‍10 Brand and Packaging Trends from Japan

Retail insights are often overly focused on what’s happening in the West – to everyone’s detriment. So, having been lucky enough to have recently spent a few weeks in Japan, we couldn’t pass up the opportunity to look at what’s happening in the local retail market.

Based on our in-person experiences, here are the 10 biggest brand and packaging trends that we spotted in Japan.

Location-Specific Products

In a world where most products can be bought from multiple stores or even online at any time, brands in Japan are doubling down on location-specific and exclusive products. These may be items that can only be bought in a specific store or they may be themed around a particular location.

Starbucks’ Been There series commemorates different locations on mugs that can only be bought from stores in that location. The brand also sells limited edition, snow globe topped mugs that are themed around a certain area.

The Universal Store in Tokyo’s Harajuku sells unique Rolling Stone branded drinks that can only be bought there. Nike offers special Harajuku-specific designs at its Nike by You customisation bar.

We also spotted ‘black egg’ costumed Hello Kitty merchandise at Owakudani in Hakone, which is famed for its black eggs that have been boiled in the local hot springs.

Nintendo and Pokemon also use store specific merchandise to drive traffic to multiple locations. This includes themed Pikachu plush toys that can only be bought in a specific store, such as a train conductor Pikachu that is exclusive to Tokyo Station. Even the new Nintendo Museum has exclusive merchandise that can only be bought on-site, which drives up demand from collectors.

Japanese fashion retailer Uniqlo has multiple stores that sell t-shirt designs that are influenced by the local area. Often this involves teaming up with local food and drink brands or restaurants, which helps to put the spotlight onto them.

By creating products that are tied to specific locations, retailers in Japan are creating a story around them. These stores become destination for collectors and fans looking for something more exclusive, as well as turning products into memories of certain places.

Localised Store Design

One trend that we’ve noticed globally is brands designing their stores in a way that blends in with the local area or makes use of existing buildings. This was prevalent throughout Japan as well.

One of the best examples is Starbucks’ Ninenzaka store in Kyoto. This historic street in the Gion area is a tourist hotspot because of its preserved nature. Rather than impose its normal branding on the 100-year old Japanese townhouse its store is located in, Starbucks has adopted a more  understated, traditional approach. In fact, it’s almost easy to walk by without realising it’s a Starbucks store. Yet, by embracing the area’s heritage the location has become a destination in its own right.

Fragrance company Le Labo did something similar with its Kyoto store. Earlier this year, the brand turned a traditional wooden machiya townhouse into a two-storey store and atelier. Rather than creating a pristine new space, Le Labo has kept some of the existing wear and tear which gives the store a feeling of history despite being relatively new.

We also spotted several stores drawing inspiration for their visual merchandising from the local area. This was particularly the case in Osaka where Uniqlo used the lanterns and neon signs that the city is famous for to inspire its window displays.

Likewise, the LEGO store in Osaka evoked the culture of the city with brick model versions of local food delicacies like takoyaki, and the bright lights of the Dotonbori canal area.

These spaces are more successful because of their localised nature. They become places that visitors want to seek out, but they speak to local shoppers on a cultural level.

It was also clear to us when brands weren’t integrating into areas with a strong visual identity or heritage. Case in point is McDonald’s store in the Shinsekai district of Osaka, which stands out in the wrong way among the amazing 3D facades that characterise the area.

Customised Products

Personalisation has been a growing retail trend in recent years thanks to shifts in consumer preferences. This showed up in a number of ways in Japan, including personalised service and recommendations.

Product customisation was by far the biggest personalisation trend though. Unsurprisingly, fashion led the way with the likes of Nike, Uniqlo, Levi’s and Ralph Lauren showing that customers at all levels are interested in personalising their products.

The appetite for personalisation has led some brands to offer services that we haven’t seen in other markets. One example is Converse’s White Atelier stores in Tokyo and Fukuoka. These stores allow customers to create their own fully personalised pair of Converse sneakers, including limited edition and exclusive designs.

We also found personalisation options in multiple other categories, including cases and accessories for smartphones at the Samsung store, affordable customised fragrances at My Only Fragrance, and even custom guitars at the Fender flagship.

Limited Time Retail

Pop-ups might not be the new thing in retail anymore but Japan takes the concept to another level.

In every city we went to, we spotted pop-up stores everywhere. Local shoppers seemed particularly receptive to the idea of always finding something new, as well as being willing to queue up if needed.

Some of these pop-ups were running for a few days or weeks, and some were literally a one day event. While some pop-ups are clearly well-advertised or known about, it also felt as though some are just stumbled upon, which creates a nice discovery element for consumers.

We also found that brands and retailers invested heavily in collaborations with different areas of pop culture to drive traffic. Particularly popular choices for collaborations are anime, video games and music.

These collaborations typically run for a limited amount of time, which creates a sense of urgency among consumers and a risk of missing out. They tend to be well supported with long queues or quick sellouts if ticketed.

Collaborations also weren’t limited by product category which meant we saw some interesting crossovers. For example, Fender collaborated with video game franchise Monster Hunter on a special edition guitar, while the Skytree viewing platform partnered with popular anime Jujutsu Kaisen on a short-term light show and merch range.

Mascots

Mascots are everywhere in Japan. And we’re not just talking about globally recognisable brand mascots like Pokemon’s Pikachu or Nintendo’s Mario.

Everything from media companies like Japanese public broadcasting company NHK to viewing platforms like Tokyo’s Sky Tree have their own mascots. The entire Kumamoto Prefecture has a mascot in the form of the bear Kumamon.

We spotted fashion brand mascots, food brand mascots and train company mascots. Even rechargeable IC travel cards like JR West Rail’s ICOCA card and JR East’s SUICA card have a mascot.

Mascots aren’t just a way to build brand recognition. They also make companies feel more approachable and relatable, especially businesses that customers don’t tend to fall in ‘love’ with, like TV and transport companies.

Businesses with mascots can also tap into other revenue opportunities such as branded merchandise and the valuable tourist market. Back in 2020, Kumamon brought in 169.8 billion yen ($1.62 billion) through the sale of goods bearing its image!

New Interpretations of Brands

We spotted a surprising number of familiar brands in Japan but not necessarily presented in the same way we’re used to.

Japan seems to be a market for new interpretations of brands, taking them into categories that they wouldn’t normally be associated with. This includes Snoopy Chocolat, which is a chocolate shop focused on the famous Peanuts dog.

Miffy Flower Shop is another example, selling customised fake flower bouquets, accessories and goods based on Dick Bruna’s famous rabbit. In particular, the array of acrylic vases shows how far you can push branding to create new products and remain recognisable.

Another interesting interpretation of branding can be found in the gachapon capsule machines that are a common sight around Japan. Usually the focus is on the more strange and quirky themes when talking about gachas, but we spotted a lot of miniature versions of everyday brands and their packaging.

It’s an interesting way to measure how recognisable – and popular – a brand is. If they can sell mini versions to consumers for them to display on their keys or bag, then the brand must be doing something right.

Seasonal Products and Store Decor

Unlike some places, Japan celebrates the fact that it has four seasons, with viewing of the cherry blossoms in Spring and the changing leaves in Autumn particular highlights.

This cultural marking of the seasons also extends to products and packaging with many brands releasing seasonal items throughout the year, particularly in the food and drink category. Seasonal flavours, like sweet potato and chestnut in Autumn and sakura in the Spring, appear in everything from cakes to coffee to fine dining.

We also spotted food and drink companies marking holidays like Halloween and Christmas with limited edition flavours and product ranges.

Seasonality isn’t just seen in products though. We also found that many retailers change their store windows and interior design to mark major holidays, such as Valentine’s Day, Halloween and Christmas – even if these holidays aren’t celebrated in the same way they are in the West.

The main thing we noticed about this seasonal store décor is that it typically offered a photo opportunity. This shows an understanding of local consumer behaviour and helps to drive footfall to the store.

What was interesting was how quickly new seasonal displays came into effect. Stores went from being decked out for Halloween on the 31st of October to having a Christmas influence on the 1st of November.

Gift Packaging

Gift giving is an important part of cultural life in Japan. There are the familiar special occasions like weddings but also additional traditional gift-giving events called ochugen and oseibo.

Japanese tourists also traditionally buy souvenirs when they travel to bring back for friends, family and colleagues called omiyage. These gifts are usually food and drink based and related to the area they’re from, such as a regional delicacy.

Omiyage can be found at travel hotspots like train stations and airports and are beautifully packaged. This has made the concept popular with international tourists looking for souvenirs as well.

The wrapping and presentation of any gift is considered to be very important, which means many stores offer this service as standard.

It has also led to some innovative and memorable concepts that are designed to enhance the experience. For example, Nintendo offers light-up presentation boxes that can be used for gifting video games. These boxes can be used as interior décor after the game has been taken out.

Nintendo also offers other dual-purpose packaging concepts, such as printed fabric gift bags that can be used as tote bags after opening. This feels like a modern update on the traditional cloth wrappings (furoshiki) used in Japan. It’s also a more sustainable option.

Experiential Retail

As with pop-ups, experiential retail may not be a brand new retail trend but it’s one that Japan does particularly well.

Some of this stems from the aforementioned popular limited time events and collaborations which usually are more involved than shelves full of product. But we also saw brands going all out on experiential retail to get visitors exploring their full store and product range.

One of the best examples is the Samsung store in Harajuku, Tokyo. This seven-storey space focuses on service and engagement with four floors given over to pop-ups and collaborations with major franchises like Hello Kitty and the One Piece anime.

The jewel in the crown though is an interactive exhibit in partnership with digital art collective TeamLab, which allows customers to ‘catch’ virtual animals using a Samsung smartphone.

We also found that independent retailers were particularly strong in the experiential retail category. Being memorable and engaging is one way that these stores can stand out against larger competitors.

The approach ranged from the simple, such as tasting different honey drinks in Sugi Bee Garden’s store, to the more involved, like creating a personalised perfume at My Only Fragrance.

Experiential retail in Japan is a way to show expertise and to build the customer desire to buy. With stores often open later into the day, experiences are also a way to compete with other entertainment options. Don Quijote’s Dotonbori store in Osaka even has its own Ferris wheel!

Innovative Product Presentation

A lot of thought goes into the way that products are presented in Japan, including the packaging. This has led to some innovative concepts.

For example, packaging may be designed around the product to preserve specific characteristics or to make it more appealing. One example of this is whipped ice cream cones which are individually packaged in moulded plastic so that the product is protected but customers can also see what they’re buying.

Equally, some packaging innovations reinvent the way that products are presented to make things more convenient for consumers or to change the way that they experience the product.

Examples include ice cream in squeezable foil pouches for easier transportation and consumption and cakes packaged into cans so they can be sold through vending machines.

One wow factor version of this trend is Amezaiku - the traditional Japanese art of creating intricate, edible sculptures from candy. At Asakusa Amezaiku Ameshin’s retail space, candy animals are packaged in clear display cases like the works of art they are. We even saw some shoppers who thought they were buying actual sculptures until they were told they were made of candy!

By Insider Trends, a leading retail trendsagency.