10072024 has already begun to draw to a close, and major overseas internet platforms are also making new moves one after another. Recently, there have been rumors thatTikTok Shop will launch in Japan in June next year, and this news has undoubtedly attracted widespread attention.
Although this rumor has yet to be officially confirmed, judging from the pace of TikTok Shop’s expansion in recent years,it is only a matter of time before TikTok Mall launches in Japan.
As one of the countries where TikTok opened up in its early development,TikTok already has about 40 million users in the Japanese market, and most of these users are concentrated in highly active young groups. This gives it the potential to become a new force in the Japanese e-commerce market.
However, over the years, TikTok Shop has never been launched in Japan, instead focusing its main efforts on the US and Southeast Asian markets. The reason is still due to the unique culture and consumption habits of the Japanese market.
The uniqueness of the Japanese market
Japanese consumers have higher requirements for product quality and brand image, and have a strong willingness to pay. Compared with the Southeast Asian market, brands need a more delicate and professional e-commerce strategy in the Japanese market.
Moreover, unlike markets such as the US and Southeast Asia, Japanese consumers are less influenced by live shopping and pay more attention to the authenticity and entertainment value of content, rather than being purely driven by shopping.
Therefore, TikTok Shop chose to test the waters in other countries first.
Now,TikTok Shop has already achieved a closed-loop shopping experience of "watch and buy" in Southeast Asia, the US, and the UK, and has quickly attracted the attention of a large number of sellers and consumers.
According to statistics, in the first half of 2024,TikTok Shop's global total sales have exceeded $10.7 billion.
In the Japanese market, if TikTok successfully introduces a fully closed-loop e-commerce model (currently Japan is semi-closed-loop), it is expected to improve user conversion rates, reduce bounce rates, and provide more sales channels for cross-border e-commerce sellers.
Potential strategies for cross-border e-commerce sellers
For cross-border e-commerce sellers, the launch of TikTok Shop in the Japanese market is not only an opportunity to expand channels, but may also become a stage to increase brand awareness.
Early sellers can try the "light inventory" model to avoid investing too much inventory cost in the Japanese market, while using live streaming and short video ads to test user reactions.
In addition, Japanese consumers pay more attention to the authenticity of products and the cultural fit of content, which means that sellers need to invest some effort in creating content that is close to local culture.
Compared with the Southeast Asian market, Japanese consumers prefer a more delicate content experience, so live streaming should not be too direct, but can increase fun and interactivity through contextualized content.
For example, adding product usage scenario demonstrations and cultural stories to live streams will more easily attract viewers' interest and promote conversions.
In practice, although TikTok in Japan is still a "semi-closed-loop model", some brands and merchants have already achieved success through TikTok. Take electronics merchant Newegg as an example. The brand has achieved stable sales among young consumers through live streaming and user interaction.
Newegg's sales strategy does not rely solely on first-time coupons, but also on accurately grasping the interests of viewers. The interaction between the host and the audience has become the key to Newegg's success, and its fans even regularly return to watch their favorite hosts for product recommendations.
In contrast, brands like NightCap, an anti-drug hair tie, face more challenges. Although its videos were easy to go viral on TikTok in the early days, as market competition intensified, exposure gradually declined, indicating that for some vertical brands, the effect of TikTok Shop may not be stable.
Suggestions for the Japanese market
For sellers preparing to focus on TikTok Japan, it is recommended to start with a low inventory strategy to reduce the risk of initial investment. Use live streaming and localized content to build emotional connections with consumers and gradually accumulate brand influence.
At the same time, maintain realistic expectations for the market and do not treat it as the only sales channel, so that you can gradually find the right operating strategy in the process of exploring the market.
Overall, the future launch of TikTok Japan is an opportunity worth paying attention to, but sellers also need to do more homework on content and cultural fit in order to truly achieve ideal performance returns.
