Changing Trends in Japanese Consumer Behaviour: the growth of experience-based consumption (コト消費)
Today’s consumer often has more choices than ever before. We are no longer bound solely by what is available in our locality. The growth of online shopping and entertainment has made it challenging for companies to differentiate their products based solely on price or even quality. There are many factors influencing consumer behaviour, from ethical values to the scope for creating content on social media. So how can brands break through the noise and capture a consumer’s imagination and crucially - a sale?
In the latter half of 2022, trade publishers Nikkei Business Publications reported that ‘experience-based consumption’ is a key trend for future growth. It has been in focus since around 2018, with companies implementing measures to meet a growing demand from consumers for new experiences. The emergence of virtual reality (VR) technology has made it possible to have experiences from anywhere and to allow brands to bring their products to life in imaginative, engaging ways.
Millennials and a curated social media presence
In Japan, millennials represent a significant proportion of those customers searching for experience-based consumption opportunities. According to consumer behaviour analysis, 86% of millennials are willing to pay more for a better customer experience.
Social media platforms such as Instagram play a significant role in this trend. Many consumers are looking for opportunities to create eye-catching online content, so posting pictures of their experiences and purchases is a part of the transaction they are willing to pay more for. If a brand can offer customers the chance to generate content which receives likes or is shared widely, it can lead to greater customer fulfilment.
It’s good news for brands too, as user-generated social media content is a great promotional tool, driving awareness and increased sales.
Case studies: companies leading the Way in Japan
0-second Lemon Sour® by Tokiwatei, Sendai Hormone Yakiniku Restaurant
This restaurant offers an unlimited drinks service, where customers can serve themselves lemon sours and other drinks from an automatic server at their table. The concept quickly became a hit, leading to the opening of restaurants with similar themes. The service’s popularity is particularly high among younger generations.
Kotobus’s Online Bus Tour
Kotobus offers an online service that allows people to enjoy the experience of a bus tour from the comfort of their own homes. The service provides customers with a travel brochure and local speciality products before the tour. During the experience, which is provided via Zoom, customers can appreciate the scenery while eating the speciality food products provided. The tours are guided by experienced tour bus drivers, now together with popular Vtubers with local knowledge. This new form of sightseeing has become increasingly popular with tourists. In fact, the Japanese government aims to use virtual and augmented reality technologies to further promote Japan’s tourist attractions.
Meiji’s “Hello, Chocolate by Meiji” immersive experience
Japanese confectionery company, Meiji has opened a chocolate-themed experience that uses VR technology to simulate a cocoa plantation tour. The attraction also provides a visualised tasting experience where visitors can enjoy the taste and aroma of chocolate with accompanying sound and visuals. Furthermore, Meiji offers a chocolate qualification test to enhance the visitors’ knowledge of chocolate.
Consumer behaviour is driving innovation
While price and quality are undoubtedly still important, experience-based consumption has become a significant trend in Japan’s consumer market. Companies are actively implementing measures to meet this demand, offering unique and innovative services that provide customers with immersive and fulfilling experiences. Understanding consumer behaviour and developing an experiential marketing strategy to meet the needs and imagination of specific Japanese consumer groups is vital.
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This article was created in partnership by ChatGPT and humans from Pointblank