Summary of Research Findings

The domestic B2C ecommerce market size in 2021, including the categories of product sales, services, and digital-related, was estimated as 20,695.0 billion yen (107.4% on YoY), according to “Results of the E-Commerce Market Survey Compiled” by METI. Of the market size, product sales amounted to 13,286.5 billion yen (108.6% on YoY), and the category’s ecommerce rate occupied 8.78% (an increase by 0.7 points on YoY), indicating wider use of ecommerce among consumers, which kept the market to be on the rise.

Amazon Japan remained to be the leader of the online retailing (ecommerce) market just like usual years, which enjoyed FY2021 for its 2 trillion yen plus of sales and a double-digit growth, both continuing from the previous fiscal year. Companies developing food subscription services or/and online supermarkets have also shown favorable sales. According to the data (*) by METI, the ecommerce rate for “food, beverage/liquor” in 2021 was 3.77% (an increase by 0.46 points on YoY), lower than other items. Still, the B2C ecommerce market for “food, beverage/liquor” in 2021 reached 2,519.9 billion yen, attaining a double-digit growth (114.0% on a YoY basis), making it the largest market size in the product sales category. A new lifestyle of spending richer time at home, generated in the corona crisis has widespread to have encouraged growth of food category in ecommerce.

* Source: “Results of FY2021 E-Commerce Market Survey Compiled” by METI

Noteworthy Topics

Expansion in Logistics Investment for Improving Work Productivity

In the online retailing or ecommerce market where the competitions are becoming fiercer in association with the market growth, swift delivery of goods that carefully meet customer demand is one of important services. In recent years, major companies in the business of home delivery services, ecommerce platforms, electronics stores, apparel, etc. are proactively investing in large-scale logistics centers.

Among five major functions for logistics, i.e., transport/delivery, storage, cargo handling, packing, and distribution processing, logistic centers contribute to storage and cargo handling, and its streamlined and fast working processes are regarded as ever so significant in the entire logistics processes, such as efficient storing of a variety of goods even in small lots, picking up and sorting specific products from where they have been stored, alleviating warehouse incoming and outcoming tasks, etc. In cargo handling, because of its necessity of human intervention, logistics robots have been deployed for streamlining some work such as palletizing (stacking identical items, in the forms of boxes, sacks or cases, onto a pallet for shipping, as the final process of a production line) and depalletizing (removing items from a shipping pallet), and piece picking (picking of the items in the minimum shipping form). In addition, some companies have introduced AGVs (Automated Guide Vehicles) and AMR (Autonomous Mobile Robots) for improving work efficiency.

One of the backdrops to streamline logistics processes is the “2024 issue”. The issue stems from a work style reform law that is to come into force in 1 April 2024, limiting the overtime hours for automobile driving services to annual 960 hours, which can cause a series of problems. The issue is expected to reduce the sales and profits of logistics and transportation businesses, and to increase the transportation fees to freight owners due to decreasing delivery workers. Therefore, deployment of logistics robotics aiming at cost reduction is underway, and such a tendency is likely to continue.

Research Outline