Shipping from Thailand to Japan offers Thai businesses a significant opportunity to access a stable and robust market. As published by Trading Economics, in 2022, the value of Japan's imports from Thailand reached an impressive US$26.62 billion, underscoring the strong trade links between the two nations and the potential for Thai businesses to expand their customer base. Japan's strong economy, high consumer purchasing power, and appreciation for Thai products make it a lucrative market for many businesses here.
This potential is further enhanced by favourable trade agreements such as the Japan-Thailand Economic Partnership Agreement (JTEPA) and the ASEAN-Japan Comprehensive Economic Partnership (AJCEP). The JTEPA, a free-trade agreement, aims to eliminate tariffs on over 90% of bilateral trade, offering an even more enticing prospect for Thai businesses. The AJCEP, on the other hand, covers diverse areas of economic cooperation and reduces trade barriers, further facilitating Thai exports to Japan. These agreements make exporting to Japan even more attractive, paving the way for Thai businesses to penetrate the Japanese market effectively.
Identifying the size and diversity of Japan’s market
Moreover, Japan's ecommerce industry is seeing an unprecedented surge, significantly driven by the country's high internet penetration rate and increasing number of smartphone users. According to Statista, Japan's ecommerce revenue is projected to reach US$104 billion in 2023, up from US$84 billion in 2019, exhibiting robust growth. Additionally, the average user is expected to spend approximately US$882.44 online in 2023. This growth in online consumption illustrates the country's readiness to embrace digital shopping trends, making Japan an attractive market for online retailers worldwide.
This dynamic ecommerce landscape creates an ideal environment for Thai sellers looking to expand their reach through online sales. Whether it's traditional crafts, Naraya products, or tech products, the thriving Japanese ecommerce market offers Thai businesses a lucrative platform to increase their visibility and sales, thus capitalising on the evolving shopping habits of Japanese consumers.
Understanding Japan's consumers
For Thai businesses looking to make a successful foray into the Japanese market, gaining an in-depth understanding of the Japanese consumer is crucial. Known for their preference for quality and uniqueness, Japanese consumers often seek products that stand out and offer exceptional value.
A range of sectors in Thailand have tapped into these consumer preferences, seeing strong export performance to Japan, one of the country's major import partners. For instance, the computing and accessories sector, where Thailand has established global recognition as one of the largest trading partners of hard disk drives, aligns well with Japan's demand for high-tech goods. Additionally, Thailand's automotive and auto parts sector complements Japan's status as a leading automotive market, contributing to Japan's major imports and exports.
The chemical industry in Thailand has also found a lucrative market in Japan, with the country's leading position as the world's number one producer of natural rubber offering promising business opportunities. Similarly, as a leading player in the global agriculture sector, particularly as a top producer of rice, sugar, tapioca, and canned pineapples, Thailand has successfully exported food to Japan.
Moreover, Thai seafood, furniture, clothing and textiles, and gems and jewellery sectors have made significant inroads into the Japanese market. As reported by The Nation, unique Thai products such as fresh bananas and their processed products are also making waves, projected to generate up to 1.07 billion baht in revenue.
In addition, the popularity of Thai souvenirs in Japan, including items like Naraya bags, dried mango, herbal inhalers, and silver accessories, offers further insights into Japanese consumer preferences. Understanding these trends can guide Thai sellers in strategising their market entry and product offerings. By focusing on major import sectors in Japan and aligning their products accordingly, Thai businesses can maximise their export potential to Japan.
Shipping to Japan: things Thai exporters need to know
Understanding Japan's shipping regulations and processes is paramount when sending packages from Thailand to Japan. This involves grasping Japan's de minimis value, knowledge of restricted or prohibited items, compliance with customs rules, and a clear idea of how cross-border sales tax operates. Additionally, specific criteria must be met when importing goods into Japan.
Customs clearance
Familiarising yourself with local customs clearance processes is essential. This includes understanding which products require additional certificates or import licenses. It's also important to remember that customs regulations may vary from those applicable for shipping from Japan to other countries.
1. Restricted and prohibited imports
Before shipping to Japan, ensure your packages contain goods that are not prohibited or restricted for import. Prohibited items may be confiscated or returned, while restricted items might require special licenses or permits. Here are some categories of items and their associated shipping regulations according to the Trade Gov:
Airline tickets, forms: Declarations are required for airline tickets, computer storage devices, and ATM cards.
Food products: A food license is required for up to 10kg of food items for non-commercial purposes. The export of perishable foodstuffs into Japan is not allowed.
Cosmetics: Import license needed for commercial-use cosmetics. Private-use cosmetics over 24 pieces require a medical license.
Chemicals, non-hazardous: Shipment must include a component analysis table.
Personal belongings: Clear markings indicating 'Personal Effects' or 'Unaccompanied Baggage' is required on shipping documents.
Shoes: The invoice should describe upper and lower sole materials and types of shoes.
Coffee: Only roasted or processed coffee is acceptable, with a food license required for resale or distribution.
Fabrics: Material description should be provided on the invoice.
Drugs: An import license is needed for prescribed medicines and drugs available in pharmacies. Psychotropic drugs cannot be imported.
Glass products: They need to be well packed to prevent damage.
Event tickets: Must be sent as Worldwide Parcel Express (WPX).
Remember that the importer’s full name, contact number, and address are mandatory per Japan Customs regulations. Insufficient information can lead to clearance delays. Private shipments will require not only declaration but Customs inspection as well before delivery to the receiver.
