How homegrown D2C brands are shaking up the Japanese market
The Internet has paved the way for Direct to Consumer e-commerce brands to flourish. However, it takes more than just digital savviness for D2C brands to break through the market.
In the US, D2C brands are growing at a significant pace.
Although we have yet to see a Glossier or Warby Parker in Japan, a few homegrown brands are on their way to becoming household names.
Back to basics
D2C companies create, market, sell and deliver directly to their customers. Without middle-men and brick and mortar stores, they can drive their prices down while maintaining the high quality of their products.
But just like any business, finding what the market needs or wants is the key to success.
Premium wristwear D2C company, Knot, became one of the few successful D2Cs in to break through Japan.
Dubbed as “the first new wristwatch brand to appear in 80 years,” it became the biggest competitor of luxury watch brands such as SEIKO, CITIZEN, and CASIO that used to dominate the market.
Knot creates custom wristwatches that start 15,000 yen (approx. US$150) per piece and sell them online.
Its style and affordability broadened its customer base across all ages. On its fifth year, Knot reached one billion yen in sales.
Recently, they collaborated with retail clothing giant UNIQLO.
Their special edition watches were also made available in UNIQLO’s stores at a limited time.
More than just digital
Cosmetics maker and online store ETVOS deeply understood the power of a digital strategy early on.
In the ten years of mastering the creation of healthy and organic make-up, ETVOS was also already executing a sophisticated web strategy which includes SEO Optimization, SNS operation, and AD handling.
Their breakthrough came in 2015 when they released their Mineral Highlight Cream — a product in collaboration with hair and make-up artist Yusuke Kawakita.
The partnership succeeded in capturing a wider audience, but the company’s solid digital strategy was crucial in sustaining the popularity of the brand and all its products.
Making it real
For the founders of made-to-order high heel online store, Gauge, it is important that “the first point of contact must be face-to-face.”
They set up new customers to have their feet measured by Gauge’s shoemakers.
This is one way for the company to introduce its auto-foot-measuring tools made from state of the art technology and ensure that customers get to find the shoe shape they are most comfortable to walk in.
But most importantly, this short human interaction ensures increased customer loyalty. Eighty percent of the new customers who had their feet measured proceeded with a completed purchase.
Meanwhile, D2C jewelry brand ARTIDA OUD opened its limited-edition store in Shinjuku’s Isetan Department.
Loads of ARTIDA OUD fans flocked the pop-up store proving that people who follow their products online will make the effort to go to the store and experience the products “in the flesh” when given this rare chance.
Text: Christine Roque
Original(Japanese 1 & 2): Shidu Kumon and BeautyTech.jp editorial team
