Survey: Japanese consumer sentiment during the coronavirus crisis

| Survey
While Japanese consumers are gradually getting back to normal life, inflationary headwinds negatively affect consumers’ spending, especially on discretionary categories.

Inflationary headwinds, as well as long-lasting impact of COVID-19 is prolonging Japanese consumers’ intent to stay conservative about spending, especially discretionary categories. While consumers are getting back to normal, digital activities are scaling and starting to penetrate in lives of consumers toward post COVID-19.

These exhibits are based on survey data collected in Japan on August 23-28, 2022. Check back for regular updates on Japan consumer sentiments, behaviors, income, spending, and expectations.

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Consumers in Japan are among the least likely to be optimistic about their country’s economy, along with those in the United Kingdom
Consumers in Japan have mostly retained the increased optimism of 2021
Lower-income consumers are more pessimistic than higher-income groups
The older the generation, the less optimistic respondents are about Japanese economic recovery
Consumers in Japan report a slight decrease in saving while income is stagnant and spending gradually increases
Consumers’ attitude on splurging held steady since last cycle, except younger generation has more intent to splurge
Older consumers are likeliest to splurge on tourism; younger generations have more intent to splurge across categories
Consumers report negative net intent to spend for all categories, especially fashion
Increase in price is a major reason for spending more and spending less
Spending intent is still negative across categories except fitness and wellness
Consumers in Japan have been slow in returning to out-of-home activities; Gen Z is returning at a higher rate than others
Work, shopping, and personal care are relatively back to ‘normal’; consumers modify their behavior in other categories
About half of consumers reduced engagement in out-of-home activities due to the BA variant
Relevance of social media and omnichannel continues in purchase behavior
The in-store channel remains dominant in most categories
Social media has the strongest influence on Gen Z across all categories, closely followed by millennials
Social-media engagement of consumers in Japan is lower than in other countries, with YouTube the most used platform
Consumers in Japan are less likely than others to view content on entertainment platforms; Amazon Prime is used most
Shifts in loyalty and behavior have accelerated, with most consumers intending to maintain their new behavior
Consumers have clear intent to use new digital services across categories
Consumers actively engage in digital activities and intend to continue after the COVID-19 crisis subsides
Shifts toward digital service have started to scale across categories, spearheaded by conferencing and remote learning
Brand switching continues with value as top 1 reason among APAC countries
Consumer behavior change has been most extensive among younger and higher-income consumers
One-quarter of consumers faced a stockout of a planned purchase, most often groceries and apparel
Consumers have mixed responses when a product is unavailable
Value was a primary reason for brand switch, followed by novelty, especially among the older generation
Value was a primary reason for retailer switch, but younger generation seeks personal choice, convenience, and health
Most consumers perceived a general increase in prices, especially on groceries and gasoline
Paying additional amount is the most common response to higher prices, followed by switching brands, especially for essentials
Among those who switched brands, almost three-quarters did so for a better price/promotion, 30 percent for convenience
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Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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