An A-Z Guide to Conducting Market Research in Japan in 2025

If you want to enter the Japanese market, you need market research in Japan. Japan has a unique business culture, strict regulations, and strong competition. Without proper research, your business might struggle to gain traction.

This guide will help you understand Japanese consumers, analyze competitors, and follow local laws. You will learn about research methods, data collection, and key challenges. Whether you are a startup, an investor, or an established brand, this guide will give you actionable insights to succeed in Japan.

1. What is Market Research?

Market research is the process of collecting and analyzing data to understand a market. It helps businesses make informed decisions about products, services, and strategies.

Japan market research is even more important for any businesses who want to jump into the Japan eCommerce market. You need to know what customers expect, how competitors operate, and which regulations apply. Market research can be done through surveys, interviews, government reports, and competitor analysis.

By using reliable data, you can reduce risks, create better marketing strategies, and improve your chances of success in Japan.

2. Why Is It Critical for Success in Japan?

Japan is one of the world’s most advanced yet highly nuanced markets, requiring businesses to conduct thorough research before launching products or services. The following factors highlight why market research in Japan is a critical success factor:

2.1. Japanese consumers have unique preferences

Japanese customers are detail-oriented and brand loyal. They expect high-quality products, excellent customer service, and long-term value.

• Trust matters. Many Japanese buyers read reviews and check a brand’s history before making a purchase.
• Quality is key. Customers expect top-notch products with great packaging and durability.
• Buying habits change. eCommerce, convenience stores, and cashless payments are growing fast.

For example, in the beauty industry, Japanese market research shows that Japanese consumers prefer skincare over heavy makeup. They look for gentle, natural, and effective products.

2.2. Competitive and saturated market

Japan has a highly saturated market across various industries, with strong domestic brands and established consumer trust.

• Foreign businesses must identify niche markets or unique value propositions.
• Competitor analysis is essential to position a brand effectively.
• Understanding pricing strategies is crucial, as Japanese consumers associate price with quality.

Expanding into Japan’s eCommerce market can be complex, especially for newcomers. Many sellers turn to cross-border eCommerce partners like Ezbuy Japan for support. With expertise in logistics and market entry, Ezbuy helps businesses navigate challenges and unlock growth opportunities.

2.3. Regulatory and compliance considerations

Market research Japan indicates that Japan has strict consumer protection laws, data privacy regulations, and business licensing requirements.

• The Act on the Protection of Personal Information (APPI) governs how companies collect and handle consumer data.
• Market research involving surveys, customer data collection, and competitor analysis must comply with Japanese regulations.
• Licensing and permits vary by industry, requiring companies to conduct legal research before launching products/services.

Example: Foreign tech firms expanding to Japan need to localize their data storage and security measures to comply with Japanese data protection laws.

2.4. Cultural nuances & business etiquette

Understanding Japan’s business culture is key to successful market entry and partnerships.

• Decision-making is slow due to hierarchical structures in Japanese corporations.
• Long-term relationships are prioritized over short-term gains.
• Face-to-face meetings and formal presentations are preferred over casual online communications.

In fact, Western brands launching in Japan adapt their marketing campaigns to match Japanese aesthetics, storytelling, and cultural values.

3. Two Typical Types of Market Research

To succeed in Japan, you need reliable data about the market, customers, and competitors. Market research is divided into two main types: primary research and secondary research. Each has its benefits, and combining both gives the best results.

3.1. Primary research

Primary research involves collecting firsthand data directly from potential customers, industry experts, or businesses. Market research companies in Japan use this method to help businesses understand consumer needs, preferences, and behaviors.

Common primary research methods in Japan:

• Surveys and questionnaires – Gather customer feedback on trends, pricing, and preferences.
• Interviews – Speak with Japanese consumers, business owners, or industry experts.
• Focus groups – Test product concepts or advertisements with a small group.
• Observational research – Visit stores, shopping districts, or events to see how people interact with products.

If you’re launching a skincare brand, conducting in-store interviews can help you understand which ingredients and product formats Japanese consumers prefer.

3.2. Secondary research

Secondary research uses existing data from reliable sources to analyze the market. It’s cost-effective and helps identify trends before investing in primary research.

Common secondary research sources in Japan:

• Government reports – The Ministry of Economy, Trade, and Industry (METI) publishes industry data.
• Industry associations – Groups like the Japan External Trade Organization (JETRO) provide market insights.
• Company reports – Financial and annual reports from competitors reveal market trends.
• Market research firms – Agencies like Nikkei Research and Euromonitor offer in-depth reports.

A fashion retailer looking to expand to Japan can use JETRO reports and insights from market research companies Japan to study apparel trends, customer demographics, and eCommerce growth.

By combining primary and secondary research, you can make informed decisions and develop the right strategy for Japan’s market.

>>> Read more: Top Startups in Japan and Comprehensive Guide for Success 2025

4. Key Components of Effective Market Research in Japan 

Market research in Japan goes beyond gathering data. You need the right approach to get accurate, useful insights that help your business grow. Below are three key components to focus on.

4.1. Understanding Japanese consumers

Japanese consumers are different from those in Western markets. Their purchasing decisions are driven by trust, quality, and cultural values. Here’s a quick look at key consumer behaviors:

Here’s the tip: If you're launching a product, invest in high-quality packaging and a strong brand story to gain trust.

4.2. Best data collection techniques in Japan

Getting accurate data in Japan requires the right research methods. Here’s a comparison of traditional vs. digital data collection techniques:

Here’s the tip: If you're researching Japanese consumers, using LINE for surveys is highly effective since it’s the most used messaging app in Japan.

4.3. Key regulations you must follow

Japan has strict laws on data privacy, advertising, and consumer rights. If you plan to collect customer data, you must follow the Act on the Protection of Personal Information (APPI). A market research company in Japan can help ensure compliance with these regulations. This law requires you to get clear consent before using personal data. If you don’t comply, you could face fines or legal issues.

The Consumer Contract Act and Fair Competition Code protect customers from false claims and misleading ads. Japanese buyers value honesty and accuracy. If your marketing is unclear or exaggerated, it may harm your brand’s reputation.

To avoid problems, always get permission before collecting data. Make sure your ads are truthful and follow local rules. If you're unsure, seek legal advice. This will help you build trust and protect your business in Japan.

5. Four Steps to Conduct Market Research in Japan

Conducting market research in Japan requires a structured approach. You need to gather reliable data, understand consumer behavior, and follow local regulations. Below are the five essential steps to help you collect accurate insights and make informed decisions.

Step 1: Define research objectives

Before you start, you need to set clear goals. Ask yourself:

• What do you want to learn? (e.g., consumer preferences, competitor strategies, pricing trends)
• Who is your target audience? (e.g., young professionals, families, retirees)
• What decisions will this research help you make?

Clear objectives will help you focus your research and choose the best methods. If you're launching a new product, you may need customer feedback and competitor analysis. If you're entering a new industry, you should study market demand and regulations.

Also, you should write down your research questions before starting. This will help you stay on track and collect useful data.

Step 2: Choose appropriate research methods

Once you know what you need, you must decide how to collect the data. The right method depends on your research goals and budget. If you want to understand customer opinions, you can use surveys and focus groups. And if you need industry trends, you can rely on government reports and market studies.

In Japan, digital surveys are effective because many people prefer online communication. Platforms like LINE Research allow businesses to gather quick and reliable customer feedback. However, if you want detailed insights, in-person interviews and competitor analysis are useful.

Combining quantitative research (numbers and statistics) with qualitative research (customer opinions and feedback) will give you a complete market picture.

Step 3: Develop a detailed research plan

Now that you have your objectives and methods, you need a plan. A research plan keeps your process organized and helps you stay on budget.

What your research plan should include:

• Budget – How much can you spend? (e.g., paid surveys, consulting fees)
• Timeline – How long will the research take? (e.g., two weeks for surveys, one month for analysis)
• Data sources – Where will you collect information? (e.g., online platforms, local stores, industry reports)
• Target audience – Who will you study? (e.g., Japanese millennials, business owners, tourists)

Having a clear plan saves time and money. It also ensures you get the right data to make business decisions. When conducting market research in Japan, staying organized is key. Additionally, we suggest you use Google Sheets or project management tools to track your research progress.

Step 4: Execute data collection

Once your plan is ready, it’s time to gather and study the data. The way you collect data depends on your research method. If you’re using surveys, send them through LINE, Google Forms, or email. If you’re doing in-person research, visit retail stores or interview customers.

After collecting data, the next step is to analyze it for trends and patterns. Look for answers to key questions like:

• What products do Japanese consumers prefer?
• How do they make purchasing decisions?
• What are the biggest concerns or challenges in the market?

Use charts and graphs to visualize trends. This makes it easier to present your findings and draw conclusions. If you find unexpected results, be flexible and adjust your strategy accordingly.

Look for patterns, not just numbers. A trend repeated across different sources is more reliable than a single data point.

6. Challenges in Conducting Market Research in Japan

Market research in Japan comes with unique challenges. You may face cultural differences, limited data access, and strong local competition. Without proper planning, research can be time-consuming and costly. Below are the biggest challenges you might encounter and how you can overcome them.

• Cultural barriers

Japan has a high-context culture, meaning people communicate indirectly. In surveys or interviews, respondents may give polite but unclear answers instead of direct opinions. This can make it hard for you to collect accurate insights.

Building trust with consumers and businesses is also a challenge. Many Japanese buyers prefer brands they know and trust. If your company is new to Japan, people may be hesitant to share information with you.

Solution: Work with local research firms to improve response quality. Use trusted survey platforms and face-to-face interviews to build stronger connections.

• Data accessibility issues

Finding reliable market data in Japan can be difficult. Many government reports and industry studies are only available in Japanese. Free data sources often lack detail, while paid research reports can be very expensive.

If you don’t speak Japanese, analyzing trends and customer insights can take more time. Many businesses struggle to find useful competitor data, as Japanese companies rarely share internal strategies.

However, accessing reliable market data in Japan can be difficult, especially for international sellers. Many businesses work with industry experts like Ezbuy Japan to gain insights into consumer preferences, logistics, and cross-border trade trends. This can help bridge knowledge gaps and improve decision-making.

Solution: Use local research providers like JETRO, Nikkei Research, and Statista Japan to conduct market research in Japan. Hiring bilingual researchers or using translation tools can also help you understand reports better.

• Competitor analysis

Japan’s market is highly competitive. Many local companies already have loyal customers and strong brand reputations. Unlike in Western countries, businesses in Japan rarely share detailed market insights. This makes it harder for you to analyze competitors and industry trends.

It’s also difficult to study pricing, marketing, and customer retention strategies, as many companies keep this information private. Without this data, you may struggle to position your business effectively.

Solution: Monitor customer reviews, online forums, and eCommerce trends to learn about competitors. Attending trade shows and industry events can also help you gather market insights.

>>> Read more: Operating Amazon Japan Marketplace – Ultimate Guide For Sellers

7. Final Words

Conducting market research in Japan is essential for business success. The Japanese market is competitive, consumer-driven, and culturally unique. Without proper research, you risk misunderstanding customer needs, mispricing products, or failing to stand out.

By following structured research steps, choosing reliable data sources, and adapting to cultural differences, you can gain valuable insights. Overcoming language barriers, data limitations, and local competition takes effort, but the right approach will help you make informed business decisions.

If you plan to enter Japan’s market, start with thorough research, use local resources, and stay adaptable. Partnering with experienced cross-border enablers like Ezbuy Japan can also help you navigate challenges and unlock new opportunities. Success comes from knowledge, strategy, and continuous learning.