January 31, 2024

Industry Trends: Navigating Japan's Financial Scene Post-COVID

 

Japan Investment Nov 2023

 

 

In the post-COVID era, the financial behavior of Japanese internet users has seen some significant changes. The Z.com Engagement Lab survey reveals that a majority of these users are turning to online news and blogs for their financial information, with younger generations favoring social media and older groups relying on traditional media. Interestingly, only a small fraction of respondents showed an inclination towards high-risk investments, with conservative strategies being the preferred option. The primary motivations behind investing are asset growth, improving the quality of life, and securing financial safety. With regard to financial planning, most of our respondents invested less than 20% of their income, with investment trusts, equities, including ETFs, and insurance products as their top financial assets. Looking into the future, Japanese internet users seem to have an optimistic outlook on gold and precious metals, while future trading, foreign currencies, and real estate are viewed with pessimism.

 

 

Generational Variances in Financial Information Sources

According to the latest survey by Z.com Engagement Lab found that most Japanese internet users obtain their financial information primarily from online news and blogs (59%), followed by television and radio (46%) and social media (31%). The use of these channels varied with age. Younger respondents (16-29 years) were more likely to use social media, while older age groups (50 years and above) showed a higher reliance on traditional media like television and radio.

Chart 1

 

Decoding the Financial Behavior of Japanese Internet Users

When asked about their investment tendencies, only 7% of the respondents were inclined toward high-risk investments. 43% preferred conservative investment strategies, and around 50% said they did not have a concrete strategy. The primary reasons for investing were asset growth (39%), improving the quality of life (38%), and securing financial safety (34%). Younger respondents (16-39 years) prioritized improving their quality of life, while those aged between 50-60 years valued securing their post-retirement life.

 

Risk, Reward, and Retirement: A Glimpse into Japanese Investment Strategies Post-COVID

Regarding how much of their income respondents invest, the majority (69%) invested less than 20% of their income. The top three types of financial assets held by respondents were investment trusts (22%), equities including ETFs (22%), and insurance products (14%). Younger respondents (16-29 years) held fewer financial assets compared to those aged above 30. However, as age increased, the holding rate for insurance products also increased, with the highest rate found in the 50-60 age group.

 

Japanese Internet Users' Investment Outlook: Gold Shines as Futures Fade

Japanese internet users were optimistic about the future performance of gold/precious metals (29%), investment trusts (27%), and equities including ETFs (24%). However, they seemed pessimistic about futures trading (35%), foreign currencies (29%), and real estate (28%). The uptrend in gold prices in recent years and the current weak yen situation might have increased optimism for gold investments while making foreign currency investments less popular.

Chart 2

 

 

Z.com Engagement Lab will continue to track the Investment and money management preferences of the Japanese public and update survey data, monitoring market trends and changes in consumer demand.

 

 

Research by: Z.com Engagement Lab
Survey Date: November 21-26, 2023
Methodology: Online survey
Target Group: Japan internet users aged 16-60
Sample Size: 1323
Editor: TNL Research
Review by: Tatt Chen

* Contents in this report were drafted with input from generative.ai

 

 

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