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Japan Market Research Report

 

(August 10th, 2009)

New Concept Café : targeting women in 20’s for Test Marketing

L-Café: A café with very innovative marketing strategy has recently launched on July 1, 2009 by sample lab co., ltd. The aim is to target women in their early twenties (considered to be the “heavy trend followers and the consumption market drivers” of Japanese fashion and consumption market) in Shibuya, Tokyo (the hub of Tokyo fashion). L-Café is in the spotlight for many domestic and international companies in Japan and around the world. For overseas companies wanting to test their products in Japanese market as initial research, L-Café could be a very quick and easy starting point. The attraction stems from the fact that businesses need not take risks in costly investment for market research or getting drawn into contractual agreement with local sales agents. The café could also assist companies in deciding whether their product needs to be localized to fit the Japanese market or can remain in its original state.

L cafe offers a cafe space and free sample commodities to its customers. Young Japanese female consumers can be broken down into three main categories. High school girls who are also known as the trend creators habitually follow the unstable premature market. There are the women in their twenties who are the trend-followers. Then there are women in their thirties who are the “selective” group who often have stronger stability and tend not to be swayed by the latest trends as easily as younger groups. This is why L-Café has gone for women in their twenties as the “consumption market drivers” in Japan, and tend to have more money to spend on themselves than most other groups in the population.

After the customers enjoy their tea or coffee and cake they get “L-coins,” which is a token only exchangeable with the sample commodities at the café; typically 1 for a coffee and 3 for a slice of cake. After registering their membership information, the member customers can pick and choose 1 sample for 1 token, agreeing to fill out the survey after using the sample(s) of their choice. The samples are displayed inside the glass showcase next to the cashier.

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The customers go through a “compare and select” process of these samples which simulate the normal day-to-day shopping experience. Instead of mass-mailing your products or randomly distributing your samples on the street, this method allows for targeted and realistic feedback on your product. The whole process takes one month: two weeks for display and distribution, 1 week to collect the survey results and one week to compile the statistics.

Additional reasons why L-Café is proving a strong insight into market trends are:
- Café gets 300 visitors per day.
- Café is located at the heart of Shibuya (one of Tokyo`s busiest crossings with 350 pedestrians per minute).
- Ability to test your product in a “normal” shopping-like environment whilst customers “compare and select” up to eight products in the showcase.
- Survey response rate between 60 to 90%, for the 10 survey questionnaires about specific sample products (response rate higher if customers take product home).

The Café also hopes for the Buzz Effect (word-of-mouth) during their visits to the café. Men are also welcome to the café, but Café’s main target is the women in early twenties. For a limited time only, the Café is promoting “Cinderella Time” where no men are allowed entry after midnight. The café will be open until 4:30AM only for the women who have missed their last train home. This special service is limited until September, 2009.

KN
2009/08/10

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