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Using LINE Japan to assist with Ecommerce Sales
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Boasting over 95 million monthly active users, LINE is the most popular social media app in Japan. In comparison, there are 45 million MAU on Twitter, 33 million on Instagram, and 26 million on Facebook1. Beyond Japan, it is also a popular messaging app in other parts of Asia such as Taiwan and Indonesia. In total, there are about 169 million monthly active users globally.
LINE launched in 2011 and has since grown into the super app that it is today. However, unlike other messaging apps, LINE goes beyond conventional texting and calling. It also includes a news stream, digital payment system, blog, and video on demand. It also has an advertising model, where businesses can run ads to reach their millions of Japanese users.
For more on LINE Japan, check out Ultimate Guide to using LINE Japan for advertising your business, LINE Japan Ads: analysing CTRs, impressions, reach & other metrics, The Differences between advertising on LINE Japan and other social media platforms.
In this blog, we will begin by explaining each of the three major current shifts to ecommerce in Japan. With each one, we will then explain how LINE Japan can help businesses to take advantage of each of these three opportunities.
According to Grand View Research’s recent market analysis report, the Japanese cross-border ecommerce market growth is expected to reach USD 5,748.7 Million by 2030. That is a 7.5% compound annual growth rate, up from USD 2.59 billion in 20192. Amazon Japan, now the country’s top ecommerce marketplace in terms of revenue, has many overseas sellers and a platform that allows international retailers to sell their products in Japan with ease. Learn more about Amazon Japan and other top ecommerce marketplaces in Japan.
LINE Japan is one of the best tools for businesses outside of Japan wanting to take advantage of this opportunity. There is the organic side to LINE Japan, where a business can build awareness around their brand, as well as offer promotions and respond to customers in real time. Then there is also the paid side where LINE ads can help foreign businesses to promote their brand to LINE’s 88 million Japanese users. One sure way for growth hacking your business is to start selling in the Japanese market. Here is a checklist on how to enter Japan successfully with your product or service.
In January 2021, smartphone user penetration in Japan was 83.1%. Over the next few years, this is projected to grow to 92.44% by 2025.
With this type of growth, we can expect an increase in users of smartphone services, including ecommerce apps. In addition, with 88.4 million people making regular digital payments in Japan, using mobile phones for commerce is becoming the norm and will continue to be in the future.
LINE Japan is one of the best tools for promoting through mobile too. Having a mobile internet user penetration of 90%, LINE Ads is a great way to target Japanese smartphone users. As a super app, LINE also has some great features including a barcode payment system, ecommerce platform, and a COVID-19 support menu. To find out more on how to take advantage of LINE for mobile, please read our previous article: How to use line ads for businesses targeting mobile users in Japan.
Mobile ecommerce is increasing in Japan which is just one of the effects of the global pandemic. The Japanese population, the oldest population in the world, has been heavily adopting digital services like online shopping and subscription services due to more people staying at home. Moreover, an increase in awareness of ecommerce and an avoidance of physical shopping has been contributing to Japan’s market growth. With limitations on international travel, internet users are more willing to make international purchases as their only option to source certain international goods. Get the full scope of Japanese consumer behaviour and the effects of COVID-19 in Japan via our white paper.
With people at home more than ever before and usage of social media platforms at an all-time high, never before has there been a better time to create an organic presence or utilise paid ads on LINE Japan. If you are interested in finding out how we are already helping our customers to utilise LINE Japan, please see the following case studies: L’Occitane, DENA Games, Vitabrid.
Although LINE’s platform is in English, almost all the support and resources are in Japanese. This can present a challenge for non-Japanese speakers wishing to advertise on LINE. However, you should not be put off as the bilingual PPC experts at DMFA are here to help you as you venture into using LINE. From initial set up to campaign optimisation, we will be with you every step of the way.
We at DMFA have a new ecommerce solution that allows you to sell on PayPay Mall, and we are the only overseas partner who can get your product into this exclusive marketplace. Our bilingual consultants will help you with a three-way agreement to work with a Japanese ecommerce agency and sell your products on PayPay Mall. Fulfilment, logistics and customer support will be taken care of as long as you can provide the inventory. Contact us to learn more about this new solution.
1Source: https://find-model.jp/insta-lab/sns-users/
2Source: https://www.grandviewresearch.com/industry-analysis/japan-cross-border-e-commerce-market
