Accelerating Digitalization and Non-Face-to-Face Demand in Japan's E-Commerce Market and Implications for Overseas Manufacturers

あゆみ佐藤
2 days ago
2 min read

Japan’s e-commerce market continues to expand as digitalization and non-face-to-face purchasing behaviors become increasingly embedded in consumer and business activities. According to the Ministry of Economy, Trade and Industry (METI), the market size in FY2024 reached:

BtoC EC: 26.1 trillion yen (+5.1% year-over-year)
BtoB EC: 514.4 trillion yen (+10.6% year-over-year)

The shift toward online transactions is supported by improvements in digital infrastructure, operational efficiency needs, and evolving consumption habits.

1. EC Penetration and the Expansion of Non-Face-to-Face Transactions

In 2024, EC penetration rates were as follows:

BtoC EC penetration: 9.8%
BtoB EC penetration: 43.1%

The BtoB penetration rate in particular indicates that nearly half of inter-company transactions now occur through digital channels.

2. Key Areas of Non-Face-to-Face Commerce Growth

2.1 Consumer Goods (BtoC)

Online purchasing has become standard for durable consumer goods such as electronics and PCs, supported by structured product comparison and fulfillment services. In apparel and lifestyle goods, virtual try-on tools and styling suggestions are widely adopted. In food and beverages, temperature-controlled logistics and subscription-based home delivery services are expanding access to non-face-to-face purchases.

2.2 Service and Experience-Based Categories

Travel reservations, dining services, entertainment tickets, and other experience-based services have broadened the use of online reservation systems, mobile ticketing, and contactless check-in solutions.

2.3 BtoB Transactions

In BtoB, cloud-based procurement platforms, API-linked order management systems, and self-service purchasing tools are now common. Business negotiations, quotation processes, and customer support increasingly incorporate digital channels.

3. Key Drivers Behind Digitalization and Non-Face-to-Face Demand

3.1 Behavioral Shifts

Purchasing, reservation, and consultation behaviors that emerged during pandemic-driven non-face-to-face consumption have continued due to convenience and efficiency.

3.2 Infrastructure Maturity

Advances in logistics networks, diversified digital payment systems, and cloud-based EC platforms have reduced structural barriers to adoption.

3.3 Business Efficiency Requirements

Automation of order processing, inventory management, and communication workflows supports operational cost reductions and scalability.

3.4 Expansion of Digital Customer Communication

Reviews, SNS engagement, online consultations, and live commerce now play central roles in pre- and post-purchase interaction.

4. Benefits of Digitalization

4.1 Operational Efficiency

Standardization of information flows
Shortened lead times
Reduced manual workload through automation

4.2 Enhanced Customer Experience

Personalized recommendations
Product visualization through AR/VR and 360° displays
Real-time communication via interactive live sessions

5. Implications for Overseas Manufacturers

Strategic Area	Key Considerations
EC Platform Integration	Combine direct-to-consumer sites with major Japanese EC marketplaces
Non-Face-to-Face Service Design	Provide installation support, online help, and self-guided onboarding
Digital Marketing	Utilize SNS, influencer collaboration, and product demonstration content
Localization	Ensure product information, customer support, and documentation are adapted to Japanese expectations
Data Utilization	Use behavioral and purchase data to support retention and repeat purchases

6. Outlook

Digitalization and non-face-to-face purchasing behaviors will continue to advance. Live commerce, virtual retail environments, AR-based product trials, and immersive experience-oriented EC models will play increasingly central roles.

For overseas manufacturers, the competitive advantage will depend on designing not only the product itself, but also the purchase journey, usage experience, and support processes as digital-first experiences tailored to Japanese market expectations.