Japanese drugstores have become a crucial part of daily life in Japan and a sought-after shopping destination for visitors. Their ability to blend affordability, variety, and convenience has propelled them to international recognition.
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Japanese drugstores, known as "kusuriya" or "yakkyoku," have evolved far beyond simple pharmacies. They are now major retail destinations, offering a vast range of products, from health and beauty essentials to daily household items and even food. Their success is driven by a combination of convenience, product diversity, and competitive pricing. This article explores the growth of the Japanese drugstore industry, its business strategies, and its global expansion.
The Growth of the Japanese Drugstore Industry
In Japan, drugstores have transformed into multi-category retailers, attracting both locals and tourists. The industry has seen significant growth due to factors such as:
Japanese drugstores are known for their incredible variety. Here's a breakdown of what they usually sell:
Several major companies dominate the Japanese drugstore industry, each offering unique business models:
Business Strategies for Success
Japanese drugstores implement various strategies to maintain their dominance:
With their popularity soaring, Japanese drugstore chains are expanding internationally. Some key trends include:
Japanese drugstore chains have been actively expanding into various international markets, particularly across Asia. Countries Where Japanese Drugstores Are Expanding :
Vietnam - Matsumoto Kiyoshi, one of Japan's leading drugstore chains, entered the Vietnamese market through a joint venture with Lotus Food Group. Their first flagship store opened in Ho Chi Minh City in March 2020. The company plans to open 10 to 15 stores over the next five years, aiming for hundreds of outlets nationwide .
Thailand - Tsuruha Drug has established a strong presence in Thailand, operating 13 stores as of late 2014. The company plans to open about 20 new stores annually over the next five years, targeting a total of 100 outlets, primarily in Bangkok and other key regions.
Singapore - Welcia-BHG, a joint venture between Japan's Welcia Holdings and China's Beijing Hualian Group, has been expanding in Singapore since 2017. The company plans to open 29 more outlets over five years, focusing on urban areas and offering exclusive Japanese beauty and health products .
Taiwan - Matsumoto Kiyoshi has also expanded into Taiwan, establishing stores that offer a wide range of Japanese health and beauty products. This move caters to the growing demand for Japanese cosmetics and healthcare items among Taiwanese consumers.
Hong Kong - Plans are underway for Matsumoto Kiyoshi to enter the Hong Kong market, further extending its reach in Asia. The company aims to tap into the region's robust demand for Japanese health and beauty products .
China - Welcia Holdings previously expanded its drugstore business into Shanghai, China, under the brand Sakura Kobo. However, due to regulatory challenges, further expansion plans in China are currently on hold .
These expansions reflect the global appeal of Japanese drugstores, known for their wide product selection, competitive pricing, and high-quality offerings. As consumer demand for Japanese health and beauty products continues to grow, these chains are strategically positioning themselves in key international markets.
Looking ahead, Japanese drugstores are expected to continue innovating, leveraging digital transformation, and expanding globally. Their ability to adapt to market trends while maintaining high-quality, affordable products ensures their ongoing success.
