How Successful Chinese New Year Business in Japan Be?

Osaka - Saturday, January 29, 2011




Nikkei, Japan’s leading newspaper specialized in business and economy reported today that consumer electronics mass merchandisers, retailers and tourism are preparing to boost their business by attracting Chinese tourists during the upcoming Chinese New Year, February 2-8. Consumer appetite of Chinese people living in Japan is positive but growth of business from them cannot be expected as much as last year. Chinese tourists visiting Japan, once stopped coming to Japan after Senkaku Island incident in September 2009, have been coming back. Therefore, war to attract consumers that generate high revenue is expected to be extremely fierce this year but with effective promotion can lead to success.



1. How is the recent trend of business with Chinese tourists?



Tourists from China had decreased after Senkaku Island incident in September 2010 mentioned in the previous article Risk Management and Interdependence in Today’s Global Economy but recently they have been coming back to Japan.



According to The Japan National Tourism Organization, Chinese people visiting Japan in 2010 reached 1.41 million people, which is the greatest ever with the increase by 40% from 2009. And according to Japan Department Stores Association, sales from Chinese tourists for December 2010 were +12.4% from December 2009, which was in positive after 3 months of in negative.



2. How are consumer electronics mass merchandisers and retailers preparing to attract Chinese tourists and consumers in Japan?



Examples of the promotion of major companies


(Source: Nikkei, translated and edited by the author)

Company Name / Promotion

Mitsui Fudosan / Event in 8 nationwide outlet malls in which abundant made in Japan products are displayed and sold

Huis Ten Bosch / Chinese style parades with Chinese costumes and music

Fujikyu Highland amusement park / Events for participants to experience Japanese New Year customs such as playing Japanese drums and rice-cake making

Prince Hotels / Chinese dumpling served in breakfast in all 44 nationwide hotels

9 Departments Stores in Hokkaido / Implementation of translation system (English, Chinese, Korean) on iPad



1) Consumer Electronics Mass Merchandisers






(1) Bic Camera



During a specific period, consumers can enjoy maximum of 15% discount in purchasing their consumer electronics products with coupons issued by their Chinese business partners. The discount rate is greater by 2% compared with 2010. Bic Camera hopes to attract “high revenue” customers whose average purchasing price is approximately 50,000 yen, 5 times that of Japanese customers.



(2) Laox



Laox, how a member of the Chinese consumer electronics mass merchandisers leader, recently opened their own drug store in the main store in Akihabara, an area where many consumer electronics retailers gather and many tourists from abroad shop. Col medicine, digestive medicine and dried milk, all popular among Chinese people, will be sold for cross selling.



(3) Yodobashi Camera



Multimedia Akiba, Yodobashi Camera subsidiary store close to Laox mentioned in (2), will expand duty free sales floor from January 30 until February 13. They will add products such as games and expect to increase revenue by 40% from previous year.



2) Retailers






(1) Tokyu Department Store



Department stores in Tokyo will deliver what their customers bought to hotels of the Tokyu Group in Tokyo.



(2) Matsuzakaya



A foreign currency exchange corner recently opened in Matsuzakaya in Ginza, the area where many tourists from abroad visit and shop.



3) Tourism



JTB (Japan Travel Bureau), Japan’s leader in tourism, started a free bus service until February 11 for tourists who made reservation using their web site. The busses will take tourists around shopping spots of Akihabara, Ginza and Asakusa in Tokyo.