Rapid Growth of D2C Brands and SNS Strategies: The Digital D2C Frontier from Japan

1. Growth and Scale of the Japanese D2C Market

Japan’s Direct-to-Consumer (D2C) market is projected to reach approximately ¥3 trillion by 2025. This growth is driven by advancements in digital technology, the widespread adoption of social media, and changes in consumer purchasing behavior. In 2023, the B2C e-commerce market was valued at around ¥14.6 trillion, with D2C estimated to account for 20–25% of that total, indicating that D2C is becoming a central pillar of the e-commerce industry.

This expansion has been facilitated by improved infrastructure—such as e-commerce platforms and operational support tools—that allow individuals and small businesses to easily launch their own D2C brands.

2. How Social Media Fuels Brand Growth

Social media platforms have become vital touchpoints for D2C brands to directly connect with consumers. As of 2025, the estimated user base in Japan includes: LINE (97 million), Instagram (66 million), X (formerly Twitter, 67 million), and TikTok (33 million).

D2C brands use platforms like Instagram, X, and TikTok for two-way communication with consumers, collecting feedback in real time and quickly reflecting it in product development and service improvements. Brand storytelling and user-generated content (UGC) play a key role in expanding brand recognition and trust.

Key SNS Strategies:

• Official Account Management: Sharing brand stories, behind-the-scenes content, and staff insights to build community.

• Influencer Marketing: Leveraging influencers who resonate with the target demographic to increase awareness.

• Live Streaming: Hosting Instagram Live and similar broadcasts to showcase products and engage in real-time Q&A.

• UGC Utilization: Sharing customer-generated content and reviews across landing pages and social platforms. Some brands report increased conversion rates (CVR 1.8x) and sales (3.7x), although independent validation may be limited.

3. Leading D2C Brands from Japan

3-1. BASE FOOD

• Offers nutritionally complete bread, pasta, and cookies via its own e-commerce site

• FY2022 revenue: ¥5.545 billion (per securities report)

• 50 million units sold as of June 2022

• 137,620 subscription members with a 93.2% retention rate (August 2022)

• Active SNS campaigns involving user participation

3-2. 17kg

• Korean fashion brand for Gen Z and millennial women

• ~450,000 Instagram followers (as of 2025, based on external research)

• Rapid sales growth, with brick-and-mortar presence at Laforet Harajuku

• Success through influencer partnerships and frequent product drops

3-3. Mr. CHEESECAKE

• Sells premium cheesecakes exclusively online

• Dubbed “phantom cheesecake” on SNS due to its exclusivity and limited availability

• Built brand loyalty through storytelling and limited releases

3-4. Minimal

• D2C craft chocolate brand

• Uses Instagram to showcase its artisanal process and new products

• Expanded its fan base by communicating its craftsmanship

3-5. PHOEBE BEAUTY UP (by DINETTE)

• Cosmetics D2C brand known for eyelash serums

• Corporate reports claim UGC contributed to 1.8x CVR and 3.7x sales growth

3-6. BOTANIST

• Botanical-based shampoo and skincare brand

• Over 160 million units sold as of 2023 (officially reported)

4. Operational Efficiency and Data Use in D2C

D2C brands collect extensive customer data through their websites and social platforms, using it for targeted marketing, product personalization, and retention strategies. AI-driven recommendation systems and CRM tools enable small teams to execute high-efficiency marketing and customer support operations.

5. Future Outlook and Challenges

Key Growth Drivers:

• Personalized marketing through AI and big data

• Omnichannel expansion strategies

• Global market entry and internationalization

Major Challenges:

• Navigating changes in social media algorithms

• Differentiating brands in competitive markets

• Optimizing logistics and supply chains

Conclusion

Japan’s D2C market is poised to reach ¥3 trillion by 2025. Brands like BASE FOOD, 17kg, and Mr. CHEESECAKE are rapidly expanding by leveraging SNS for direct engagement and user-centered storytelling. Through smart use of influencers, UGC, CRM tools, and AI technologies, Japanese D2C brands are cultivating loyal communities and driving growth. Looking ahead, continued innovation in personalization, operations, and digital experience design will be crucial to their sustained success.