Restraining the spending urges
Japanese shoppers are paradoxical. They have become increasingly risk averse and are very trusting in familiar brands, especially towards domestically produced goods. At the same time, brand awareness is declining, and they are not averse to exploring alternatives. The price tag is a decisive factor when spending on goods and services, and the leading cause of brand switches. However, while not particularly thrifty, Japanese consumers are not hesitant to loosen the purse strings for recreational and entertainment activities. This is especially prominent in the consumption habits of Generation Z consumers. Compared to other age ranges, they are susceptible to impulse buying and integrate technological services into their shopping journey to make smart spending decisions. Nonetheless, the long tradition of seniority-based remuneration underlies a wage gap and rift in spending power between senior and young consumers. As such, businesses are orienting their marketing strategies to address the needs of senior households, a group that holds the majority of household savings in Japan but is less prone to impulsive shopping behavior.Shopping trends
Inflation-adjusted wages are declining in Japan, spurred by rapid inflation amid global crises and a weakening yen. Consumers are torn between spending and saving, which reinvigorated slumbering market segments and alternative forms of consumption. One concept enjoying prominence due to media exposure was sustainable shopping. Consumers are exploring means to save money by buying smaller amounts of perishables, refillable or reusable products, and locally produced goods, reducing the momentum of decades-long overconsumption. However, conscious purchases of sustainable products are not common and reliant on the immediate benefit provided.A market segment that flourishes under the current economic circumstances, and is driven by conscious consumer choices, is secondhand and used goods. The recommerce market is a popular means to strike a balance between saving and satisfying consumption desires. As such shoppers are increasingly considering buying secondhand instead of new, especially for fashion and recreational goods, which are only occasionally used.
