Why Japanese market is eluding the power of TEMU

While TEMU has achieved rapid penetration in several Western markets through aggressive pricing and high-volume digital marketing, its performance in Japan highlights the limits of the model, according to a senior figure in the trade there.

A key issue is consumer expectation, says Yoshi Dohi (left), owner of Dohitomi, the global supplier of fishing hooks based in Osaka. Japanese anglers – and consumers more broadly – place a premium on product quality, durability and brand trust. Dohi, who is also a director of the Osaka Fishing Tackle Cooperation Association, told Angling International: “The fishing tackle sector in particular is dominated by well-established domestic brands with strong reputations for precision engineering and consistency. In this context, TEMU’s value proposition, which is heavily price-led, struggles to resonate with a customer base that prioritises reliability over cost savings.”

Logistics and delivery standards also present a barrier, added Dohi. “Japan’s retail ecosystem is built around speed, efficiency and near-flawless service levels. Long delivery times, variable product quality and complex returns processes – often associated with cross-border marketplace models – undermine consumer confidence and limit repeat purchasing behaviour.”

Another factor is the strength of the domestic distribution networks in Japan. “Unlike fragmented markets elsewhere, Japan benefits from highly organised wholesale and retail structures, supported by deep relationships between suppliers and distributors. This makes market entry more challenging for platforms that bypass traditional channels rather than integrate with them.

“Regulatory scrutiny and data privacy concerns have further complicated expansion efforts. Japanese consumers and authorities alike maintain high standards in these areas, creating additional friction for overseas platforms attempting to scale without local adaptation.”