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Retailers in Japan are using digital to enable the omni-channel experience

Japanese customers expect a seamless shopping experience—and digital operations enable retailers to deliver.

The Japanese economy is showing an uptick after almost two decades of recession. The retail industry has also experienced growth, benefiting from the policies of current Japanese Prime Minister Shinzo Abe’s aggressive economic approach (referred to as ‘Abenomics’). Sustainable success is unclear but Japanese customers are motivated to spend and retailers are looking for competitive differentiation.

In Japan, it is clear that the in-store experience is an important part of the customer journey. Digital provides the connection between online and offline points of shopper behavior and the omni-channel approach is key to creating the seamless experience that customers are asking for.

Accenture conducted a survey in 2014 to better understand consumer expectations and retailer capabilities in Japan. Stores are still the easiest way to make a purchase in Japan. More respondents expect to purchase more in store (14 percent vs. 10 percent last year) and fewer expect to purchase more online (39 percent vs. 49 percent last year).

In-store purchasing is even more prominent for “fresh” products such as groceries. Japanese shoppers have high expectations around quality and freshness. They tend to visit stores to check products before making purchases. Frozen products are less popular in Japan than other mature markets and customers tend to shop for groceries every other day rather than making volume purchases.

Japanese shoppers want free delivery and the ability to schedule deliveries: 70 percent want to schedule delivery time and 19 percent want to schedule during “peak hours”. Delivery companies in Japan are currently offering flexible scheduling and many stores are running free-delivery promotions.