Cracking the Land of the Rising Sun

The Japanese sports nutrition market, with a compound annual growth rate (CAGR) of over 10% since 2013, presents a lucrative opportunity. The market has been shifting from a focus on protein powder to a diverse range of products like bars and ready-to-drink beverages, catering to a growing health and wellness consciousness.

Within this dynamic space, key consumer trends include:

• Emphasis on functionality and convenience: consumers seek products with specific health benefits that fit easily into busy lifestyles. 
• Rising popularity of plant-based options: demand for plant-based protein powders and bars is growing, in line with broader sustainability concerns. 
• Local flavors and preferences: Japanese consumers have distinct tastes, favoring unique flavors like matcha, red bean and Hokkaido milk tea.

While major players like Meiji and Morinaga dominate,  foreign brands are increasingly finding success through deep localization.

Riding this wave of health awareness, UK-based Myprotein entered the Japanese market in 2016, using the complete commerce platform supplied by THG Commerce to execute its growth strategy.

Taking a Hyper-Localized Approach 

Myprotein used THG Commerce's platform to turn e-commerce data - every click, cart addition, and purchase - into a powerful strategic weapon. This allowed the brand to take a hyper-localized approach to every aspect of its business.

Flavors: by analyzing sales data, Myprotein discovered the overwhelming popularity of local flavors. This insight allowed them to develop region-specific best-sellers, like the Milk Tea flavor, which drove significant sales and market share gains. 

Distribution: Myprotein utilized THG Commerce’s global fulfilment network to establish a warehouse in Singapore and partner with local couriers. This optimized the supply chain for fast, affordable deliveries across Japan, reducing customer churn and increasing customer lifetime value.

Payments: integrating familiar payment methods like Konbini (convenience store payments) and PayPay made the checkout process seamless and boosted conversions.

Events and partnership: Myprotein hosted a retail event in Tokyo to increase brand awareness and collaborated with Japanese firm ITOCHU to expand its retail presence and drive top-line revenue growth.

Data-Driven Insights

DTC focus: building closer relationships with Japanese consumers through direct-to-consumer (DTC) allowed for secure and profitable customer service, while gathering valuable insights to optimize operations. 

NPD team dedicated to Asia: Myprotein turned their e-commerce platform into a powerful tool, transforming every click and purchase into actionable insights about their customers.

Scaling first-party data: utilising customer insights empowered the brand to adapt their product offerings in real-time, ensuring that the products remained relevant, contributing to increased brand awareness and market share.

Flash sales: leveraging local holidays like Golden Week and Single’s Day increased brand awareness and relevancy, leading to increased market share.

Rakuten marketplace: establishing a strong presence on the popular platform - Rakuten - allowed Myprotein to reach a wider audience and drive incremental sales. 
 

Unlocking the Power of Shun

In Japan, ‘Shun’ refers to the peak season for local ingredients, a powerful driver of food trends. Consumers value the freshness, health benefits, and exclusivity of seasonal products. Myprotein tapped into this trend, mirroring a strategy used by global brands like KitKat to create limited-edition seasonal flavors.

This strategy was critical because it:

• Resonated with local values: aligned with the cultural appreciation for health, seasonality, and premium quality.
• Drove limited-edition excitement: created buzz and brand awareness with limited-edition product drops, boosting sales during key campaigns.
• Positioned NPD as PR hook: generated media attention, attracted new customers, and improved brand perception.

Embracing Shun with limited-edition flavors helped to elevate Myprotein's brand image, drive sales, and attract a loyal customer base.

The Results

• Exponential growth: revenue soared from £1 million in 2016 to £75 million in 2019 and £125 million in 2020, showcasing the power of tailoring products to local preferences.
• Market leadership: Myprotein became the #1 foreign sports nutrition brand in Japan in 2022, with localized products accounting for 11% of its total revenue in Asia.
• Customer engagement: the brand attracted 75,000 customers on Rakuten and drew over 7,000 event visitors to a single event, demonstrating a strong connection with Japanese consumers.

“To truly succeed in Japan, you need to go beyond surface understanding. Dive into local trends, preferred communication channels like SNS, unique payment methods and their high expectations for customer service. Be a chameleon, blending seamlessly into the market – think and act like a local!” 

– Atsuko Varlet General Manager, Myprotein Japan

Challenges and Opportunities

Despite its remarkable success, Myprotein recognizes the need to constantly evolve to stay ahead in the dynamic Japanese market. The brand is focused on navigating key challenges while seizing exciting new opportunities.

Challenges:

• Maintaining innovation: the brand must continuously introduce new and exciting localized flavors and products to keep up with fast-changing consumer tastes. 
• Local competition: Myprotein faces rising competition from well-established domestic brands and needs to strengthen customer loyalty through community engagement and unique product offerings. 
   

Opportunities

• Offline expansion: building on the success of its retail collaborations, Myprotein plans to expand its brick-and-mortar presence, potentially through partnerships with fitness centers or health stores.
• Building a deeper connection: this physical expansion aims to make the brand more accessible, foster deeper customer relationships, and create an omnichannel experience that further solidifies its position as a market leader in Japan.
   

Bottom Line

By providing a flexible and scalable ecommerce platform, THG Commerce empowered Myprotein to quickly adapt its product offerings, manage local marketing campaigns, and streamline fulfilment. 

This powerful partnership was key to navigating the complexities of the Japanese market and fuelled Myprotein’s journey to becoming the number one foreign sports brand in the country.