top of page

Exploring New Business Opportunities in Japan's Inbound Tourism and Drugstore Sectors

Writer's picture: Yasuhiro TakayamaYasuhiro Takayama

As Japan welcomes a new wave of inbound tourists, the landscape has shifted significantly from the days of sightseeing buses filled with shopping-hungry visitors. Today, travelers are seeking unique experiences, shaping new consumer trends and creating fresh business opportunities for foreign companies.



The Evolution of Inbound Tourism


In 2023, Japan's inbound tourism spending reached a record 5.3 trillion yen, surpassing pre-pandemic levels despite fewer visitors compared to 2019. An all-time high is expected in 2024 as the number of tourists continues to climb. The Japanese government aims to attract 60 million visitors by 2030, with a forecasted consumption of 15 trillion yen—rivalling the export value of Japan's automobile industry.


Unlike past shopping sprees, modern tourists are drawn to experiential consumption. With high-value experiences like sushi-making tours and unique restroom tours gaining popularity, brands are pivoting from product sales to offering engaging and cultural experiences.



Key Emerging Trends


  1. From Product to Experience: Foreign tourists are embracing experience-based activities. For example, popular attractions include Ginza's Kurazushi, where visitors enjoy interactive dining experiences, and Shibuya Tsutaya, which provides panoramic views of Shibuya Crossing and hosts anime-themed events.

  2. Reshaping Consumption Patterns: While consumer behavior previously centered around luxury products, there's a notable rise in secondhand and high-quality goods purchases—praised for their authenticity and affordability.

  3. Diversification of Tourists: As the dominance of Chinese tourists wanes, visitors from Korea, Taiwan, Southeast Asia, and the Americas are increasing, bringing diverse preferences and boosting demand for varied experiences and products.

  4. Exploring New Destinations: More tourists are venturing beyond the classic Tokyo-Kyoto-Osaka circuit, exploring lesser-known regions like Tohoku and Shikoku. With tourists returning for multiple visits, there's a trend towards deeper, more localized experiences.



Opportunities for Foreign Companies


  1. Experiential Tourism Development: Businesses can create unique cultural experiences that appeal to international visitors, like guided tours or interactive workshops centered around traditional Japanese crafts.

  2. Secondhand and Sustainable Retail: With an increase in demand for secondhand and eco-friendly products, companies specializing in these areas can find lucrative opportunities in Japan's evolving retail landscape.

  3. Regional Tourism Partnerships: Engaging with local businesses to promote regional travel experiences can attract tourists seeking authentic escapes beyond mainstream destinations.

  4. Digital and IoT Solutions for Retailers: Companies offering digital integration and IoT technologies can help Japanese retailers optimize operations and provide tailored customer experiences to diverse tourist demographics.



Embrace the Growing Market


The shift in tourism dynamics presents an opportunity for foreign companies to tap into Japan's inbound market. Whether by developing unique tourist experiences, supporting innovative retail strategies, or providing advanced technological solutions, there is substantial potential for growth and collaboration.


Is your company ready to explore these burgeoning opportunities in Japan? Our startup offers strategic insights and market entry solutions to help your business succeed in this dynamic market. Discover Our Market Entry Solutions

2 views0 comments

Comentarios


Brand Anchor Japan

  • alt.text.label.LinkedIn
  • alt.text.label.Facebook

©2024 by Tech Frontier LLC.

bottom of page