Japan’s bakugai phenomenon fading fast
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The drastic slowdown of the Chinese duty-free shopping phenomenon known as bakugai (“buying explosion”) continues to hit Japanese tax- and duty-free retailers, with several companies having sharp revenue falls in recent months.
As a result of the slowing market, South Korean travel retailer Lotte Duty Free and its partners Bic Camera and New Kansai International Airport Company have pulled out of a planned downtown duty-free shop proposed for Osaka.
The “bakugai” trend began in Japan in 2015 as travelling shoppers from China poured into Japan in waves, says The Moodie Davitt Report. This led to a proliferation of government-backed tax- and duty-free stores, and like all bubbles this one appears to have burst. Read more.
Questions & Answers
Q.What specifically is the 'bakugai' phenomenon mentioned in the article?
What specifically is the 'bakugai' phenomenon mentioned in the article?
Bakugai refers to a 'buying explosion' where travelling shoppers from China poured into Japan. This trend, which began in 2015, involved Chinese tourists making large purchases at Japanese tax- and duty-free stores.
Q.How has the fading of 'bakugai' affected businesses in Japan?
How has the fading of 'bakugai' affected businesses in Japan?
Several Japanese tax- and duty-free retailers have experienced sharp revenue falls in recent months. This slowdown also led to Lotte Duty Free and its partners cancelling plans for a downtown duty-free shop in Osaka.
Q.Which companies were involved in the cancelled duty-free shop project in Osaka?
Which companies were involved in the cancelled duty-free shop project in Osaka?
South Korean travel retailer Lotte Duty Free, along with its partners Bic Camera and New Kansai International Airport Company, were involved. They pulled out of the planned downtown duty-free shop due to the slowing market.
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