Have you even heard about the e-commerce of 7-11 in Japan? Let's learn more!!
1. Local Culture
1.1 Traditionally cash-based society
Japan is a cash-based society that cash and bank notes are the most commonly method for payment. Since most of the Japanese are afraid of the information will be stolen by hackers, 70% of Japanese dislike using credit cards for online purchases.
1.2 Customers used to buy off-line (face-to-face)
Japanese would like to see, touch and get the products immediately after purchase and it is used to obtain discounts in the off-line purchase.
1.3 Low Penetration Rate of Personal Computers
Since the Japanese homes were small, most Japanese had no space to place a personal computer. And the penetration rate of personal computers in Japan was only about 20 per cent
2. End-fulfilment of On-line Orders
Most consumers were not home during the day, so that they cannot receive their parcels. Consumers were doubtful about receiving their parcels from on-line stores either due to mailing errors or non-fulfilment on the part of the stores.
3. Government Policy
In mid-1990s, the Japanese government had regulated companies severely in the e-commerce industry; inhibit the growth of online transactions. It is difficult for the consumer to browse internet and hard to access online buying.
4. High connection charges
Telecommunication industry was dominated by a monopoly government-owned corporation i.e. Nippon Telephone & Telegraph (NTT). NTT has controlled 95% of Japan’s telephone lines and decided the pricing of access charges. The connection to the Internet was charged by the minutes so it leaded to an expensive connection charge for the Japanese. Due to the expensive connection charge, it limits the number of people going online and deterring Japanese from surfing the Internet or staying at a website for very long
5. Competition with physical stores
Customers needed not to buy online as there are more than 8000 convenience stores in Japan.
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