Market Trends of Japan Contract Logistics Industry
This section covers the major market trends shaping the Japan Contract Logistics Market according to our research experts:
Growth in E-Commerce
The e-commerce retail in Japan is segmented by the companies selling products of various domains like fashion, electronics & media, food & personal care, furniture & appliances and Toys. With the growing market, the big companies are focusing adapting the updated technologies while the small retail companies are actively collaborating with the big market players like Amazon (Amazon Fulfilment Services) and Rakuten (Rakuten Fulfilment Services) for services like inventory management, packaging and delivery. Among the recent developments, Aeon (Japan’s largest shopping mall developer and operator) agreed upon a deal to develop automated warehouses with Ocado (the UK automated warehouse provider), expecting its sales to increase to ¥ 1 trillion by 2035.
Further, the penetration of the blockchain facilities in logistics services and a 10% decrease in production and rising demand of beef - backed by the growing interest in American-style steak in retail and foodservice is also driving the growth in the demand for the temperature-controlled logistics facilities in the retail e-commerce.
Decreasing Workforce Pushing the Automation in Logistics
The labour skill shortage is a common issue faced by logistics companies worldwide, but Japan is one of the most affected countries due to its ageing and declining population. The labour shortage, increasing e-commerce penetration and introduction of intriguing technical advancements are some of the trends thrusting the inculcation of automated machines and technologies with the warehousing facilities. The Japanese fashion giant Uniqlo along with Daifuku Logistics Solutions plans on investing ¥ 100 billion and has partnered with two robotic startups – Mujin Inc. and Exotec Solutions to develop robotics and material handling systems reducing workforce involvement in the inventory management and delivery to 100%. Amazon, along with FamilyMart Co., Odakyu Electric Railway Co. and other firms is planning to set up the "Amazon Hub Locker" service at a total of 200 locations mainly in Tokyo and Kanagawa Prefecture by 2020 where Amazon customers can swipe barcodes sent by e-mail over reading machines to receive their goods.
