What the numbers say: Consumer purchases at shopping centers comprised the largest shopping transaction value on credit cards provided by Credit Saison in 2022. E-commerce was only the third largest category, representing 12.5% of the shopping transaction value on Credit Saison's network.
Relevance: Credit Saison is a Japanese financial services company and the third-largest credit card issuer in the country. Data from its credit card transactions indicates that malls and brick-and-mortar outlets capture a greater share of Japan's consumer spending than e-commerce. Japan's apparent preference for physical stores is supported by data on the country's average household expenditures. In 2019, a monthly average of 4,961 yen was spent by Japanese households on online transactions, while an average of 21,910 yen was spent at retail stores.
Brands that should care: D2C brands that seek to boost sales in Japan could consider shifting to an omnichannel strategy that includes a brick-and-mortar retail presence. Pop-up shops and store-within-a-store (SWAS) options may be preferable for small online retailers that cannot afford major investments in physical retail.
