As online commerce in Japan grows and consumer expectations peak, the way e-commerce brands approach delivery services has never been more critical. By navigating a blend of convenience, environmental consciousness, and economic pressures, Japanese consumers are redefining what they want from delivery.
Recently, our sister company, Cross Marketing Inc., conducted a comprehensive “Survey on Home Delivery” across all 47 prefectures of Japan. Targeting 2,500 men and women aged 20 to 69, the survey revealed detailed insights into the current landscape of delivery services, encompassing usage patterns, preferred receiving methods, redelivery prevention strategies, common complaints, and reasons for using these services. This data is invaluable for brands looking to optimise their delivery offerings to meet the shifting demands of Japanese consumers.
The survey findings provide direct data and broader market implications for brands, including the need for convenient, flexible, and environmentally responsible delivery solutions.
Japan’s ageing population, growing e-commerce sector, and evolving post-pandemic behaviours all play a critical role in shaping these expectations.
Changing Delivery Preferences and the Impact of Broader Trends
The survey’s findings offer a window into the complex motivations and pain points Japanese consumers experience with delivery services. Here are the key findings and insights from the study.
- Decline in Delivery Service Usage Post-Pandemic
According to the survey, only 38% of respondents reported using a delivery service within the last three months — a notable 10-point decline since 2022. The decline in delivery usage post-pandemic suggests that Japanese consumers are shifting back toward in-person shopping, a trend mirrored in other regions as restrictions ease and physical stores reopen. During the pandemic, delivery services were a necessity, and demand spiked due to safety concerns and convenience. However, with more freedom to shop in-store, consumers may now feel less need for delivery services. Cultural factors in Japan, where shopping in person is often associated with quality assurance and customer service, could further contribute to this shift. Shoppers may be seeking the experience of direct product interaction, which e-commerce and delivery lack.
Implication for Brands: To retain customers who may now have more choices between in-person and online shopping, brands should offer additional value through delivery, such as loyalty rewards, tailored options, or enhanced convenience.
- Preference for Convenient and Secure Receiving Methods
While delivery preferences have diversified, hand-delivery to the home remains dominant, with 79% of respondents choosing this method despite a slight decrease from previous years. When it comes to delivery preferences, it’s clear that people value security and reliability. Approximately 50% of individuals opt for mailbox deliveries, while 28% drop off their packages at designated locations. This trend highlights a growing desire for peace of mind when receiving their items.
Implication for Brands: Brands should continue prioritising home delivery while offering flexible options, such as secure drop-offs or mailbox deliveries. This aligns with a broader trend toward tailored service experiences that meet consumers’ specific lifestyles.
- First-Attempt Delivery Success and the Aging Population
Interestingly, the survey unveiled that first-attempt deliveries achieved an impressive 65% success rate, marking a remarkable 7-point increase from 2022. Success rates were higher among older respondents, with those in their 60s experiencing an impressive 79% rate. Japan’s growing ageing population likely influences this trend, as seniors spend more time at home.
Japan’s ageing population comprises around one-third of its total demographic, as reported by Japan’s Ministry of Internal Affairs and Communications (MIC). With this demographic segment increasing, seniors often have specific delivery needs, such as scheduled delivery times and easy-to-access drop-off locations.
Implication for Brands: Catering to older consumers by providing time-specific deliveries or easy-access delivery options can strengthen customer loyalty among this growing demographic. Clear communication and reliable, first-time delivery can also help brands effectively meet the needs of these customers.
- Preventing Redelivery through Advanced Notification Systems
The survey found consumers prefer preventive measures to avoid redelivery, with four in ten favouring advance notifications and 37% opting for designated drop-off points if unavailable. Younger respondents in their 20s also preferred “unavailable times” over specific delivery times, indicating a need for flexibility.
Implication for Brands: Incorporating technology to support real-time updates, predictive delivery times, and flexible scheduling could cater to these preferences and reduce the frequency of redelivery.
- Cost-Sensitivity and Demand for Affordable Delivery Options
In terms of motivations, half the respondents cited online affordability as a key reason for choosing delivery services, with 41% prioritising free or low-cost shipping. Economic pressures may drive this cost sensitivity as Japanese consumers become increasingly selective.
According to the Ministry of Economy, Trade and Industry (METI), Japan’s e-commerce sector has grown 6% over the past two years, leading to higher expectations for efficient and cost-effective delivery options. This trend reflects consumer demand for affordable, reliable online shopping.
Implication for Brands: Brands should consider offering free shipping thresholds, bundled shipping discounts, or subscription models to meet cost-conscious consumer expectations. Clear communication around shipping fees can also build trust and reduce the likelihood of abandoned carts.
- Sustainability Concerns and Consumer Expectations for Eco-Friendly Practices
Complaints about excessive packaging show that sustainability is crucial for Japanese consumers. Many respondents expressed frustration with oversized packaging and issues related to waste and environmental impact.
Implication for Brands: Implementing eco-friendly packaging solutions and minimalistic designs that reduce waste can appeal to the environmentally-conscious Japanese consumer. Highlighting these efforts in marketing communications can strengthen brand reputation and increase appeal.
Case Study: Yamato Transport – Flexible Delivery and Redelivery Reduction
Image Source: Channel X
Approach
Yamato Transport, one of Japan’s largest logistics companies, introduced the “Kuroneko Members” service, enabling customers to customise delivery times, select drop-off locations, and access open lockers. This level of flexibility aligns closely with consumer preferences for convenience and transparency.
Sustainability Initiatives
Yamato has also committed to eco-friendly measures by reducing packaging materials and increasing reusable packaging options, directly addressing environmental concerns and consumer expectations.
Outcomes
The flexibility of the “Kuroneko Members” service has been well-received, reducing redelivery rates and increasing customer satisfaction. Yamato’s annual reports indicate that these innovations have also contributed to a more efficient operational model, reducing logistical strain and enhancing customer loyalty.
Strategic Recommendations for Optimising Delivery Services
Here are actionable strategies for brands seeking to align their delivery services with evolving consumer demands.
- Embrace Flexibility and Real-Time Communication
Implementing flexible delivery options, such as selectable time slots and drop-off locations, can enhance convenience. Real-time tracking and notifications are essential for transparency and meeting consumer expectations.
Example: Brands can follow Yamato’s model of providing customisable delivery windows and tracking updates, allowing customers to manage deliveries easily.
- Offer Affordable Delivery through Subscription Models
For cost-sensitive consumers, consider subscription models, bulk shipping discounts, or free shipping thresholds. These options not only increase affordability but also encourage larger purchases.
Example: ZOZO’s loyalty programs and cost-saving measures attract repeat customers, providing an affordable yet reliable delivery experience.
- Adopt Sustainable Packaging and Logistics
Reduce waste and enhance brand perception by adopting minimal packaging and eco-friendly materials. Promoting these efforts to consumers can improve brand reputation.
Example: Using recyclable packaging, ZOZO aligns with sustainability values, resonating with consumers who prioritise eco-friendly practices.
- Tailor Delivery Services for an Aging Population
As Japan’s population ages, delivery solutions that cater to older adults are crucial. Time-specific deliveries and secure drop-offs can improve accessibility and satisfaction for senior consumers.
Example: Sagawa Express’s focus on rural and senior-friendly deliveries provides a model for brands aiming to effectively serve Japan’s older demographic.
- Leverage Feedback for Continuous Improvement
Implement post-delivery feedback mechanisms to capture consumer insights and refine delivery strategies. This approach allows for data-driven improvements.
Example: Brands can adopt feedback systems similar to Yamato’s, enabling adjustments based on real-time consumer needs.
Case Study: ZOZO – Eco-Friendly and Customised Delivery
Image Source: Janbox
Approach
ZOZO, Japan’s leading online fashion retailer, has integrated flexibility and sustainability into its logistics. ZOZO, Inc. operates online shopping sites. The Company sells apparel, garment accessories, bags, tableware, magazines, and other products. Customers can choose specific delivery times and receive pre-delivery notifications to fit their schedules, aligning with consumer preferences for convenience and transparency.
Sustainability Focus
ZOZO has prioritised eco-friendly practices by minimising packaging waste and utilising recyclable materials. This appeals to Japan’s environmentally conscious consumers and sets a standard for sustainable delivery practices in the industry.
Outcomes
This approach has enhanced customer loyalty and satisfaction, as reflected in positive consumer feedback. ZOZO’s sustainability reports highlight these efforts, demonstrating the brand’s commitment to customer experience and environmental responsibility.
Case Study: Sagawa Express – Rural Outreach and Last-Mile Solutions
Image Source: Sagawa
Approach:
Sagawa Express acts as the sender for the packages entrusted to it by customers. They deliver these packages to the post office, where they are dispatched to destinations in over 120 countries and regions worldwide through the EMS (Express Mail Service) delivery network.
Sagawa Express has focused on improving delivery services for rural and remote areas, where logistics can be challenging. Sagawa has enhanced last-mile delivery by investing in partnerships with local providers, making it more accessible for Japan’s rural residents, particularly the ageing population.
Results
Sagawa’s efforts to support rural and senior-friendly delivery solutions have been met with positive feedback. By improving access to delivery in these areas, Sagawa has strengthened its customer satisfaction and reduced service complaints in less accessible regions, as documented in their annual reports.
Embracing Consumer-Centric Delivery for Long-Term Success
Our survey underscores the need for Japanese brands to adapt to evolving consumer expectations around flexibility, sustainability, and cost-efficiency. By aligning with these expectations, brands can enhance customer satisfaction, operational efficiency, and long-term market competitiveness.
Interested in uncovering more consumer insights to refine your brand’s strategy? Contact us for customised market research to help your brand stay ahead of the curve, better understand consumer preferences, and create impactful solutions that resonate with your target audience.
Get regular insights
Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.
Senior Marketing Executive
Sales & Marketing
General Manager PR -Internal Communications & Government Affairs
Vital Strategies
Customer Intelligence Director