Japan has long been known as a retail graveyard, where even global giants like Tesco, Walmart and Carrefour have failed.
The rise of Chinese platforms signals a fundamental shift in one of the world’s most closed consumer markets. Historically, the retail and e-commerce sector in Japan has been defined by its insularity.
Local groups such as Aeon, Uniqlo and Rakuten have long dominated, thanks to intricate supply chains, loyal customer bases and favourable regulatory environments. Cultural factors add another layer of difficulty for foreign players, from the long-standing preference for domestically manufactured products to geopolitical tensions, particularly among the older generation.
Yet a surprising reversal of this trend has been taking place in recent years. Chinese companies, including PDD Holdings’ Temu and Shein, have broken through barriers once considered impenetrable, offering products at prices as much as 90% lower to local retailers.
Chinese-ownedTikTok is preparing to enter the Japanese online shopping market in the coming months, signalling a further deepening of the Chinese retail push in the country…
