Retail channelsThe main retail channels of FMCG remain in-store retailers that allow for the 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 taken into consideration for food (apart from health foods), beverages, and liquors.
Besides 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 caters to spontaneous and quick purchases on the way home.
However, online channels are gaining attention, as established supermarket brands are testing online grocery stores in response to the growing influence of e-commerce platforms like Amazon and Rakuten, while convenience stores are exploring same-day deliveries in the neighborhood to stay in the competition.
Consumer behaviorThe Japanese consumer is quality-oriented, who favors domestic FMCG brands that offer quality at a low price. While the price and durability are deciding factors in the Japanese spending behavior, consumers also value domestically produced goods, in particular for nondurables like food and cosmetics.
The 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 the Japanese advertising industry, making up around a third of total advertising spending on traditional media.