FMCG retailingThe main retail channels of FMCG segments remain in-store retailers that allow for immediate use of daily necessities after purchase. Online retailers are the sales channel of choice for mainly durable consumer goods such as consumer electronics, books, and leisure goods, but they are rarely considered for food, beverages, and liquors. Apart from supermarkets and specialty stores, convenience stores play a significant role in the distribution of consumer packaged goods. Limited by the small floor space and storage areas, convenience stores aim for a high inventory turnover by stocking low-priced daily goods with a high repurchase rate. Furthermore, the large store network, with its long opening hours, invites spontaneous and quick purchases on the way home.
However, online channels are gaining attention. Established supermarket brands are testing online grocery stores in response to the growing influence of e-commerce platforms like Amazon and Rakuten. Meanwhile, convenience stores are exploring same-day deliveries in the neighborhood to stay in the competition.
Consumer behaviorThe Japanese consumer is quality-oriented and favors domestic FMCG brands that offer quality at a low price. While the price and durability are deciding factors in Japanese spending behavior, consumers also value domestically produced goods, particularly for the purchase of non-durables like food and cosmetics.
Shopping behavior is significantly impacted by media coverage, with packaged food, beverages, and toiletries being commonly advertised in TV commercials. Consequently, FMCG categories represent the leading segments in traditional advertising, making up almost a third of advertising spending in Japan. Targeting the busy lifestyle and the greying population, businesses advertise their products with a focus on manufacturing processes influenced by traditional handcraft and convenience made possible by modern technology.