The Changing Consumer Behavior

in Japan
Posted on 2010 March 22 by Steve Nguyen

Unlike consumers in the U.S. and Europe, consumers in Japan are particularly selective
and prefer to pay for premium goods and services. This was evident when I visited my
wife’s family in Tokyo on several occasions.

Touring the local supermarkets and outdoor fruit stands, I came across the most amazing
displays of fruits I had ever seen. But, these highly prized fruits did indeed cost a
premium. For instance, I saw cantaloupes (in photo above) for ¥4,000 (Japanese yen) or
$44.20 (USD; exchange rate on 3/21/2010) each in Tokyo, Japan compared to $1.50 each
at the local supermarket here in Dallas, TX. While I don’t claim to understand why fruits
cost so much in Tokyo, I do know this much — those cantaloupes (noticed how each was
individually wrapped and showcased in its own box) were the best-looking, highest-
quality cantaloupes I have ever seen!

That photo of the cantaloupes was taken in July of 2007 and I would venture to guess that
fruit prices haven’t changed too much since then.

Though fruits, like those gorgeous cantaloupes, may still command premium prices and
Japanese consumers willing to pay for them, it appears that in other areas, consumers in
Japan—who had previously ignored discount and online stores—are now flocking to
them (Salsberg, 2010).

A change in consumer attitudes and behavior has arrived and, it seems, is here to stay.
This change “stems not just from the recent downturn but also from deep-seated factors
ranging from the digital revolution to the emergence of a less materialistic younger
generation” (Salsberg, 2010, para. 2).

Salsberg (2010) stated that three factors helped led to this new consumer trend. First (like
elsewhere in the world), the economic downturn. The Japanese economy has been weak
for almost two decades. A recent J. Walter Thompson AnxietyIndex suggested that “90
percent of Japanese consumers feel anxious or nervous, the highest rate of any country in
the world” (Salsberg, 2010, para. 14).
“A Gallup Poll conducted in early December 2008 shows just 5% of Japanese rated
economic conditions as ‘good’ [and] the percentage of Japanese reporting that economic
conditions were getting worse climbed every quarter in 2008, finishing the year at 90%”
(Bogart, 2009).

A second factor is that a new generation of Japanese (those in their 20′s) has emerged
with very different attitudes. Nicknamed hodo-hodo zoku, or “so-so folks”, many avoid
corporate life and material possession. “As the CEO of a leading sports-apparel company
in Japan recently said, ‘For the first time, we have a generation of consumers that aren’t
at all persuaded by what the professional athletes are wearing. We need a fundamental
rethink of how to approach this next generation’” (Salsberg, 2010, para. 16).

The third and final factor contributing to this new trend in consumer behavior is
government regulatory actions. For example, the Japanese government reduced freeway
toll on weekends which provided more incentives to travel to discount stores outside
Tokyo (Salsberg, 2010). On the health prevention front, “regulations [has permitted] the
wide sale of over-the-counter drugs…[and]…the Japanese government has also pushed to
increase awareness of and access to health remedies, in part to address the challenge of
paying to treat these conditions [such as diabetes and high blood pressure]” (Salsberg,
2010, para. 18).

Consumer behavior looks at the processes involved when individuals or groups choose,
buy, use, or dispose of products, services, ideas or experiences to satisfy needs and
desires (Solomon, 2004). Consumer behavior includes characteristics such as social class
and income.
Naturally, the economic situation affecting shoppers in the U.S., Europe, and now Japan
play a critical role in altering consumer behavior. When the economy combines with
other contributing factors, as in the case of the Japanese consumers, consumer behavior
responds accordingly.

References

Bogart, P. (2009, April 27). Japan’s stimulus aims to reverse economic negativity.
Gallup. Retrieved from http://www.gallup.com/poll/117877/Japan-Stimulus-Aims-
Reverse-Economic-Negativity.aspx

Salsberg, B. (2010, March). The new Japanese consumer. McKinsey Quarterly. Retrieved
from https://www.mckinseyquarterly.com/The_new_Japanese_consumer_2548

Solomon, M.R. (2004). Consumer behavior: Buying, having and being (6th ed.). New
Jersey: Prentice Hall.