[Edaily Reporter Han Jeon-jin ] Domestic retailers are increasingly expanding into the Japanese market. This trend spans across various sectors, from e-commerce to department stores and cosmetics. While past expansions were primarily centered on select K-Beauty and fashion brands, the scope is now broadening to include distribution platforms and brick-and-mortar locations. With the Korean Wave now firmly established as part of everyday consumer culture and the domestic retail market entering a period of slow growth, companies are positioning Japan as a new growth hub.

According to industry sources on the 18th, Coupang is expanding its delivery app “Rocket Now” in Japan. The service, which launched in select areas of Tokyo in January of last year, is currently operating in major cities across 46 of Japan’s 47 prefectures. In June, the app surpassed 7 million cumulative downloads. Musinsa saw its number of new Japanese members on its Global Store increase by 109% after approximately 75,000 people flocked to its Tokyo pop-up store in the first half of this year. The company plans to expand its reach through additional pop-ups in Harajuku this month and in Osaka in October.

The department store industry is also expanding its operations in Japan by positioning itself as an export platform for K-brands. HYUNDAIDEPARTMENTSTORECO.,LTD(069960), following the operation of various pop-up stores in Japan through “HYUNDAIDEPARTMENTSTORECO.,LTD,” opened its first flagship store on Omotesando in Tokyo last month. Lotte Department Store has embarked on expansion through “Next Lab,” a platform for K-fashion’s overseas expansion. Next year, it plans to establish a dedicated K-fashion section in Japan under the name “Lotte Department Store Next Lab.” The company plans to showcase dozens of Korean brands annually in a permanent pop-up section designed as a regular store.

Fashion and beauty companies are also intensifying their efforts to tap into local channels. #HYUNGJI Innovation and Creative Company Limited is preparing to enter the Japanese home shopping market in November with its women’s apparel brand “Caris Note.” Next month, following an order from FashionNet, a Japanese fashion specialist, the company will produce products tailored to the local market and launch its initial shipment in early November. AMOREPACIFIC CORPORATION(090430), which has been putting significant effort into its Japanese market strategy, has recently achieved tangible results. Its subsidiary, COSRX, posted its best-ever sales during “Mega Wari,” a major discount event hosted by Qoo10 Japan—Japan’s largest beauty platform—and ranked first in the first half of the “Qoo10 Japan Mega Beauty Awards 2026.”

The reason the retail industry is setting its sights on Japan lies in the expansion of K-wave consumption across all generations. In its “2026 Strategy for Entering the Japanese Market” report, KOTRA defined the current trend as the “4th Wave of the Korean Wave.” While the early Korean Wave of the 2000s—centered on dramas—was limited to women in their 40s to 60s, and the K-pop-centered Korean Wave of the 2010s was confined to women in their 20s, it has now spread across all ages and genders. This signifies that fandom-driven consumption has broadened to the general public.

This trend is confirmed by the numbers. According to the Export-Import Bank of Korea, the number of new local subsidiaries established in Japan by Korean companies and individuals last year reached 384, setting a record high. The figure has increased for three consecutive years—from 158 in 2022 to 272 in 2023 and 318 in 2024. The investment amount also reached $1.753 billion, far exceeding the previous year’s figure ($639 million). This indicates a clear trend toward treating Japan not merely as a sales market but as a long-term growth hub.

However, while Japan is the closest market, it is also the most challenging. Its geographical proximity allows for rapid logistics, and consumer trends are not significantly different from those in South Korea, making it advantageous to directly adapt product planning. On the other hand, Japan’s unique long-term business practices are deeply rooted, so it takes time to establish a foothold in the distribution network. Quality standards and certification procedures are also relatively strict, making the cost of market entry significant. The precedent of consumer sentiment fluctuating depending on the state of bilateral relations also poses a burden. Relying solely on the Korean Wave may eventually reach its limits.

A distribution industry official stated, “While supply through trading companies used to be the main approach, there has recently been a clear trend toward entering local distribution networks directly to communicate with consumers,” adding, “The trend is to gauge market response through pop-up stores and then establish the brand with permanent retail locations.” The official continued, “Since Japan is a market where business relationships tend to last a long time once trust is established, the prevailing sentiment is to focus on building brand awareness rather than short-term sales.”