Japan Loyalty Market Report 2022-2026

Japan Loyalty Market Report 2022-2026

The "Japan Loyalty Programs Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.

Loyalty Programs Market in Japan is expected to grow by 12.6% on annual basis to reach US$ 10160.8 million in 2022

In value terms, the Loyalty Programs Market in Japan has recorded a CAGR of 13.0% during 2017-2021. The Loyalty Programs Market in Japan will continue to grow over the forecast period and is expected to record a CAGR of 11.9% during 2022-2026. Loyalty Programs Market in the country will increase from US$ 9024.8 million in 2021 to reach US$ 15936.7 million by 2026.

Point cards and loyalty programs are everywhere in Japan. For several years, the rewards system has been a popular way for brands and retailers to encourage customers to become frequent shoppers. No matter what form it took - plastic card, stamp card, or a digital app - most merchants and retailers in the country are using some kind of loyalty and rewards program. This has resulted in consistent growth for the loyalty and rewards programs industry in Japan over the last three to four years, and the publisher expects the trend to further continue from the short to medium-term perspective.

From telecom providers to e-commerce platforms and convenience stores, all are taking advantage of the growing preference for loyalty programs among consumers to drive their growth and incremental revenue in Japan. Notably, hospitality groups are entering into strategic partnerships with loyalty program providers to gain direct access to members, which will subsequently help them in increasing their market share in the country.

In Japan, retailers across categories, including restaurants, coffee shops, clothing stores, rental car agencies, and many more, like to offer their customers a loyalty program. Moreover, customers in Japan want to earn points and rewards regardless of where they shop in the country.

Consequently, the publisher expects retailers to record strong growth which continues to increase their network of retailers. Notably, this has been one of the major reasons why the T-Point Program, which was one of the top loyalty programs in the country a few years back, has fallen back in the rankings. The T-Point Program was dropped by several retailers in Japan, whereas new loyalty programs, such as the one offered by Rakuten, have been able to record strong growth over the last three to four years because it has continued to increase its partner network.

Moreover, the differentiated approach to loyalty programs has also helped Rakuten in becoming the most preferred loyalty program among Japanese consumers. The publisher, therefore, expects that increasing the partner network and offering differentiated loyalty programs will help the providers in driving their growth over the next four to eight quarters.

Loyalty program providers are increasing their partner network to further boost their growth in Japan

To further make their program attractive to consumers and offer them more choices to earn and spend their loyalty points, loyalty program providers are entering into strategic partnerships with more and more brands.

In July 2021, Rakuten announced that the firm has entered into a strategic partnership with Marriott International. Under the strategic collaboration, members of the Rakuten loyalty program will get more benefits such as discounted member rates, the opportunity to earn more points, and other member-only benefits. On the other hand, the strategic collaboration with Rakuten will allow Marriott to gain direct access to the more than 100 million members of the Rakuten loyalty program.

The publisher expects more such strategic collaborations over the next four to eight quarters, which will further boost the popularity of the loyalty programs in Japan from the short to medium-term perspective.

Now global players are launching their rewards program to gain market share in Japan

As the loyalty and rewards programs market continues to grow year on year in Japan, global rewards platforms are expanding their footprint in the country to gain more market share in the global industry.

Japanese luxury carmakers are introducing new buyback and loyalty programs for overseas customers

The demand for loyalty programs is increasing globally, and not just in Japan. In the midst of these growing trends, Japanese luxury carmakers are launching new buyback and loyalty programs for their Indian customers. In March 2022, Lexus, celebrating its 5th anniversary in India, announced that the firm is launching a new buyback and loyalty program for its customers in the country. Notably, the program is part of the firm's anniversary celebrations in India, as it completes five years since its arrival in the country.

Hidden Gems in Nagasaki

Hidden Gems in Nagasaki

Nagasaki is the world-famous capital of the Nagasaki Prefecture on the Japanese island of Kyushu. During the 16th and 19th centuries, the city became the sole port for commerce with the Portuguese and Dutch. Nagasaki's Hidden Christian Sites have been well-recognized and included in the UNESCO World Heritage List. There's much to see and do here, from ancient antiques to architecture depicting the era when Nagasaki had a strong Dutch influence. There are also some magnificent hidden jewels waiting to be discovered.

Fukusai-Ji Temple: The temple is shaped like a giant turtle holding an 18m-high Kannon figure on its back; it's a magnificent sight to witness. Inside the temple, a Foucault pendulum depicts the earth's axis' revolution. The Foucault pendulum swings from the hollow statue's top' it's comparable to its bigger counterparts in St Petersburg and Paris. Unfortunately, the ancient temple, erected in 1628 and of Chinese origin, was entirely destroyed during the bombardment. Its replacement was constructed in 1976.

Ōura Church- The Ura Church, Japan's oldest existing Christian church, was erected at the end of the Edo Period by a French missionary for the city's burgeoning community of foreign merchants. The church is dedicated to the remembrance of the 26 Christians murdered in the city in 1597, and it is now a beautiful example of contemporary European architecture. The church was the first Western-style structure in Japan to be declared a national treasure; it stands out among the most prominent Japanese traditional structures.

Glover House and Office: Glover House and Office are located in the midst of the lovely Glover Gardens. Puccini's "Madame Butterfly" is supposed to have been inspired by this mansion and office. The home was erected in the 1860s by Thomas Blake Glover's Scottish trader. It's a gorgeous mix of traditional Japanese architectural components with a Georgian-style façade. The structure's latticed arches, stone-floored verandas, French windows, and British chimneys are set on a tile-covered Japanese roof. As you do your rounds within the park, look for the monuments of Puccini and Miura Tamaki, who played Madame Butterfly.

Suwa Shrine: Suwa Shrine's beginnings may date back to the 1500s. Teramachi-Dori: The shrine's original location is traced to Temple Street. Evidently, Christians demolished the Suwa Shrine, as well as other Buddhist and Shinto treasures. Suwa Shrine was renovated in 1625 and transferred to its current position in 1648 to revitalize the Shinto faith. The Nagasaki Kunchi Festival is held here every October. It has a history extending back more than 400 years and is among Japan's most significant events.

Gunkanjima Island: This tiny island is located some 20 kilometers from Nagasaki Port. Until 1974, the island was a coal mine, and more than 5000 people lived on the 480-meter-long, 150-meter-wide place. It previously had the highest population density ever recorded in history. In order to house so many people in a somewhat confined space, every available ground was developed; this transformed the island into a massive battleship. "Gunkanjima" is its Japanese moniker, meaning "battleship island." However, Hashima is the island's official name. The mine was stopped in April 1974, and the occupants were forced to depart Gunkanjima; they thus left the island and its structures. Today, you may tour the decaying peninsula and have a close look at it.

Twenty-Six Martyrs Museum- This museum honors the twenty-six Christians killed here on February 5, 1597. There were both foreign missionaries and Japanese laypeople among them. Missionary work was illegal at the time; therefore, Japan's monarch, Toyotomi Hideyoshi, ordered the executions as a warning. The monument is positioned in a small park on a hill near Nagasaki Station and provides beautiful city views. The museum behind the memorial is dedicated to the martyrs' remembrance and Japanese Christianity. The interior design is evocative of the church massacre, with stained-glass windows. You'll find other Christian relics, including historical papers, statues, and jewelry. If you're searching for something distinctive to do in Nagasaki, this is the place to go.

Mt. Inasa: This is a must-see if you're in Nagasaki; it offers a breathtaking nocturnal perspective. The sight is so stunning that it's dubbed the "ten-million-dollar night view." To reach the peak, which is 333 meters above sea level, you must ride in a ropeway gondola operated by the Nagasaki Ropeway. The trip itself is impressive, and when you reach the top, you'll be able to see the magnificent glittering night view below. The romantic mood produced by the dance of lights that mysteriously emerge from down makes the observation deck pretty ideal for a date night.

Agency for Cultural Affairs and Japan Heritage

Agency for Cultural Affairs and Japan Heritage

Japan's Agency for Cultural Affairs, in cooperation with the Japan National Tourism Organization, proudly presents the Japan Heritage website's Luxury Travel content. These pages feature the country's diverse cultural heritage, with the feel of a leisurely vacation with impeccable service.

The Luxury Travel pages help provide a more relaxed travel experience; soaking in the local atmosphere and taking a deep dive into Japan Heritage's unique combination of historic traditions and bold innovation.

For example, switch off in the private space of a traditional country villa or luxury seaside resort and indulge in the region's gastronomic delights – carefully selected local ingredients cooked to perfection. Enjoy a variety of exceptional activities both in the accommodation and the surrounding countryside. Experience the essence of Japan and discover a cultural legacy for the generations.

Journey deep into the tranquility of the mountains of Japan, experiencing the rejuvenating powers of nature. In the hinterland of Nara, the former capital of Japan in ancient times, the Muro area is replete with temples, shrines, and sacred sites that have endured for over a thousand years. Glimpse the spiritual foundations and the history of diversity within Japan's unique religious culture. Stay in a traditional Japanese wooden farmhouse, enjoy hearthside meals of delicious local specialties, and unwind with a private meditation experience in the depths of a secluded valley.

An ancient path cuts through the picturesque countryside of Nagano Prefecture. It's the Nakasendo, a centuries-old mountain road that has been traveled by scores of samurai, monks, peasants, and even an emperor. Along this path, discover local shops, hidden shrines, and breathtaking views.

A lifetime away from the bright lights of Tokyo, the Kiso region in Nagano Prefecture allows visitors to truly discover a Japan that is straight out of a storybook. Stone paths, wooden buildings, and quaint post towns await those travelers lucky enough to be let in on the secret of the Kiso Valley.

A crossroads of luxury and history, the area allows for true historical immersion while also offering stays in some of the most exclusive traditional lodgings in the country.

Once found across Japan, Ise-Shima hosts many of the country's remaining ama divers. The ama live in close harmony with nature – plunging into the inky depths without any modern diving equipment, they rely instead on their expert knowledge of the sea and weather conditions to make their dives successfully. A typical catch includes abalone shells, turban shells, and seaweed, although the ama are careful never to take too much and disturb the delicate marine ecosystem – a form of sustainable fishing dating back to at least the 8th century, when ama divers were mentioned in the Man'yoshu poetry compilation. Today, visitors can join ama divers underwater as they practice their craft or sit with them in their amagoya huts where they rest after dives, grilling the fresh shellfish and imparting unique tales of ama life. The observation deck atop Mount Yokoyama offers expansive views of Ago Bay and its many islands.

Japan Heritage Official Website: Japan Heritage is a project focusing on various historic cultural properties across Japan, from those famous across the world to hidden gems known only to the select few. The website features deep-dive reports, stunning virtual reality and video content, descriptions of the historical backgrounds of cultural properties, and much more.

Railway Companies Collaborate in Kansai region of Japan

Railway Companies Collaborate in Kansai region of Japan

The Kansai region of Japan has always been a popular travel spot for tourists from overseas. In addition to taking measures towards the pandemic, three railway companies, Keihan Holdings Co., Ltd.,Kintetsu Railway Co., Ltd. and Nankai Electric Railway Co., Ltd., are working together to widely introduce tourist spots that are suitable for in-depth travel experiences along the railway lines to overseas tourists. This is in preparation for the day when foreigners can freely visit Japan again in the future.

This collaboration is part of the Visit Japan program. In addition to tourist spots that are already popular, the program covers in-depth travel courses that are not yet known to many people and won't be crowded -- spots that are gaining attention due to the pandemic. These new spots can be easily visited by boarding a Keihan, Kintetsu, or Nankai train.

Left: Hieizan Enryakuji Temple, a World Heritage Site. Top right: The Keihan train is a convenient way to get to Uji from Osaka or Kyoto, or to Otsu City in Shiga Prefecture. Middle right: In Uji City, Kyoto Prefecture, the home of matcha green tea where many tea shops stand along the Byodoin Temple, where you can also enjoy matcha green tea sweets. Bottom right: Tourists can learn about the history of sake and how to make it at the Gekkeikan Ōkura Memorial Museum.

In Uji City, Kyoto Prefecture, the home of matcha, there is a world-famous world heritage site known as Byodoin where you can enjoy the different scenery of the four seasons throughout the year, including cherry blossoms in spring, wisteria in early summer, and autumn leaves in autumn.

Many valuable national treasures are also stored in Hoshokan Museum which is located in the area. At the Taihoan tea house operated by Uji City, you can experience the ichi-go ichi-e (one time, one meeting) spirit in the aesthetics of Japanese tea ceremony by making matcha green tea in front of tourists and serving it with seasonal Japanese sweets for a reasonable price.

Historical Park of Tea and Uji Town, located next to Keihan Uji Station, was fully opened on October 1, 2021. In addition to a garden and resting area, there is a museum where visitors can learn about the history of Uji tea, and a restaurant that serves matcha sweets, making it a place where people can interact about Uji tea and promote tea culture.

Located in Otsu City, Shiga Prefecture, east of Kyoto Prefecture, is the sacred site of Japanese Buddhism, Hieizan Enryakuji Temple, a World Heritage Site opened in the 8th century by Saichō (Dengyō Daishi), covering an area of 1,700 hectares. The Sakamoto Cable (Car) takes you to the top of the mountain, and along the way you can enjoy the beautiful scenery of the surrounding forest and Lake Biwa, the largest lake in Japan. At Enryakuji Temple, you can also enjoy refined Buddhist (vegetarian) cuisine that uses local ingredients and no animal ingredients. In addition, you can experience the life of a monk by participating in Zen meditation, sutra copying, and shukubo (temple lodging).

In Otsu City, there is Ogoto Onsen, which is blessed with excellent location. The area nearby is full of ryokans (Japanese inns) that have guest rooms with private hot spring baths (including open-air hot spring baths) where you can enjoy the tranquil scenery of Lake Biwa while soaking in the hot spring without going outside. With a history of 1,200 years, Ogoto Onsen is known as one of the best hot springs in Japan with beneficial effects for skin, and is especially popular among female visitors. The hot spring is highly alkaline with a pH value of 9.0. After soaking in the hot spring, you can enjoy benefits including skin smoothing, muscle pain relief and recovery from fatigue.

The Yoshino area in Nara is famous for Mount Yoshino, a sacred place for cherry blossoms, where you can fully enjoy shiroyamazakura cherry blossoms. Besides the scenery of cherry blossoms every spring, the local culture-related industries of Yoshino are closely related to the surrounding nature. Sake brewing is thriving, and Miyoshino Sake Brewery uses a traditional brewing method using natural yeast that are placed vats made of local Yoshino cedar wood. The local sake brand Hanatomoe, which is brewed in a wooden vat, is deeply appreciated by sake lovers in Japan and abroad for its woody scent, natural acidity and powerful flavor.

Kinpusenji Temple, the symbol of Yoshino, is the central training place of the traditional Japanese ascetic tradition of Shugendō, and the Zao-do main hall there enshrines the Buddha Zao Gongen. Zao-do is currently being renovated and it will be completed around March this year in preparation to welcome visitors. If you board Blue Symphony, a sightseeing train operated by Kintetsu, you can travel between Yoshino and the central areas of Osaka at a leisurely pace. On the luxuriously designed train, you can beautiful scenery along the train's route and enjoy locally made sake and exclusive cakes.

Sakai City in Osaka Prefecture is known for its tea ceremony culture and industries such as traditional cutlery with renowned brands like Sakai knives. The World Heritage Site of Mozu and Furuichi Tumuli Clusters includes the Tomb of Emperor Nintoku as well as the Kami Ishizu Misanzai Kofun Tomb. The visitor center there introduces the history and culture of the tumuli clusters, and aerial images are shown in a 3D theater located inside the center. After being registered as a World Heritage Site in 2019, the Mozu and Furuichi Tumuli Clusters has been attracting attention from Japan and abroad, and related organizations are considering using Gas balloons to provide tourists with a complete aerial view of Sakai City and the tombs.

Kōyasan (Mount Kōya), located in Wakayama Prefecture, is the head temple of the Shingon sect of Buddhism, founded by Kukai (Kobo-Daishi), and has a history of over 1,200 years. Of the 117 temples starting with Kongobuji Temple, Danjō-garan and Okunoin are the most popular among tourists. In Kōyasan, where there are many scenic spots and historical architecture, there are shukubo (temple lodging) where guests can stay overnight. You can experience the solemn and sacred feel of religion and simple lifestyle of monks by enjoying Buddhist (vegetarian) cuisine in the morning/evening and participating in the morning service of monks.

If you board the Tenku (Nankai Electric Railway) sightseeing train, which travels through a mountainous terrain with a maximum height difference of 443 meters between Koyasan and Osaka, you can enjoy the ever-changing scenery of the surrounding forests and valleys and the beauty of the four seasons from the windows of the train.