IKEA’s failed attempt to take over Japan’s furniture market in 1974 highlights the challenges international businesses face in grasping the peculiarities of Japanese home designs and consumer mentality. However, furniture consumption is transforming, with e-commerce being a key indicator of how consumers purchase behavior has changed. Nowadays, online shopping channels account for almost a third of
, a ratio unimaginable until a decade ago. At the same time, a growing demand for sustainable items and rising raw material prices are challenging the market, as the purchase of durable household goods underlies a careful decision-making process for which
Traditional woodworking and modern metal processing
Japan’s furniture market is an import-focused market, with disaster prevention measures restricting
lumber production for furniture manufacturing despite the country's large mountain areas. Products are segmented either by raw material used or by intended application. Wood and metal are the most common materials, while bamboo, plastic resin, and leather are used as secondary or supplementary materials. Wood is the main material for furniture in Japanese homes due to its history of traditional carpentry, and matches the
wooden structure of many residential dwellings. Lumber processing regions like Ashikawa in Hokkaido and Okawa in Fukuoka are namesakes for wooden luxury brand interiors.
Metal, on the other hand, represents a modern material, either used to reinforce wooden furniture or as the main material in office furniture. Favored for its durability, affordability, and easy maintenance, the presence of metal furniture and furnishings has increased in Japanese households, particularly in combination with
system kitchens or in home-office setups.
Why did IKEA fail in taking over Japan’s market?
Showcase rooms in brick-and-mortar stores remain important to confirm the size and quality of furniture, despite the rising popularity of online channels. The smaller sizes of Japanese homes require overseas entrants to make adjustments to product measurements, which was a pitfall for IKEA’s first venture. The
rise in condominiums and limited space, especially in metropolitan areas, has promoted demand for space-saving designs with multifunctional features. Another aspect is the service mentality. Self-service stores, where the customer must pick up the items, drive them home, and set them up themselves, used to be unheard of and detrimental to
customer satisfaction in a culture, where the customer expects quality service. In recent years, Japanese consumers have warmed up to this business concept amid growing
interest in DIY activities and inspiration from photo-sharing services. Along with the e-commerce shift, Japan’s furniture market is changing, and consumers are embracing new ideas like furniture rental to keep costs low during financially challenging times.
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