Opinion Leadership and Culture among youth in

JapanThe case of @cosme

The concepts of Opinion Leaderships

and Culture

the process by which one person (the opinion leader) informally influences the actions or attitudes of others.

The key characteristic of the influence is that it is interpersonal and informal and takes place between people who are not representing a commercial selling source.

Opinion leadership

CultureThe sum total of learned beliefs, values,

and customs that serve to regulate the consumer behaviour of members of a particular society.

Culture is learned over time, and normally transferred through various social levels of interaction (Family, school and peers) which tend to form sub cultures.

Opinion Leaders and Culture…

The relationship (often opinion leaders) reinforce the unique cultural values and/or attitudes of a selected group

Whereas such values or traits might be subjective, they often reflect a common trend.

In Japan, youthyouth have increased in number and purchasing power => forming the basis for a unique cultural definition, with a unique consumption culture

An external influence

Internal Source

External Source+ = Consumer

Decision

Experience, Knowledge,

Memory

Opinion leaders, Reference groups,

Family, Social class, Culture

Presentation of @cosme

Introduction to @Cosme Website : Advice and shopping

Main users : Youth between 16-25

Business model is mix between Community and infomediary (information intermediary)

=> Based on loyalty : High investments in time and emotion

=> exchange of voluntary and independent data which can be analysed to support advertising campaigns

Social networking => product and service reviews which help users make consumption decisions

What is “@cosme”?

WOM based SNS website(especially about cosmetics )

Only in Japanese

200 million PV/month

Advertise

Selling

Research

Organize cosmetics

community on website

1,350,000 members

What is “@cosme”?

Who are their target?

Mostly young women who are interested in cosmetics

“@cosme’s 3 key features”①WOM based ranking

“@cosme’s 3 key features”②WOM based search engine

Product picture

Comments

Rank by ★★★

Link to the online store of @cosme (come.com)

“@cosme’s 3 key features”③ Free question asking wall

As there are 2,800,000/month unique users

ask

answer

Get some points that can use for receiving samples of products

Also @cosme sells products

web

real

Convenience stores

＠ cosme thanks festa

Experience professional make up

Get some samples

Specialists’

Marketing Mix

Product PlacePromotion

What What makes makes

@cosme @cosme attractive?attractive? Pric

e

Product (service in our case)

product and service reviews around cosmetics mostly but other products could be included

PriceFreemium pricing model

=> Because access and contribution to @cosme is free, i.e. no subscription, many youth are more inclined to use it

• Their strategy is weakened by the limited number of physical stores

=> Perhaps this keeps their operational costs down and further permits freemium pricing for web usage

PromotionDifferent ways of communication via Internet

Promotion=> Strengths

Use mainly Internet : community website

Ex:

Events

Ex: once a year giving samples

On the products in cosmetics shops you can find sometimes the ranking

Trust because no partnerships

=> Objectivity

Promotion=> Weaknesses

No referenced on Google as an ads

Private circle for the events

No use of magazines => important media in Japan

PlaceOn Internet

=> The main product is the website for advices

=> Huge mobility

Some stores well located in Tokyo

Ex : Shibuya, Shinjuku, Ikebukuro

=> But not well indicated, and limited number of physical stores

What are the specificities of Japanese Youth Market?

Dominant Japanese Youth consumer traits

Loyalty to brands

=> Group Conformity

Status

=> Desire to be recognized

Trendy

=> Technology

=>Sophisticated

Powerful word of mouth

=> Collectivist attitude

Conspicuous consumption

=> No responsibility + disposal income

Things you need to know about Japanese youth

consumers…

1. 1. Short PLC

Things you need to know about Japanese youth

consumers…

2. 2. Importance of product/brand recognition by

others

Things you need to know about Japanese youth

consumers…

3. 3. Word of mouth

Things you need to know about Japanese youth

consumers…

4. 4. Consumption = Status

Things you need to know about Japanese youth

consumers…

5. 5. Fulfilled needs

→→ new needs must be created by marketers

(Consumers are no longer seeking to fulfill needs. New need recognition must be created by the supplier)

What does @cosme say about the Japanese Youth

consumers?

What does @cosme say about the Japanese Youth

consumers?

@cosme as opinion leaders In the model of consumer decision making, @cosme is

considered an avenue for opinion leaders. It is an external influence on consumer behaviour

The fact that it resonates a lot with Japanese youth means it is a symbol of consumer behaviour within this age group

Its model and choice of the marketing mix reveals some of these traits and cultural aspects towards consumer behaviour

…@cosme and Japanese youth…

@cosme suggests Japanese youth as search buyers and risk averse : reduce any perceived risk in the consumption decision process. This is also suggestive of their insistence on quality…

The popularity of and reliance on @cosme also suggests a collectivist consumption attitude among Japanese youth : the need for group conformity

The majority of the reviews are around Japanese cosmetics and brands could be indicative of this age group’s trust in the quality of Japanese products and inclination towards ethnocentricism

Where next for Japanese Youth…

Despite these suggestions of consumer behaviour of Japanese Youth through their use of @cosme, the tide might be changingmight be changing

Researchers contend that there is increasing “Americanisation” of this consumer group in Japan

The example of Hip-hop Culture

This can be seen in the development of the Hip-Hop culture (among others) in Japan, which has its roots here since 1984

Hip-Hop culture (which is essentially American) exhibits itself in some Japanese youth’s choice of dressing, choice of music consumption and many times use of language.

This suggests that perhaps Japanese youth are Japanese youth are becoming more global consumersbecoming more global consumers than ever before

Conclusion

But more interestingly, it might suggest a trend towards more “Western” consumption behaviour

Such behaviours are characterised by individualism as opposed to collectivism, greater independence and less group conformity when making consumption decisions, a slightly more risk tolerant attitude towards consumption thereby caring less what they rest of the “group” thinks about them.