Wholesale and retail as share of Japan's GDP 2021

In 2021, the wholesale and retail trade industry contributed around 13.7 percent to the gross domestic product (GDP) of Japan. This represented an increase of 1.1 percent compared to the previous year. The Japanese GDP fell below five trillion U.S. dollars in recent years, but forecasts expected an upward trend for the years ahead.

Wholesaling in Japan

The wholesale sector is an important link within Japanese supply networks, ensuring timely supply of raw materials and intermediate goods to manufacturers, as well as final goods to the consumer market. Wholesale corporations in Japan vary by capital structure and products, ranging from a large number of small sole proprietorships with a straightforward portfolio to a small share of large-scale general trading companies that deal with a broad range of goods. While the rise of e-commerce has opened new distribution routes for producers and manufacturers to market and sell to retailers and consumers directly, wholesalers managed to maintain their role as intermediaries in an environment characterized by trust-based business relations, smooth operations, and the importance of quality.

Retailing in Japan

The Japanese retail sector encompasses store-based and non-store businesses, with domestic consumers discovering the possibilities of online shopping not only for digital services but also for physical goods. While brick-and-mortar stores remained the preferred point of sales trusted for their transparency and long-standing services, online shopping was gradually adopted as the alternative for non-durables and leisure products. To defend their market positions against the advance of online marketplaces, physical retailers incorporated mail-order distribution, online stores, as well as click and collect services in their sales strategies in recent years.