There can be cultural barriers when doing business in Japan. It’s worth taking the time to study the differences and learn what the expectations are when doing business, both online and offline.

Japan is an advanced country with a substantial consumer market. Its GDP of $4.56 trillion makes it the third largest economy in the world,¹ and its big e-commerce sector continues to grow. 

Its population of 126 million is the oldest in the world,² which makes for a unique consumer group

Japanese consumers in general are distinguished by high levels of disposable income and a preference for premium goods and services.³ And with cross-border e-commerce forecast to grow, the country offers exciting potential to ambitious businesses. 

Older generations make up a key consumer group in Japan. Currently 28% of its citizens are over 65,⁹ and by 2035 one in three people will be 60 or older.¹⁰

These generations are the nation’s most active consumers,¹¹ which can partly be explained by the many seniors remaining in employment. Almost 50% of those aged 65-69 are still working,¹² as are approximately 675,000 people over 70 – a figure that’s more than doubled in the last four years.¹³

Many older consumers in Japan are also very active online, showing similar tendencies to other generations. In 2021, internet penetration was 90.5% among 60-69 year-olds and 74% for 70-79-year olds.¹⁴ More mature consumers are more likely to shop online than younger ones, with 93% of women aged 40-49 making online purchases in 2021, compared to 76% of 20-29-year-olds.¹⁵

Japanese business culture can be very different to that found in Western Europe. One of the biggest differences is that it can be much more formal.¹⁷ There’s also a strong emphasis on building trust – developing direct relationships and showing commitment are important parts of doing business in Japan.¹⁸

It may be worth considering other elements of Japanese business etiquette when doing business in person, for example, if you are visiting customers or exhibiting at a trade fair.

Some of the main cultural pillars can also translate into the foundations of successful customer interactions. Respect and courtesy are fundamental to Japanese culture, so bear that in mind in all your interactions, both on and offline¹⁹

Japanese consumers research products very heavily before making a purchase, paying close attention to reviews, recommendations, and other elements that can help them judge a brand’s reputation. ²⁰ They also value quality services and products and are becoming increasingly environmentally conscious.²¹ Finding ways to tap into these consumer preferences could prove rewarding. 

Although Japan’s e-commerce market is growing rapidly, it’s known to be a difficult one to enter. ²² Being a single-language country can act as a barrier to cross-border e-commerce, so to win over consumers it’s important to adapt all content to the local language. Investing in a professional translation of your website could help your business get ahead ²³

Japan is a relatively small country with good logistics services, so customers are used to fast and reliable deliveries.²⁴ Being able to offer this could be an important element in successful trading. Ensuring you are well-informed on customs practicalities and procedures, as well as using reliable logistics service providers, could help to keep shipments moving smoothly.

As recently as 2021, cash was the preferred payment method for 90% of all purchases, online and offline.²⁵ For e-commerce purchases, customers often pay by cash at their local Konbini, a chain of convenience stores,²⁶ or with e-money or pre-paid cards.²⁷ Although credit and debit cards are popular, 52% of online card transactions are made with locally issued cards, which can make e-commerce tricky.²⁸ Take some time to research which payment options might work best for your Japanese customers.