Luxury brands to prefer China over Japan

8 years ago by in Business

Luxury brands are starting to forget about their development in Japan as they try to find more consumers in China, according to a report called “Digital IQ Index: Japan”. The study analyzed the digital performance of 100 luxury brands – 95 international and five local – during February 2013.

Around a fifth of Japanese high class consumers were “less interested” in spending on luxury goods, according to the study, while three quarters of the luxury chief executives said that the economic environment did not have any effect on sales. One of the report’s conclusions was that, while the demand is there, luxury brands did not take advantage of the opportunity born during the rapid rise of online commerce in the last years.

Only around 48 percent of luxury brands are selling online. And while a quarter of Japanese ecommerce sales now take place by mobile, less than half of prestige brands had a mobile site that catered to Japanese consumers, the study showed.

Another conclusion of the study was that luxury brands did not pay enough attention to social media, with just 35 percent of them having a Japanese Twitter and 39 percent a dedicated Japanese Facebook page.

Online video is another area where prestige brands could do more, suggested the report. Japanese consumers view 1.5 times the global average number of online videos, but just 15 percent of these brands had a dedicated Japanese YouTube channel, according to the international press.