Entertainment Merges with Sales: Overseas Manufacturers' Strategy to Dominate Japan's E-Commerce Market Through the Live Commerce Revolution in 2026

あゆみ佐藤
5 days ago
5 min read

Introduction: China’s Live Commerce Scale Is Becoming Real in Japan

Live commerce has already become a mainstream growth engine in China. According to iResearch projections referenced by JETRO, China’s live commerce GMV is expected to reach 6.4172 trillion yuan in 2025, approaching roughly a quarter of total online retail.

Meanwhile, Japan’s B2C e-commerce market continues to expand. Japan’s Ministry of Economy, Trade and Industry (METI) reports that Japan’s 2024 B2C e-commerce market reached ¥26.1 trillion.

The signal that “China’s matured purchase model” is becoming a practical option in Japan is clear: TikTok Shop launched in Japan on June 30, 2025. This is not simply a new sales channel. It marks the start of a structural shift—from “search to buy” e-commerce to “watch, discover, and buy” commerce.

2026 will be the year when brands that establish a repeatable operating model early set the standard—and capture disproportionate share.

TikTok Shop’s Core Design: “Discovery E-Commerce”

TikTok Shop is structurally different from marketplace e-commerce like Amazon or Rakuten, which starts with purchase intent.

Traditional e-commerce: search for products → compare → buy
TikTok Shop: watch content → discover products → buy immediately

TikTok positions this experience as “Discovery E-Commerce”—a model where discovery and purchase are integrated into one continuous flow. It compresses the time between “interest” and “transaction,” turning attention into sales with minimal friction.

Four Core Features That Shorten the Path to Purchase

1) Shoppable In-Feed Videos

Short videos can be linked directly to products, allowing users to tap and move into checkout without leaving the content experience.The strategic difference is that the buying journey does not rely on lengthy product-page reading. It is optimized for conversion without breaking immersion.

2) LIVE Shopping

Creators introduce products in real time, respond to viewer questions, and close sales inside the stream.Live shopping is not only “demonstration.” It is a mechanism for reducing uncertainty, eliminating objections in real time, and accelerating decision-making.

China has shown that top livestreamers can generate outsized GMV in short timeframes. Japan does not need to replicate the same scale immediately for the model to be powerful—the structure is transferable, and local scale typically follows once operations mature.

3) Showcase (Product List on Profile)

A creator or seller can display a product catalog on their profile, giving followers a persistent shopping surface.This matters because it builds a “permanent shelf” rather than relying only on one-off viral videos.

4) Shop Tab (Dedicated Storefront Tab)

The profile can include a dedicated “Shop” tab where the seller’s full lineup is visible.For users who follow a creator, this functions like a standing storefront, turning audience loyalty into repeatable commerce.

Why Live Commerce Converts: Three Buyer Psychology Engines Fire at Once

Live commerce is not “another ad format.” It converts because it activates multiple purchase mechanisms simultaneously.

1) FOMO (Fear of Missing Out)

Live is time-bound. The uncertainty of “when it ends,” “whether inventory runs out,” and “whether the offer returns” moves purchase decisions forward—similar to TV shopping, but more intense because it’s interactive and personal.

2) Trust Through Interaction

Viewers ask questions and receive answers instantly.In traditional product pages, doubt often remains (“Is the size accurate?” “Will it really work?”). Live commerce reduces that friction through real-time clarification, turning trust into conversion.

3) High Engagement Through Entertainment

Users are not browsing specs—they are engaged with entertaining content.In a high-attention, high-emotion state, the decision process changes: the buyer is more receptive, and the path from interest to action becomes shorter.

Early Signals in Japan: The Winning Pattern Is Not “PR,” It’s “Good Content”

Early Japan case studies suggest that success is driven less by “brand promotional content” and more by videos that are genuinely interesting to viewers, where the product appears naturally inside the story.

In other words, brands that win in live commerce do not merely optimize ad spend—they redesign their content strategy so commerce feels like a natural extension of entertainment.

The 2026 Trap: Don’t Bet Everything on TikTok Alone

A major mistake in 2026 is treating TikTok Shop as the only answer. Video commerce is accelerating across multiple platforms:

Instagram: strengthening commerce features around Reels and shop functions
YouTube: shopping integrations aligned with live streams and long-form review content
Domestic platforms: expanding live commerce formats on existing customer bases (e.g., Rakuten LIVE)

The competitive advantage in 2026 will not be “listing on TikTok Shop.”It will be organizational capability—the ability to operate across TikTok, Instagram, YouTube, and local platforms with platform-native creative and consistent execution.

The New Operating Skills Live Commerce Requires

Live commerce demands a different skill set than traditional e-commerce operations (SEO, product page optimization, retargeting).

1) Creator Partnership Management

The winning model is not “the brand controls every message.” It is “trusted creators communicate.”Overseas brands must shift from full control to designing collaboration—selecting creators who can authentically demonstrate the product and building long-term partnerships.

2) Live-First Planning and Story Design

Live is not a polished commercial. It needs structure—yet it should feel natural.The best programs balance planning (flow, key points, expected questions) with flexibility (human conversation, real-time adjustments).

3) Multi-Platform Operations

Each platform demands different formats, pacing, editing styles, creator management, and inventory coordination.This generally cannot be handled by a small “3–5 person e-commerce team” alone. Even at early scale, brands typically need dedicated roles across creator relations, production, and operations/analytics.

4) KPI Redesign

In live commerce, CVR alone is not enough. Video-native metrics become leading indicators:view duration, completion rate, comment rate, share/save signals, live stay time—these predict sales before conversion happens.

A 3-Phase 2026 Roadmap for Overseas Brands

Phase 1: Pilot + Creator Discovery (Jan–Mar)

Launch small on TikTok Shop (limited SKUs)
Test partnerships with 3–5 local creators
Produce multiple short videos + at least one live session
Goal: identify a repeatable “winning format,” not maximum revenue

Cost notes: creator fees and production costs vary widely by category and execution model.

Platform economics: TikTok Shop seller guidance states a 7% commission per qualified order (promotions may apply by period).

Phase 2: Continuous Publishing + Platform Expansion (Feb–May)

Operate weekly on TikTok (short video cadence + multiple lives per month)
Expand into Instagram / YouTube depending on product-category fit
Grow creator network (prioritize fit and performance over sheer volume)

Phase 3: Optimization + Scaling (Mar–Jun and beyond)

A/B test creative hooks, storytelling formats, live time slots, offer design
Set a KPI system and run monthly performance reviews
Evolve toward cross-platform LTV thinking (how repeat purchase grows across touchpoints)

Conclusion: 2026 Will Be Japan’s “Year One” for Live Commerce

In 2026, Japan’s e-commerce center of gravity will shift from “search and compare” to “watch, discover, and buy.” Brands that build creator partnerships and a scalable operating model early can grow share rapidly. Brands that remain anchored in traditional e-commerce thinking may find that consumer attention—and transactions—have moved elsewhere.

In the live commerce era, advantage is not defined only by product quality or price. It is defined by whether a brand can consistently deliver entertainment + trust through creator relationships—and operationalize that as a repeatable engine.

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