What Would Japanese Like To Buy When Traveling Overseas?
The shopping amount by Japanese overseas travelers has suffered a continuous decline for more than a decade. According to Japan Tourism Marketing Co. (JTM) annual survey on Japanese overseas travelers, 2006's average spending per head was approximately 46,000 yen, almost 50% less than that of 109,000 yen spent in 1995.
Yoko Hayano Chief Consultant
The cause of the decline is strongly believed to be the following five reasons. Firstly, the revision of the Liquor Tax Law, then the increase in number of repeating overseas travelers, expansion of retail brand shops, outlet shopping malls, parallel importing and second-hand brand shops in the domestic market of Japan, the decline of smokers and the weakening of the Yen
During the latter half of the 1980s and early 90s, the Japanese travelers’ major shopping items used to be luxury branded liquors, tobacco products, designer brand bags and gift items. However, the shopping environment for the Japanese saw great changes in the later years. In 1989, the revision of the Liquor Tax Law brought about wider distribution of discount liquor shops and hence this allowed the Japanese to buy imported liquor at a reasonable price. With the decline of smoking Japanese persons, the shopping expenditure of tobacco products overseas dropped as well. Furthermore, the expansion of brand shops and outlets over the past decade has enabled the Japanese to purchase premium branded items in nearby places at comparatively reasonable prices. Lastly, the current depreciation of the Yen has played an effect on giving an expensive image on shopping overseas.
However, one cannot simply conclude that the Japanese overseas travelers feel less-likely to buy any more. “Shopping” still remains the top-ranked activity among the purposes of traveling abroad. For female travelers, shopping overseas is still meaningful as “a gift one gives to oneself”.
In the 2007 research jointly commissioned by JTM and TFWA (Tax Free World Association), respondents showed the dissatisfaction in “lack of local products and souvenirs at duty free shops overseas”. Regarding liquor purchase, respondents preferred local wines and spirits. Furthermore, there were also high requests for exclusive products only sold at a limited number of shops or venues.
It is often observed that the Japanese love exclusiveness. They like to buy or experience something only available for a limited time or available at a certain place. Overseas traveling has already become such a common activity for most Japanese that it is no longer important for them to buy large amounts of souvenirs for neighbors and work colleagues. However, if the shopping related industry could offer local souvenirs and exclusive products that would attract the Japanese overseas travelers, making each one feel that “I have to buy them now or I won’t get them anymore”, chances will be enormous to stimulate more demands for overseas shopping.
For further information on the research of “The Outbound Trends and Shopping Behavior of Japanese Travelers 2007″(an interim report), please visit the website below:
http://www.tfwa.com/duty_free/Video_review.20822.0html
From the above website, the seminar presentation by Masato TAKAMATSU, Director & Vice President, Marketing, JTM at TFWA International Conference in Cannes, in October 2007 is available. Presentation material can also be downloaded from this website (available in English language only).
