An Opportunity to Showcase Product Experience Content

"haru" is a 100% naturally derived personal-care brand founded over 10 years ago by Takako Samejima following her first childbirth, centered on its bestselling "kurokami scalp" all-in-one shampoo.

While primarily focusing on its D2C e-commerce platform alongside limited distribution in lifestyle stores like Loft and Tokyu Hands (intentionally avoiding mass drugstores), the brand officially opened its grand TikTok Shop on November 7, 2025, following a Qoo10 launch earlier in the year.

The company positions the TikTok Shop as a strategic hub not just for sales, but to communicate its "head beauty" concept and to promote routine self-care practices. On launch day, the brand hosted a live commerce event featuring a former Omotesando professional hair stylist as its brand ambassador. By demonstrating head massage techniques in real-time, the stream successfully delivered the experiential value of product use cases which traditional product descriptions alone cannot fully convey.

A key takeaway for foreign brands from this initiative is understanding how to integrate local communication trends and consumer behaviors when utilizing live-streaming formats in Japan.

One analyzed trend highlights the compatibility between attentive, two-way interactions—reminiscent of traditional hospitality—and live streams. Depending on a brand's unique identity and target audience, designing appropriate levels of interactive communication can be a strategic consideration.

Additionally, leveraging the market’s strong reliance on peer reviews presents another viable option. As platforms optimize for this localized demand by increasing the visibility of reviewed products, incorporating tactics such as addressing real-time viewer feedback or introducing verified user reviews during a stream may enhance credibility.

For foreign brands expanding into live commerce in Japan, the value lies in exploring how to blend localized review cultures or interactive touchpoints with their own brand narrative, serving as a practical reference for building consumer reassurance.

Lowering Perceived Risk and Addressing Unknown Factors

The strategy behind "haru" creating a TikTok Shop appears to address purchase-intent barriers by providing experiential, "watch-and-learn" video content. Recent macro trends suggest that TikTok Shops in general see strong transaction volumes driven directly by content engagement.This platform characteristic may highly complement premium all-in-one shampoos, which inherently face high consumer skepticism regarding efficacy.

Japanese consumers heavily prioritize whether haircare products fit their specific hair needs and price-value expectations. Consequently, real-time demonstrations of scalp massages can serve as an effective approach; they visually communicate texture and results that standard text cannot convey, while showing the product's underlying logic and ease of use. This experiential storytelling likely lowers the psychological risk of "will this work for me," mitigating consumer hesitation and naturally facilitating purchasing paths driven by content engagement.

Introducing a 3-Step Hair Care Routine that Combats UV-Induced Oxidation

Kracie, traditionally a mass-market brand that relies on drugstore distribution, has launched its first direct-to-consumer (D2C) brand, "Hareca."

The brand debut a medicated hair care lineup consisting of four 4 offerings: a shampoo (1) and a conditioner (1) designed to prevent dandruff, itchiness, and sweat odor; a scalp serum (1) formulated to promote hair growth and prevent thinning/hair loss; and the "Total Beauty Bundle" (1) that packages all three items together. This line up collectively offers a three-step routine, designed to remove oxidation-related waste, provide scalp care, and nurture healthy hair.

The launch targets women around their 40s who experience "temporary hair and scalp changes" (頭皮のゆらぎ). Highly aligned with Japanese beauty concerns, this term refers to transient, non-chronic imbalances in hair and scalp conditions - such as sudden dryness, loss of elasticity, mild redness, or itchiness - temporarily triggered by seasonal shifts, stress, hormonal imbalances, or UV exposure rather than severe damage or disease. Drawing on its botanical science research, Kracie identified aging and UV-induced oxidation as key factors behind these subtle shifts.

By selling exclusively through its official online store, Kracie aims to deliver a tailored product experience directly to this specific target audience.

Key to Building Trust in the Japanese Market

A key takeaway from this initiative is the approach of consolidating multiple, overlapping concerns into a single, clear scientific concept. Kracie streamlined various aging-related issues - such as graying, dryness, and scalp irritation - under the unified axis of "UV and age-induced oxidation," presenting a clear three-step regimen.

For brands looking to apply this mindset in Japan, one potential direction is to utilize their existing expertise (such as glycation, microbiome, or inflammation research) as the core brand concept, introducing a cohesive theme or step-by-step routine that helps consumers easily navigate product options.

Additionally, for categories requiring highly personalized or detailed information, launching via an online direct-to-consumer (D2C) channel rather than traditional retail can be a practical strategy.

Utilizing websites, emails, or social media to carefully communicate the brand's narrative allows consumers to review detailed product mechanisms at their own pace from the comfort of home, free from the immediate visual noise and limited information of traditional store shelves. This serves as a useful example of how a brand can guide consumers through complex product selections and build trust in the Japanese market.

Relevant to Growing Consumer Haircare Concerns

In the Japanese haircare are market, scalp and anti-aging care are growing segments, with online reviews for scalp care increasing approximately 6-fold over the past decade according to @cosme Business data. Additionally, broader market surveys indicate that hair concerns such as graying, dryness, and waviness account for over 80% of reported issues among adult women, with these complex symptoms intensifying after their 40s.

Hareca’s strategy aligns with this market environment by utilizing a direct-to-consumer (D2C) online channel, allowing consumers - who often face a complex mix of symptoms and struggle to find the right products - to to do detailed research at home without rush.

By framing hair concerns around clear concepts like "oxidation" and "signs of age-related changes" and offering a concrete three-step regimen, the brand enables users to understand their current scalp condition and confidently select appropriate care online.

Two Serums Supported by with AI Skin Diagnostics

Kao’s "SOFINA" line has traditionally been known as an accessible brand in Japan, famous for offering essential, dermatology-based skincare at affordable prices through popular lineups like SOFINA iP and Primavista. They have also previously invested in digital tools like the smartphone-based "Hada id" for skin analysis.

Building on this background, in January 2026, Kao launched "SOFINA SYNC+" as a next-generation D2C brand. This brand infuses their 1970s stratum corneum research with Kao's proprietary Sebum RNA Monitoring and AI technology - a cutting-edge analysis previously reserved for premium, limited initiatives but now commercialized for broader digital access.

To resolve the confusion around how this ecosystem operates: The diagnostic experience is powered by an in-house AI model integrated into "SOFINA Hada id" - Kao's established skin analysis tool used by approximately 800,000 consumers. Users simply take a smartphone photo, and the AI model (trained on actual sebum RNA data) estimates their skin type within 30 seconds, categorizing them into user-friendly Skin Gene Types (C1 or C2). However, the two newly released pre-serums tailored to these skin types are not available at traditional retail; they are sold exclusively via My Kao Mall, Kao’s dedicated e-commerce platform.

While there are no official plans to expand physical retail distribution, this setup highlights a clear strategic intent: Kao is leveraging a massive, built-in digital user base (via Hada id) to maximize consumer accessibility on the front end, while intentionally restricting product availability to My Kao Mall on the back end to drive direct-to-consumer (D2C) data gathering and brand loyalty.

Streamlining Evaluation to Product Selection

The main takeaway is the value of translating complex research into easy to understand criteria that helps reduce consumer confusion. Rather than simply push technical data, Kao focuses on easing the consumer's decision-making process by organizing information into a clear "C1 or C2" skin type framework.

For brands looking to apply this mindset in Japan, one potential direction is to rethink how their existing strengths (ingredients or technology) are communicated.

For instance, brands could consider developing unique, easy-to-understand labels or categories that help consumers identify which product line fits them best, combined with a simple diagnostic tool. Creating a seamless journey from analysis to product selection serves as a practical example of how a brand can eliminate shopping stress and build consumer trust.

Tackling Consumer Decision Fatigue

In the Japanese skincare market, many consumers struggle to choose products, feeling overwhelmed by information and uncertain about what genuinely suits their skin. Studies show that while consumers look for multiple benefits - such as efficacy, texture, gentleness, and cost-performance - they must ultimately rely on reading ingredients or checking online reviews.

SOFINA SYNC+ addresses this difficulty in assessing and verbalizing one’s own skin condition. Utilizing Kao’s extensive research in the stratum corneum and RNA, the brand uses AI analysis to visualize the skin's current state and presents a simplified two-type index called "Skin Gene Types."

The core insight of this initiative is how it tackles the consumer's decision fatigue. By introducing a clear, new criteria - determining whether you are C1 or C2 skin type - the brand directly connects its scientific research assets to the consumer's decision-making process, removing the friction from product selection.

A Campaign About Self-Expression and Psychological Barriers

This project was a cross-media branding campaign launched in Spring 2026 by Japanese salon booking platform Hot Pepper Beauty in collaboration with the anime Attack on Titan. The campaign aimed to reposition hairstyle changes as a positive form of self-expression rather than a risky decision.

The anime’s story is set in a world where humans live trapped inside giant walls out of fear of Titans, making the "walls" a central theme. The narrative frequently addresses the inhabitants within these walls collectively as "humans" (jinrui). Cleverly mirroring this distinctive worldview, the campaign introduced the copy “Humans, Your Hairstyle is Free” (人類よ、髪型は自由だ。). This phrase serves as a direct, powerful metaphor for breaking through the psychological barriers consumers feel when trying a new hairstyle, such as the fear of failure or social judgment, which instantly resonated with fans.

The campaign was deployed across TV commercials, social media activations (February 2026), large-scale station advertisements, and Spotify audio dramas (March 2026), creating repeated consumer touchpoints through visual storytelling and character-driven content.

Crucially, the campaign utilized completely fresh, custom artwork newly illustrated for this collaboration by MAPPA, the renowned Japanese animation studio responsible for producing the final season of Attack on Titan. In the anime community, leveraging new visuals from the official production studio - rather than recycling existing promotional imagery - elevated the campaign into a high-value special occasion for fans, driving massive organic engagement.

Aligning the Core Themes Between IP and Campaign

A key takeaway from this campaign is that the main campaign messaging did s not focus on the reservation service offered by Hotpepper Beauty, but the emotional and cultural connection created through the Attack on Titan IP.

Consumers were drawn to the unexpectedness of seeing familiar characters with new hairstyles and interacting with them in a completely different context. The campaign generated interest through fandom, novelty, and shareability before communicating any service-related message.

What made the collaboration effective was the strong alignment between the anime’s core themes and the campaign narrative. Attack on Titan is fundamentally a story about breaking barriers, transformation, and stepping into a new identity. By connecting these themes to hairstyle changes and self-expression, the campaign created a collaboration that felt emotionally authentic rather than purely promotional.

This highlights an important characteristic of the Japanese market: successful IP collaborations require more than simply using popular characters for visibility. Consumers respond more strongly when a brand meaningfully integrates itself into the emotional world of the IP and creates a new experience for fans. In Japan, campaigns that encourage emotional participation and cultural conversation often generate stronger engagement than direct advertising-focused communication.

Featuring Familiar Anime Characters to Address Social Anxiety

One key factor behind the campaign’s resonance was its ability to translate an everyday beauty-related anxiety into a culturally familiar emotional narrative. Rather than directly promote salon appointments, the campaign focused on the emotional hesitation consumers experience before changing their appearance.

By showing well-known Attack on Titan characters overcoming their own “walls” through hairstyle changes, the campaign framed makeovers as an empowering act. The use of exclusive visuals, participatory social content, and multi-platform storytelling also helped deepen audience engagement and encouraged consumers to emotionally identify with the campaign message.

Tracking Market Value Throughout the Lifetime of the Product

SNKRDUNK, a Japanese C2C marketplace for sneakers, apparel, trading cards, and collectibles operated by SODA Inc., launched Collection, a new feature that allows users to track the real-time market value of items they own.

Launched on April 22, 2026, users can view the estimated market value of items previously purchased on SNKRDUNK or manually registered in the app, along with recent selling prices, making it easier to decide when to list an item for sale. Items purchased through SNKRDUNK are automatically added to Collection after a transaction is completed.

Since in 2019, SNKRDUNK has operated a C2C marketplace for sneakers, apparel, trading cards, figures, and other collectible items. Every traded item is authenticated and inspected by professional authenticators before being delivered to the buyer. The platform has grown to over 6 million monthly users, more than 10 million cumulative app downloads, and over 34 million cumulative listings.

Resale Goods: Thinking Beyond Price

Success in the Japanese market does not come simply from adding new digital features, but from building a trusted transaction environment and a data infrastructure that supports it.

When entering Japan, companies should design not only CRM tools, pricing features, or AI-powered services, but also the operational processes that generate reliable data. For example, standardizing product information and centrally managing transaction histories and product quality data can create a foundation for future services such as price transparency, resale support, portfolio management, and personalized recommendations. Rather than treating these capabilities as standalone features, companies should integrate them into a seamless customer journey that extends from purchase to ownership.

The case also highlights an important characteristic of Japan's reuse market: price alone is not the only source of value. Authenticity and quality assurance are also key factors in customers' purchasing decisions. In categories such as luxury goods, sneakers, and trading cards, where counterfeit risks are high, authentication and quality control should be viewed not merely as back-office operations, but as essential parts of the customer experience that help build trust.

The key lesson for companies is to design digital services with scalability in mind. By building systems that continuously capture and organize product and transaction data through daily operations, companies can create new customer-facing services over time rather than repeatedly launching disconnected features. This case demonstrates that operational excellence can become the foundation for long-term digital innovation and customer value.

Leveraging Operational Data to Create Customer Value

“Collection” is a new feature on SNKRDUNK that allows users to check the estimated market value, recent selling prices, offer prices, number of Likes, and SOLD counts for items purchased on SNKRDUNK or manually registered. Users can also list those items directly from Collection.

Japan’s resale market reached JPY3.26 trillion in 2024, marking 15 consecutive years of growth. According to SNKRDUNK’s survey, approximately 75% of users want to know the current market value of items they own, around 70% check market prices even when they have no intention of selling, and nearly 60% consider purchased items to be savings or assets. In this market environment, there is growing demand for services that allow users to understand the value of owned items throughout the ownership period, not only when they decide to sell.

The significance of this initiative lies not simply in adding a pricing feature, but in expanding the marketplace into a service that continues to provide value after purchase. While market price information has traditionally been checked mainly at the point of resale, Collection allows users to monitor the estimated value and recent selling prices of items they already own, enabling market information to be used during the ownership period as well.

This initiative is supported by SNKRDUNK’s operational foundation. Items listed on the platform are processed through SNKRDUNK BASE, the company's logistics and authentication center where products are linked to transaction data, authenticated, and inspected before being delivered to the buyer. Its authentication process uses tens of thousands of authentication cases, databases of genuine and counterfeit products, and Japan’s only X-ray transmission device. Its quality inspection process is also based on quality data gathered by brand and SKU. Users can check transaction statuses such as “Arrived at SNKRDUNK Office / Waiting for Authentication” and “Authentication Completed,” at which point they receive a notification once authentication is complete. However, SNKRDUNK does not state that users can view detailed authentication dates or authentication history.

The core of this initiative is not the creation of an entirely new service, but the evolution of product and market information gathered through marketplace operations into a service that helps users continuously understand the value of their owned items. SNKRDUNK is not directly exposing internal authentication data or individual transaction records. Instead, it provides useful market information to users based on data collected through daily operations. This ability to convert operational data into new customer value is what differentiates the initiative.

Three-Floor Complex Showcasing All JINS Products and More

Japanese eyewear retailer JINS, operating approximately 840 stores in Japan and overseas, opened JINS Shinjuku, its largest three-floor flagship store worldwide, at the Shinjuku Sanchome intersection in Tokyo.

The store, opened on April 23, 2026, spans approximately 1,000 square meters and offers around 1,300 products, making it the company's largest store. Under the concept "Everything, All Here," the store brings together eyewear, contact lenses previously available only online or at select stores, including the wearable mobile device JINS ASSIST.

The second floor features the first shop-in-shop for JINS' sister eyewear brand RIM, while the third floor includes the company's in-house café, ONCA COFFEE.

Equipped with nine vision testing stations, the store provides a one-stop experience from eye examinations to lens processing as well as  tax-free services for international tourists. The store also permanently displays artwork by contemporary artist Takuro Tamura and introduces multilingual AI terminals and the JINS 30min Night Walk program a virtual local guide offered to international visitors while they wait for their glases to be made.

Connecting Product, Service, Education and Personalization Under One Roof

Flagship stores should not be viewed simply as sales channels, but as spaces designed to deliver value that customers cannot experience elsewhere.

For companies entering the Japanese market in particularl, expanding store size or launching limited-edition products alone may not be sufficient. Instead, brands should consider how store design, technology, and location-specific experiences can work together to create clear reasons for customers to visit a physical store.

JINS Shinjuku is one example of this approach. In addition to Shinjuku-exclusive eyewear, the store offers services that are not available in regular stores, including an in-store trial area for JINS ASSIST, a wearable device that allows users to operate digital devices through head movements, the first RIM shop-in-shop, an engraving service, ONCA COFFEE, and contactless PICK UP LOCKER.

The store also uses spatial design as a point of differentiation. Its design concept is based on “reweaving” the relationship between Shinjuku Sanchome, JINS, and the existing building. The exterior uses white aluminum pipes inspired by silk, a material connected to Maebashi in Gunma, where JINS was founded. Inside, the store preserves existing structural elements and reuses wooden boxes, coffee sacks, and even the staircase from the former Burberry store. Through this approach, JINS communicates its history and values through the physical space itself.

From an operational perspective, companies should also design customer journeys that connect product selection, vision testing, product trials, personalization, waiting time, and pickup into one seamless experience. By integrating products, services, technology, and space, brands can create value that e-commerce cannot provide and strengthen the differentiation of physical retail.

Aligning Location and Execution to Tell the Brand Story

The significance of this initiative lies in how JINS designed its flagship store not simply to drive sales, but as a space where customers can experience the brand's worldview.

JINS integrates multiple services, such as vision testing, digital technology, personalization services, food and beverage, and product pickup into one store around a shared customer need: vision. This allows the store to provide a seamless customer experience from product discovery and trial to customization and in-store pickup.

By opening in Shinjuku Sanchome, one of Tokyo's major commercial districts, JINS strengthens its brand presence in an environment where fashion, retail, technology, and culture intersect. This flagship functions not only as a sales location for customers, but also as a space that embodies JINS' brand identity and supports the company's global expansion.

JINS Shinjuku also incorporates architecture, art, interior design, and the existing building into the brand experience, to expresses the brand's values throughout the space in a way that products alone cannot fully communicate.

The essence of this initiative is not simply opening a large store, but maximizing the value of physical retail by selecting the most relelevant location, while integrating products, services, technology, space, and customer flow into one cohesive brand experience.

Building an All-In-One Community Hub

Alpen, one of Japan's largest sporting goods retailers based in Aichi, Nagoya launched  its new running community brand, ALPEN RUN, with the opening of its first store. Located inside Tokyo Metropolitan Meiji Park adjacent to the Japan National Stadium in Shinjuku, the store opened on April 24, 2026.

Rather than serving as a conventional running goods store, the location is designed to provide running experiences and a community that share the joy of running and support long-term engagement.

The store offers foot measurement-based shoe fitting, community runs in collaboration with manufacturers and influencers, shoe trial sessions, and recovery experiences in partnership with the adjacent spa facility TOTOPA. It also aims to become a hub where runners can begin, gather, and grow, creating a place that supports people throughout their running journey.

Focusing on Delivering a Continuous Brand Experience

This case demonstrates that community should be designed at the core of store operations rather than as a standalone marketing initiative. Instead of managing stores, events, local partnerships, and digital channels separately, brands can connect them into a single customer journey that allows physical stores to function more as an ongoing community hub.

When entering the Japanese market, companies can create opportunities for both new and existing customers to engage with the brand. For example, combining trial experiences, rental services, expert guidance, recurring community events, and partnerships with complementary local businesses can extend customer engagement before, during, and after each store visit.

The case also highlights the importance of rethinking the role of owned media. Rather than using Instagram solely as a promotional channel, Alpen uses it to share product information while showcasing ALPEN RUN events and community activities. By integrating stores, communities, events, partners, and owned media into a single customer journey, companies can deliver a more seamless brand experience and strengthen customer engagement in the Japanese market.

Serving a Growing Audience, Including Their Own

The significance of this initiative lies in how Alpen has expanded the role of retail from selling products to providing running experiences to build community. Rather than operating as a conventional running goods store, ALPEN RUN combines retail, expert services, community activities, and partner services into a single customer experience.

The store offers foot measurement-based shoe fitting, running shoe rentals, community runs organized with manufacturers and influencers, and recovery services through TOTOPA, an adjacent spa facility in Meiji Park. Alpen also aims to hold running events five times a week, or approximately 300 days a year, positioning the store as an ongoing community hub rather than a venue for occasional promotional events. Together, these services create a customer journey that connects product selection, running experiences, and recovery within a single location, making it easier for beginners and after-work runners to participate.

The initiative also reflects changes in Japan's running market. According to RUNNET, one of Japan's largest running event and runner registration platforms, new registrations among people in their 20s increased 1.5 times between 2019 and 2025, making this the platform's largest age group. Against this backdrop, Alpen has expanded its retail model by investing not only in products but also in experiences and community participation.

Another differentiating factor is Alpen's company-wide "1000 Project," which encourages 1,000 of its employees to complete a full marathon. As of April 2026, more than 850 employees had achieved the goal. According to the company, this initiative has helped employees better understand running, increased their confidence in recommending products, and contributed to product development. The core strategy is therefore not simply opening a new specialty store, but building an operating model that integrates products, experiences, community, partner services, and employee experience to support customers throughout their running journey.

Retail Concept Based on Pachinko Booth

On May 2, 2026, Japanese streetwear brand #FR2 opened #FR2 T・U・C, a new concept store in Tokyo's Jimbocho district. Located in a former pachinko exchange booth, the store recreates the exchange-counter experience through glass-partitioned customer interactions and dedicated product handover windows.

The permanent store operates on irregular schedules announced through social media, and all merchandise is exclusive to the location.

When the Purchase Journey Is Part of the Story

This case demonstrates that differentiation can be created through an exclusive purchase experience, not just through product design or store aesthetics.

When entering Japan, brands should consider how store operations, customer interactions, purchasing rules, and communication channels can work together to reinforce a consistent brand concept. Rather than treating these elements as separate functions, they can be designed as cohesive customer experience.

The case also highlights the value of viewing sales methods as a strategic marketing asset. Limited access, unique purchasing mechanisms, selective operating schedules, and location-specific retail formats can help create distinctive experiences that are difficult to replicate through e-commerce alone.

Rather than focusing solely on what is being sold, brands should evaluate how products are discovered, accessed, and purchased. Designing these touchpoints intentionally can help strengthen brand differentiation without relying exclusively on new products or large-scale store investments.

Creating an Exclusive Purchasing Experience

The significance of this initiative lies not in opening another concept store, but in how #FR2 applies a long-standing brand strategy to physical retail operations.

Since its launch, #FR2 has built its brand through distinct visual communication on social media, limited-product releases, and a policy of avoiding discount sales. The brand has also experimented with alternative sales formats, including the mobile retail concept #FR2DOKO? and the 24-hour limited sales model used by #FR2 GOLF, demonstrating a consistent focus on how products are sold rather than solely on the products themselves.

The new store follows the same approach by emphasizing the purchasing process rather than the merchandise alone. By utilizing a former pachinko exchange booth and incorporating glass-partitioned customer interactions, irregular opening schedules, store-exclusive merchandise, and a slot-machine system that grants purchase rights for select items, the store offers an experience that differs from a conventional apparel retail environment.

The store is also notable because its location, customer interaction model, and sales rules are designed around a shared concept. In Japan, pachinko prize exchange booths are typically small, discreet locations separated from the main gaming area. Because they are associated with limited visibility and restricted customer access, they evoke a sense of secrecy and exclusivity.

#FR2 incorporates these characteristics into its retail concept through irregular opening dates, social media announcements, and intentionally limited access to selected products, making store operations part of the overall brand experience.

The core strategy is not the sale of exclusive products, but the creation of differentiation through the purchasing process itself. Rather than relying solely on merchandise, the initiative uses store operations and customer interactions to express the brand’s identity.

Record Sales and Global Expansion

United Arrows, one of Japan’s leading fashion retailers, announced its consolidated financial results for the fiscal year ending March 2026 in May 2026. Net sales increased 9.1% YoY to JPY164.6 billion, while operating profit rose 14.3% YoY to JPY9.1 billion, marking the company’s highest sales level in seven years.

Existing-store sales, including e-commerce, grew 6.8% YoY, while gross profit margin reached 52.4%, its highest level since Fall 2015/Q3. The company also continued to expand its overseas business, operating 15 stores in Taiwan, 3 in China, 2 in Thailand, and 1 in Singapore as of April 2026.

Investing in Operational Solutions and Customer Membership Programs

This case highlights the importance of aligning business operations with a clearly defined target market. Rather than competing across multiple price segments, companies should identify where they can create the strongest competitive advantage and concentrate investing in areas that support that position.

From a retail operations perspective, inventory management and logistics can be as important as product development to create a competititive edge. United Arrows improved profitability through investing in merchandise management systems and logistics capabilities, demonstrating how operational efficiency can support business growth.

From a customer management perspective, expanding a membership base and increasing engagement across both physical stores and e-commerce channels can help support long-term growth. Companies entering Japan should consider investing not only in products and store expansion, but also in gathering customer data and developing membership programs that strengthen their customer base over time.

Strategic Focus on the Mid-To-Premium Market Segment

United Arrows' sales growth is not only significant, but the company’s clear decision to focus on the highly competitive, mid-to-premium market segment.

In its new medium-term management plan, the company identified this segment as its strategic focus, aiming to strengthen its high-value-added positioning across its domestic apparel, overseas apparel, and non-apparel businesses while targeting net sales of JPY185–195 billion within three years. The company also explained that the divestiture of Coen Co., Ltd., its wholly owned subsidiary that operates the low-priced casual apparel brand coen, was part of this strategic direction. The subsidiary had struggled to establish a sustainable competitive position in the casual market, leading United Arrows to reallocate resources to business segments where it believes it has stronger competitive advantages.

A key differentiator is that United Arrows is not relying on a single brand or initiative for growth. Instead, it is simultaneously strengthening product quality, pricing, inventory allocation, logistics efficiency, digital capabilities, and overseas expansion. The company has also invested in its UA3.0 merchandise management system to improve inventory allocation and supply chain efficiency.

The essence of this strategy is a heightened focus on the highly-sensitive, mid-to-premium market. At the same time, the company has implemented initiatives in product quality enhancement, pricing optimization, inventory allocation improvements, and logistics efficiency, all which contribute to both sales growth and profitability. Despite rising sourcing costs and currency pressures, United Arrows achieved a gross profit margin of 52.4%, its highest level since Fall 2015/Q3.

Driving Growth Through an Expanded Luxury Brand Offering

Hankyu Luxury is one of Japan’s largest luxury retail destinations, created through the redevelopment of the 5th and 6th floors of the Hankyu Umeda Main Store in Osaka and having opened in March 2025.

The redevelopment brought together 67 luxury brands across fashion, jewelry, and watch categories. The International Boutiques zone was expanded to approximately 1.6 times its previous size, with luxury brands showcased at one of the largest scales in Japan.

In addition to expanding in-store flagship boutiques for European luxury brands such as Louis Vuitton, Chanel, and Hermès, the space brings together a wide range of jewelry and watch brands to create a one-stop luxury shopping destination for both domestic and international affluent consumers.

Hankyu also enhanced its service offering with concierge services, VIP rooms, lounges, and multilingual support, with the goal of elevating the customer experience.

Curated Department Store Shop-In-Shop Can Offer More Than Standalone Retail

The most important lesson that can be learned from this case is that expanding a brand portfolio or product assortment alone is not enough. Investing in the overall customer experience can be equally important.

Alongside bringing together 67 luxury brands, Hankyu introduced concierge services, lounges, multilingual support, and VIP rooms to create an environment where customers can more easily compare products and navigate the shopping journey. As a result, purchase conversion rates and average transaction values increased, while spending from domestic affluent customers exceeded expectations.

For foreign companies entering the Japanese market, opportunities may exist beyond standalone stores or e-commerce channels. Combining services such as expert guidance, appointment-based consultations, multilingual support, and membership programs can help strengthen the customer experience. In addition, Hankyu Luxury features Japan-first and world-first store concepts as well as exclusive product launches, creating new opportunities for customers to discover products and brands. Foreign companies may be able to apply a similar approach through Japan-exclusive products, limited-time events, or other unique experiences that encourage store visits and purchases.

This case suggests that in Japan, success may depend not only on what a company sells, but also on the experience it creates around the purchase. The way products are presented, explored, and purchased can play an important role in attracting customers and driving sales growth.

Encouraging Visitors to Shop Across Multiple Luxury Brands

This initiative is significant because Hankyu invested not only in expanding its luxury offering, but also in creating an environment that supports product comparison and enhanced customer service.

Hankyu Luxury is organized into three zones—Fashion, Jewelry, and Watches—and features notable retail concepts, including Japan’s first stores for Schiaparelli and Létrange, as well as flagship-scale boutiques for Louis Vuitton, Chanel, and Hermès. In the Watch Lounge, customers can compare products with the support of dedicated attendants. Additional service capabilities include concierge services, attendant services for affluent customers, multilingual support, and VIP rooms. Most luxury boutiques housed in this Flagship feature private VIP rooms where customers can comfortably compare high-value products such as fine jewelry and watches. Hankyu also offers personalized hospitality, including champagne and catering services in select VIP spaces. For international visitors, dedicated attendants provide guided shopping support throughout the store, demonstrating Hankyu’s strong focus on elevating the customer service experience.

What differentiates this initiative is its ability to combine the immersive brand experience typically found in standalone flagship stores with the convenience of comparing multiple brands within a department store setting. While many retail destinations focus on attracting traffic through new brand openings or limited-time events, Hankyu has made consultations and service capabilities a core part of its competitive strategy.

Since opening, the initiative has improved purchase conversion rates and average transaction values, while demand from domestic high-net-worth customers has exceeded expectations, making it a key growth driver for the Hankyu Umeda Main Store. International affluent visitors have also responded positively to the concierge service. These results suggest that Hankyu Luxury’s investment in customer experience, alongside brand expansion, has contributed meaningfully to its success.

The North Face Expanding it's Footwear Business

On April 25, 2026, Goldwin opened The North Face Footwear Shinsaibashi in Osaka, the brand’s first footwear-focused concept store globally.

While The North Face is best known as an outdoor apparel and equipment brand, the company is expanding its footwear business as a strategic growth category. The store offers 3D foot scanning, footwear consultations by certified shoe fitters, and a Vibram resole service. The opening supports Goldwin’s strategy to strengthen The North Face’s footwear business while creating a new brand experience centered on footwear in one of Japan’s most competitive shoe retail districts.

Leveraging Retail to Demonstrate Expertise

This case demonstrates how a dedicated retail and experience hub can be used to communicate a brand’s expertise and technical capabilities within a strategic product category. Beyond product development, physical stores can serve as a platform for making category strategies more visible and tangible to consumers.

Companies entering Japan should consider how they can communicate the technical value and specialized knowledge behind their products. In this case, services such as foot measurement and expert consultation help convey product benefits and category expertise in ways that product displays alone may not achieve.

The case also highlights how retail stores can be used for more than sales. They can function as spaces to communicate a brand’s technology, know-how, and perspective on a category. For companies seeking to develop new markets or strengthen strategic product categories, aligning retail experiences with broader business objectives can be an effective approach.

Shinsaibashi: A Strategic Decision for Retail Location

Goldwin has identified footwear as a key growth area for The North Face. In its mid-term management plan, the company targets an additional JPY4 billion in footwear sales by Fall 2029 through enhanced shoe development and the creation of new markets. Prior to opening the Shinsaibashi store, Goldwin expanded footwear assortments in 40 existing The North Face stores and reported a 20% increase in footwear sales. Viewed in this context, the new concept store represents a strategic effort to strengthen the footwear category within the broader The North Face business.

The choice of Shinsaibashi is also notable. The district is home to major footwear brands including Nike, HOKA, Salomon, and ASICS, placing The North Face directly within one of Japan’s most competitive footwear retail environments.

The store also reflects the brand’s strategy of applying technologies originally developed for outdoor activities to a wider range of use cases, including road running and lifestyle footwear. Rather than focusing solely on product expansion, the initiative combines retail, service, and category specialization to support the company’s broader footwear growth strategy.

Repositioning as Entertainment-Driven Media Channel

FamilyMart TV (formerly FamilyMartVision) is an in-store digital signage media platform operated by FamilyMart. Originally launched in 2021, it had been installed in approximately 11,000 stores nationwide as of April 2026.

In April 2026, the platform was rebranded as “FamilyMart TV,” shifting the positioning from an advertising-focused in-store media platform to an entertainment-driven media channel designed to enhance the shopping experience and create new reasons for customers to visit stores.

The platform distributes exclusive original content featuring celebrities, VTubers and other personalities with established fan communities, combining entertainment and promotional elements to drive customer engagement and store traffic.

Convert Digital Engagement Into Real-World Traffic

The most important lesson for companies entering the Japanese market is that success comes not only from promoting products or services, but from creating experiences that consumers actively want to engage with.

FamimaTV has transformed convenience stores from simple retail channels into media platforms by leveraging its network of approximately 11,000 stores and delivering exclusive content featuring popular celebrities and VTubers. As a result, some consumers visit stores specifically to watch the content, while fans share information on social media, creating a virtuous cycle that drives additional store traffic.

The key takeaway is to view customer touchpoints - whether it be physical stores, mobile apps, or e-commerce platforms - not merely as sales channels, but as spaces where consumers can continuously interact with and build relationships with the brand. In Japan, exclusivity and fandom culture（推しかつ文化）are particularly influential, and experiences that can only be accessed through a specific channel often motivate consumers to visit, engage, and purchase.

FamimaTV also demonstrates the importance of connecting online and offline experiences. By generating buzz on social media and encouraging consumers to continue the experience in-store, brands can convert digital engagement into real-world traffic and sales. In the Japanese market, creating experiences that consumers actively seek out can be more effective than simply delivering advertising messages, helping brands build long-term awareness, loyalty, and customer acquisition.

Exclusive Entertainment Content Transformed the Platform

This initiative works in Japan because convenience stores are deeply embedded in consumers’ daily lives as essential lifestyle infrastructure, rather than simply retail outlets.

Japanese consumers use convenience stores not only for food and beverages, but also for paying bills, ticket purchases, parcel delivery services, and many other everyday needs. As a result, consumers visit convenience stores frequently, creating regular opportunities for brands to engage with them through in-store media.

FamimaTV leverages this high-frequency visitation by offering exclusive entertainment content alongside advertising, creating new reasons for customers to visit stores. This approach is particularly effective in Japan, where strong fandom culture (“oshi-katsu”) drives interest in idols, celebrities, and VTubers. Exclusive content and experiences that can only be accessed through a specific channel often motivate consumer action and deepen engagement.

FamilyMart had reported that social media announcements for its FamilyMartVision-exclusive program Nanashi Gakuen (launched in April 2026) led to increased store visits the following day, particularly among consumers in their teens and twenties. Rather than being a random entertainment program, Nanashi Gakuen was strategically designed as exclusive in-store content featuring multiple VTuber talents from the agency Nanashi Inc., each with an established fan community. By making the program available exclusively through FamilyMartVision, the initiative gave fans a compelling reason to visit stores to watch content they could not access elsewhere. At the same time, fans shared information about the program on social media, helping amplify awareness and attract additional visitors. This demonstrates how FamilyMart leveraged existing fan communities to convert online engagement into offline store traffic.

Shortly after, FamilyMart announced the re-positioning of FamilyMartVision to FamimaTV.

By combining convenience, entertainment, and exclusivity, FamimaTV has evolved the convenience store from a traditional retail channel into a retail media platform that creates ongoing consumer engagement. The initiative demonstrates how brands can leverage Japan’s unique combination of frequent store visits and fandom culture to strengthen both awareness and foot traffic.

Brining BAO BAO's Wonder to Life

On April 24, 2026, Issey Miyake opened BAO BAO ISSEY MIYAKE / AOYAMA, the brand’s first flagship store in Japan, in Tokyo’s Minami-Aoyama district.

The 206-square-meter store showcases the brand’s full product lineup and also hosts exhibitions and creator collaborations through the BAO BAO ISSEY MIYAKE LAB. initiative.

The space was designed by Tokujin Yoshioka, who has previously designed Issey Miyake flagship stores in Paris, Milan, and London. Centered around a floating aluminum table measuring over 10 meters in length, the store is designed to allow visitors to experience the brand’s innovative craftsmanship and the creative possibilities generated by its signature geometric pieces.

Differentiation through Retail

This case demonstrates that a flagship store in Japan can serve a broader role than simply displaying products. Rather than treating retail, marketing, and brand communication as separate functions, companies can use a flagship location to integrate them into a single customer experience.

When entering Japan, brands must consider how physical stores can communicate values that are difficult to convey through the products themselves. Space design, exhibitions, collaborations, and limited-edition initiatives can all be used to make brand positioning more tangible and memorable.

The case also highlights the importance of designing customer journeys beyond the point of purchase. Rather than focusing solely on product assortment, companies should consider how store environments, programming, and brand storytelling work together to communicate differentiation. In competitive retail markets such as Japan, the ability to translate brand identity into a physical experience may be just as important as the products themselves.

Flagship as Creative Platform

BAO BAO ISSEY MIYAKE uses its first flagship store in Japan not only as a retail space, but also as a platform to communicate the brand’s broader creative point of view. While the store offers the full product lineup, it also provides a dedicated venue for showcasing the brand’s design philosophy and ongoing experimentation through exhibitions and collaborative projects.

This approach aligns with the Japanese luxury market expectations. According to McKinsey’s 2022 survey of Japanese luxury consumers, in-store experiences and relationships with sales associates remain important despite the growth of digital channels. As a result, physical stores continue to play a critical role in helping brands communicate their value beyond products alone.

A key differentiator is the integration of the BAO BAO ISSEY MIYAKE LAB. initiative into the retail environment. Through this program, the brand regularly hosts exhibitions and collaborations with creators and experts. From June to August 2026, the store is presenting LAB. 01 BEYOND THE DIMENSIONS, a collaborative exhibition with artist Shoya Dozono, accompanied by the sale of limited-edition products linked to the exhibition. This transforms the store from a point of sale into an ongoing platform for brand storytelling and creative expression.

The core of the strategy is the integration of products, space, and programming into a single brand experience. Rather than relying solely on merchandise, BAO BAO uses exhibitions and collaborative projects to continually communicate its creativity and distinctiveness. The case demonstrates how a flagship store can serve not only as a sales channel, but also as a long-term platform for brand communication and customer engagement.

New Sanrio Flagship Retail Combines Product, Experience and Cafe

On December 11, 2025, Sanrio opened a three-floor flagship complex in Harajuku, Tokyo, combining retail, customization experiences, and the SANRIO café under one roof.

In addition to Flagship store-exclusive merchandise, the store offers interactive experiences such as patch decorating and collectible figure customization, allowing visitors to create personalized products. The café compliments the retail experience with exclusive menu items available only at the Flagship location, extending customer engagement beyond shopping.

By integrating product, experiences, and food service into a single destination, the store creates multiple reasons to visit and spend time with the brand beyond traditional product purchases.

Exclusive Products and Experiences

Companies should view flagship stores not simply as sales channels, but as spaces designed to deliver brand experiences. Sanrio’s Harajuku store demonstrates how retail, customization, and food and beverage offerings can be integrated into a single customer journey, creating a seamless experience from store visit to purchase and extended engagement.

When entering the Japanese market, launching exclusive products alone may not be sufficient. Instead, brands should consider incorporating interactive experiences and location-specific value that customers cannot access elsewhere. From an operational perspective, connecting multiple touchpoints - such as retail, customization, dining, and other experiential elements - can encourage customers to spend more time engaging with the brand.

By designing customer journeys and experiences that cannot be easily replicated online, companies can strengthen visit intent, increase customer engagement, and create stronger differentiation from e-commerce.

Giving Customers Reasons to Visit

The key insight behind this initiative is that Sanrio is not simply selling products - it's creating multiple reasons for customers to visit a physical location. In Japan, character fandom and “oshi” (fandom) culture are deeply embedded in consumer behavior, particularly among younger generations. Many consumers value opportunities to express their individuality through personalized products and immersive brand experiences. By combining Harajuku-exclusive merchandise with customization services and themed dining, Sanrio creates a deeper level of engagement than traditional retail alone.

According to the company’s earnings materials, the Harajuku store opening significantly exceeded internal expectations, with the patch decoration corner - where customers can create their own personalized merchandise - was highlighted as a particularly popular attraction.

In addition, Sanrio reported continued growth in Japanese customer visits even as the proportion of inbound tourist demand declined. This suggests that the store functions not only as a tourist destination but also as a place that encourages repeat visits from domestic consumers. The success of the format lies in combining multiple forms of exclusivity - not only products that can only be purchased there, but also experiences that can only be created and enjoyed there.

Solving for Workplace Needs

Real×Tech LAWSON is a next-generation convenience store initiative jointly developed by KDDI and Lawson that leverages AI, robotics, and digital technologies to enhance customer experience and store operations.

Following the launch of the first public-facing Real×Tech LAWSON store, Lawson Takanawa Gateway City Store in June 2025, KDDI and Lawson expanded the concept into employee-only office environments. The first office-focused location, Lawson S KDDI Takanawa Headquarters Store, opened in July 2025 and serves as a testing ground for advanced DX initiatives, including smartphone-based checkout, delivery robots, AI-powered shelf monitoring, automated stock replenishment, and shelf optimization technologies.

In December 2025, the companies opened the Lawson KDDI Osaka No. 2 Building Store, also a workplace retail initiative where the Office Lawson App reduced average shopping time to 2.5 minutes. In February 2026, they launched the Lawson KDDI Shinjuku Building Store, which became the first workplace-focused Real×Tech LAWSON location to offer 24-hour operations, including unmanned nighttime service.

Unlike the public-facing Takanawa Gateway City Store, all three workplace locations operate exclusively on employee-only office floors and are not accessible to the general public. Through these initiatives, KDDI and Lawson aim to develop a convenience store model tailored specifically to office environments. The companies plan to continue refining usability and convenience based on employee feedback while actively testing advanced technologies, and exploring opportunities to expand the concept to other corporate environments in the future.

One of the most important lessons from this case is the need to deeply understand the target customer—in this case, office workers. Employees value convenience, speed, and efficiency, especially during limited break times. In Japan, lunchtime congestion is a common challenge, making solutions such as smartphone checkout, cashierless operations, and in-office delivery services highly attractive. In addition, Japanese consumers have diverse needs, including health-conscious purchasing and cost-saving preferences. Personalized promotions, product recommendations, and app-based discounts can help address these needs while improving employee satisfaction.

Another key takeaway is the strategic use of technology. Features such as mobile self-checkout, autonomous operations, delivery robots, and AI-driven recommendations are already becoming mainstream in Japan. As a result, foreign companies should focus not only on adopting these technologies but also on combining them to create unique customer experiences. For example, integrating employee IDs with loyalty programs, wellness initiatives, or personalized benefits could generate additional value in workplace environments.

Finally, the operating model itself provides valuable lessons. By using employee-only office environments, KDDI and Lawson are able to test new technologies and store concepts while collecting feedback from a clearly defined user group. For example, smartphone checkout and personalized recommendation features allow the companies to better understand user preferences and adoption of new technologies. Similarly, the 24-hour unmanned operations being tested at the Shinjuku store provide insights into which tasks can be automated and where human involvement may still be necessary. While these initiatives are currently focused on office environments, some of the learnings may have broader applications for retail. Insights related to customer convenience, operational efficiency, and technology adoption could potentially inform future consumer-facing store formats.For foreign companies, this case highlights the value of using a controlled environment to test innovations, gather user feedback, and refine operations before expanding to a larger scale.

Learning From and Building Trust with Employees

This initiative aims to enhance productivity and convenience for office workers, perfectly aligning the long hours of work culture and convenience store dependent culture. In fact, a survey of 10,000 KDDI employees revealed that approximately 90% use convenience stores daily, with many citing lunchtime congestion and long queues as significant stressors.

By introducing mobile checkout systems and delivery robots, this initiative provides a contactless, remote, and high-speed purchasing experience that directly reduces time loss and stress. Furthermore, the high adoption rate of mobile payments in Japan and the public’s receptiveness toward cashless transactions and new technology act as strong tailwinds. Additionally, offering employee benefits—such as discounts and coupons via integrated employee ID verification—aligns well with the emphasis on employee satisfaction typical of Japanese corporate culture.

What sets this initiative apart from other industry examples is its unique corporate partnership model. While major convenience store chains (e.g., 7-Eleven, FamilyMart) implement advanced technology for the general public, these stores are designed for a restricted office community and is built to integrate internal company data. For example, distributing coupons linked to the KDDI employee app and employee ID is a feature not typically found in standard convenience stores. This focus on data utilization within a closed office environment and the pursuit of highly efficient operations are the key differentiating factors for this project.

Flagship Initiative Between Lawson and KDDI

Lawson partnered with KDDI to open the first “Real×Tech LAWSON” store in June 2025 at Takanawa Gateway City in Tokyo.

The next-generation convenience store integrates digital technologies with physical retail operations, using AI-powered cameras and digital signage to analyze customer behavior, deliver real-time product recommendations, and enhance the overall shopping experience while increasing basket size.

The store also incorporates cooking robots, cleaning robots, shelf-restocking robots, and remote customer-service avatars to address labor shortages and improve operational efficiency. Through these pilot initiatives, Lawson aims to simultaneously increase sales and reduce labor hours, with successful solutions expected to be rolled out across its nationwide store network.

Notably, Lawson does not view technology as a replacement for human interaction. According to company representatives, physical stores and their employees remain valuable assets, and technology should support the warm, personalized service and communication that only people can provide. The company’s vision is to combine digital innovation with human-centered customer service.

The project serves as a flagship initiative of the “Real×Tech Convenience” strategy that emerged following KDDI’s investment in Lawson. Beyond improving retail operations, the initiative seeks to transform convenience stores into essential community infrastructure capable of addressing broader societal challenges, including Japan’s aging population and ongoing labor shortages.

The most important lesson companies can learn from Lawson’s AI and Robotics Pilot Store is that technology should not be viewed merely as a cost-reduction tool, but as a way to enhance customer value while addressing broader social challenges.

Specifically, Lawson uses AI and robotics to automate routine tasks such as shelf restocking and inventory management, allowing employees to focus on higher-value activities that require human interaction, including customer service and support. This represents a highly strategic approach to Japan’s labor shortage challenge, as technology is used to create more capacity for employees to concentrate on the roles that humans are uniquely suited to perform, such as service delivery and community engagement.

For companies seeking to enter the Japanese market, partnering with established retailers may often be more effective than launching a retail business from scratch. Japan’s convenience store industry is dominated by three major players with strong market positions, making direct market entry both costly and highly competitive. Instead, companies can follow the example of Cloudpick, which provides walk-through payment technology used at Real×Tech LAWSON, by offering specialized solutions in areas such as AI, robotics, and data analytics through SaaS or RaaS models. By helping major retailers solve operational challenges, foreign companies can gain access to the Japanese market in a more practical and scalable way.

Leveraging Robotics Beyond Function

Lawson’s AI and Robotics Pilot Store (Real×Tech LAWSON) is an innovative initiative that addresses major challenges facing Japan’s convenience store industry, including labor shortages and rising labor costs.

Due to Japan’s aging population and declining birthrate, finding workers has become increasingly difficult. At the same time, retailers must improve efficiency while maintaining service quality. Real×Tech LAWSON uses AI cameras and robots to automate simple tasks such as stocking shelves, inventory management, and cleaning. This allows employees to focus on customer service and other higher-value tasks.

The initiative is not just about reducing costs; it is also a model for creating a more sustainable store operation.This initiative appeals to Japanese consumers because it combines both convenience and high-quality customer service. Many consumers lead busy lives and value fast and efficient service, but they also expect a comfortable shopping experience and friendly customer support. While Lawson uses AI and robotics to improve efficiency, it still maintains the value of human interaction. By balancing technology and hospitality, Lawson can offer both convenience and a positive customer experience.

What makes Real×Tech LAWSON different from competitors is that it is not only focused on store automation, but also on improving customer experience and solving social issues at the same time. While competitors mainly use robots to improve back-office operations such as stocking and cleaning, Lawson is also enhancing customer interactions through avatar customer service and digital signage. In addition, avatar-based customer service creates new possibilities for flexible ways of working and supports workforce diversity and ESG (Environmental, Social, and Governance) goals. Furthermore, under its vision of becoming a “Machi no Hot Station” (Community Hub), Lawson aims to transform its stores into local information infrastructure and connect them with urban operating systems and data platforms. This broader vision makes Lawson’s strategy unique within the convenience store industry.

Japan’s Leading QR Payment Platform Partners With WeChat Pay

In September 2025, PayPay - Japan’s leading QR payment platform with 70 million users - enabled users of WeChat Pay to make payments at all PayPay merchants across Japan.

The core benefit of this initiative is that millions of merchants nationwide can accept payments from inbound tourists using their native apps, without any additional hardware or complex contract changes.

As Japan recorded a record 3.4 million international visitors in August 2025, this integration effectively fills a big "missing piece" in capturing inbound tourist spending.

Furthermore, by adding WeChat Pay - which has over 1.4 billion users - to its existing Alipay+ network (covering 26 overseas e-wallets), Japan’s retail ecosystem is now equipped to serve customers across Asia with a single QR code.

Integrating with Local Payment Platforms Removes Friction

To effectively capture inbound demand in Japan, companies should integrate with local QR payment platforms such as PayPay and enable widely used payment methods like WeChat Pay and Alipay. By allowing tourists to pay with familiar systems, companies can eliminate friction related to language, currency, and payment uncertainty, directly increasing purchase intent at the point of sale. Notably, PayPay enables access to multiple international e-wallets through a single integration, making it a highly cost-effective and scalable solution for serving cross-border customers.

More importantly, companies should design beyond the transaction itself. Payments should not be treated as the end of the customer journey, but as the starting point of ongoing engagement. Leveraging ecosystems like WeChat Mini Programs - which require no app download - allows brands to maintain relationships with customers even after they return home, enabling cross-border e-commerce, targeted promotions, and long-term value creation (LTV).

Ultimately, the key lesson for companies is to avoid forcing proprietary systems or standalone apps. Instead, leveraging existing platforms that are widely accepted to deliver a zero-friction experience will minimize market entry barriers. This approach is critical to building sustainable competitive advantage in Japan’s inbound-driven retail landscape.

Never Loosing a Sale From Inbound Tourists From Asia

This initiative is highly effective in Japan because it eliminates both the psychological and physical barriers to payment, preventing lost sales from inbound tourists. By allowing Chinese visitors to pay with their native mobile payment app, WeChat Pay, it removes friction such as language, unfamiliar payment systems, and the need for cash - significantly reducing hesitation at the point of purchase.

From the merchant perspective, PayPay’s single QR code system enables even small, local businesses to accept payments from customers across Asia without additional hardware or cost. This opens up opportunities for vendors, allowing mom-and-pop shops to gain access to the same payment infrastructure as large retailers.

Crucially, integration with WeChat Mini Programs extends the value beyond payment. Transactions become an immediate entry point for CRM, allowing merchants to convert one-time tourists into long-term customers through post-visit engagement, promotions, and cross-border commerce. This aligns strongly with Japan’s retail environment, where repeat relationships and trust are key drivers of value.

Asahi Inspires Consumers to Embrace Low- And Nonalcoholic Beverages

Asahi Breweries is promoting its “Smart Drinking” initiative to create a culture where both drinkers and non-drinkers can enjoy alcohol flexibly based on their needs and preferences.

From 2025 to 2026, the company has rolled out a series of experience-driven initiatives, namely the launch of the “#SUMADORI Me” pop-up bars across three cities in Japan and in Seoul, offering patch tests to visualize their alcohol tolerance as well as custom cocktail bar workshop where customers can create their own customized drinks.

Following the success of the pop-up bars, Asahi opened its flagship bar “SUMADORI Meets” in April 2026, in Omotesando, Tokyo, to establish a permanent experiential space.

Through these efforts, the company is redefining alcohol consumption as a personalized experience while strengthening its positioning as a lifestyle brand, with announcing plans to invest JPY10 billion (approximately US$64 million) in 2026 and grow related revenue to over JPY200 billion (over US$1.2 billion) by 2030.

Learning and Adapting Social Expectations

It is important to understand that success in Japan requires designing for social context, not just product functionality. Simply offering non-alcoholic options is insufficient, as consumer behavior is shaped by group dynamics and subtle social pressure.

Companies should focus on enabling participation by designing experiences that feel socially seamless - such as maintaining visual consistency, offering discreet ordering, and providing graded choices that reduce psychological friction.

More broadly, brands must shift from thinking of what consumers "choose” to how consumers participate. By aligning product design with cultural expectations around harmony and inclusion, companies can unlock stronger adoption rate and build deeper, long-term relationships with Japanese consumers.

Bridging the Gap Between Personal Preferences and Social Expectations

This initiative matters because it reframes non- and low-alcoholic beverages in Japan from being a substitute for non-drinkers to tools for social participation.

While younger consumers increasingly believe that drinking should not be forced, in practice, they still prioritize joining social rituals such as toasting. This creates a gap between personal preference and social behavior.

SUMADORI Me addresses this by proposing tiered alcohol levels, visually consistent drinks, and offering alcohol tolerance testing, enabling individuals to participate without disrupting group harmony.

Its differentiation lies not in the product itself, but in how it integrates cultural context - particularly Japan’s emphasis on group alignment - with individual choice. This makes it a highly relevant, experience-driven solution rather than a functional beverage offering.

Rmk Leverages AI to Bring to Life Your “Multiple Expressions”

RMK’s ME Finder is a reservation-based in-store makeup lesson service launched in 2025 that uses proprietary “dynamic multi-expression display technology.”

Instead of relying on a single mirror view or static image, it captures a short video during natural conversation and breaks it down into thousands of still frames for analysis. These are categorized into “frequent expressions” and “rare expressions,” with 16 key images selected.

From these, customers choose their preferred expressions, while makeup artists identify the most attractive ones from a professional perspective, making hidden charm points visible. Based on these insights, personalized makeup recommendations are provided. The service is designed in relation to the concept of their new liquid foundation Liquid Foundation Flawless Coverage Plus. This concept, “beauty from every angle”, combinied with AI, an in-store experience, artist-led consultation, transforms the customer experience into an integrated, single, seamless journey.

Shifting From Functionality to Enhancing Customer Experience

The key lesson from this initiative is to redefine technology from being a mere efficiency tool, to a tool that enhances authority - specifically professional services.

In the Japanese market, leveraging AI diagnostics through the lens of a skilled human artist builds the credibility and emotional value critical for a prestige brand.

Furthermore, rather than treating the experience as a simple promotion, structuring it as a high-value lesson with a reservation system and a minimum spend requirement is highly effective for driving conversion, particularly during hero product launch.

Finally, providing post-visit follow-ups through a web-based digital makeup sheet is a global best practice for securing long-term customer engagement and maximizing LTV (Lifetime Value).

Building Trust Through Customized Service

ME finder is important in the Japanese market not because AI is novel, but because it evolves the trusted in-person consultation model long established in department store cosmetics.

Its uniqueness lies in lev eraging advanced technology and professional artistry to resolve deep-seated consumer anxiety around unsatisfactory purchases, or “purchase mismatches.”

Research indicates that approximately 60% of Japanese consumers have experienced dissatisfaction when selecting cosmetics, often due to mismatches in color or texture. Unlike traditional static-image diagnostics, ME finder analyzes the “moving face” during natural conversation, visualizing how a person appears from multiple angles in real-life interactions.

This provides a level of objective validation that goes beyond fixed self-perception. As a business model, its impact is further strengthened by integrating this experience directly into the sales funnel of their hero SKU Liquid Foundation Flawless Coverage Plus.

OAO Taps Reknowned Interior Designer Daikei Mills

Japanese creative footwear label OAO opened an appointment-only Kyoto showroom in December 2025 inside an unconventional Gion nightlife building.

Known for its DTC focus and 'creative foot-gear laboratory' positioning, the interior was designed by Tokyo studio Daikei Mills using reclaimed Kyoto roof tiles and yakisugi (charred cedar) as display surfaces, with exposed walls and vintage speakers.

The showroom represents a deliberate anti-flagship model: an inaccessible location, appointment-only entry, and deep architectural storytelling to amplify exclusivity and craft narrative.

Scarcity and Brand Language

Retail brands in Japan consistently underestimate the strategic value of how and where a space is presented versus what is sold inside.

OAO offers three concrete lessons: First, appointment or limited-access formats build aspirational value far more effectively than open-floor flagships - scarcity signals that both the brand's and consumer's time are worth protecting.

Second, location is an opportunity for a narrative, not just a foot traffic consideration. The Gion location tells a story that Omotesando, Tokyo cannot.

Third, material choices are brand language  - Japanese consumers read thoughtful use of local artisinal materials as genuine cultural engagement, not decoration.

For foreign brands, the additional implication is: investing in Japanese architects with cultural fluency (as OAO did with Daikei Mills / Keisuke Nakamura) is a credibility multiplier, not just aesthetic decision.

Communicating Exclusivity Through Nuanced Understanding of Culture

OAO's Gion showroom is differentiated on several levels specific to sophisticated Japanese consumers. The appointment-only model communicates scarcity and dedicated hospitality without resorting to price signaling — in Japan, where omotenashi is expressed through undivided attention, a private session is itself a luxury statement.

The location choice is deliberately subversive: Gion, saturated with cultural expectation, is the last place one would expect a contemporary sneaker brand. OAO's director explicitly sought a building that would feel "daunting to enter," acting as a filter for the genuinely curious. The material choices — kawara tiles from actual Kyoto townhouses, Yoshino cedar — perform cultural rootedness without pastiche, signaling that the brand has done the work of understanding place. Together, this is a retail model that rewards discovery over footfall, treating the act of visiting as part of the brand experience itself.

Kirin Expands Gut-Friendly iMUSE Line to Introduce Fruit Flavors

Kirin expanded its iMUSE platform with iMUSE Fruit Refresh, a light fruit flavored functional beverage line using Lactococcus lactis strain Plasma. The innovation embeds immune-support functionality into beverage formats that are easy to consume, reflecting Japan’s shift toward preventative health through everyday products.

Kirin Beverage launched the iMUSE Fruit Refresh series in April 2026 — in Grapefruit Mix and Apple Mix variants — as a new line under its established iMUSE immune-care brand.

Each 500ml PET bottle contains 100 billion units of Kirin's proprietary Plasma Lactic Acid Bacteria (プラズマ乳酸菌), supported by clinical research showing it activates plasmacytoid dendritic cells (pDC) to support immune function. The Grapefruit Mix adds Vitamins B6 and C; the Apple Mix adds Vitamin C and iron. Both are designated functional labeled foods (機能性表示食品), priced at approximately ¥203 (tax excluded). The series leads with fruit taste and thirst quenching over medicinal cues, to broaden the appeal of immune care beyond core health-conscious demographics.

Embedding Health Benefits Into Everyday Habits

Food and beverage companies entering Japan's functional food space should understand that Japan's regulatory framework (機能性表示食品) makes clinical credibility a necessariy, but flavor design, packaging aesthetics, and form factor determine shelf success.

Kirin's key move was decoupling "health" from "medicine-adjacent taste," a lesson directly applicable to foreign brands. Consumer skepticism toward functional beverages was high before the pandemic — a 2019 Rakuten Insight survey (via Statista) found approximately 30% of Japanese respondents doubted the purported benefits of functional beverages.

COVID-19 shifted that landscape: health consciousness rose sharply, but the fundamental changes that followed were not simply more supplement consumption. By 2023, general food and drink products accounted for over 60% of the functional labeled food market, surpassing supplements for the first time (credit: Yano Research Institute).

Consumers increasingly want health benefits embedded in everyday activities, not delivered through medicinal formats. iMUSE Fruit Refresh is a direct response: a product that looks and drinks like an everyday beverage while carrying the clinical credibility consumers now expect post-COVID.

Practically speaking, brands should also note that Kirin built its Plasma Lactic Acid Bacteria platform over years of proprietary R&D — Japan rewards patient, evidence-first ingredient development, not speed-to-market shortcuts.

Tapping Into the Growing Immune Care Space

Japan's functional beverage market expanded rapidly, with the immune-care segment growing approximately 24% YoY in 2024.

However most products skew toward yogurt flavors or design cues borrowing from the suppliement category, limiting appeal to health-motivated consumers. iMUSE Fruit Refresh breaks this pattern by leading with fruit flavors and thirst quenching (止渇感), making immune function secondary to the sensory experience.

The light, contemporary packaging with English-forward branding is designed to appeal to consumers who have found health drinks too medicinal or hard to incorporate into daily routines — those for whom hydration habit comes before health intent.

This reflects a core Japanese consumer insight: wellness must be desirable, not deliberate. Kirin validated this direction with its March 2025 iMUSE Off-White Yogurt Taste launch, which sold 3 million bottles within 6 days, which contributed to the iMUSE brand growing 20% YoY in Q1 2025. iMUSE Fruit Refresh builds on that momentum introduce a flavor profile with broader consumer appeal.

Convenience Wear Taps Festival Goers

FamilyMart’s apparel brand, "Convenience Wear," engaged in a multi-layered initiative with "FUJI ROCK FESTIVAL ’25" in July 2025, marking their third consecutive year of partnership.This activation centered around establishing a dedicated on-site pop-up store at the festival venue alongside outfitting event staff with official Convenience Wear T-shirts.While previous activations focused on standard staff-T-shirt provisions, this iteration took ques from the festival's recent trends: a growing number of family attendees and a rising flow of visitors from Asian markets. Reflecting on these festival shifts, this iteration introduced the brand's first-ever on-site exclusive product—limited-edition kids' sizes of the collaboration socks ("Kodomo Kutsushita")—testing a targeted rollout for festival-going families. Other festival-themed collaboration items included adult-sized socks, Imabari towel handkerchiefs, and Imabari scarf towels. While the kids' socks were strictly restricted to the festival's on-site pop-up store, the adult collaboration items were expanded commercially at a macro scale, being made available at all FamilyMart stores across Japan as well as approximately 800 FamilyMart locations in Taiwan.

Looking Beyond Distribution to Build Recognition

For brands looking to expand their presence or network in Japan, this case offers insights into a multi-tiered approach that combines broader distribution with specialized pop-up stores at major events where target audience interests converge. While standard retail channels risk blending into daily routines, placing a limited physical pop-up within a specific event contexts serves as a useful reference for highlighting brand presence when consumer attention is highly focused. When global brands evaluate positioning in Japan, this suggests that rather than relying solely on uniform nation-wide promotions, establishing physical touchpoints at symbolic events and aligning them with localized products or initiatives can serve as a practical approach to efficiently building recognition and trust.

A Shift From Everyday Routines to Events

This initiative can be viewed as an attempt to approach specific consumer segments directly and changing contexts by positioning a physical storefront at a large-scale live event - moving away from the brand's standard convenience store network. For a brand primarily associated with routine daily paths, setting up a pop-up store at a non-routine festival venue creates direct touchpoints precisely when consumer interest is heightened. The strategic execution leverages a physical retail space, while utilizing event staff outfits for visual exposure and launching the first venue-exclusive kids' socks to capture the attention of families with children. By balancing a localized shopping experience within a high-density environment (Fuji Rock Festival), with a broader market presence through recent Taiwan expansion, the brand seems to aim for both premium positioning and enhanced brand recognition.

Familymart Leans Into Apparel Line

FamilyMart opened its first-ever standalone Convenience Wear apparel annex in September 2025, located on the third floor of Tokyo's new Blue Front Shibaura(芝浦) mixed-use complex.

Operated as a specialized, smaller sub-branch of the main FamilyMart store within the same complex, the location carries approximately 150 SKUs from the in-house apparel line, co-designed with Facetasm founder Hiromichi Ochiai, and includes pre-sale pieces not yet available in regular FamilyMart stores.

Notably, this dedicated annex is entirely unmanned with a self-checkout system, making it a rare example of autonomous fashion retail in Japan.

The Strength of Being the Reliable Daily Choice

The essential takeaway is the power of strategic curation over mass assortment. In the mature Japanese market, success is often achieved not by overwhelming consumers with choices, but by providing a strictly edited lineup of highly edited essentials.

It is evident that global brands focusing on frictionless quality will develop the most traction in the Japanese market. FamilyMart demonstrated that by concentrating on a few hero products - with a perfect balance of design aesthetics with functional utility - a brand can transform its positioning from being a temporary fix to a reliable daily choice. This shift in consumer mindset idrove significant sales growth and allowed the product line to expand from a mere konbini store shelf into its own standalone retail store.

Furthermore, the launch of a dedicated satellite shop highlights the importance of providing physical touchpoints. Even in a convenience-driven environment, Japanese consumers value the ability to verify quality and fit. To win in Japan, brands must act as a trusted filter for the consumer, offering an edited, high-quality solution that fits seamlessly into their daily routine, saving them both time and decision-making energy.

Shifting Itself From Functional Retailer to Curator

FamilyMart’s Convenience Wear has successfully redefined the role of convenience store apparel by prioritizing curated quality over mass variety.

Rather than mimicking traditional apparel stores with endless inventory, FamilyMart focuses on a tightly edited lineup of high-demand essentials. By ensuring each item perfectly balances functional comfort with sophisticated design, the brand has transformed a last-minute purchase into a deliberate choice.

First launched as a product line carried on the shelves of tthousands of FamilyMart locations,  the retailer's strategic focus has driven significant sales growth, leading to the launch of a dedicated standalone satellite shop. The first of these locations, the Convenience Wear standalone store, opened on September 1, 2025, at BLUE FRONT SHIBAURA (1-1-1 Shibaura, Minato-ku, Tokyo).

This shop serves a crucial consumer need: the desire to see and touch the product world beyond the limited shelf space of a standard convenience store. By overcoming the traditional "can't see, can't touch" barrier of convenience-store soft goods, FamilyMart has built a level of trust that allows them to stand alone as a fashion brand.

It is no longer just about convenience; it is about providing a high-quality, edited wardrobe that fits seamlessly into the consumer's daily urban routine without the overinundating consumers with too many choices.

Calpis Expanding It’s Functional Beverage Line

In 2025, Calpis Sleep Support introduced a concentrated formula to strengthen its positioning as a nightly functional beverage. The new product format emphasizes routine consumption and convenience compared to earlier versions.

Health Maintenance = Effortless Daily Routine

For companies looking to enter or expand into the Japanese wellness market, the key takeaway is the Frictionless Wellness strategy. In Japan, while consumers are highly health-conscious, they prioritize self-care that fits seamlessly into daily life over an intensive medically focused approach.

The success of Calpis proves that "approachability" is the ultimate driver of habituation. For global brands, the strategic opportunity lies in delivering high-functionality through a lifestyle-first lens. Rather than presenting health benefits as a standalone scientific intervention, brands should focus on lowering the barrier to entry, making health maintenance a casual integrated part of life.

The recommendation fis for brands to balance their technical or clinical strengths with the psychological accessibility of for the Japanese consumer. To succeed, global innovations should be reframed as an effortless, "just-in-case" daily habit that requires minimal lifestyle changes. By lowering both the emotional and physical friction of starting a new routine, brands can effectively transform a specialized functional benefit into a mass-market household essential.

Calpis Leverages Heritage as a Household Name, Making Preventative Care Accessible

Post-pandemic Japan has seen a surge in "Sleep and Gut Health" awareness, with consumers seeking effortless prevention over medicinal treatments. The success of the PLUS Calpis line lies in how  it has strategically lowered consumers' barrier to entry in wellness.

While competitors often lean toward high-priced supplements or clinical branding, PLUS Calpis leverages its 100-year-old heritage as a friendly, household brand. By offering a familiar flavor profile and the flexibility of a dilution-type format, it transforms health maintenance into an effortless daily ritual. The branding avoids aggressive medical claims, instead positioning itself as a risk-free, reliable habit through the trusted power of lactic acid bacteria.

Calpis has effectively occupied a unique market position where high-performance functionality meets daily emotional comfort, proving that legacy brand familiarity is a powerful vehicle for introducing new wellness categories.

Reframing Hair Cleansing as a Treatment

This product introduces a novel “serum shampoo” concept inspired by IV-drip delivery systems.

Rather than treating shampoo as a cleansing step alone, it reframes it as a treatment vehicle for intensive repair. The innovation lies in both format and narrative—leveraging medical imagery and language to communicate efficacy. It reflects a broader trend of reimagining everyday formats (such as shampoo) as high-performance treatment systems.

Tapping Into Japanese Social Listening

The primary takeaway is the importance of creating new cateogires through social listening. Rather than competing within established functional segments (e.g., moisturizing or damage repair shampoo), Medulla successfully unlocked a new market by identifying a behavioral segment born from social media trends: the "Furo-Cancel" (bath-canceling) community.

For global brands, this highlights a strategic shift from demographic targeting, to behavioral-context targeting. Even in the mature Japanese market, new growth can be found by catching real-time consumer sentiments that reveal hidden "points of friction" in daily life. This case demonstrates that a premium price can be justified not just by featuring superior ingredients, but through its role as a "lifestyle enabler."

Brands should leverage Japan’s highly active social platforms (including X, Instagram, LIPS, etc) not just for promotion, but also as a source for product development ideation. Additionally, by re-working a seemingly "lazy" or "negative" consumer habit into a legitimate product concept, brands can bypass traditional competition and establish themselves as pioneers of a new niche. Success in Japan depends on the ability to transform a viral trends that may seem like an internal monologue into a tangible, high-value consumer solution.

Tapping Into Viral Social Media Trends That Highlight Real-World Struggles

This initiative directly addresses the "Furo-Cancel Kaiwai" (bath-canceling culture)—a viral Japanese social media trend where users candidly share their "struggles" with evening bathing routine that is standard in Japanese culture. By positioning the product as a one-step solution for those too tired to function, Medulla reframes a functional necessity into an empathetic solution.

Despite its premium price point of 1,980 JPY for 300mL - higher than typical high-performance drugstore brands -it has gained significant traction on platforms like LIPS.

Consumers perceive the price as justifiable because it eliminates the need for an additional conditioner or treatment. This demonstrates a successful "value-offset" strategy where the psychological and functional benefit of "saving time and effort" (Taipa) effectively neutralizes price sensitivity.

The brand has moved beyond simply providing convenience, but also taps into the deep-seated Japanese consumer desire for high-performance self-care that doesn’t demand more energy from an already exhausting lifestyle.