Fashion market in Japan

The Japanese Fashion eCommerce market is predicted to reach US$20,906.3 million by 2024 and accounts for 17.8% of the total eCommerce market in Japan. It is expected to increase over the next years. The expected compound annual growth rate for the next four years (CAGR 2024-2028) will be 3.0%, resulting in a projected market volume of US$23,558.1 million by 2028. Within the Fashion market ECDB considers the following three sub-markets: Apparel, Footwear, and Bags & Accessories.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Japanese Fashion retail market, the online share is 25.5% and will increase by an average of 7.1% to 33.5% by 2028.

With sales in the Japanese Fashion market, uniqlo.com generated a revenue of US$938.3 million in 2023, which means it is the leading online store in this market. The Fashion ranking of Japan is based on all online stores that generated sales in this market in 2023. Due to a country- and category-dependent approach, both national and international online stores can be part of the ranking. The graph shows a filtered revenue. It only includes national sales within the respective market.

With 97.5% VISA the most commonly offered payment method of all online stores in the Japanese Fashion eCommerce market in 2023. Like VISA Mastercard with a penetration of 97.1%, JCB with a share of 94.9%, and American Express with a share of 92.4% the payment type Cards is the most common used by online retailers in in the Japanese Fashion eCommerce market in 2023. With a share 78.4% Cash on delivery is the most common used payment method offered to the clients of type Cash on delivery.

Despite Yamato's dominant position with 53.2% of online stores opting for its services, the Japanese Fashion eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including Sagawa Express, Japan Post, EMS, and DHL, hold smaller but significant shares, contributing to a dynamic and fragmented market.

In the Japanese Fashion eCommerce market, there is intense competition among various shop software solutions, leading to a highly fragmented landscape in 2023. None of the major shop software solution, including Shopify, FutureShop, and Salesforce Commerce Cloud, have been able to secure a market share exceeding 12.8%, suggesting a diversified market with numerous players holding smaller stakes.