Japan E-commerce Logistics Market Research report, 2027

The strong economy and large urban population of Japan are the main attractions for online shops. Japan has many advantages for e-commerce firms, including tech-savvy customers and a single official language for all citizens. In addition, the country spends more money online throughout the summer, and during this time, Japanese businesses give their employees annual summer bonuses. According to export.gov, the average worker bonus in 2019 is estimated to be over $3,000, and the majority of this bonus money will be spent on travel, luxury items, and leisure activities. According to projections, cross-border e-commerce will provide Japanese businesses with enormous market prospects in China. The collaboration of e-commerce platform companies and a Japan-China logistics partnership are the reasons that will increase the amount of e-commerce trade between China and Japan. The Chinese Academy of International Trade and Economic Cooperation (CAITEC) proposed that cross-border electronic logistics warehouses and Japan-China logistics collaborations can help both nations increase their distribution volumes, which can be achieved by increasing the number of chartered planes between the countries. According to the research report titled, "Japan E-commerce Logistic Market Research Report, 2027," published by Actual Market Research, the e-commerce logistic market in the country of Japan is expected to grow in the future with a very bold CAGR of 13.02%, which is an increase in the growth rate from 2021. This market in the country is segmented on the basis of the service type provided by the company, the operational area of the company, and the mode of transportation used in the country’s market. According to the type of service provided, following the global trend, the majority of the companies in this market provide transportation services, which is followed by warehousing and then other services like pick-up points and cash on delivery. The warehouse segment in the country is geographically concentrated around the major cities in the country, with Tokyo having about 70% of the total warehouses used for e-commerce purposes. This is justified by the fact that this city is not only the largest in the country but also in the whole world in terms of population, which drives this demand. The second segment of the operational area consists of two categories: domestic and international. The Japan e-commerce logistic market operates majorly in the domestic sector. This is due to the fact that the domestic market is comparatively easy to penetrate and requires a lower distribution network to operate, which is not the case with the international segment. But still, the latter will experience growth due to the abovementioned China partnership. According to the type of transportation used, the market consists of four categories: road, rails, air, and sea, with the roadway being the most popular and with a market share of around 50% historically. This is due to the prominent trucking industry in the country, which already provides a great and ready distribution network for the market along with some of the benefits, which include the lower economic cost and the ability to provide an end-to-end solution for distribution. Other than roadways, no segment of transportation can provide door-to-door delivery, which is the most important aspect of the e-commerce logistic market. The Japanese market is shifting towards integrating more and more technology into the process of e-commerce logistics. This ranges from smart delivery management systems to the efficient ERP systems which are enterprise resource planning systems, which help the companies to maintain proper level of stocks with predicting future requirements for them. Further, small-to medium-sized companies are increasingly moving into online sales, including peer-to-peer flea-market applications, such as Mercari, which have recently become popular in Japan. This increase in popularity of e-commerce, along with adoption of new technologies and changing consumer trends, with the consumer shifting towards the digital procurement of even daily usage items, has led the market to grow successfully in recent years and will keep on doing so in the future. But a problem in the market is that Japan’s e-commerce shipping landscape is dominated by three expansive organisations that control more than 90% of the domestic package delivery market. The largest, Yamato Transport, delivers over 1.8 billion packages every year. Sagawa Express, a close competitor, provides logistics services for key customers, including Amazon, with Japan Post as the third largest player. The COVID-19 pandemic had a paradoxical impact on the e-commerce logistics market. With the lockdowns and travel restrictions in the country and across the world, the consumers shifted to e-commerce for making purchases. This led to an increase in demand for e-commerce logistics. But on the other hand, the e-commerce logistics market suffered due to the stopping of product lines, creating inefficient stocks and disruptions in the supply chain, which resulted in the decline of the market. Considered in this report • Geography: Japan • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Japan E-Commerce Logistics market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By service type in the report: • Warehousing • Transportation • Other Service (Return, Inventory management) By operational area in the report: • International • Domestics By transportation mode in the report: • Road • Rail • Air • Sea The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing the government- generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have verified the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.