With three major global sporting events taking place in Japan within the space of a year (The Rugby World Cup™, 2020 Olympics and Paralympics, and Japanese Grand Prix), the Asian powerhouse is enjoying its time in the spotlight. As the Official Logistics Partners of the Rugby World Cup 2019™, which is about to come to a close with the final England v South Africa taking place on Saturday, we’re shedding light on why trading with, and having a presence in, Japan is a no-brainer for British businesses.
Currently the third largest economy in the world, Japan has a GDP of $5.18 trillion (IMF, 2019). In the four quarters to the end of Q1 2019, UK exports to Japan amounted to £14.6 billion, an increase of 8.5 per cent from the same period the previous year (ONS, 2019). Some UK brands are already seizing the opportunities that the Japanese market has to offer, including Ted Baker, Lush and Fortnum & Mason.
Top industry export opportunities in Japan currently include electronics, food, personal care, and fashion. So, why is Japan such an attractive market to export to?
Secure Business Environment
Japan is a mature, advanced and highly connected economy with strong e-commerce growth and smooth import procedures. Economic and political ties between the UK and Japan are strong. If you’re willing to adapt to the Japanese business culture, success in this market could be easy to achieve.
Large Consumer Market
Japan’s large, rich and highly-educated consumer market could be the perfect audience for your business. They are also early adopters of new products and services so are unlikely to be scared off by the unknown.
Between 2018 and 2022, the e-commerce market in Japan is expected to grow by 29 per cent to be worth $203.9 billion. With 77 million online shoppers, and 14 per cent of these being cross border buyers, Japan’s e-commerce revenue was worth an impressive $105 billion in 2018 alone.
Businesses may be put off by Japan’s complicated distribution channels, a high concentration of domestic competitors and Japan’s unique business culture. However, thanks to the internet, a lack of physical geographical boundaries means it’s easier to reach customers in Japan than ever before. DHL Express has the largest international air express market share in Japan, and our 1,900 Certified International Specialists make exporting to Japan stress-free.
To find out more about trading with Japan, talk to us today.