Hermès sales jumped 19% to €1.12 billion in the first quarter of this year, for the most part due to a 15% increase in Japan sales. Japan – Hermès’ highest growth region for the quarter – earned €142 million in Q1 2014 while all of Asia brought in €417 million.

japan-and-korea-luxury-2015-regionL2’s Japan and Korea Luxury study finds promise in an (until recently) overlooked region. Not only did the size of Japan’s luxury market surpass both Korea and China in 2014, internet retail made a higher percentage of sales than in any other APAC country.

japan-and-korea-luxury-2015-internet-retail-as-percentage-of-total-luxury-sales-by-countryThe L2 study quantifies the digital competence of 70 brands in Japan, and finds that brands are not making the appropriate investments to realize the opportunity. For example, 16% of fashion brands in the study do not have a regional site for Japan and site features and functionality lag. For example, just a quarter of brands in Japan offer filtering and sorting of products vs. 52% of brands in the U.S.

japan-and-korea-luxury-2015-feature-adoption-on-luxury-brand-sites-by-countryHermes – ranked Average and 25th in L2’s Japan Index – secures high organic visibility on search engines and third party e-tailer platforms. However, navigating the paths to purchase from these sources is far from seamless.

For more on how global and regional brands are using digital to drive sales, download a copy of the Digital IQ Index: Japan & Korea Luxury.

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