Goods distribution channels

In Japan, goods are distributed through various retail channels such as supermarkets, department stores, specialty stores, convenience stores, and discount stores, etc. The size of Japan's retail market tends to expand over time. During the period 2013-2022, retail sales in Japan increased from JPY 138.9 trillion in 2013 to JPY 154.4 trillion in 2022 (Statista.com, 2024). Of which, the food and beverage retail industry recorded the largest retail sales with JPY 45 trillion in 2022 (accounting for about 29% of total retail sales in Japan).

Table – Retal distribution in Japan

Source: WTO-VCCI synthesis from Santandertrade, 2023

E-commerce is growing in the Japanese market with an increasing demand for online shopping. Japan is currently the 5th largest e-commerce market in the world (after China, the United States, the United Kingdom and South Korea). The most popular types of goods purchased online are fashion products, household goods and electronics. Popular e-commerce sites in Japan include Amazon.co.jp, Rakuten.co.jp, Shopping.yahoo.co.jp, Zozo.jp, Mercari.com/jp/, etc.

However, Japanese consumers still prefer to shop for some products (such as essential goods, food, cosmetics, etc.) at traditional retail stores. In particular, convenience stores (also known as konbini) are considered the most competitive sales channel in Japan thanks to their dense, easily accessible network of stores, allowing consumers to quickly shop for many grocery items, especially suitable for the busy lifestyle in this country.

Import channels

Imported goods can reach the Japanese market through a variety of channels depending on the type of product, financial considerations, and other factors such as market size, demand, and long-term sales potential of the good.

The following are some common channels for importing foreign goods into Japan:

• Through a commercial presence in Japan

Foreign companies establish a commercial presence (a foreign-invested enterprise, business cooperation contract, a branch, representative office, etc.) in Japan to import, distribute to agents, stores or sell directly to consumers. This is an effective way to access the market, but this form is suitable for large companies that trade in large quantities and want to develop long-term in the Japanese market. The reason is that establishing and operating a commercial presence requires more investment capital than other forms, and the procedures for establishment and management also take more time and cost.

• Through import partners in Japan

Import partners can be units that purchase goods for their direct use (large, valuable industrial equipment; raw materials for production, etc.) or professional importers. Japanese specialized import units are mainly wholesalers, distributors or intermediary agents that import goods for redistribution (for example, to stores, supermarkets, and other units in need). Imported goods through these professional import units are usually small machinery and equipment, common industrial supplies, and consumer goods.

• Through online shopping channels

Foreign suppliers can also sell directly to buyers in Japan through e-commerce channels such as Amazon, Rakuten, Zozo, Mercari, etc. This form is becoming increasingly popular in Japan for international shopping, but is usually only suitable for consumer products.

Source: Center for WTO and International Trade

• Market size of Japan
• Trade activities of Japan
• Consumer characteristics in Japan
• Vietnam's exports to Japan