Various analysts are arguing that Japanese consumers have been seeking low-priced goods after the Lehman Shock, rather than paying attention to products or services themselves. What is the actual situation of consumers’ purchase awareness? The Ministry of Economy, Trade and Industry (METI) conducted a comprehensive survey from December 2009 to February 2010, recognizing that examination of the possible future growth of Japan’s industries and corporations requires identifying the types of products/services ordinary citizens or consumers are demanding, and whether or not there is a gap between consumer needs and the services available from corporations.
The survey results have been compiled and are hereby released.

1. Summary of survey results

(1) Important factors behind consumption
The survey results overturned the common belief that Japanese consumers are seeking low-priced goods, rather than focusing on products or services. Consumers put top priority on "trustworthiness" or "security," rather than on "low price." Female consumers and elderly persons in particular tend to attach more importance to these non-price factors. In addition, the survey has quantitatively revealed that, if the price level falls, consumers will put more focus on price factors, leading to endless price competition. (For example, if food prices fall by 20%, the importance of prices rises from 48.9% to 59.6%.)

(2) What they want to consume
As for how consumers spend their money, it is not true that they do not want to consume (savings is ranked fifth at best). However, rather than making expenditures for goods in a conventional manner, it is clear that consumers want to spend their money to enjoy their life, such as on "hobbies," "meals," "travel," and "books and magazines."

(3) Room for non-price competition in relation to services
Even in the manufacturing sector, consumers put emphasis on services, such as "visiting customer’s site for repair, parts change and installation services immediately after making contact" or "permanently-installed customer service desks." In particular, because women, middle-aged and elderly persons, and families with small children have a strong need for these services, there is a room for non-price competition in these services. In addition, there are also business opportunities to develop new products that would eliminate consumers’ dissatisfaction with bulky instruction manuals or products that are difficult to install or operate.

(4) Trustworthy information sources for consumers
When making consumption choices, most consumers use "word-of-mouth websites" as a trustworthy information source. Nowadays, many consumers evaluate in advance the sense of value by checking out feedback from consumers who have actually purchased the products. Products that are unable to go through this strict screening will not gain popularity. If consumers are satisfied with a certain product, they tend to express their positive opinions by writing them in an e-mail or posting them on websites. In this context, feedback from consumers will have a strong impact on consumption trends.
In contrast, if consumers are dissatisfied with a certain product, they tend to give their feedback to the product’s manufacturer. Corporations will grow if they deliver this feedback to their R&D section in an appropriate manner.

(5) Distribution channels to consumers have been undergoing structural changes: Online shopping has become a major sales channel
90% of respondents have used online shopping, while 30% and 70% of survey respondents have used TV shopping and catalog sales services, respectively. In particular, consumers use online shopping services 5.7 times in a three-month period on average, spending as much as \51,300. Especially, male and female busy consumers in their 40s, families with small children, and households with family members in need of nursing care tend to use online shopping services more frequently.
In addition, as most consumers have free time from 9:00 p.m. to 1:00 a.m. on both weekdays and weekends, the business model that provides shopping services only during the daytime is facing limitations.

(6) Countermeasures on the corporation side
Most corporations collect consumer information through their customer service section, but only less than half of corporations actively collect information by checking out consumers’ opinions posted on word-of-mouth websites. As for repair or troubleshooting services, consumers are seeking substantial information, such as "after-sales service information" or "cancellation methods," while corporate top management places greater emphasis on aspects of corporate image, including "honest consumer services" or "corporate credibility." The survey has revealed that there still is an awareness gap between consumers and corporate top management.

2. Outline of the survey results

> See the outline of the survey results. (in Japanese)

Release Date

April 21, 2010

Division in Charge

Consumer Affairs Policy Division, Commerce and Distribution Policy Group

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