TOKYOAug 23 (News On Japan) – Drugstores are expanding rapidly across Japan, with a market value of more than 8.3 trillion yen ($57 billion) by 2023. Drugstores were introduced in Japan in the 1970s and initially focused on selling medicines and daily necessities. However, many stores now offer a wide range of products, increasing competition among companies that play to their unique strengths.
Some chains are emphasizing their private label products, focusing on health-conscious items, while others are capitalizing on the growing interest in men’s cosmetics. In addition, some drugstores have become supermarket-like, offering fresh produce like meat and produce, as well as prepared meals. This has expanded the scope of competition beyond the traditional drugstore sector.
The number of drugstores in Japan has increased dramatically, now totaling around 20,000 outlets. Customers often visit these stores not only for medicines but also for daily necessities, attracted by the competitive prices. In response to the growing competition, drugstores are differentiating themselves through various strategies. One notable trend is the increasing emphasis on groceries, with some chains even offering fresh food.
For example, Welcia Holdings, the industry’s highest-revenue chain, has focused on exclusive products under its own brand, “Welcia Class.” With about 300 types of health-conscious items, Welcia is leveraging its scale as part of the Aeon Group to capture customer attention. One of its popular items is an exclusive frozen fried rice developed with a famous ramen shop owner in Tokyo.
Meanwhile, Matsumotokiyoshi Holdings, the third largest player in the market, is expanding its cosmetics line, especially for men, in response to the growing beauty consciousness among male customers. By partnering with men’s cosmetics manufacturer Mandom, Matsumotokiyoshi has successfully attracted new customers.
Drugstores have evolved since their introduction in the 1970s, along with Japan’s rapid economic growth. Initially selling only pharmaceuticals and daily necessities, they have now significantly expanded their product range. According to industry experts, the key to increasing sales is to expand the range of frequently purchased items, such as groceries.
For example, Kusuri no Aoki, located in Ishikawa Prefecture, operates stores that resemble supermarkets, with fresh vegetables prominently displayed. The store offers competitively priced fresh produce and ready-made meals prepared in-house. Kusuri no Aoki’s focus on groceries has allowed it to increase sales while retaining customer interest with affordable prices.
As competition intensifies, drugstores are not only competing within their industry, but are also facing challenges from supermarkets and convenience stores. The fight for survival is becoming increasingly fierce, with each chain striving for a greater share of the spending of the shrinking population.
Source: YOMIURI
