JAPAN. With the on-going in recession in Japan and a changing set of values, travel retailers need to tune in to the needs of this important consumer group, now more than ever. The R&D Division of advertising and marketing agency Hakuhodo has recently released the Hakuhodo Consumer Trend Report for 2002, highlighting popular products in Japan and the reasons behind their purchases, based on socioeconomic and consumer sentiment.
The survey, which polled 844 consumers in November 2002, said that respondents reported that their discretionary income had decreased from a year earlier, leading to more value-driven thinking. At the same time, Hakuhodo said that there is latent consumer demand, with more people expressing that they had more products or services they wanted to buy, compared to a year ago.
It said that its research discovered signs that consumers have come out of “lifestyle preservation” mode and are now looking to little pleasures and luxuries to bring peace and fulfilment to their lives.
Neither overly cautious nor especially risky, Hakuhodo refers to this trend of little extravagant purchases as “little indulgence” consumption. When questioned about the year’s hit products, the perceived trends were for more “calming” products and services (recognised by 33%), more Japanese-style products (recognised by 29%) and more nostalgic products (recognised by 38%).
Hakuhodo said “little indulgence” consumption in Japan manifested itself in the blending of old and new Japan, retro product catalogues, the nostalgia of travel and high-end products generally such as home cinema and sports cars.
Getting up to speed with user-friendly high-technology products and health products remain important to Japanese consumers. Last year this showed itself in demand for camera-equipped mobile phones, broadband internet access, large text display mobile phones, posture-correcting underwear, negative ion-emitting appliances and electric muscle stimulators.
The survey said that while the patterns were different from those seen in the era of Japan’s “bubble economy”, demand was certainly up, and there is positive evidence of increasing personal indulgence purchases.
