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Japan: A Consumer Study

By Nicole Liang

In order to serve the Japanese market, manufacturers must understand the categories, styles and price range of furniture that its consumers are willing to spend on.

The Japanese market is often touted one of the most difficult markets in Asia to penetrate. At the invitation of the organisers of the Malaysian International Furniture Fair, Ikuzo Abeno, CEO of Toyo Furniture Research Co Ltd, was invited to offer suggestions and market intelligence to local furniture exporters who are keen to serve Japanese buyers.

In a presentation titled ‘Analysis of Japanese Furniture Industry’, Abeno shed light on the acceptable price ranges and product ranges in demand in Japan. To facilitate that, he started by first introducing the furniture distribution system in Japan and the segments which Malaysian exporters should target.

Japan Furniture Distribution Channels

Judging by the table provided, Abeno said that Malaysia exporters should target buyers from national chain store operators, large local chain store operators, mail order/catalogue shops, as well as TV/Internet shopping operators. There are altogether 7,000 firms in these four categories.

The categories portrayed are arranged according to market shares in descending order. Lifestyle shops and TV/Internet shopping have been getting “good response lately”. There are even some listed companies in the former.

In terms of marketing, furniture retailers advertise via newspaper inserts, mail-order catalogues and sales brochures to attract end-consumers. Abeno observed that storage furniture, beds and sofas are the most often advertised furniture products in Japan. Altogether, these categories (16.79%; 16.84%; 16.16% respectively) make up for nearly half of all furniture advertised. “In future and from now on, beds, living and dining furniture will be more popular,” Abeno advised.

These items are mainly advertised at retail prices ranging from JPY 30,001 to JPY 80,000 (US$314 to US$836). Not only are they cheap, these products also sell very well. There are also a high percentage (17.79%) of consumers buying higher end and higher priced furniture at JPY 80,001-150,000 each. According to Abeno, the very cheap range only takes up a small portion. However, he notes that these data are collected from brochures. Actual prices of most other showroom pieces are usually higher.

TV Board/Entertatainment Furniture

“There is very good prospects for TV boards,” Abeno enthused. According to him, all televisions in Japan will have to be replaced by July 2011 because the current analogue TV frequency will be changed. In addition, with the advent of plasma and flat screen TVs, consumers are also changing their TV consoles.

“Buyer groups are looking for products like this [suitable for smaller, flatter TVs] which are not difficult to make,” Abeno said. He also revealed that even TV manufacturing giants such as JVC and Panasonic also offer related furniture to match the TV sets they sell. Even Yamaha makes entertainment furniture.

Speaking on the styles and features preferred, Abeno recommended that products should be compact and light in small to medium sizes. Charcoal and black colours with UV or shiny surfaces are popular among city dwellers, he added.

Products made of MDF and retailed at between JPY 60,000 and JPY 75,000 can be found in large-scale discount furniture stores, as well as small and medium sized furniture retailers. Higher-end ones, such as one made of poplar in wenge and natural warm colour (JPY 240,000) can be found in interior shops, besides small and medium sized furniture retailers.

Sofas and Beds

Three and two seater sofas together account for approximately 60 percent of the segment’s market share. In descending order, consumers favour leather and fabric upholstery. Sizes are compact. The bestselling colour has been white. A standalone loveseat in urethane polyester and fabric upholstery, sold at around JPY 19,000 can sell very well especially on the Internet.

Prices of sofas have been decreasing to between JPY 30,000 and JPY 50,000. “This is probably due to imports from China. Their [Chinese imports] quality has grown better and so there is more demand at this price range. Malaysian manufacturers can focus on the use of PVC material,” Abeno suggested.

Beds are usually advertised at JPY 30,000-80,000. Modern and basic styles are very popular. Said Abeno: “I am also surprised by the results. Japanese consumers prefer basic designs and more than half of the retail showrooms we survey display these products”. Those that come in light and cool colours, and with functional features, are especially popular. Abeno cited for example, a simple design of double bed frame in natural oak colour, sold at JPY 297,150 (including taxes), was a bestseller from wholesalers. Retailed at JPY 549,150, a single bed with spring elevation in walnut colour also sold like hotcakes. Even in this higher-end range, basic designs and natural colours apply.

Storage Furniture

“Only the mid price range can sell well in the storage furniture category,” Abeno said. Most of them are sold at JPY 30,000-50,000. On functions, lightings are appreciated. Other than that, consumers do not really fancy hi-tech features. “What matters is long lasting designs, not so much about trend and fashion. They should also be durable, lasting about seven to eight years. In addition, they don’t want bulky pieces. Light materials are better,” Abeno said.

Dining

In terms of dining boards and dining sets, again, compact size is key. Few dining boards are taller than two metres. Five-piece (one table, four chairs) dining sets take up about 75.95 percent in this segment. Those priced between JPY 137,000 and JPY 300,000 can be found in volume retailers specialising in furniture.