As inflation begins to cool down worldwide due to slower economic growth, stricter monetary policies of banks and supply chain improvements, Japanese consumers are still struggling to deal with the country’s inflationary environment as households are dealing with unfamiliar rises in consumer goods prices while not seeing wages keep pace. According to Euromonitor’s Q4 forecast, inflation in Japan is expected to increase to 3.2% in 2023 before easing to 1.7% in 2024. While inflationary relief is hopefully in sight, the rises in prices and perception of how brands and suppliers have passed on costs can have lasting impact. Using stock keeping unit (SKU) data and data from Euromonitor’s new e-commerce system, we’ll dive into how prices and sales have performed in the first three quarters of 2023 for an increasingly important product category given Japan’s demographic challenges, adult incontinence products.
Adult incontinence online sales continue to thrive in 2023
Prices and product availability rise in tandem online
We can also observe a noteworthy surge in the total number of SKUs, underscoring a robust demand for enhanced product variety within the adult incontinence products market. This heightened demand is met by suppliers offering diverse options, including various types of pads, pants or taped products catering to both moderate and heavy users. Furthermore, the indication of strong supply dynamics is evident as online retailers strategically expand their offerings to encompass larger, bulkier items, contributing to the observed increase in the average SKU price. This interplay between demand, variety and supply dynamics shapes a dynamic landscape within the online marketplace for adult incontinence products.
Lower-priced products seeing strongest rises in prices
However, tracking price increases at either larger price points like the 75th percentile or lower prices at the 25th percentile can provide more direction for companies and brands looking to provide support to consumers and improve their products’ image and reputation. Here, we can see that the lower-priced SKUs showed the strongest price increases with the 25th percentile increasing by a rate of 7%. Businesses, brands and retailers must diligently monitor these diverse price points and assess their impact on consumers, especially as price increases can disproportionately affect those with lower income. Even in a nation known for brand loyalty like Japan, there’s a risk of consumers shifting allegiance to brands and products that offer affordable and stable pricing to better meet their needs, especially given all consumers’ acceleration towards online purchases.
Please see our E-Commerce page for more information on methodology and coverage, or download our on-demand webinar, Mastering E-Commerce Growth: How to Win Online Amid Uncertainty. Further insights into key economic and inflation trends are available at Global Inflation Tracker: Q4 2023 and Global Economic Forecasts: Q4 2023.
Note: E-commerce sales include data from Amazon Japan, Bic Camera, Cocokara Fine, Cosme, Matsumoto Kiyoshi Rakuten, Yahoo Japan and Yodobashi Camera. Sample based on SKU prices found in Euromonitor International’s e-commerce tracking tool Via with data extracted in November 2023. Please note that due to ongoing improvements to the AI-led product matching of SKUs to categories, supplier, and brands, data and SKU counts can be revised based on system updates. SKU counts used for the analysis include: n=26,514. Adult incontinence includes a variety of protective products for different levels of bladder or bowel adult incontinence. Products with different levels of absorbency are covered, including pads, pants/protective underwear, briefs, undergarments and pant/pad systems.