Which companies are leading the rise of internet marketing in Japan?
The global online marketing industry is on the rise, but the digital landscape in Japan has seen many companies falter over the past few years.
According to a new report by market research firm Marketo, Japanese companies are increasingly relying on online marketing to help drive their sales and brand value, and some are turning to crowdfunding as a way to help fund their business growth.
The report, titled Digital Marketing in Japan, analyzed data from more than 1,600 online marketing firms in Japan.
It found that online marketing accounted for more than 15 percent of all online marketing revenue in Japan in 2017.
That figure has grown to 25 percent, the report said, and online sales have surpassed $10 billion for the first time.
“While there are many factors that influence the market, the fact that more and more companies are taking the online marketing approach to drive their online brand and drive more sales is something that many believe will help them drive their business further,” Marketo CEO Andrija Gheorghiu told The Hill.
Gheorgyi said the report is “very timely,” noting that online sales accounted for $9.9 billion of the $10.7 billion in online marketing in 2017, according to the report.
“There is a lot of growth in online retailing and online consumer spending,” Gheerghiu said.
“There is still a lot to be done to reach this market.”
Marketo analyzed data collected from more the 1,300 companies it surveyed in Japan and found that the digital marketing market is on a “rapid rise.”
The number of online retailers, which includes online stores and online platforms like Amazon, has increased by nearly 40 percent in the past three years, and the total number of sites selling on the Internet has increased almost 10 percent, according the report, which was released on Monday.
The online marketplaces that market and sell on Amazon, Walmart, Target and other retail giants have grown exponentially over the years, with more than $1 trillion in annual sales for all online retailers.
Gone are the days of retailers needing to build out brick-and-mortar storefronts and hiring hundreds of employees to sell their wares online, according Gheinghu.
Now, online sellers have more time and resources to build their businesses from scratch, making the online market even more lucrative.
“Online shopping is now much more profitable than brick- and-morta shopping,” he said.
According to the survey, a majority of online sellers surveyed said they are able to scale their businesses to serve as a second source of revenue for their business.
“For those who don’t want to use Amazon or Walmart as their primary source of sales, online retail is a great way to increase your profits,” Gheshiu said.
“Some companies may not want to invest in brick-&-mortage stores, but there are plenty of other options for those who do,” Ghetjhu said.
Online shopping, Gheganis research also found, has been on the upswing in Japan since the fall of the Soviet Union, and is now being driven by Japanese companies with large international sales, like Sony and Microsoft.
“It is hard to tell what the impact will be in the United States, but if you are starting a new business, online shopping may be the way to go,” Ghedjiu said in a statement.
“In the next few years, it is likely that the rise in online shopping will accelerate.”
The report comes as the U.S. has a growing interest in online sales, and many companies are focusing on building out brick and mortar storefronts in an effort to boost their business and compete with online competitors.