The Growth of Subscription Based Services in Japan

8 May

When you sign up to a subscription service, a whole world of entertainment and convenience unfolds before you. Subscription services offer a personal gateway to a treasure trove of content and tools, all neatly packaged into a convenient monthly or yearly fee.

From streaming your favourite shows and discovering new music to accessing essential software for work or hobbies, subscription services offer unparalleled convenience and value. The best part? Goodbye to the hassle of individual purchases and hello to a seamless, all-inclusive experience.

But it doesn't stop there. Many subscription services sweeten the deal with exclusive content, personalised recommendations and special offers. So a subscription can feel like a VIP pass.

And the cherry on top? Flexibility. Most services allow you to cancel or pause your subscription at any time, putting you in control of your purchase, entertainment or productivity journey. It’s no wonder they are growing in scope and deliverables.

Understanding the Spread of Most Popular Subscription Services

Subscription services have grown in popularity as consumer values have changed, placing more emphasis on the enrichment of daily life and a good service experience, rather than having lots of possessions.

Technological advancements have also contributed. Inexpensive content distribution channels and the developments in logistics mean goods and services can be delivered quickly and efficiently. Increased time spent at home, which began during the Covid-19 pandemic, has also played a role in the expansion of subscription services.

Subscription Market Growth and Japanese Services

In the past decade, the subscription market has experienced rapid expansion with revenues soaring across various industries. The subscription economy has become increasingly diverse, encompassing sectors such as media streaming, software-as-a-service (SaaS), e-commerce and more. The Covid-19 pandemic further accelerated global subscription growth, with lockdowns and remote work driving demand for digital services and home entertainment.

Japan has also witnessed significant growth in subscription services but with some distinctive characteristics. The Japanese subscription market has expanded across a wide range of industries, including digital entertainment, e-commerce, food delivery and traditional retail. However, it is still in the process of catching up with global trends in terms of diversity and market penetration, so there are real opportunities for businesses here. Japanese cultural nuances and consumer preferences are playing a significant role in shaping the subscription landscape in Japan, influencing the types of services that gain traction and the strategies employed by businesses.

Are Subscription Services Worth It? - Market size of subscription businesses in Japan

According to a 2022 survey by the Yano Research Institute, the market for Japanese domestic subscription services increased in 2021 by 10.6% from the previous year, to ¥961.5 billion.

Yano looked at six areas, which all showed growth. These were clothing and fashion rental, eating out, daily life-related services, multi-location residence services, digital content, and regular home delivery services (including food and cosmetics).

The Japanese market for subscription services is forecast to continue expanding, reaching ¥12,422.4 billion in 2024, with growth expected in all six market areas.

*Quoted from: Yano Research Institute, Survey on Subscription Service Market (2022)

Examples of Subscription Services in Japan

Rental Home Subscription Services

ADDress | 月額9,800円から始める多拠点コミュニティサービス

Address Love is a subscription service in Japan that connects homeowners with potential renters. Here's how the service works:

Listing Properties: Homeowners subscribe to Address Love to list their properties for rent on the platform. They provide details including location, size, amenities, rental terms and photos.

Matching Renters: Renters subscribe to Address Love to browse through the listings for properties that meet their criteria. They can search based on factors such as location, size, budget and amenities to find rental options that suit their needs.

Communication: Address Love facilitates communication between homeowners and potential renters directly through the platform, allowing subscribers to inquire about the property, schedule viewings and discuss rental terms.

Subscription Benefits: Subscribing to Address Love provides access to a streamlined platform for listing and searching for rental properties. It aims to offer a convenient and efficient way for both parties to communicate throughout the rental process.

Another Japanese home rental subscription service is ADDress. It focuses on the lifestyle aspirations of renters, with an emphasis on living in a shared space. Renters can choose a place to suit their values. They are encouraged to experience life away from the normal routine or to find a completely new lifestyle. ADDress homes also have housekeepers who act as a bridge between the local community and members, while supporting the management of the homes and the lives of residents.

At the same time, the ADDress service wants to solve the serious problem of vacant homes across Japan. It aims to support the creation of a prosperous society by encouraging new ways of working such as remote work, which has become more popular in recent years.

Art Subscription Services

アートのサブスク/販売 Casie（カシエ）｜レンタルから購入まで、あなたの好みに合った絵画に出会える

Casie is a subscription service that offers curated selections of artwork. It is known for providing unique and high-quality pieces to enhance subscriber’s living spaces. There are options to receive paintings, prints, photographs and other decorative pieces. Subscribers can choose their preferred subscription plan, which typically includes receiving a new piece of artwork every month or quarter.

One of the main reasons for Casie's popularity is its focus on providing subscribers with a diverse range of artwork from both established and emerging artists in Japan, direct to their doors.

Subscribers benefit from Casie in several ways.

Variety: Casie offers a wide variety of artwork, allowing subscribers to discover new artists and styles that they may not have encountered otherwise. Subscribers can explore different themes, genres and mediums, ensuring that they always find new and inspiring options.

Convenience: Casie delivers directly to subscribers' doorsteps, eliminating the need to spend time searching for artwork in galleries or stores.

Quality: Casie has developed a reputation for its commitment to quality. Subscribers can rely on a high quality of craftsmanship, aesthetics and artistic merit.

Surprise: Casie adds an element of surprise to the experience of home decorating. Subscribers can look forward to receiving new artwork that inspires them and brings joy to their living spaces.

Overall, Casie's combination of variety, convenience and quality make it a popular choice among individuals in Japan who are looking to enhance their homes with beautiful and meaningful artwork, without having to spend too much time searching.

Educational Toy Subscriptions Service

知育玩具・おもちゃのサブスク定額レンタル【トイサブ！】 (toysub.net)

ToySub is a Japanese subscription service that offers toys for children of different ages. It aims to provide a convenient way for parents to keep their children entertained and engaged with a variety of activities. With a subscription to ToySub, parents receive a selection of toys and games delivered directly to their doorstep on a regular basis.

Subscription plans: ToySub offers different subscription plans to suit the preferences and budgets of parents. Subscribers can choose from monthly, quarterly or annual plans, with the option to select the age range and gender of their child.

Curated selection: Each ToySub box contains a selection chosen by experts to cater to the developmental needs and interests of children. The toys are selected based on factors such as age appropriateness, educational value and playability to ensure that each box provides hours of fun and learning.

Variety: ToySub includes educational toys, creative toys, building blocks, puzzles, games and more. Subscribers expect to receive a diverse range of toys in each box, allowing children to explore different interests and activities.

Convenience: ToySub aims to offer a hassle-free way for parents to discover new toys for their children without the need to visit multiple stores. With toys delivered directly to their doorstep, parents can potentially save time and effort while ensuring that their children always have something new and exciting to play with.

Quality and safety: ToySub says it is committed to providing high-quality, safe and durable toys that meet rigorous safety standards. Parents can trust that each toy included in their subscription box is carefully selected, providing peace of mind while children play.

Overall, ToySub offers a convenient, affordable, and exciting toy subscription service for parents in Japan. With toys delivered directly to their doorstep, parents feel they can provide their children with endless hours of fun, learning and exploration.

Most Useful Subscription Service Ideas for the Future

There are a wide range of subscription services available in Japan, with new businesses developing. The Japan Subscription Business Association (JSBA) hosts the annual Subscription Awards. In 2022, safety for users was added as a judging criterion, in addition to the existing criteria of economical, problem-solving, convenient, novelty and growth potential. This recognises the importance of making it easy for consumers to cancel subscriptions and monitor billing, which have been a concern in recent years.

The subscription market is expected to continue to expand. Not only in video and music content distribution services, but also for daily necessities like beverages and food, as well as leisure experiences.

Japan is poised to embrace new lifestyles, work tools and leisure activities on a subscription basis. There are great opportunities for companies seeking to develop their businesses in these areas. Pointblank Promotions can provide tailored support to companies wishing to expand into the Japanese subscriptions market. Please feel free to contact us to discuss your needs using the enquiries link below.

This article was created in partnership with ChatGPT and humans from Pointblank.

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