Japan has long been known as a retail graveyard, where even global giants like Tesco, Walmart and Carrefour have failed. The rise of Chinese platforms signals a fundamental shift in one of the world’s most closed consumer markets.

Historically, Japan’s retail and ecommerce sector has been defined by its insularity. Local groups such as Aeon, Uniqlo and Rakuten have long dominated, thanks to intricate supply chains, loyal customer bases and supportive regulatory environments. Cultural factors add another layer of difficulty for foreign entrants, from the long-standing preference for domestically made products to geopolitical tensions, particularly among older generations.

Yet in recent years, a striking reversal has been under way. Chinese companies, including PDD Holdings’ Temu and Shein, have broken through barriers once considered impenetrable, offering products at prices that undercut local retailers by as much as 90 per cent. Chinese-owned TikTok is preparing to enter Japan’s online shopping market in the coming months, signalling a further deepening of China’s retail push into the country.