With 2020 being a tumultuous year, Japan’s economy has been hit hard by the pandemic. However, with the economy gradually recovering and the Olympic Games now scheduled for 2021, businesses in Japan are looking to bounce back stronger than ever. Here are a few business news and trends to watch out for in 2021.
Rise of E-Commerce
The pandemic has brought with it a significant shift towards e-commerce in Japan, with more and more consumers opting for online shopping. According to a report by Statista, the e-commerce market in Japan is expected to grow to over $150 billion in 2024. In response to this trend, businesses in Japan are increasingly investing in their online presence and platforms, with many traditional retailers transforming into omnichannel businesses to meet the needs of online shoppers.
New Business Opportunities with the Tokyo Olympics
The rescheduled Tokyo Olympics provide a much-needed boost to the Japanese economy after a tough year. Tokyo expects to welcome over 600,000 foreign visitors during the Olympics, bringing in significant revenue. The event also presents new business opportunities and partnerships for Japanese companies. With the government’s push for digitalization, Japanese businesses are expected to leverage the Olympics as a platform to showcase their cutting-edge technologies, from automated check-in systems to efficient transport solutions.
Digital Transformation
The pandemic accelerated Japan’s push towards digitalization, with the government highlighting it as a top priority. A report by McKinsey & Company suggests that digital transformation could add up to 2.9% to Japan’s GDP by 2025. As such, many Japanese companies are investing in technology and digital solutions to stay ahead of the curve. For example, the construction industry is turning to Building Information Modeling (BIM) to increase efficiency and reduce construction costs.
Healthcare Industry
With an ageing population, Japan’s healthcare industry is growing rapidly and presents numerous opportunities for businesses. The government’s push for the digitalization of healthcare is set to transform the industry, with telemedicine and remote patient monitoring expected to become mainstream. Foreign companies are looking to enter the market through partnerships with Japanese companies, increasing international collaborations and driving innovation in the industry.
In conclusion, in 2021, we can expect Japan’s businesses to bounce back stronger than ever before. With digital transformation, e-commerce, and healthcare being just a few of the sectors that present new business opportunities, companies in Japan are poised to take advantage of the shifting landscape and come out at the forefront of the game.
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