A regional deep-dive into digital, luxury and video by Teads Insights

1. LUXURY INSIGHTS:
JAPAN
August 2015

2. Overview
Digital audience behaviour in Japan
Source: eMarketer, Ipsos, Bain
Internet users represent
4/5
of the Japanese population
Japanese e-commerce
market represents
1/4
of total sales in Asia Pacific
65%
of the population access
internet on a mobile device
There are
1.2
mobile connections per
inhabitant
79%
of Japanese internet users are
digital buyers
The Japanese luxury market is
expected to grow +6%
in volume for 2015 vs. 2014

3. Why digital advertising?
Source: eMarketer, Ipsos
Affluent consumers rely on their digital devices
41%
of luxury buyers use search
engines to research luxury
goods
1/3
of Japanese Facebook users
earn more than
¥7,000,000 a year
99%
of Japanese luxury shoppers
use the internet daily
99%
59%
28%
86%
25%
11%
0% 20% 40% 60% 80% 100% 120%
PC/Laptop/Netbook
Smartphone
Tablet
Devices used by affluent luxury buyers
vs. general population (%):
Average Luxury buyers

4. Video advertising
Typical smartphone video
watching sessions last
between
1-3 min
for Japanese aged over 30
Online viewers spend
2,747h
watching online videos each
month
Source: eMarketer, Ipsos
Japanese affluent are extensively exposed to video ads
80%
of Japanese internet users are
online video viewers
10%
12%
12%
15%
27%
0% 10% 20% 30%
Read online articles
Search online to find a store address
Read online consumer reviews
Look at comparison website
Look for information from a website/app
Digital activities by luxury shoppers to
search for information (%):
Users who watch digital video spend on average
51 min per day watching videos on their
computer and 34 min on their mobile

5. Ad effectiveness
Luxury consumers are effectively reached through video ads
Source: eMarketer, Ipsos
44%
of Japanese internet users
read news online
60%
of Japanese say they are
constantly looking at screens
these days
1/3
of digital video viewers said their interest
for the brand/product grew after
consuming branded digital content
47%
of luxury buyers use their computer to
conduct online research about luxury
products
Video
is the preferred form of luxury
advertising according to Japanese
luxury shoppers
Japanese shoppers spend
$2,720
on average on a luxury
purchase,
vs. $2,600 in Europe/the US

6. Path to purchase
Video ads influence shoppers looking for information online
Source: eMarketer, McKinsey, Ipsos
7%
of luxury purchases
happen online
18% of Japanese urban
female internet users prefer to
shop digitally rather than in-
store
Sophistication &
self-esteem
drive luxury purchases in Japan
Among all Japanese luxury buyers:
92%
search for
information
prior to
purchase
of which
49%
check
information
sources
online
39%
of luxury shoppers combine
online and offline research
before purchasing luxury
products

7. PLEASE CONTACT :
insights@teads.tv