By Yui Naoi
These days, when I go to Don Quixote I’m surrounded by many tourists from China, Korea and other countries. And foreign languages are spoken around in the shop. Also, when shopping at such places, tourists fill their baskets with goods and buy many of the same items. There are a lot of foreigners seen in Don Quixote, department store and Matsumoto Kiyoshi etc. As this trend shows there are three positive effects of inbound tourism on Japanese retail stores.
One of the most successful retail stores is Don Quixote. Don Quixote is a variety shop that sells foods to electronic appliances. Recently, Don Quixote’s sales figures have been going up steadily every year. According to their website, Don Quixote’s operating income increased 18.7% over the previous year. They caught the wave of inbound tourism by opening a duty-free shop for international customers. They accommodated the needs of foreign customers by offering foreign language services. In addition, their shop is open for 24 hours 7 days. Thanks to that Don Quixote is ranked fourth in the Japanese retail industry in term of sales. So, you can see how Japanese retail stores are growing due to international tourists.
Another successful retail shop is Matsumoto Kiyoshi, a drug store. Matsumoto Kiyoshi is a drugstore that is expanding nationwide, mainly in eastern Japan, and is used daily by many people as a tenant in stations and department stores these days. It is approximately 40% of total sales are cosmetics, which generate almost as much or more profit than drugs. The fact that cosmetics sell better than medicines, despite being in pharmacies, was surprising. The demand for Japanese cosmetics from these tourists has led Japanese cosmetics manufacturers to expand their factories and increase production efficiency. It is largely derived from there and contributes greatly to the Japanese economy, such as the construction industry that makes money to build factories.
Lastly, department stores also succeed in getting inbound customer. Also, this year, department stores are experiencing strong inbound consumption because of yen is weaking. And sales have increased greatly compared to the previous year. Due to the economic downturn, Japanese incomes did not rise and luxury items did not sell well. But sales of luxury items are increasing thanks to international tourists, especially Chinese tourists. In addition, department stores, like drugstores, have been increasing their sales of cosmetics. Expensive cosmetics specific to department stores, it called “Depakosu” are popular among Asian tourists. Corona virus has also settled down and started to take off their masks, and some say that Japanese cosmetic manufacturers are still of good quality and safe.
These retail stores have increased their sales in recent years thanks to foreign tourists. And continue to grow and wealth the Japanese economy. But the bombing shopping by foreign tourists may make it difficult for Japanese to obtain goods. However, it is true that the increase in tourists has improved Japan’s economy and stimulated a variety of jobs. We will continue to grow our various Japanese businesses without relying too much on tourists. I hope that more and more companies will expand their business overseas, and that their products will reach people who have not yet visited Japan.
References
“don・kihoteno” pashipashiHD, 23nenn 6gakki junrieki saikouni [“Don Quixote” Pashipashi-HD posts highest net income for the fiscal 2023 ended June] (2023, May 10). Nihon Keizai Shinbun.
Shiseidou, Osakano 2 koujouwo 26 nenni tougou seisan kourituka [ Shiseido to integrate two plants in Osaka in 26 years to improve production efficiency] (2023, October 31). Nihon Keizai Shinbun.
9 gatuno hyakkaten uriagedaka, 9.2%zou menzeiwa kako 3banmeno kousuijun [ Department store sales up 9.2% in September, duty free at third highest level on record] (2023, October 24). Nihon Keizai Shinbun.
5 gatuno hyakkaten uriagedaka , 6.3%zou iryouhin ya keshouhinga kouchou [ Department store sales up 6.3% in May, strong sales of clothing and cosmetics] (2023, June 23). Nihon Keizai Shinbun.
