Dentsu Inc. Conducts "Survey on Shopping Habits of Inbound Tourists" Across Five East Asian Regions

Dentsu Inc.'s company-wide project "Team Cool Japan" conducted a survey on comprehensive consumer experiences, including shopping and sightseeing activities, to understand the actual spending patterns of inbound tourists amid growing attention on inbound consumption. This survey, conducted in March 2015, targeted individuals from five East Asian regions (Beijing, Shanghai, Hong Kong, Taiwan, and South Korea) who had visited Japan within the past year, examining trends in purchased items, places of purchase, and media exposure. Since purchased items can be identified down to specific brands, the company will provide these findings to client companies to support their marketing activities. The survey revealed that the average shopping expenditure of inbound tourists nearly doubled in about a year, rising from ¥88,767 in spring 2014 to ¥170,004 in early 2015.

Tourists spending over ¥500,000 on shopping alone accounted for 4.1% of the total, and in Beijing and Shanghai, this was one in ten tourists. Focusing on the number of items purchased, the proportion of people buying six or more items within the same category increased across all 13 categories compared to approximately one year prior.

While "mass buying" of goods in Japan has become a hot topic, the purpose of shopping shows that while purchasing for oneself (62.7%, average across all 13 categories) is common, buying for family and friends (67.0%, same) is even higher. This reveals that "buying for others" (yamawake-gai) is a key factor behind "mass buying." This trend is further supported by growing perceptions of Japan as a place with "high-quality goods and services" and "cheaper goods than in their home countries." Consequently, the number of tourists engaging in "sharing purchases" has also increased compared to about a year ago across five high-priced product categories: home appliances, AV/audio equipment/smartphones/tablets, furniture, decorative items/jewelry, and healthcare/cosmetics.

Some of the findings from this survey are as follows.

[Key Findings]

① The average total expenditure of inbound tourists (including transportation, lodging, and dining costs) increased by approximately 55.7% over one year.

• While the number of inbound tourists continues to grow annually, the total expenditure per person (transportation, lodging, shopping, leisure, dining, and other combined costs) is also increasing. Comparing spring 2014 to early 2015, this figure rose from ¥256,783 to ¥399,878, a 55.7% increase over approximately one year.
• Those spending over ¥1 million accounted for 4.0% of the total. Notably, visitors from Beijing and Shanghai made up about 10% of this group, spending substantially on their trips to Japan.

 

② Tourists spending over ¥500,000 just on shopping account for 4.1% of the total. In Beijing and Shanghai, it's one in ten.

• The average shopping expenditure nearly doubled in about one year, rising from ¥88,767 in spring 2014 to ¥170,004 in early 2015.
• 4.1% of visitors from five regions spent over ¥500,000 solely on shopping, excluding transportation, accommodation, and dining expenses. Beijing and Shanghai visitors, in particular, spent significantly more on shopping than those from other regions, with one in ten spending over ¥500,000 on shopping alone.
• The proportion of people purchasing six or more items within the same category increased across all 13 categories compared to about a year ago. The increase in the number of items purchased is also considered a factor in the rise of the average shopping expenditure.

 

③ The "massive shopping sprees" by tourists buying large quantities in Japan are supported by "buying in bulk to share with family and friends."

• The overall category average for "purchases for oneself" is 62.7%, while "purchases for others (family/relatives, spouse/partner, friends, work colleagues)" is 67.0%. Looking at specific items, "Home Appliances," "AV/Audio Equipment/Smartphones/Tablets," and "Clothing" are mostly bought for oneself, while "Medicines," "Healthcare/Cosmetics," "Furniture," and "Toiletries" are often bought in bulk ("yamawake-gai") for family, friends, or others.
• While 85.0% of those purchasing "Home Appliances" bought 1-2 items, approximately 60.3% of those purchasing "Healthcare/Cosmetics" bought 3 or more items, with one in ten making bulk purchases of 11 or more items.
• Among visitors to Japan, the perception that "products and services are of high quality," "products can be purchased cheaper than in their home country," and "authentic (non-counterfeit) products can be purchased" is increasing.
• The trend of bulk buying is also strengthening in five high-priced product categories: home appliances, AV/audio equipment/smartphones/tablets, furniture, decorative items/jewelry, and healthcare/cosmetics.

 

④ The top three purchase rates by product category are "Food & Beverages," "Healthcare & Cosmetics," and "Clothing."

• The average shopping expenditure of inbound tourists in Japan over the past full year was ¥135,418, but shopping amounts varied across the five regions. Beijing/Shanghai tourists spent approximately ¥260,000, Hong Kong tourists approximately ¥110,000, South Korean tourists approximately ¥90,000, and Taiwanese tourists approximately ¥60,000, indicating Chinese tourists actively shop in Japan.
• When asked about purchase intentions by product category, the top 5 rankings across all 5 regions were: "Food & Beverages," "Healthcare & Cosmetics," "Clothing," "Accessories & Jewelry," and "Home Appliances." By region, high-priced items like "Home Appliances," "Healthcare & Cosmetics," and "Accessories & Jewelry" ranked higher in Beijing/Shanghai, while "Medicines" ranked higher in Hong Kong/Taiwan.
• Tourists visiting Japan from Beijing and Shanghai typically rely on the internet, television, and information from family and friends as their primary sources. When purchasing "Home Appliances," in addition to the above, magazines ranked high in Beijing, while airline in-flight brochures ranked high in Shanghai.

 

⑤Repeat visitors to Japan are increasing, and tourists are also traveling beyond the capital region to other parts of the country.

• Tour types are shifting from group tours to individually arranged visits, and repeat visitors who have traveled to Japan three or more times are also increasing.
• Inbound tourists are increasingly visiting destinations like Koyasan in Wakayama, Itsukushima Shrine in Hiroshima, and Gotemba in Shizuoka, demonstrating that the inbound tourism effect is spreading from the Tokyo metropolitan area to regional areas.

 

For detailed survey results, visit: http://www.dentsu.co.jp/news/release/pdf-cms/2015042-0427.pdf

<Overview of the Survey on Shopping by Inbound Tourists>

Purpose: To understand the actual state of consumer activities related to "shopping" in general, including products purchased, places of purchase, and media contact
Target Areas: Five East Asian regions (Beijing, Shanghai, Hong Kong, Taiwan, South Korea)
Survey Method: Online survey
Respondent Criteria: Men and women aged 20-59 who "traveled to Japan within the past year" and whose "purpose of visit was non-business"
Sample Size: 400 respondents per region, 2,000 respondents total
Survey Period: Tuesday, March 10, 2015 - Wednesday, March 18, 2015
Survey Method: Online survey

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Dentsu Inc. News Release http://www.dentsu.co.jp/news/release/2015/0427-004033.html