Before the global coronavirus pandemic outbreak in 2019, a record 32 million tourists visited Japan. The majority of international visitors arrived from East Asian regions, with Korean, Chinese, and Taiwanese visitors in the lead.
However, the pandemic forced Japan, like most countries, to shut its doors to the world.
Ambitious Tourism Targets
But as the world is opening up and things are returning to normalcy, the Japanese government aims for annual tourist spending to reach 5 trillion yen ($34 billion) as soon as possible, eclipsing the figure of about 4.8 trillion yen spent in 2019.
Already, the number of foreign visitors to Japan is gradually picking up after falling sharply from almost 32 million in 2019 to 4.12 million in 2020 and 250,000 in 2021. In October 2022, the tourist numbers rose to nearly 500,000, signaling the gradual recovery of inbound tourism for foreign visitors and the duty-free retail sector.
With upcoming international events to be held in Japan in 2025, such as the Expo 2025 in Osaka and the World Athletics Championships in Tokyo, the country expects a boost in visitor numbers.
Due to this, the Japanese government says it will maintain its existing goal of an annual 60 million foreign visitors by 2030. American Airlines Group Inc. AAL, Delta Air Lines Inc. DAL, and United Airlines Holdings Inc. UAL, among other airlines, are expected to fly some of these tourists.
As the numbers begin to pick up, Japan also anticipates an increase in the amount spent per person and their length of stay in the country. This could present many opportunities for companies and businesses in the sector.
Ready For Tourism Growth?
Headquartered in Tokyo, Japan, Yoshitsu Co. Ltd TKLF could be strategically placed to serve the millions expected to visit the country as the government aims to have inbound tourism recover to pre-pandemic levels by 2025.
Yoshitsu offers a wide range of products including food, alcoholic beverages, various beauty products such as cosmetics and body care products, health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), and other products such as home goods.
The company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers.
Yoshitsu says it adjusts its business to adapt to changes in market demand and the business environment quickly in order to drive rapid growth, and it aims to bring high-quality products made in Japan and related to the country’s incredible culture to more customers around the world. Japan is a country with vibrant and innovative manufacturing industry, providing all kinds of high-quality products globally. From vehicles, home appliances, and beauty products to food, the words “made in Japan” became synonymous with high-quality and cutting-edge technology. Yoshitsu says its products are meant to let more people enjoy high-quality products that are made in Japan.
Strategic Partnership With A Duty-Free Shopping Website
Yoshitsu recently revealed that it has signed a service agreement with iEnt Co. Inc., a digital transformation (DX) service company that provides Online-Merge-Offline (OMO) solutions and operates a duty-free shopping website, TaxFreeOnline.jp (TFO).
In partnering with iEnt, the company plans to list its Japanese beauty, health, and other products on TFO and leverage iEnt’s extensive network and expertise in DX service and OMO solutions to provide more foreign visitors with convenient access to the company’s diversified duty-free Japanese products.
TFO is a website dedicated to providing foreign visitors with a seamless shopping experience before or during their visit to Japan. Visitors can place orders on TFO and pick up their orders at designated places, such as hotels, airports, and pharmacies.
Mei Kanayama, the principal executive officer of Yoshitsu Co. Ltd, said in a statement, “The partnership with iEnt may provide a great opportunity to expand our customer base and boost the sales of our products to overseas customers while enhancing our brand recognition.”
Beyond The Partnership
Besides the partnership with iEnt, Yoshitsu says it plans to offer sweepstakes promotions in retail stores during the upcoming holiday season to attract customers and increase sales.
The company further revealed that plans are also far in advance to offer discount promotions for duty-free products from November 2022 to the end of the Chinese Spring Festival in January 2023.
Yoshitsu reiterates that its team puts in a lot of effort to meet customer demands with high-quality products and the best services, which ultimately improves customer experience and increases market share.
“Our growth potential is huge, and our further development is foreseeable as we grow rapidly and adjust our business to adapt to the changes in the market demands and business environment quickly,” the company said.
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