In a country that invented the idea of cellphone novels, developed the first E-ink ereader, and has gadget-loving consumers who commute long distances everyday, it is a little odd that ebooks didn’t explode in Japan long before the Kindle launched in the US. Have you ever wondered why the Japanese ebook market is lagging behind that of the US?
An article which crossed my desk this morning tries to answer that question. According to The Japan Times, the Japanese ebook market sputtered for many years because of risk-averse consumers:
Although it has now been surpassed by the United States, Japan was once the world’s largest market for e-books, thanks to the early success of the cellphone-content business. But in today’s competitive market, e-book sellers disappear every few months, leaving consumers to wonder whether the digital products they are buying are as permanent as paper books.
I think the article reaches the wrong conclusion, but it’s still worth reading.
It offers a fascinating look at the recent history of failed ebook efforts in Japan, including:
On May 29, Yamada Denki, Japan’s largest chain retailer of electrical appliances, announced that it will close its Yamada e-Book store at the end of July, two years after its launch in June 2012. The service is not especially popular anyway, but the announcement raised the hackles of users by saying that all their purchased e-books would become unavailable; that unused credit would not be refunded; and that Yamada Denki will eventually start another e-book store.
When other e-book stores have shut down in the past, they have usually offered their customers some form of compensation. For example, when convenience-store chain Lawson stopped the e-books part of its Elpaka Books service in February, users were offered Lawson store points to the value of their existing e-book purchases.
In short, the Japanese ebook market has seen so many retailers come and go that the US equivalent would be if Best Buy, Target, Circuit City, Krogers, Menards, Meijers, and even 7-11 thought it would be a great idea to slap their logo on an app and launch an ebookstore.
All that noise and all those competitors would make it hard to choose a single store, and it would also make it difficult for any one retailer to turn a profit, but I don’t think that is the real reason why the Japanese ebook market has been stymied.
While the article in The Japan Times is a good look at the current state of the Japanese ebook market, it doesn’t take a historical view and thus it misses at least one important detail, which is how many titles were offered by the ebookstores.
And when Sony made their reappearance in the Japanese ebook market in 2010, they launched an ebookstore with only 20,000 titles.
In comparison, Amazon shocked everyone when they launched the Kindle three years earlier and offered a catalog of 90,000 titles.
Content was one of the stumbling blocks for the US market for many years, and the same is true for the Japanese market. If there’s not enough content to buy then consumers won’t invest, retailers can’t turn a profit, and the market fizzles.
It doesn’t matter whether an ebookstore is popular or not, and it doesn’t matter whether the tech is any good; if the catalog is too small then there simply won’t be enough sales to keep it in business.
And that is probably what kept the Japanese ebook market so small for so many years.
P.S. Content was not the only issue holding back that market, but I would still rate it higher than risk-averse consumers.
image by MIKI Yoshihito (´???)