Today: September 28, 2016, 12:21 am

Japan direct selling market declined by 3% in 2013
Direct Selling in Japan - a new market research report on 2014-04-30 03:25:04
Direct selling declined in current value by 3% in 2013. Demand for direct selling in Japan has been declining consistently over the course of the last decade, with various factors influencing this decline. One of the major obstacles faced by direct selling companies in Japan is the negative image of direct selling which has resulted from widely reported incidences of dishonest business practices among rogue direct sellers. According to National Consumer Affairs Centre of Japan (NCAC), 106,572 complaints related to direct selling were filed in the country during 2011. The most vulnerable consumer segment is elderly people, many of whom tend to stay home alone during the day. The tendency to attempt to swindle the elderly is particularly prevalent among single level marketing direct selling operations. Consumers aged over 70 years old accounted for 36% of the total number of complaints relating to direct selling through single level marketing schemes reported to the NCAC during 2011. Some elderly Japanese people even purchase products just to have direct selling agents keep them company. Others have dementia, which prevents them from being able to make an informed purchasing decision. Even though this data has not been updated since 2011, such predatory tendencies among rogue elements in Japan´s direct selling landscape continued to reinforce the negative image of direct selling among Japanese consumers during 2013.

Japan Consumers Cooperative Union maintained its leading position in direct selling in 2013 with a 27% value share. The company operates in multiple retailing channels, including store-based retailing, internet retailing, homeshopping and direct selling. Among sales orders made by telephone or fax, sales of its private label products are categorised under direct selling, while those of branded products fall under homeshopping. With the growing population of elderly consumers among the Japanese population, Co-op Mirai started its order-taking service in Saitama prefecture in 2011. As part of this service, Co-op´s customer service personnel place phone calls to its registered customers on a regular basis, taking orders from those who wish to order products, delivering any products ordered to the doorsteps of customers on the following day. The service has been praised as a way of supporting lonely elderly people and preventing the unfortunate unattended deaths of elderly people living on their own as customer service and delivery personnel can regularly check on the safety of elderly customers. Although the company´s value sales declined by 1% in 2013, such an innovative business targeting the elderly is very promising in Japan and is expected to contribute to the company´s positive growth during the forecast period.

Direct selling in Japan is expected to decline in constant value at a CAGR of 2% over the forecast period, falling to Â¥1.5 trillion in 2018. Improving the image of direct selling is one of the most urgent tasks for Japan´s direct selling companies, slowing down the pace of decline in value sales. As the majority of the complaints about aggressive and pushy rogue direct selling agents are reported by members of Japan´s elderly population, it is essential for the country´s direct sellers to establish their image as being friendly to the elderly population. In addition, the proportion of the Japanese population aged over 65 years old is expected to rise to 28% of the country´s entire population in 2018, according to projections prepared from Euromonitor International data. As such, one key strategy for direct selling companies during the forecast period is set to be tailoring direct selling formats to be useful and helpful for the country´s elderly population. As an example, not only direct sellers but also companies engaged in other industries are launching order-taking services in addition to their main businesses. As Japan´s elderly people tend to face difficulties when purchasing groceries and commodities at supermarkets, these order-taking services have so far been highly appreciated. Other promising products for the order-taking service are consumer health products given the increasing popularity of vitamins and dietary supplements among elderly people. In order to wipe out the negative image of direct selling, direct sellers are expected to offer services that meet the elderly people´s needs.

Click for report details: ..

Browse all Retail Market Research Reports ..

Browse all Retail Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Press Information

Published by
Mike King
London: +44 (0) 203 086 8600

# 880 Words
Related Articles
More From Finance
P2P lending platform Monexo partners with IDBI-Trusteeship [..]
For Immediate Release: 2nd September 2016 MUKESH BUBNA, CEO Monexo Fintech Pvt Limited P2P [..]
Day Trade to Win New September Class [..]
Sold Out? New Class Added – On September 6, 2016, is launching a brand new eight-week trading boot camp [..]
FTM (Forget The Market) Reopens 3 Shares [..]
Port Vila, Vanuatu, 28th July 2016 - Investment firm FTM today announced the reopening of three separate share options, projected [..]
Ex-Citibanker Launching Online P2P marketplace in India [..]
A study conducted by World Bank shows that MSMEs in India face an estimated credit gap of INR 20.9 trillion [..]
New Frontier Portfolios Top Morningstar Rankings
New Frontier’s global strategic portfolios topped the Global Balanced Strategic/All-Inclusive category of the latest Morningstar ETF [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.