roughly translates to a sense of regret over wastefulness. It champions maximising the lifespan of our possessions. In a world increasingly concerned with sustainability, mottainai offers a lesson in mindful consumption.

Understanding Japanese Behaviour - mottainai
Kao's "Wastefulness – Mottainai. Never today, nor tomorrow" campaign highlights the company's initiatives to help consumers reduce wastefulness.

For brands eyeing the Japanese market, this translates into a strategy focused on durability, reusability, and unwavering quality. It’s about offering items that don’t just fill a space in the home, but rather, enrich the consumer’s life over the long haul.

Moreover, tapping into Japan’s seasonal events and national holidays offers another avenue for brands to resonate with local values. These moments in time are not just dates on a calendar but opportunities to celebrate the ethos of respect and preservation that underpins Japanese culture.

3. The Power of Popularity

In Japan, the bandwagon effect is a cultural phenomenon that powerfully influences consumer behaviour. Imagine the scene: lengthy queues curling outside the latest dining hotspots, or the fervent buzz around merchandise backed by a beloved celebrity. This isn’t just a preference — it’s a phenomenon. It reveals a deep-rooted inclination towards options that have already won the public’s nod of approval.

For brands setting their sights on the Japanese market, understanding this cultural cue is non-negotiable. Your marketing strategy needs to do more than simply hint at your product’s appeal — it needs to broadcast it loud and clear.

Understanding Japanese Behaviour - Cetaphil Japan
Cetaphil, a freshface in the Japanese market, features beloved actress Yui Sakuma as its brand ambassador. Their website shares that 84% of Japanese customers surveyed would recommend Cetaphil to others.

So, how can global brands capture the hearts of Japanese consumers? Spotlighting is key. In Japan, a product’s fame can be its most valuable asset.

Effective advertising in Japan doesn’t shy away from leveraging awards, celebrity nods, and prime-time TV features to highlight popularity. Yet, there’s a deeper level to this strategy: cultivating a dynamic online presence and engaging directly with the digital community. It’s not just about promoting a product — it’s an invitation to consumers to be part of a narrative larger than the product itself.

Key Takeaways

For brands looking to carve a niche in Japan, tuning into these consumer mindsets is key. By syncing your marketing efforts with the nuances of Japanese consumer behaviour, you can devise campaigns that resonate deeply, paving the way for success in this distinctive market.

WPIC Marketing + Technologies is your go-to partner for navigating Japan’s digital marketing landscape. Keen to propel your brand’s growth in Japan? Don’t hesitate to get in touch with us.

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