Japan Quick Commerce Market Overview, 2029

Japan Quick Commerce Market Overview, 2029

The Japanese rapid commerce market, which focusses on delivering things quickly to consumers, is significant due to its convenience, efficiency, and accessibility. It meets the growing need for rapid gratification among urban consumers by addressing issues such as congested metropolitan surroundings, hectic lives, and an ageing population looking for easy shopping options. The Japan quick commerce market originated from traditional e-commerce, with early entrants like as Rakuten and Amazon Japan pioneering online purchasing. However, the market surged with the introduction of specific rapid commerce platforms and the increase in smartphone adoption. Companies like Uber Eats, Demae-can, and Rakuten's delivery services arose, employing technology to provide quick deliveries. The COVID-19 epidemic has considerably boosted the growth of Japan's rapid commerce business. Lockdowns and social distancing tactics pushed consumers to use online shopping and speedy delivery services at record rates. According to the Ministry of Economy, Trade, and Industry (METI), online shopping in Japan surged by 13% during the epidemic. This shift in consumer behaviour has lasted after the epidemic, indicating long-term shifts in shopping habits and a bright future for the rapid commerce business. Companies such as Uber Eats and Demae-can have created ""no-contact"" delivery options, which allow customers to receive orders without having to engage directly with delivery workers. The epidemic also fuelled technologies such as autonomous deliveries, with businesses like ZMP trying drone deliveries to reduce human touch.

According to the research report ""Japan Quick Commerce Market Overview, 2029,"" published by Bonafide Research, the Japan quick commerce market is anticipated to grow at more than 21 % CAGR from 2024 to 2029. The quick commerce segment, in particular, is thriving because to its promise of rapid delivery, frequently within minutes. This expansion is fuelled by expanding smartphone penetration, improved internet infrastructure, and increased use of digital payments. Several main trends are influencing the market. For starters, there's a growing desire for lightning-fast deliveries, with players boasting 15-minute or less turnaround. To expedite order fulfilment, dark shopfronts and micro-fulfillment centres are popping up everywhere. Also, there is an increasing emphasis on sustainability, with customers preferring environmentally friendly packaging and delivery methods. The concept of ""ghost kitchens,"" which prepare food just for delivery, is also gaining popularity. Both multinational and local enterprises are major players in Japan's rapid commerce market. Uber Eats, a global player, is a major player in meal delivery services. Demae-can, a local company, is another important participant that offers express deliveries for a variety of products. Other major players include Rakuten's delivery services, Amazon Japan, and Co-op Deli, which specialises in supermarket delivery. These organisations use their technological capabilities and huge distribution networks to provide fast and efficient services. Uber Eats partnered with local eateries and merchants to broaden its product offering. Demae-can has teamed with Lawson, a renowned convenience store chain, to improve its delivery services. Rakuten partnered with Seiyu, a supermarket chain, to provide quick grocery deliveries. Uber Eats has collaborated with ZMP, a Japanese startup specialising in self-driving technology, to test drone deliveries. Demae-can teamed up with Tier IV, an autonomous driving firm, to create self-driving delivery cars.

The Japanese rapid commerce sector offers a varied range of product categories to meet consumers' immediate demands. Groceries are the dominant segment in Japan's rapid commerce market. It contains fresh vegetables, packaged foods, beverages, and other household necessities. The development is being driven by the frequent and recurrent nature of grocery purchases, as well as the convenience of speedy delivery. Key participants include Rakuten's delivery services, Amazon Japan, Co-op Deli, and Demae-can. Rakuten, for example, innovates with its ""Rakuten Seiyu Netsuper"" service, which provides quick grocery deliveries in collaboration with Seiyu, a supermarket chain. Co-op Deli stands out for its emphasis on fresh, high-quality items purchased directly from suppliers. Oisix, a Japanese grocery delivery service, distinguishes itself by focussing on organic and sustainable products sourced directly from farms. Kuroneko Yamato, another startup, stands out with its wide delivery network and smart tracking technology, which provides consumers with real-time delivery status information. While not as huge as groceries, it meets a distinct demand, particularly with the increase of distant employment and online schooling. Startups such as Askul, which initially focused on office supplies, have expanded their product offers to include stationery goods, capitalising on rising demand. The Personal Care Items section includes health and beauty products, personal hygiene items, and over-the-counter drugs. Companies such as Kenko.com and Sugi Pharmacy provide express delivery for personal care items. While not as popular as groceries, the high price of these things makes them a considerable market sector. Platforms such as Amazon Japan and Rakuten are major players, with Rakuten innovating with its ""Rakuten Ichiba"" marketplace, which offers a wide choice of electronics with rapid delivery.

In Japan's rapid commerce market, both cash on delivery (COD) and online payment methods are widely used, catering to diverse consumer preferences and levels of digital competence. However, online payment is the dominant segment due to its simplicity, speed, and security, which is fuelled by the country's sophisticated digital infrastructure and broad acceptance of digital payments. COD payments are less widespread in Japan than in other nations due to the country's well-developed digital payment system. However, some platforms continue to offer COD to users who want to pay in cash or who do not have access to digital payment options. Demae-can and Co-op Deli are two major players that offer COD, while they urge customers to pay with online means. LINE Pay, which is built inside the popular messaging software LINE, is another top digital payment platform. It allows customers to make payments directly from the app, ensuring a smooth and convenient payment process. LINE Pay innovates through its social capabilities, which enable users to pay and receive money, divide expenses and even offer virtual gifts. Demae-can worked with PayPay to provide seamless and safe digital payments. Co-op Deli has collaborated with LINE Pay to provide clients an extra online payment option. These agreements enable businesses to broaden their reach, increase their offers, and improve the entire customer experience.

Platforms in Japan's rapid commerce sector operate through a variety of channels, including application-based, hybrid, and website-based operations. Application Based Operation is the dominating segment, because to rising smartphone penetration, the ease and personalisation provided by mobile apps, and a growing demand for app-based buying, particularly among younger consumers. Also, the integration of super apps such as LINE and Rakuten, which provide a variety of services within a single app, has aided the growth of app-based businesses. Demae-can distinguishes out for its diverse assortment of products and services, which include meals, groceries, and even pet supplies. Hybrid Operations strategy integrates several channels, including mobile apps, websites, and physical stores, to provide customers with a seamless and integrated purchasing experience. Rakuten, Amazon Japan, and Seiyu (a Walmart subsidiary) are among the key players implementing this strategy. Rakuten leads with well-integrated online and offline experiences, including in-store pickup and home delivery. Website-based operations include e-commerce websites that allow customers to shop online using their web browsers. The value of website-based operation stems from its accessibility, which does not require app downloads and can be accessed from any device with an internet connection.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Quick Commerce market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Food & Groceries
• Stationary
• Personal Care Items
• Small Electronics & Accessories
• Others (Pets, alcohol, gifts & flowers, Medicines)

By Payment Mode
• Cash on Delivery
• Online

By Technology
• Application Based Operation
• Hybrid Operation
• Website Based Operation

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Quick Commerce industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.