In Japan, both local and global merchants, are successfully leveraging Japan’s technologically advanced economy to increase sales by up to 30%.
The answer to how to make this increase may surprise you – writes Kaushik Sthankiya, Global Business Development Director,DOCOMO Digital. It is actually through a mobile first sales approach. Japan is a mobile-first shopping market where consumers complete purchases safely, securely and seamlessly even without the need for credit and debit cards. Retailers in the region, have realised that engaging with consumers through a mobile first approach and streamlining mobile purchase options significantly increases their bottom line.
According to the eCommerce Foundation, 100 million people (91% of the Japanese population over 15 years old) have internet access. Additionally, 76 million shop online and 54% use a smartphone only. As a result, Japan is a market where mobile conversion is amongst the highest in the world. Smartphones dominate all other digital channels as the preferred method for Japanese consumers when it comes to making online purchases.
Thousands of merchants (including some international and global brands) in Japan are leveraging the advantages of this advanced mobile market, to provide Japanese consumers with secure and trusted methods of payment. Merchants such as Apple, Amazon, American Eagle, Google Play, Muji, Rakuten, Starbucks, VICE, and many more trust payment solution businesses to help them scale their businesses in Japan.
As Mobile commerce continues to evolve and retailers are faced with increasing pressures, brand and customer experience will become a primary differentiator. Payment solution businesses provide retailers with a rich and personalised experience across all devices and environments to not only grow incremental revenues but to thrive in an increasingly competitive industry.
Our key points to be aware of when looking to succeed in a growing market such as Japan are:
- A tipping point: Retailers will imminently see a double-digit increase in sales from mobile smartphones compared to desktops and tablets
- Top verticals: Fashion brands will see the highest sales and unsurprisingly, young women are the largest group of mobile shoppers in the market. Sporting goods, Luxury goods, travel/hotels reservations and airline tickets are showing strong increases also
- Apps reign: Native mobile applications catering specifically to smartphones remains the most efficient channel for retailers, driving a larger percentage of shoppers down the purchase funnel and converting at least 3x the rate of mobile web
- Customer experience is supreme: When it comes to mobile commerce, retailers who provide the best mobile sites and apps that deliver outstanding consumer experience stand to take a significant share of the current market
With the ever evolving mobile commerce market it’s important to have payment solution businesses to support the personalised needs of merchants suited to each consumer. By taking a mobile first sales approach and adopting the key learnings, brands will be able to succeed in the Japanese market and deliver the best experiences for their consumers.